Document:

hsdt-ex1026_1228.htm

 

Exhibit 10.26

COMMERCIAL LEASE AGREEMENT –

SUMMARY OF BASIC TERMS

THIS LEASE AGREEMENT, made this 29th day of March, 2017, by and between NeuroHabilitation Corporation (hereinafter referred to as Tenant) and 660 Tudor Square, L.P. (hereinafter referred to as Landlord).

WITNESSETH:

The Landlord, for and in consideration of the prompt payment of the rent as specified in this Agreement as well as the performance of all of the covenants, promises and agreements contained in this Agreement upon the part of the Tenant does hereby demise and lease to the Tenant and Tenant does hereby lease from the Landlord the premises situated at 642 Newtown Yardley Road, Suites 100,105, and 120, Newtown, PA, 18940, consisting of 10,444 square feet (known as "Leased Premises").

	
1.
	
TERM

	
 
	
A.
	
TERM

The term of this Lease will commence on the later of July 1, 2017 or the date Landlord delivers the Leased Premises to Tenant complete with a certificate of occupancy issued by Newtown Township, in accordance with paragraph 6, below, having completed all of Landlord's Work to Tenant's complete satisfaction (the "Commencement Date") and terminates on December 31, 2022. In the event that Landlord is unable to give possession of the Leased Premises, as herein provided, by reason of any cause beyond the control of Landlord, the Landlord shall not be liable in damages to the Tenant therefor and during the period that Landlord is unable to give possession, all rights and remedies of both parties hereunder shall be suspended; and no rental obligation shall be due and owing during the suspension period, and the Lease term shall be extended by a number of days equal to the number of days in the suspension period.

Notwithstanding anything to the contrary set forth herein:

1. If Landlord has not commenced Landlord's Work on or before May 1, 2017, and such delay is not the result of any action or inaction on the part of Tenant, Tenant shall have the right to terminate this Lease upon written notice to Landlord given at any time after May 1, 2017 and prior to the date on which Landlord commences Landlord's Work.

2. If Landlord has not completed Landlord's Work by September 1, 2017, and such delay is not the result of any action or inaction on the part of Tenant, Tenant shall have the right to terminate this Lease upon written notice to Landlord given at any time after September 1,2017.

In the event of such termination, neither party shall have any further rights and/or obligations hereunder, except for any such rights and/or obligations accruing prior to the effective date of termination.

	
 
	
B.
	
TERMINATION

This Lease shall expire at the end of the term as defined in paragraph 1(A). In the event the Tenant shall for any reason fail to vacate the Leased Premises at the expiration of the term of this Lease, the Tenant shall be deemed to be a "hold-over" Tenant and liable for additional rents provided in Commercial Lease Agreement, Paragraph 1(B).

			
	
D.J.M
	
 
	
J.L

	
Landlord Initials
	
 
	
Tenant Initials

- 1 -

 

	
2.
	
RENT

	
 
	
A.
	
MINIUMUM BASE RENT

The monthly rental payments for the term shall be as follows:

 

			
	
1
	
7/1/2017 – 12/31/2017
	
$ 00.00 + $ 1,741.00 electric

	
2.
	
1/1/2018 – 12/31/2018
	
$ 18,271.00 + $ 1,741.00 electric

	
3.
	
1/1/2019 – 12/31/2019
	
$ 18,825.00 + $ 1,740.00 electric

	
4.
	
1/1/2020 – 12/31/2020
	
$ 19,390.00 + $ 1,741.00 electric

	
5.
	
1/1/2021 – 12/31/2021
	
$ 19,972.00 + $ 1,741.00 electric

	
6.
	
1/1/2022 – 12/31/2022
	
$ 20,571.00 + $ 1,741.00 electric

	
 
	
B.
	
Option to Extend

Tenant shall have the right to extend this Lease for an additional five years with written notice to Landlord no later than April 30, 2022. The monthly rental payments for this additional term shall be:

 

			
	
1.
	
1/1/2023 – 12/31/2023
	
$ 21,188.00 + $ 1,741.00 electric

	
2.
	
1/1/2024 – 12/31/2024
	
$ 21,824.00 + $ 1,741.00 electric

	
3.
	
1/1/2025 – 12/31/2025
	
$ 22,478.00 + $ 1,741.00 electric

	
4.
	
1/112026 – 12/31/2026
	
$ 23,153.00 + $ 1,741.00 electric

	
5.
	
1/1/2027 – 12/31/2027
	
$ 23,847.00 + $ 1,741.00 electric

	
 
	
C.
	
UTILITIES

Tenant shall be responsible for payment of all electricity service to the unit. Tenant shall pay the sum listed in Minimum Base Rent to landlord as additional rent each month, without demand or offset, and starting on the Commencement Date. The amount per month shall be adjusted annually if the electric bills change over the base year of 2017. Tenant is responsible for janitorial service to the interior of their suite. Landlord is responsible for janitorial service for all common areas.

	
 
	
D.
	
REAL ESTATE TAXES AND COMMON AREA MAINTENANCE

Landlord shall be responsible for and pay all real estate taxes and common area maintenance, as shall be in effect as of the Commencement Date. Tenant will be responsible for its proportionate share of tax increases over the base year of 2017 for County and Township taxes and 2016/2017 for School taxes. Tenant's proportionate share of the building is 12.53%. After being notified by the Landlord, Tenant will pay any such increases as additional rent with the next rental payment. Tenant shall be required to pay the Additional Rent within sixty (60) days following Tenant's receipt of the invoice from Landlord. Tenant shall have the right, exercisable annually within thirty (30) days after receipt of Landlord's notice, to audit the basis for the increases proposed to the CAM charges.

	
 
	
E.
	
RENTAL PAYMENTS

Rental Payments are payable to

“660 Tudor Square, L.P.” and are to be delivered to:

RE/MAX Properties, Ltd.

c/o Daniel J. McCloskey

210 Penns Trail – Suite 100

Newtown, PA 18940

			
	
D.J.M
	
 
	
J.L

	
Landlord Initials
	
 
	
Tenant Initials

- 2 -

 

	
3.
	
USE OF PREMISES

Tenant shall use the leased premises for a medical and business office, including but not limited to training of Tenant staff members and independent physical therapist personnel, for use as a clinical trial site with clinical operations, and no other purpose. Tenant shall be responsible for the acquisition of any and all permits for such use from any municipal or governmental authority or agency at its own cost and expense. If the permits cannot be secured, the lease would be subject to termination. Tenant shall use its best efforts to secure any and all permits and Landlord shall cooperate with Tenant if needed in securing any and all permits.

	
4.
	
NOTICES

All notices that may be necessary under this Agreement shall conclusively be presumed to have been given when sent by overnight mail or by certified mail return receipt requested addressed respectively as follows:

 

	
TO LANDLORD:
	
660 Tudor Square

c/o Daniel J. McCloskey

RE/MAX Properties, Ltd.

210 Penns Trail – Suite 100

Newtown, PA 18940

	
 
	
 

	
TO TENANT:
	
NeuroHabilitation Corporation

642 Newtown Yardley Road, Suites 100-105-120

Newtown, PA 18940

Attn: Joyce LaViscount, CFOICOO

	
 
	
 

	
 
	
With a required copy to:

D. Keith Brown, Esq.

Stuckert & Yates

P.O. Box 70

Two North State Street

Newtown, PA 18940

 

	
5.
	
SECURITY DEPOSIT

Upon execution of this Agreement, Tenant shall deposit with Landlord the sum Eighteen Thousand Two Hundred Seventy-seven Dollars and 00/100 ($18,277.00) rent to be held as security for the full and faithful performance by Tenant of Tenant's obligations under this Lease and for the payment of damages to the leased premises. The balance of the security deposit shall be returned to Tenant at the expiration of the term of this Lease less such sums as are required for the payment of damages to the leased premises. It is understood and agreed that no part of the security deposit is to be considered as the last rental due under the terms of this Lease.

	
6.
	
INTERIOR IMPROVEMENTS—LANDLORD'S WORK

	
 
	
A.
	
Landlord’s architect, at Landlord’s expense, will prepare a floor plan for Suites 100-120 to be mutually agreed upon and signed by both parties and to become part of this Lease.

	
 
	
B.
	
Landlord will pay for fit-out costs to the extent agreed upon on or before April 15, 2017. Landlord and Tenant will use diligent efforts to mutually agree on a final floor plan, Specifications, and finishes on or before April 15, 2017.

	
 
	
C.
	
All furniture set-up and installation, all telephone and data wiring to be the responsibility of the Tenant.

	
7.
	
PROPERTY MANAGEMENT

It is understood and agreed that RE/MAX Properties, Ltd. shall collect all rents. The property is managed by a property management company, Maitland Property Management, which has been authorized by the landlord to handle issues as they involve the subject property. The tenant is instructed to contact the property management company at 215-983-2346 with any concerns.

			
	
D.J.M
	
 
	
J.L

	
Landlord Initials
	
 
	
Tenant Initials

- 3 -

 

	
8.
	
CO-OPERATING BROKER

Landlord agrees to pay The Flynn Company, Broker representing the Tenant, a full leasing fee in accordance with the normal and. customary fee schedules for this area.

This LEASE AGREEMENT – SUMMARY OF BASIC TERMS is intended to be read as a part of the COMMERCIAL LEASE AGREEMENT that is attached hereto, which gives a more detailed description of the rights and obligations of the Landlord and Tenant.

			
	
D.J.M
	
 
	
J.L

	
Landlord Initials
	
 
	
Tenant Initials

- 4 -

 

COMMERCIAL LEASE AGREEMENT

1. RENTAL PAYMENTS & TERMS

A. RENTAL PAYMENTS

All rental payments shall be due and payable on or before the first day of each calendar month during the term of this Lease. In the event that Tenant shall not pay any payment of rent within five (5) days after the due date, a late charge of five percent (5%) of the base rental payment and additional rental payment due shall be charged and payable with the next rental payment. In the event Landlord receives a check from Tenant written on insufficient funds, Landlord may charge Tenant a fifty ($50.00) dollar fee to reimburse Landlord for its costs and expenses.

All rent shall be payable without notice, demand, set-off, deduction or counterclaim. The obligation to pay rent is an independent covenant on the part of Tenant. Under no circumstances may Tenant withhold payment of rent. Tenant may pursue, however, any independent remedies (if any) Tenant has under this Lease. The terms "rent, base rent, additional rent, minimum rent" and any similar variant are used interchangeably in this Lease.

B. RENT WHILE HOLDING OVER

In the event that Tenant is classified as a hold-over Tenant pursuant to Commercial Lease Agreement-Summary of Basic Terms, Section 1 (B), then in that event, in addition to all rents provided for hereinabove, Tenant shall pay to the Landlord a monthly minimum base rent at a rate at 150% of the monthly rental in effect as of the last month prior to the date of expiration or termination. Tenant shall also indemnify, defend, protect and hold Landlord harmless from any loss, liability or cost including reasonable attorneys' fees, resulting from delay by Tenant in surrendering the Premises, including, without limitation, any claims made by any succeeding tenant founded on such delay. The foregoing provisions of this Section are in addition to and do not affect Landlord's right of reentry or any other rights of Landlord hereunder or as otherwise provided by law.

2. RIGHTS AND OBLIGATIONS OF TENANT

A. FIXTURES AND EQUIPMENT

All trade fixtures, equipment, appliances, decorations, etc., installed by Tenant in the Leased Premises shall remain the sole property of the Tenant, provided however, that Tenant shall repair any damages caused by the removal of such fixtures, equipment, appliances, decorations, etc., from the Leased Premises at the termination of this lease as provided herein.

B. WASTE AND NUISANCE

Tenant shall not commit or suffer to be committed any waste or any nuisance or other act or thing which may disturb the Landlord or any other person to whom the Landlord has any duty.

C. HAZARDOUS SUBSTANCES

Tenant covenants and warrants that Tenant, Tenant's Work and any alterations thereto and Tenant's use of Leased Premises will at all times comply with and conform to all laws, statutes, ordinances, rules and regulations of any governmental, quasi-governmental or regulatory authorities ("Laws") which relate to the transportation, storage, placement, handling, treatment, discharge, generation, production or disposal (collectively "Treatment") of any waste, petroleum product, waste products, radioactive waste, poly-chlorinated biphenyls, asbestos, hazardous materials of any kind, and any substance which is regulated by any law, statute ordinance, rule or regulation (collectively "Waste"). Tenant further covenants and warrants that it will not engage in or permit any person or entity to engage in any Treatment of any Waste on or which affects the Leased Premises.

Immediately upon receipt of any Notice (as hereinafter defined) from any person or entity, Tenant shall deliver to Landlord a true, correct and complete copy of any written Notice. "Notice" shall mean any note, notice or report of any suit, proceeding, investigation, order, consent order, injunction, writ, award or action related to or affecting or indicating the Treatment of any Waste in or affecting the Leased Premises.

			
	
D.J.M
	
 
	
J.L

	
Landlord Initials
	
 
	
Tenant Initials

- 5 -

 

Tenant hereby agrees it will indemnify, defend, save and hold harmless RE/MAX Properties Ltd., Landlord and its officers, directors, shareholders, employees, agents, partners, and their respective heirs, successors and assigns (collectively "Indemnified Parties") against and from, and to reimburse the Indemnified Parties with respect to, any and all damages, claims, liabilities, loss, costs and expense (including, without limitation, all attorneys' fees and expenses, court costs, administrative costs and costs of appeals), incurred by or asserted against the Indemnified Parties by reason of or arising out of: (a) the breach of any representation or undertaking of Tenant under this Section 2(C) or (b) arising out of the Treatment of any Waste by Tenant or any licensee, concessionaire, manager or other party occupying or using the Leased Premises, in or affecting the Leased Premises.

Landlord is given the right, but not the obligation, to inspect and monitor the Leased Premises and Tenant's use of the Leased Premises in order to confirm Tenant's compliance with the terms of this Section 2(C) and the representations set forth in this Section 2(C).

Tenant agrees to deliver upon request from Landlord estoppel certificates to Landlord expressly stipulating whether Tenant is engaged in or has engaged in the Treatment of any Waste in or affecting the Leased Premises, and whether Tenant has caused any spill, contamination, discharge, leakage, release or escape of any Waste in or affecting the Leased Premises, whether sudden or gradual, accidental or anticipated, or any other nature at or affecting the Leased Premises and whether, to the best of Tenant's knowledge, such an occurrence has otherwise occurred at or affected the Leased Premises.

D. GOVERNMENTAL REGULATIONS

Tenant shall at Tenant's sole cost and expense, without notice or demand from Landlord, comply with and faithfully observe all requirements of all municipal, county, state, federal and other governmental authorities having jurisdiction, now in force or which may hereafter be enforced, pertaining to the Tenant's use of the Leased Premises.

E. IMPROVEMENTS

Tenant shall not make any alterations, additions or improvements to the Leased Premises without the prior written consent of Landlord. Consent for non-structural alterations, additions, or improvements shall not be unreasonably withheld, conditioned, or delayed by Landlord. Tenant shall comply with all governmental rules and regulations in connection with such work, and shall prevent any lien or obligation from being created against or imposed upon the Leased Premises and will discharge all liens and charges for services rendered or materials furnished immediately after such liens occur or said charges become due and payable. Subject to Section 2(A) above and the following sentence, such alterations, additions or improvements shall become part of the real property and remain the property of Landlord on termination of the Lease unless consented to in advance by Landlord. Anything contained in this paragraph to the contrary notwithstanding Tenant may remove such alterations, additions or improvements, including any trade fixtures, at the termination of the Lease provided that Tenant does so without damaging the Leased Premises and further provided that Tenant restores the Leased Premises in all material respects to the condition the Leased Premises was at the inception of the Lease. 

At all times when any change or alteration is in progress, there shall be maintained, at Tenant's expense, Workmen's Compensation Insurance in accordance with the law, covering all persons employed in connection with the change or alteration, and general liability insurance of the mutual benefit of Tenant and Landlord, expressly covering the additional hazards due to the change or alteration.

F. SIGNS

Tenant may not install any signs or posters on the exterior of the building in which the Leased Premises are located or at any other location adjacent to the said building or install, display or use any signs except as shall be permitted by the Landlord whose permission shall not be unreasonably withheld, conditioned, or delayed. Tenant shall comply with all other written rules and regulations imposed by the Landlord or any municipal or other authority exercising jurisdiction over such matters.

			
	
D.J.M
	
 
	
J.L

	
Landlord Initials
	
 
	
Tenant Initials

- 6 -

 

3. MAINTENANCE

Landlord shall be responsible for and maintain (where applicable) in good operating condition (and repair or replace as needed) heating, electric, plumbing, utility systems, emergency lighting, exterior lighting, ventilation, and air-conditioning equipment servicing the Leased Premises. Landlord shall be responsible for maintenance of parking lot, snow removal, and landscaping. Tenant shall be responsible for the cost of all repairs that shall be determined to be caused by Tenant or any of its clients or invitees. 

Except as set forth in the preceding sentences, Tenant shall have the sole liability and responsibility for any maintenance and repair of the interior of the Leased Premises and the repair and maintenance of Tenant's fixtures or equipment contained herein.

Tenant shall provide complete janitorial services to the Leased Premises at least on a weekly basis and shall be responsible for the cost of such services. 

Landlord reserves the right to visit the Leased Premises at reasonable times and with reasonable notice, using his best efforts not to interfere with Tenant's use of Leased Premises. 

Tenant shall not be responsible for any damage by fire, elements, or unavoidable casualty or other catastrophic cause to Leased Premises which shall not be due to the negligence of the Tenant, Tenant's employees, agents or servants.

4. INSURANCE AND INDEMNITY

A. LIABILITY INSURANCE REQUIRED OF THE TENANT

Tenant shall take out and maintain the following insurance coverages throughout the term of this lease. Certificates of Insurance shall be provided to Landlord on or before the commencement of the initial term of this lease and at least 5 days prior to each anniversary thereafter.

All insurance coverages shall be provided by an insurance company which is licensed to conduct business in the State of Pennsylvania. Each insurance policy shall be provided by an insurance company with a minimum AM Best Company Rating of A-VIII. Liability insurance coverages shall be provided to extend coverage to the landlord on a primary and noncontributing basis. Landlord shall be covered as an additional insured on all liability coverages maintained by Tenant including all operations at or from the leased premises. All insurance policies shall contain a waiver of subrogation with respect to the coverages provided to Landlord thereunder. Landlord shall similarly request a waiver of subrogation from its property insurer to the extent of its recovery from its insurance company for any property loss that may occur at the leased premises. All policies of insurance will include language that the insurance company or agent for each coverage provided shall provide not less than 30 days advance written notice prior to cancellation or the imposition of any material change in the policy term or condition.

The following shall be included:

	
 
	
•
	
Commercial General Liability insurance on occurrence basis providing coverage of $1 ,000,000 per occurrence and $2,000,000 general aggregate per year. This policy will not be subject to a deductible of more than $5,000 per occurrence without the express written permission of landlord. Coverage also include premises medical payments of $5,000 per person fire legal liability coverage of not less than $100,000.

	
 
	
•
	
Statutory workers' compensation and employer's liability coverage for $500,000.

	
 
	
•
	
Umbrella liability coverage providing additional limits of protection on an occurrence above the primary general liability and employer's liability coverages for additional limit of not less than $4,000,000 per occurrence.

	
 
	
•
	
Property insurance on an "all risk" replacement cost basis covering all furniture, inventory, tools and equipment, and tenant improvements and betterments that may be installed by tenant. Tenant shall also purchase business income coverage that provides protection for at least 12 months of its rents as provided for under this lease. Landlord shall be an additional insured loss payee under this property coverage.

			
	
D.J.M
	
 
	
J.L

	
Landlord Initials
	
 
	
Tenant Initials

- 7 -

 

B. FIRE INSURANCE

Landlord shall maintain and keep in force and effect or cause to be maintained and kept in force and effect a policy of fire insurance covering the exterior of the premises (including foundations, structure and roof) of which the Leased Premises is a part and Tenant shall be responsible for fire insurance, or all risks coverage, covering the Leased Premises and contents of the leased premises, with Landlord listed as loss payee as its interests appear.

C. INDEMNIFICATION OF LANDLORD

Except for claims arising out of acts caused by the negligence or willful acts of the Landlord or its representatives, Tenant will indemnify Landlord and save Landlord harmless from and against any and all claims, actions, damages, liability and expense in conjunction with the loss of life, an occurrence in, upon or at the Leased Premises or the occupancy or use by Tenant of the Leased Premises or any part thereof, or occasioned wholly or in part by any act or omission of Tenant, his agents, contractors, employees, or servants. In case Landlord shall have been made a party to any litigation commenced by or against Tenant, then Tenant shall protect and hold Landlord harmless and shall pay all costs, expenses and reasonable attorney's fees incurred or paid by Landlord in connection with such litigation. This indemnification shall exclude claims made by Tenant against Landlord. Tenant shall also pay all costs, expenses and reasonable attorney's fees that may be incurred or paid by the Landlord in successfully enforcing the covenants and agreements of this Lease.

D. WAIVER OF SUBROGATION

Landlord and Tenant hereby release each other from any and all liability or responsibility to the other or anyone claiming through or under them by way of subrogation or otherwise for any loss, damage or injury to property covered by any insurance then in force, even if such loss or damage shall have been caused by the fault or the negligence of the other party., or anyone for whom such party may be responsible. All policies of insurance referred to herein shall contain a clause(s) or endorsement(s) acknowledging such waiver of subrogation and also to the effect that this mutual release shall not adversely affect or impair said insurance or prejudice the right of any insured to recover there under. The foregoing releases shall not apply to property losses or damages in excess of policy limits or to losses or damages not covered by insurance due the nature of the action or to a deductible clause in the policy.

5. DESTRUCTION OF LEASED PREMISES

A. MINOR DAMAGE

If the Leased Premises shall be damaged by fire, the elements or unavoidable casualty, but are not rendered materially unusable in whole or in part, Landlord shall at its own expense and costs, promptly cause such damage to be repaired and the rent shall not be abated.

B. PARTIAL DESTRUCTION

If by reason of such occurrence, the Leased Premises are rendered materially unusable in part, the Landlord shall at its own expense, promptly cause the damage to be repaired and the rent shall meanwhile be abated on a prorated basis, based upon the ratio of the area rendered unusable to the total rentable area of the Leased Premises.

C. TOTAL DESTRUCTION

If the Leased Premises shall be rendered wholly unusable by reason of total destruction, this Lease shall terminate upon the option of either the Landlord or the Tenant and if so terminated, both parties shall be released from any further liability under it, effective as of the date of total destruction.

6. EMINENT DOMAIN

A. TOTAL CONDEMNATION OF LEASED PREMISES

If the whole, or any part, of the Leased Premises shall be acquired or condemned by eminent domain for any public or quasi-public purpose, Tenant shall have the right to terminate this Lease at any time after the date of title vesting in such proceedings. All rental shall be prorated as of the date of such termination.

			
	
D.J.M
	
 
	
J.L

	
Landlord Initials
	
 
	
Tenant Initials

- 8 -

 

B. LANDLORD'S DAMAGES

Subject to Section 6(C) below, In the event of any condemnation or taking as aforesaid, whether whole or partial, the Tenant shall not be entitled to any part of the award paid to the Landlord for such condemnation, and the Landlord is to receive the full amount of such award; Tenant hereby expressly waiving any rights or claim to any part thereof.

C. TENANT'S DAMAGES

Tenant shall have the right to claim and recover from any condemning authority such compensation as may be separately awarded or recoverable by Tenant in Tenant's own right on account of any and all damages to Tenant's business by reason of the acquisition or condemnation, and for or on account of any loss, losses or expenses to which Tenant may be put in removing Tenant's merchandise, furniture, fixtures, equipment and leasehold improvements.

7. LANDLORD'S WARRANTIES AND COVENANTS 

A. AUTHORITY AND TITLE

Landlord represents and warrants that Landlord is the owner of the Leased Premises and has the right to make this lease.

B. QUIET ENJOYMENT

Landlord covenants that upon the payment by the Tenant of the rents herein provided and upon performance of all the covenants, terms and conditions on Tenant's part to be observed and performed, Tenant shall peaceably and quietly hold and enjoy the Leased Premises or the tenancy created hereby without hindrance or interruption by the Landlord or any other person or persons lawfully or equitably claiming by, through or under the Landlord, subject nevertheless to the terms and conditions of this Lease.

8. ASSIGNMENT AND SUBLEASE

A. ASSIGNMENT AND SUBLETTING BY TENANT

Tenant shall not have the right, except with the prior written consent of Landlord, which may not be unreasonably withheld, conditioned, or delayed by Landlord, to assign this Lease or any interest therein. The assignee selected by Tenant shall be subject to the approval of Landlord and, if Landlord approves the assignment, the assignee shall assume in writing all of the Tenant's obligations under this Lease and Tenant shall remain liable for each and every obligation hereunder unless agreed otherwise by Landlord in writing.

The approval of Landlord shall be based upon the proposed assignee's financial condition, proposed use and stability, and any other consideration deemed relevant by landlord. 

Tenant shall not have the right except with the prior written consent of Landlord, which may not be unreasonably withheld, conditioned, or delayed, to sublet the Leased Premises provided that the Landlord shall have the right to approve such subtenant and that the subtenant shall assume in writing all of the Tenant's obligation under this Lease, and Tenant shall remain liable for each and every obligation under this Lease. The approval of such subtenant shall be based upon the same conditions as set forth in the previous paragraph.

			
	
D.J.M
	
 
	
J.L

	
Landlord Initials
	
 
	
Tenant Initials

- 9 -

 

9. TENANT'S DEFAULT & REMEDIES

A. TENANT'S DEFAULT

The following shall constitute an "Event of Default" under this Lease:

	
 
	
1.
	
failure of Tenant to pay in full, within fifteen (15) days after receipt of written notice from the Landlord that the same is due and owing, any and all installments of Minimum Rent provided that written notice of the same shall not be required to be given more than twice in any calendar twelve (12) month period. Additional Rent and/or other charge or payment herein reserved, included, or agreed to be treated or collected as rent and/or any other charge, expense, or cost herein agreed to be paid by the Tenant; or

	
 
	
2.
	
if Tenant violates or fails to perform or otherwise breaks any non-monetary covenant or agreement of this Lease Agreement or the agreements incorporated herein by reference, and such failure or violation is not cured within thirty (30) days (or such other period if specifically provided in this Lease) after written notice from Landlord to Tenant of such failure or violation, or in the case of a failure or violation which cannot be cured [Illegible] notice period, the Tenant has not commenced to cure such failure or violation within the notice period or has not diligently pursued the completion of such cure; or

 

	
 
	
3.
	
if Tenant vacates the Leased Premises without first having paid and satisfied the Landlord in full for all Minimum Rent, Additional Rent and all other charges then due that may thereafter become due until the expiration of the then current term, above mentioned; or

	
 
	
4.
	
if Tenant becomes insolvent, makes an assignment for the benefit of creditors, files or has filed against it a petition in bankruptcy and such petition remains undismissed sixty (60) days after said petition is filed, or a bill in equity or other proceeding for the appointment of a receiver for the Tenant is filed, if proceedings or reorganization or for composition with creditors under any State or Federal law be instituted by or against Tenant; or

	
 
	
5.
	
if Tenant shall default in the timely payment of Minimum Rent, Additional Rent or other charges payable by Tenant hereunder or to timely discharge any other monetary obligation more than two (2) times in any twelve (12) month period notwithstanding the fact that any such default has been previously cured; or

	
 
	
6.
	
if Tenant or any agent of Tenant falsifies any report or statement (including financial statements) to be furnished to Landlord pursuant to the terms of this Lease. The falsification of any such document shall be deemed an incurable material breach of this Lease and, at Landlord's option, constitute an immediate termination of Tenant's right to possession of the Leased Premises; or

	
 
	
7.
	
if Tenant fails to open for business within sixty (60) days after the Commencement Date; or

	
 
	
8.
	
if Tenant fails to execute and return required estoppel certificates within the ten (10) days of Landlord's request and subordination agreements within fifteen (15) days of Landlord's request.

			
	
D.J.M
	
 
	
J.L

	
Landlord Initials
	
 
	
Tenant Initials

- 10 -

 

B. REMEDIES

If an Event of Default occurs, Landlord shall have the right, after fifteen (15) days notice to cure a monetary default and/or thirty (30) days notice to cure a non-monetary default, to:

	
 
	
1.
	
Accelerate the Minimum Rent and Additional Rent for the entire unexpired balance of the term of this Lease, all other charges, payments, costs and expenses herein agreed to be paid by the Tenant or at the option of Landlord any part of the rent and other charges, payments, costs and expenses, all costs and officers' commission, watchman's wages, the five percent (5%) chargeable by Act of Assembly, and reasonable attorney's fees incurred or to be incurred by Landlord, and shall, in addition to any and all installments of rent, already due and payable and in arrears and/or other charge or payment herein reserved, included or agreed to be treated or collected as rent, and/or any other charges, expenses or costs herein agreed to be paid by the Tenant which may be due and payable and in arrears, be taken to be due and payable and in arrears as if by the terms and provisions of this Lease, the whole balance of unpaid Minimum Rent, Additional Rent and other charges, payments, taxes, costs, and expenses were on that date payable in advance.

	
 
	
2.
	
Collect and receive from any assignee or sublessee the Minimum Rents, Additional Rents, and all other charges reserved herein as rent due by such assignee or sublessee and apply the same to the rent due hereunder. Receipt of such sums by Landlord shall be credited against the amount due from Tenant but it shall in no way affect Tenant's obligations to pay any unpaid balance of rent due hereunder. No payment by sublessee or assignee shall give such sublessee or assignee any rights greater than those existing between Landlord and Tenant.

	
 
	
3.
	
Terminate this Lease without any right on the part of the Tenant to save the forfeiture by payment of any sum due or by other performance of any condition, term, or covenant broken; whereupon, Landlord shall be entitled to recover damages for such breach in an amount of rent reserved for the balance of the term of this Lease or the residue of said term plus the amount of any prior rents then due and owing, less any amounts obtained by Landlord for subletting the leased premises. Landlord shall use its best efforts to relet the leased premises on reasonable commercial terms after an event of default.

	
 
	
4.
	
Terminate Tenant's right of continued possession of the Leased Premises and, from time to time, without terminating this Lease and without prejudice to any right of Landlord under this Lease, to relet the Leased Premises or any part thereof for the account and in the name of Tenant, for any such term on terms and conditions as Landlord in its reasonable discretion may deem advisable with the right to make alterations and repairs to the Leased Premises deemed by Landlord to be necessary in conjunction with such reletting; and Tenant shall pay to Landlord, as soon as ascertained, the costs and expenses incurred by Landlord in such reletting and in making such alterations and repairs. Rentals received by Landlord from such reletting shall be applied: first, to the payment of any indebtedness, other than Minimum Rent and Additional Rent due hereunder from Tenant to Landlord; second, to the payment of the cost of any alterations and repairs to the Leased Premises necessary to return the Leased Premises to good condition, normal wear and tear excepted, for uses permitted by this Lease and the cost of storing any of Tenant's property left on the Leased Premises at the time of reletting; third, to the payment of Minimum Rent, Additional Rent and all other charges or payments due and unpaid hereunder; the residue, if any shall be held by Landlord at interest of six percent (6%) per annum and applied in payment of future rent or damages in the event of termination as the same may become due and payable hereunder and the balance, if any, at the end of the Lease Term shall be paid to Tenant. Should such rentals received from time to time from such reletting during any month be less than that amount which this Lease requires to be paid during that month by Tenant hereunder, the Tenant shall pay such deficiency to Landlord. Nothing in this subparagraph shall prevent Landlord from accelerating the rent or other amounts due thereunder. Such deficiency shall be calculated and paid monthly. No such reletting of the Leased Premises by Landlord pursuant to this subparagraph, shall be construed as an election on its part to terminate this Lease unless a written notice of such intention be given by Landlord to Tenant or unless the termination thereof be decreed by a court of competent jurisdiction; and notwithstanding any such reletting without termination, Landlord may at any time hereafter elect to terminate this Lease for such previous breach provided it has not been cured.

			
	
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- 11 -

 

	
 
	
5.
	
Lease the Leased Premises or any part or parts thereof to any person or persons as Landlord in its sole discretion decides, and the Tenant shall be liable for any loss of rent for the balance of the then current term.

C. FURTHER REMEDIES OF LANDLORD

In the event of any monetary default that is not cured by Tenant in accordance with the terms hereof, the Landlord, or anyone acting on Landlord's behalf, at Landlord's option:

(1)May without notice and demand enter the Leased Premises, breaking open locked doors if necessary to effect entrance, without liability to action for prosecution or damages for such entry or for the manner thereof, for the purpose of distraining or levying and for any other purpose and take possession of and sell all goods and chattels at auction, on reasonable notice served in person on the Tenant or left on the Leased Premises and paid to said Landlord out of the proceeds, and even if the rent be not due and unpaid, should the Tenant at any time remove or attempt to remove goods and chattels from the Leased Premises without leaving enough thereon to meet the next periodical payment, Tenant authorizes the Landlord to follow for a period of ninety (90) days after such removal, take possession of and sell at auction, upon like notice, sufficient of such goods to meet the proportion of rent accrued at the time of such removal; and the Tenant hereby releases and discharges the Landlord, and his agents, from all claims, actions, suites, damages, and penalties, for or by reason or on account of any entry, distraint, levy, appraisement or sale; and/or

(2)May enter the Leased Premises and without demand proceed by distress and sale of the goods there found to levy the rent and/or other charges herein payable as rent, and all costs and officers' commissions, including watchmen's wages and sums chargeable to Landlord, and further including a sum equal to five percent (5%) of the amount of the levy as commissions to the constable or other person making the levy, shall be paid by the Tenant and in such case all costs, officers' commission and other charges shall immediately attach and become part of the claim of Landlord for rent, and any tender of rent without said costs, commission and charges made after the issue of a warrant of distress shall not be sufficient to satisfy the claim of the Landlord. Tenant hereby expressly waives in favor of Landlord the benefit of all laws now made or which may hereafter be made regarding any limitation as to the goods upon which, or the time within which, distress is to be made after removal of goods, and further relieves the Landlord of the obligations of proving or identifying such goods, it being the purpose and intent of this provision that all goods of Tenant, whether upon the Leased Premises or not, shall be liable to distress for rent, Tenant waives in favor of Landlord all rights under the Act of Assembly of April 6, 1951, P.L.69, and all supplements and amendments thereto that have been or may hereafter be passed, and authorizes the sale of any goods distrained for rent at any time after five (5) days from said distraint without any appraisement and/or condemnation thereof.

(3)EJECTMENT: WHEN THIS LEASE SHALL BE TERMINATED BY CONDITION BROKEN, INCLUDING BUT NOT LIMITED TO THE FAILURE TO PAY MINIMUM RENT, ADDITIONAL RENT, PERCENTAGE RENT (IF ANY) AND/OR ANY CHARGES HEREBY RECEIVED AS RENT, DURING THE LEASE TERM INCLUDING ANY RENEWALS OF THE LEASE, AND ALSO WHEN AND AS SOON AS THE TERM HEREBY CREATED OR ANY RENEWAL(S) THEREOF SHALL HAVE EXPIRED, IT SHALL BE LAWFUL FOR ANY ATTORNEY AS ATTORNEY FOR TENANT TO FILE, WITHOUT NOTICE, AN AGREEMENT PERMITTING AND AUTHORIZING THE ENTRY IN ANY COURT OF COMPETENT JURISDICTION AN AMICABLE ACTION AND CONFESSION OF JUDGMENT IN EJECTMENT AGAINST TENANT AND ALL PERSONS CLAIMING UNDER TENANT FOR THE RECOVERY BY LANDLORD OF POSSESSION OF THE HEREIN LEASED PREMISES, FOR WHICH THIS LEASE SHALL BE HIS SUFFICIENT WARRANT, WHEREUPON, IF LANDLORD SO DESIRES, A WRIT OF EXECUTION OR OF POSSESSION MAY ISSUE FORTHWITH, WITHOUT ANY PRIOR NOTICE, WRIT OF PROCEEDINGS WHATSOEVER. IF SUCH AMICABLE ACTION SHALL THEREAFTER, FOR ANY REASON, BE TERMINATED AND THE POSSESSION OF THE LEASED PREMISES HEREBY DEMISED REMAIN IN OR BE RESTORED TO TENANT, LANDLORD SHALL HAVE THE RIGHT UPON ANY SUBSEQUENT DEFAULT OR DEFAULTS, OR UPON THE TERMINATION OF THIS LEASE AS HEREINBEFORE SET FORTH, TO BRING ONE OR MORE AMICABLE ACTIONS IN EJECTMENT OR CONFESSIONS OF JUDGMENT IN EJECTMENT FOR SAID LEASED PREMISES, AND THE TERMINATION FOR ANY REASON OF ANY SUCH PRIOR ACTIONS SHALL NOT PREVENT, HINDER OR PREJUDICE THE RIGHT AND POWER OF LANDLORD TO BRING SUBSEQUENT ACTIONS AS SET FORTH IN THIS PARAGRAPH.

			
	
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Landlord Initials
	
 
	
Tenant Initials

- 12 -

 

BY INITIALLING BELOW, TENANT ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED BY COUNSEL IN CONNECTION WITH THE NEGOTIATION OF THIS LEASE, THAT IT HAS READ AND DISCUSSED WITH SUCH COUNSEL THE PROVISIONS HEREIN RELATING TO CONFESSION OF JUDGMENT, AND THAT IT UNDERSTANDS THE NATURE AND CONSEQUENCES OF SUCH PROVISIONS.

TENANT'S INITIAL: J.L

(4)Curing Tenant's Default: If Tenant shall be in default in the performance of any of it obligations hereunder, including but not limited to the failure of Tenant to promptly perform any of the covenants of this Lease requiring Tenant to repair or maintain the Leased Premises, Landlord, without any obligation to do so, in addition to any other rights it may have in law or equity, following the expiration of any period for Tenant to cure such, may elect to cure such default upon ten (10) days written notice (except in the case of emergency) to Tenant. Tenant shall reimburse Landlord within ten (10) days of demand for any sums paid or costs incurred by Landlord in curing such default, including interest at the rate of eight percent (8%) per annum thereon from the respective dates of Landlord's making the payments and incurring such costs, which sums and costs together with interest thereon shall be deemed additional rent payable promptly upon being billed therefore.

(5)Remedies Cumulative: All of the remedies hereinbefore given to Landlord and all rights and remedies given to it bylaw and equity shall be cumulative and concurrent. No determination of this Lease or the taking or recovering of the Leased Premises shall deprive Landlord of any of his remedies or actions against the Tenant for rent then due, or rent which under the terms hereof, would in the future become due as if there has been no termination, or for any and all sums due at the time of which, under the terms hereof, would in the future become due as if there had been no termination, nor shall the bringing of any action for rent or breach of covenant, or the resort to any other remedy herein provided for the recovery of rent be construed as a waiver of the right to obtain possession of the Leased Premises.

(6)Self-Help: If Tenant shall default in the performance or observance of any agreement or condition in this Lease other than an obligation to pay money, and shall not cure such default, following the expiration of any period for Tenant to cure such, within twenty (20) days after notice from Landlord specifying the default, Landlord may, at its option, without waiving any claim for damages for breach of agreement, at any time thereafter cure such default for the account of Tenant, and any amount paid or incurred for the account of Tenant, and Tenant agrees to reimburse Landlord therefore and save Landlord harmless therefrom; provided that Landlord may cure any such default as aforesaid prior to the expiration of said waiting period but after notice to Tenant, if the curing of such default prior to the expiration of said waiting period but after notice to Tenant, is reasonably necessary to protect the real estate or Landlord's interest therein, or to prevent injury or damage to persons or property. If Tenant shall fail within ten (10) days of demand to reimburse Landlord for any amount paid for the account of Tenant hereunder, said amount shall be treated as Additional Rent and added to and become due as a part of the next payment of rent due thereunder together with interest at the rate of eight percent (8%) per annum imposed from the date of Landlord's payment until paid by Tenant.

D. FAILURE TO PAY; INTEREST

If Tenant at any time shall fail to pay any taxes, assessments or liens, provide insurance or perform any act required by this Lease to be made or performed by it, or fail to pay any charge payable by Tenant or to timely discharge any other monetary obligation of Tenant required by this Lease, Landlord, without waiving or releasing Tenant from any obligation or default under this Lease, may (but shall be under no obligation to) at any time thereafter make such payment or perform such act for the account and at the expense of Tenant. All sums so paid by Landlord and all costs and expenses so incurred shall accrue interest at the rate of eight (8%) percent per annum from the date of payment or incurring thereof by Landlord and shall constitute Additional Rent payable by Tenant under this Lease and shall be paid by Tenant to Landlord within ten (10) days of demand. Notwithstanding anything to the contrary contained herein, if Tenant fails to contest any invoice or other written demand for payment of rent or any other sums due within the time frames specified in the Lease for payment, then Tenant shall have no rights to contest such invoice or bill thereafter.

			
	
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Tenant Initials

- 13 -

 

E. WAIVER

Failure of Landlord to exercise any right or remedy hereunder shall not be construed as a waiver of the right to exercise the same or any other right at any other time.

10. SUBORDINATION

Landlord shall have the right to transfer, mortgage, assign, pledge, and convey in whole or in part the Leased Premises, this Lease and all rights of Landlord existing and to exist, and rents and amounts payable to it under the provisions hereof; and nothing herein contained shall limit or restrict any such right, and the rights of Tenant under this Lease shall be subject and subordinate to all instruments executed and to be executed in connection with the exercise of any such right of Landlord, including, but not limited to, the lien of any mortgage, deed of trust or security agreement now or hereafter placed upon the Leased Premises and to all renewals, modifications, consolidations, participations, replacements and extensions thereof. Said subordination shall not require the agreement or consent of Tenant, but Tenant covenants and agrees, if requested, to execute and deliver within fifteen (15) days of receipt from Landlord such further instruments subordinating this Lease to the lien of any such mortgage, deed of trust or security agreement as shall be requested by Landlord and/or any mortgagee, proposed mortgagee or holder of any security agreement, and Tenant hereby irrevocably appoints Landlord as its attorney-in-fact to execute and deliver any such instrument for and in the name of Tenant. Notwithstanding anything set out in this Lease to the contrary, in the event the holder of any mortgage or deed of trust elects to have this Lease superior to its mortgage or deed of trust, then, upon Tenant being notified to that effect by such encumbrance holder, this Lease shall be deemed prior to the lien of said mortgage or deed of trust, whether this Lease is adopted prior to or subsequent to the date of said mortgage or deed of trust.

11. ESTOPPEL CERTIFICATE

Tenant shall from time to time, upon no less than ten (10) days written request by Landlord execute, acknowledge or deliver to Landlord a written statement certifying that this Lease Agreement is unmodified and in full force and effect (or that the same is in full force and effect as modified, listing the instruments or modification), the dates to which the rent and additional rent have been paid, and whether or not, to the best of tenant's knowledge, Landlord is in default hereunder (and if so, specify the nature of the default), it being intended that any such statement delivered pursuant to this paragraph 11 may be relied upon by a prospective purchaser or purchaser or mortgagee of Landlord's property, including, without limitation, the Premises.

12. SECURITY INTERESTS

Tenant hereby grants to Landlord a security interest in personal property including all furniture fixtures and equipment owned by Tenant and as such shall be security for the rents reserved hereunder and/or subject to any currently existing or hereafter placed security interests or financing statements given by Tenant in acquisition of furniture, fixtures, equipment and inventory. Tenant shall execute such Financing Statements or other documents as may be required by Landlord to perfect its security interest hereunder.

13. SECURITY DEPOSIT

A. USE AND RETURN OF SECURITY DEPOSIT

Should Tenant fail to keep and perform any of the terms, covenants and conditions of this Lease to be kept and performed by Tenant, as provided in Section 9(A), Landlord may appropriate and apply said entire deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained by Landlord due to such breach, without prejudice to its further rights and remedies. Should the entire security deposit or any portion thereof be appropriated and applied by Landlord for the payment of overdue rent or other sums due from Tenant hereunder, then Tenant shall, within ten (10) days of the written demand of Landlord forthwith remit to Landlord a sufficient amount in cash to restore said deposit to the original sum deposited. Should Tenant comply with all the terms, covenants and conditions of this Lease, the said deposit shall be returned in full to Tenant at the end of the term of this Lease. Should Tenant terminate this Lease, without cause or upon an Event of Default, prior to the end of term, then Tenant shall forfeit its security deposit. It is understood and agreed that no part of the security deposit is to be considered as the last rental payment due under the terms of this Lease.

			
	
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B. SURRENDER OF LEASED PREMISES

Subject to sections 2(A) and 2(F) above, at the expiration of the tenancy hereby created, Tenant shall peaceably surrender the Leased Premises, including all alterations, additions, improvements, and repairs made thereto and shall remove all items installed by Tenant including: all interior partition walls, trade fixtures, trade equipment, signs, any power wiring or power panels; lighting or lighting fixtures; wall coverings; drapes, blinds or other window coverings; carpets or other floor coverings; or other similar building operating equipment, decorations and trade personal property (unless Landlord requests in writing that any or all of such items remain). The Leased Premises shall be left broom clean and in good condition and repair. Tenant shall remove all its property not required to be surrendered to Landlord before surrendering the Leased Premises as aforesaid and shall repair any damage to the Leased Premises caused thereby. Any personal property remaining in the Leased Premises at the expiration of the lease period shall be deemed abandoned by Tenant, and Landlord may claim the same and shall in no circumstances have any liability to Tenant therefore. The cost of removing such items, which are abandoned by Tenant, shall be charged to Tenant. Upon termination, Tenant shall also surrender all keys for the Leased Premises to Landlord and, if applicable, inform Landlord of any combinations of locks or safes in the Leased Premises. If the Leased Premises are not surrendered at the end of the term as hereinabove set out, Tenant shall indemnify Landlord against loss or liability resulting from delay by Tenant in so surrendering the Leased Premises, including without limitation claims made by the succeeding Tenant founded on such delay. Tenant's obligation to observe or perform this covenant shall survive the expiration or other termination of the Lease Term.

D. RULES AND REGULATIONS

Tenant agrees as follows:

(1)Tenant shall have full responsibility for protecting the Leased Premises and the property located therein from theft and robbery.

(2)Tenant shall not permit on the Leased Premises any act or practice which is unlawful or immoral.

(3)Tenant shall keep the Leased Premises free and clear of rodents, bugs and vermin, and Tenant shall use, at its cost and at such intervals as Landlord shall reasonably require, a reputable pest extermination contractor to provide extermination services in the Leased Premises.

(4)Tenant shall keep the Leased Premises orderly, neat, clean and free from rubbish and trash at all times and shall not permit any refuse to accumulate around the exterior of the Leased Premises. Tenant shall not burn any trash, rubbish or garbage in or about the Leased Premises. Trash shall be stored in a sanitary and inoffensive manner inside the Leased Premises or in a trash dumpster located outside of the building in a location agreed to by Landlord and Tenant.

Landlord reserves the right from time to time to amend or supplement the foregoing rules and regulations and to adopt and promulgate reasonable additional rules and regulations applicable to the Leased Premises. Notice of such rules and regulations and amendments and supplements thereto, if any, shall be given to Tenant in writing. Tenant agrees to comply with all such rules and regulations, and Tenant shall be responsible for the observance of these rules and regulations by Tenant's employees, agents and invitees. The foregoing rules are solely for the benefit of Landlord, and Landlord shall have no obligation to enforce such rules for the benefit of Tenant. Landlord, at its option, may waive certain rules with respect to individual tenants. If Tenant violates any rule, Landlord may notify Tenant that Tenant is in default.

14. MISCELLANEOUS 

A. PARTIES

All rights and liabilities herein given to, or imposed upon the respective parties hereto, extend to and bind the respective heirs, executors, administrators, successors and assigns of said parties.

B. SECURITY

The Tenant shall be solely responsible for security for the Leased Premises.

			
	
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C. GOVERNING LAW

This Agreement shall be deemed to have been made in Pennsylvania and all the terms, conditions and covenants hereunder shall be governed by the laws of the Commonwealth of Pennsylvania.

D. ENTIRE AGREEMENT

This Lease and any exhibits attached hereto and form a part hereof, set forth all of the covenants, promises, agreements, conditions for understandings, either written or oral, between them other than as herein set forth. No subsequent alteration, amendment, change or addition to this Lease shall be binding on Landlord or Tenant unless reduced to writing and signed by them.

E. NO STORAGE OUTSIDE THE PREMISES

Tenant shall store nothing outside the Premises, including, without limitation, materials, supplies, inventory or equipment, trash dumpster excepted.

F. RIGHT OF ENTRY

Landlord or Landlord's agents shall have the right to enter the Leased Premises at all reasonable times and with reasonable notice to examine the same and to show it to purchasers and to make such repairs, alterations, improvements or additions as Landlord may deem necessary or desirable, and Landlord shall be allowed to take all material into and upon the Leased Premises that may be required therefore without the same constituting an eviction of Tenant in whole or in part. During the six (6) months prior to the expiration of the term of this Lease or any renewals thereof, Landlord may exhibit the Leased Premises to prospective Tenants or purchasers and place upon the Leased Premises the usual signage for space rental. Nothing herein contained, however, shall be deemed or construed to impose upon Landlord any obligation, responsibility or liability whatsoever for the care, maintenance or repair of the building or any part thereof, except as otherwise herein specifically provided.

Landlord will have right to show the space during normal business hours to prospective new Tenants in the final six (6) months of the Tenant’s occupancy, and if applicable.

G. CONSENTS AND APPROVALS

Whenever Landlord’s consent or approval is required herein, such consent or approval shall not be deemed given until Landlord has provided such consent or approval in writing. Tenant shall pay Landlord's reasonable attorneys' fees incurred in connection with Tenant's request for Landlord's consent or approval. Where the consent or approval of Landlord shall be required, such consent or approval shall be granted in Landlord's sole discretion unless otherwise expressly provided. With respect to any provision of this Lease which either expressly provides or is held to provide that Landlord shall not unreasonably withhold or unreasonably delay any consent or approval, Tenant shall not be entitled to make claim for, and Tenant expressly waives claim for, damages incurred by Tenant by reason of Landlord's failure to comply, unless such failure to comply is an act of bad faith on the part of Landlord, it being understood and agreed that Tenant's sole remedy shall be an action for specific performance.

			
	
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H. AUTHORITY

In the event Tenant hereunder shall be a corporation, the persons executing this Lease on behalf of Tenant hereby covenant and warrant that Tenant is a duly qualified corporation and all steps have been taken prior to the date hereof to qualify Tenant to do business in the State; all franchise and corporate taxes have been paid to date; all future forms, reports, fees and other documents necessary to comply with applicable laws will be filed when due; and those persons executing this Lease on behalf of Tenant are duly qualified and authorized to bind, and in fact do bind, the corporation. In the event Tenant hereunder shall be a partnership, either general or limited, the persons or entities executing this Lease on behalf of Tenant hereby covenant and warrant that Tenant is a duly qualified partnership and all steps have been taken prior to the date hereof to qualify Tenant to do business in the State, if required by law; all franchise and partnership taxes have been paid to date; all future forms, reports, fees and other documents necessary to comply with applicable laws will be filed when due; and those entities executing this Lease on behalf of partnership are duly qualified to bind, and in fact do bind, the partnership. This Lease shall be effective only when it is signed by both Landlord and Tenant's submission of a signed lease for review by Landlord does not give Tenant any interest, right or option in the Leased Premises.

I. NEGATION OF PERSONAL LIABILITY.

Notwithstanding anything contained in this Lease to the contrary, Tenant agrees that Landlord shall have no personal liability with respect to any of the provisions of this Lease and Tenant shall look solely to the estate and property of Landlord in the Leased Premises for the satisfactions of Tenant's remedies, including without limitation, the collection of any judgment or the enforcement of any other judicial process requiring the payment or expenditure of money by Landlord in the event of any default or breach by Landlord with respect to any of the terms and provisions of this Lease to be observed and/or performed by Landlord; subject, however, to the prior rights of any holder of any mortgage covering all or part of the Demised Premises, and no other assets of Landlord or any principal of Landlord shall be subject to levy, execution or other judicial process for the satisfaction of Tenant's. [Illegible] Tenant obtains a judgment against Landlord, the judgment docket shall be so noted. This Section shall inure to the benefits of Landlord's successors and assigns and their respective principals.

J. AGENCY

It is hereby expressly agreed and understood that RE/MAX Properties, Ltd. is acting as "Agent" only and shall not in any event be held liable to the Landlord or Tenant for the fulfillment or non-fulfillment of any of the terms and conditions of this LEASE, or for any action or proceedings that may be taken by Landlord against Tenant or by Tenant against Landlord. It is understood and agreed that Douglas P. Terry and Daniel J. McCloskey are agents with RE/MAX Properties, Ltd. and are also members of the ownership group of 660 Tudor Square, L.P.

IN WITNESS WHEREOF, and intending to be legally bound, the Landlord and Tenant have executed this Lease on the day and year first above written.

 

	
 
	
 
	
 
	
TENANT:

	
 
	
 
	
 
	
NeuroHabilitation Corporation

	
 
	
 
	
 
	
 

	
March 29, 2017
	
 
	
By:
	
/s/ Joyce LaViscount

	
Date
	
 
	
 
	
Joyce LaViscount, CFO/COO

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
LANDLORD:

	
 
	
 
	
 
	
660 Tudor Square, L.P.

	
 
	
 
	
 
	
 

	
March 30, 2017
	
 
	
By:
	
/s/ Daniel J. Mc Closkey

	
Date
	
 
	
 
	
Daniel J. Mc Closkey, Partner

 

 

			
	
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- 17 -EX-10.7

 Exhibit 10.7 

URBAN OUTFITTERS 
 2017

 STOCK INCENTIVE PLAN 
  

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	SECTION 1 -	 	 PURPOSE
	  	 	1	 
			
	SECTION 2 -	 	 DEFINITIONS
	  	 	1	 
			
	SECTION 3 -	 	 ADMINISTRATION
	  	 	4	 
			
	SECTION 4 -	 	 STOCK
	  	 	5	 
			
	SECTION 5 -	 	 GRANTING OF AWARDS
	  	 	5	 
			
	SECTION 6 -	 	 TERMS AND CONDITIONS OF OPTIONS
	  	 	6	 
			
	SECTION 7 -	 	 SARS
	  	 	8	 
			
	SECTION 8 -	 	 RESTRICTED STOCK
	  	 	9	 
			
	SECTION 9 -	 	 RSUs
	  	 	10	 
			
	SECTION 10 -	 	 STOCK GRANTS
	  	 	11	 
			
	SECTION 11 -	 	 AWARD AGREEMENTS
	  	 	11	 
			
	SECTION 12 -	 	 ADJUSTMENT IN CASE OF CHANGES IN COMMON STOCK
	  	 	11	 
			
	SECTION 13 -	 	 CHANGE IN CONTROL
	  	 	12	 
			
	SECTION 14 -	 	 CERTAIN CORPORATE TRANSACTIONS
	  	 	13	 
			
	SECTION 15 -	 	 AMENDMENT OF THE PLAN AND OUTSTANDING AWARDS
	  	 	13	 
			
	SECTION 16 -	 	 TERMINATION OF PLAN; CESSATION OF ISO GRANTS
	  	 	14	 
			
	SECTION 17 -	 	 SHAREHOLDER APPROVAL
	  	 	14	 
			
	SECTION 18 -	 	 MISCELLANEOUS
	  	 	14	 

 URBAN OUTFITTERS 

2017 
 STOCK
INCENTIVE PLAN 
 WHEREAS, Urban Outfitters, Inc. desires to grant equity incentive awards to certain of its employees,
consultants and non-employee directors; 
 NOW, THEREFORE, the Urban Outfitters 2017 Stock Incentive Plan is hereby adopted
under the following terms and conditions: 
 SECTION 1 - PURPOSE 

The Plan is intended to provide a means whereby the Company may, through the grant of Awards to Employees, Consultants and Non-Employee
Directors, attract and retain such individuals and motivate them to exercise their best efforts on behalf of the Company and of any Related Corporation. 

SECTION 2 - DEFINITIONS 

The following terms when used herein shall have the following meanings unless otherwise required by the context: 

(a) “Administrator” shall mean: 

(1) The Chairman of the Board, with respect to an Award which (A) covers 40,000 or fewer shares of Common Stock, and (B) is granted
to an individual who is not subject to section 16(b) of the Exchange Act and who is not a “covered employee” for purposes of section 162(m) of the Code; or 

(2) The Committee. 
 (b)
”Award” shall mean an ISO, NQSO, SAR, Restricted Stock, RSU or Stock Grant awarded by the Company to an Employee, a Consultant or a Non-Employee Director. 

(c) “Award Agreement” shall mean a document evidencing the grant of an Award, as described in Section 11.

 (d) “Board” shall mean the Board of Directors of the Company. 

(e) “Code” shall mean the Internal Revenue Code of 1986, as amended. 

(f) “Committee” shall mean a committee which consists solely of not fewer than two directors of the Company who
shall be appointed by, and serve at the pleasure of, the Board (taking into consideration the rules under section 16(b) of the Exchange Act and the requirements of Code §162(m)), or the entire Board. 

 (g) “Common Stock” shall mean the common shares of the Company,
par value $0.0001 per share. 
 (h) “Company” shall mean Urban Outfitters, Inc. 

(i) “Consultant” shall mean an individual who is not an Employee or a Non-Employee Director and who has entered
into a consulting arrangement with the Company or a Related Corporation to provide bona fide services that (1) are not in connection with the offer or sale of securities in a capital-raising transaction, and (2) do not
directly or indirectly promote or maintain a market for the Company’s securities. 
 (j)
“Employee” shall mean an officer or other employee of the Company or a Related Corporation. 
 (k)
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 (l) “Fair
Market Value” shall mean: 
 (1) The closing price of the Common Stock on a registered securities exchange on the
applicable date or the immediately preceding trading day if the applicable date is not a trading day; or 
 (2) Such other method of
determining fair market value as shall be authorized by the Code, or the rules or regulations thereunder, and adopted by the Committee. 

(m) “Grantee” shall mean an Employee, a Consultant or a Non-Employee Director who has been granted an Award
under the Plan. 
 (n) “ISO” shall mean an Option which, at the time such Option is granted, qualifies
as an incentive stock option within the meaning of Code §422, unless the Award Agreement states that the Option will not be treated as an ISO. 

(o) “Non-Employee Director” shall mean a member of the Board who is not an Employee. 

(p) “NQSO” shall mean an Option which, at the time such Option is granted, does not qualify as an ISO, whether
or not it is designated as a nonqualified stock option in the Award Agreement. 
 (q) “Options” shall
mean ISOs and NQSOs which entitle the Grantee on exercise thereof to purchase shares of Common Stock at a specified exercise price. 

(r) “Performance Goals” shall mean the objective goal or goals applicable to a Grantee’s Performance Stock
or PSUs that are deemed by the Committee to be important to the success of the Company or any affiliates of the Company. The Committee shall establish the specific objective measures for each applicable goal for a performance period, which need not
be uniform with respect to each Grantee. In creating these measures, the Committee shall use one  

  
 2 

 
or more of the following business criteria: sales, profit, return on sales, net operating profit after taxes, investment turnover, customer service indices, funds from operations, income from
operations, return on assets, return on net assets, asset turnover, return on equity, return on capital, market price of shares of Common Stock, economic value added, total shareholder return, net income, pre-tax income, earnings per share,
operating profit margin, net income margin, sales margin, cash flow, market share, inventory turnover, sales growth, net revenue growth, capacity utilization, new stores opened, customer penetration, increase in customer base, net income growth,
expense control and hiring of personnel. The business criteria may apply to the individual, a division, a component of the Company’s business, or to the Company and/or one or more Related Corporations and may be weighted and expressed in
absolute terms or relative to the performance of other individuals or companies or an index. The Committee shall determine the performance period and the Performance Goals and measures (and weighting thereof) applicable to such period not later than
the earlier of (i) 90 days after the commencement of the performance period, or (ii) the expiration of 25% of the performance period. 

(s) “Performance Stock” shall mean a type of Restricted Stock, where the lapse of restrictions is based on
Performance Goals. 
 (t) “Plan” shall mean the Urban Outfitters 2017 Stock Incentive Plan as set forth
herein and as amended from time to time. 
 (u) “PSU” shall mean a performance stock unit which is a
type of RSU, the vesting of which is based on Performance Goals. 
 (v) “Related Corporation” shall
mean any corporation or other entity in which the Company holds, directly or indirectly, a controlling interest; provided, however, that with respect to ISOs, an entity shall be a “Related Corporation” only if the entity is described in
the preceding clause and is a “subsidiary corporation” of the Company, as defined in Code §424(f). For purposes of this subsection, the term “controlling interest” shall have the same meaning as provided in Treas. Reg.
§1.414(c)-2(b)(2)(i), using “at least 50 percent” instead of “at least 80 percent” each place it appears in such regulation. 

(w) “Restricted Stock” shall mean Common Stock subject to restrictions determined by the Administrator pursuant
to Section 8. 
 (x) “RSU” shall mean a restricted stock unit granted pursuant to Section 9.

 (y) “SAR” shall mean an Award granted pursuant to Section 7 which entitles the recipient on
exercise to receive an amount determined by reference to appreciation in the value of Common Stock. 
 (z)
“Short-Term Deferral Period” shall mean, with respect to an amount (including Common Stock) payable pursuant to an Award, the period ending on the later of (1) the 15th
day of the third month following the Grantee’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture, or (2) the 15th day of the third
month following the Company’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture; provided, however, that such period shall be within one calendar year and shall not exceed 2 1⁄2 months. A Grantee shall have no discretion over the payment date and shall have no right to interest as a result of payment on a date other than the first day
of the Short-Term Deferral Period. 

  
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 (aa) “Stock Grant” shall mean a grant of unrestricted shares of
Common Stock pursuant to Section 10. 
 (bb) “Termination of Service” shall mean (1) with respect
to an Award granted to an Employee, the termination of the employment relationship between the Employee and the Company and all Related Corporations; (2) with respect to an Award granted to a Consultant, the termination of the consulting or
advisory arrangement between the Consultant and the Company and all Related Corporations; and (3) with respect to an Award granted to a Non-Employee Director, the cessation of the provision of services as a director of the Company and all
Related Corporations; provided, however, that if the Grantee’s status changes from Employee, Consultant or Non-Employee Director to any other status eligible to receive an Award under the Plan, no Termination of Service shall occur for purposes
of the Plan until the Grantee’s new status with the Company and all Related Corporations terminates. For purposes of this paragraph, if a Grantee’s relationship is with a Related Corporation and not the Company, the Grantee shall incur a
Termination of Service when such corporation ceases to be a Related Corporation, unless the Committee determines otherwise. A Termination of Service shall not be deemed to have resulted by reason of a bona fide leave of absence approved by the
Committee or the Chairman of the Board. 
 SECTION 3 - ADMINISTRATION 

The Plan shall be administered by the Administrator. The Administrator (and members thereof), while serving as such, shall be deemed to be
acting in its (or his) capacity as a director or an officer of the Company. 
 The Administrator shall have full authority, subject to the
terms of the Plan, to select the Employees, Consultants and Non-Employee Directors to be granted Awards under the Plan, to grant Awards on behalf of the Company, and to set the date of grant and the other terms of such Awards in accordance with the
terms of the Plan. The Committee may correct any defect, supply any omission, and reconcile any inconsistency in the Plan, and the Administrator may do so with respect to any Award granted hereunder, in the manner and to the extent it (or he) deems
desirable. The Committee also shall have the authority (1) to establish such rules and regulations, not inconsistent with the provisions of the Plan, for the proper administration of the Plan, and to amend, modify, or rescind any such rules and
regulations, (2) to adopt modifications, amendments, procedures, sub-plans and the like, which may be inconsistent with the provisions of the Plan, as are necessary to comply with the laws and regulations of other countries in which the Company
operates in order to assure the viability of Awards granted under the Plan to individuals in such other countries, and (3) to make such determinations and interpretations under, or in connection with, the Plan, as it deems necessary or
advisable. All such rules, regulations, determinations, and interpretations shall be binding and conclusive upon the Company, its shareholders, and all Grantees, upon their respective legal representatives, beneficiaries, successors, and assigns,
and upon all other persons claiming under or through any 

  
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of them. Except as otherwise required by the bylaws of the Company or by applicable law, no member of the Board or the Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any Award granted under it. 
 SECTION 4 - STOCK 

The maximum aggregate number of shares of Common Stock that may be delivered under the Plan is 10,000,000 shares (which is also the maximum
aggregate number of shares that may be issued under the Plan through ISOs), subject to the following limits: 
  

					
	Type of Award	  	Limit on Number of Shares Available for Grant Under Plan	  	Limit on Number of Shares Available for Grant to Any Employee During Any Fiscal Year
	Options	  	Plan Limit	  	2,000,000
	SARs	  	Plan Limit	  	2,000,000
	Restricted Stock and RSUs	  	4,000,000 (in the aggregate)	  	2,000,000 (in the aggregate)
	Stock Grants	  	1,000,000	  	N/A

 Each limit stated in this Section 4 shall be subject to adjustment as described in Section 12. Shares delivered
under the Plan may be authorized but unissued shares or reacquired shares, and the Company may purchase shares required for this purpose, from time to time, if it deems such purchase to be advisable. 

If any Award expires, terminates for any reason, is cancelled, is forfeited or is settled in cash rather than Common Stock, the number of
shares of Common Stock with respect to which such Award expired, terminated, was cancelled, was forfeited or was settled in cash, shall continue to be available for future Awards granted under the Plan. If any Option is exercised by surrendering
Common Stock to the Company or by withholding Common Stock as full or partial payment, or if tax withholding requirements are satisfied by surrendering Common Stock to the Company or withholding Common Stock, only the number of shares issued net of
Common Stock withheld or surrendered shall be deemed delivered for purposes of determining the maximum number of shares available for grant under the Plan. 

SECTION 5 - GRANTING OF AWARDS 

The Administrator may, on behalf of the Company, grant to Employees, Consultants and Non-Employee Directors such Awards as the Administrator
in its (or his) sole discretion, determines are warranted, subject to the terms of the Plan. However, grants of ISOs and other Awards shall be separate and not in tandem, and Consultants and Non-Employee Directors shall not be eligible to receive
ISOs under the Plan. More than one Award may be granted to an Employee, Consultant or Non-Employee Director under the Plan. 

  
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 SECTION 6 - TERMS AND CONDITIONS OF OPTIONS 

Option Award Agreements shall include expressly or by reference the following terms and conditions, as well as such other provisions as the
Administrator shall deem desirable that are not inconsistent with the provisions of the Plan and, for ISOs, Code §422(b). 
 (a)
Number of Shares. The Award Agreement shall state the number of shares of Common Stock to which the Option pertains. 

(b) Exercise Price. The Award Agreement shall state the exercise price which shall be determined and fixed by the
Administrator in its (or his) discretion, but the exercise price shall not be less than the higher of 100 percent (110 percent in the case of an ISO granted to a more-than-ten-percent shareholder, as provided in subsection (i) below) of the
Fair Market Value of a share of Common Stock on the date the Option is granted, or the par value thereof. 
 (c)
Term. The term of each Option shall be determined by the Administrator, in its (or his) discretion; provided, however, that the term of each ISO shall be not more than ten years (five years in the case of a more-than-ten-percent
shareholder, as provided in subsection (i) below) from the date of grant of the ISO. Each Option shall be subject to earlier termination as provided in subsections (f), (g), and (h) below and in Section 14. 

(d) Exercise. An Option shall be exercisable in such installments, upon fulfillment of such conditions (such as
performance-based requirements), or on such dates as the Administrator may specify. The Administrator may accelerate the exercise date of an outstanding Option, in its (or his) discretion, if the Administrator deems such acceleration to be
desirable. 
 Any exercisable Option may be exercised at any time up to the expiration or termination of the Option. Exercisable
Options may be exercised, in whole or in part and from time to time, by giving notice of exercise (in accordance with procedures established by the Committee) to the Company (at its principal office) or to the Company’s delegate, specifying the
number of shares to be purchased and accompanied by payment in full of the aggregate exercise price for such shares (except that, in the case of an exercise arrangement approved by the Committee and described in paragraph (4) below, payment may
be made as soon as practicable after the exercise). Only full shares shall be issued, and any fractional share which might otherwise be issuable upon exercise of an Option shall be forfeited. 

The Administrator, in its sole discretion, shall determine from the following alternatives, the methods by which the exercise price may be
paid — 
 (1) in cash or, if permitted by the Administrator, its equivalent; 

(2) in shares of Common Stock previously acquired by the Grantee (and the exercise price so paid shall be equal to the Fair Market Value, as
of the date of exercise, of the previously acquired shares); 

  
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 (3) by decreasing the number of shares for which the Option is exercisable on the date of
exercise (in an amount equal to the exercise price to be paid under this method, divided by the positive excess of the Fair Market Value of a share of Common Stock on the date of exercise, over the per share exercise price); 

(4) by delivering a properly executed notice of exercise of the Option to the Company and a broker, with irrevocable instructions to the
broker promptly to deliver to the Company the amount necessary to pay the exercise price of the Option; or 
 (5) in any combination of
paragraphs (1), (2), (3) and (4) above. 
 To the extent an Award Agreement does not include one or more alternatives, the Administrator hereby
specifically reserves the right to exercise its (or his) discretion to allow the Grantee to pay the exercise price using such alternative. 

(e) ISO Annual Limit. The aggregate Fair Market Value (determined as of the date the ISO is granted) of the Common Stock
with respect to which ISOs are exercisable for the first time by an Employee during any calendar year (counting ISOs under this Plan and under any other stock option plan of the Company or a parent or subsidiary corporation of the Company (as
defined in Code §424(e) and (f)) shall not exceed $100,000. If an Option intended as an ISO is granted to an Employee and the Option may not be treated in whole or in part as an ISO pursuant to the $100,000 limit, the Option shall be treated as
an ISO to the extent it may be so treated under the limit and as an NQSO as to the remainder. For purposes of determining whether an ISO would cause the limitation to be exceeded, ISOs shall be taken into account in the order granted.  

(f) Termination of Service for a Reason Other Than Death or Disability. If a Grantee’s Termination of Service occurs
prior to the expiration date fixed for his or her Option for any reason other than death or disability, such Option may be exercised by the Grantee at any time prior to the earlier of (i) the expiration date specified in the Award Agreement, or
(ii) thirty days after the date of such Termination of Service (unless the Award Agreement provides a different expiration date in the case of such a Termination). Such Option may be exercised to the extent of the number of shares with respect
to which the Grantee could have exercised it on the date of such Termination of Service, or to any greater extent permitted by the Administrator, and shall terminate on the date of such Termination of Service with respect to the remaining shares.

 (g) Disability. If a Grantee becomes disabled (within the meaning of Code §22(e)(3)) prior to the expiration
date fixed for his or her Option, and the Grantee’s Termination of Service occurs as a consequence of such disability, such Option may be exercised by the Grantee at any time prior to the earlier of (i) the expiration date specified in the
Award Agreement, or (ii) six months after the date of such Termination of Service (unless the Award Agreement provides a different expiration date in the case of such a Termination). Such Option may be exercised to the extent of the number of
shares with respect to which the Grantee could have exercised it on the date of such Termination of Service, or to any greater extent permitted by the Administrator, and shall terminate on the date of such Termination of Service with respect to the
remaining shares. In the event of the Grantee’s legal disability, such Option may be exercised by the Grantee’s legal representative. 

  
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 (h) Death. If a Grantee’s Termination of Service occurs as a result of
death, prior to the expiration date fixed for his or her Option, or if the Grantee dies following his or her Termination of Service but prior to the expiration of the period determined under subsections (f) or (g) above (including any
extension of such period provided in the Award Agreement), such Option may be exercised by the Grantee’s estate, personal representative, or beneficiary who acquired the right to exercise such Option by bequest or inheritance or by reason of
the death of the Grantee. Such post-death exercise may occur at any time prior to the earlier of (i) the expiration date specified in the Award Agreement, or (ii) six months after the date of the Grantee’s death (unless the Award
Agreement provides a different expiration date in the case of death). Such Option may be exercised to the extent of the number of shares with respect to which the Grantee could have exercised it on the date of his or her death, or to any greater
extent permitted by the Administrator, and shall terminate on the date of the Optionee’s death with respect to the remaining shares. 

(i) More-Than-Ten-Percent Shareholder. If, after applying the attribution rules of Code §424(d), the Grantee owns
stock possessing more than ten percent of the total combined voting power of all classes of stock of the Company or of a parent or subsidiary corporation of the Company (as defined in Code §424(e) and (f)) immediately before an ISO is granted
to him or her, the exercise price for the ISO shall be not less than 110 percent of the Fair Market Value of the optioned shares of Common Stock on the date the ISO is granted, and such ISO, by its terms, shall not be exercisable after the
expiration of five years from the date the ISO is granted. The conditions set forth in this subsection shall not apply to NQSOs. 

SECTION 7 - SARS 
 (a)
Nature of SARs. An SAR entitles the Grantee to receive, with respect to each share of Common Stock as to which the SAR is exercised, the excess of the share’s Fair Market Value on the date of exercise over its Fair Market Value on the
date the SAR was granted. Such excess shall be paid in cash, shares of Common Stock, or a combination thereof, as determined by the Administrator. 

(b) Exercise of SARs. An SAR shall become exercisable in such installments, upon fulfillment of such conditions (such as
performance-based requirements), or on such dates as the Administrator may specify in the Award Agreement. The Administrator may at any time accelerate the time at which all or any part of the SAR may be exercised. Any exercise of an SAR must be
made by giving notice to the Company at its principal office in accordance with procedures established by the Administrator. 

(c) Termination of Service. If a Grantee’s Termination of Service occurs prior to the expiration date fixed for his
or her SAR, Section 6(f), (g) and (h) shall be applied to determine the extent to which, and the period during which, the SAR may be exercised. For purposes of this Section 7(c), the term “SAR” shall replace the term
“Option” in each place such term appears in Section 6(f), (g) and (h). 

  
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 SECTION 8 - RESTRICTED STOCK 

(a) General Requirements. Restricted Stock may be issued or transferred for consideration (in addition to past services) or for no
additional consideration, as determined by the Administrator. At the time Restricted Stock is granted, the Administrator shall determine whether the Restricted Stock is Performance Stock (where the lapse of restrictions is based on Performance
Goals), or Restricted Stock that is not Performance Stock (where the lapse of restrictions is based on times and/or conditions determined by the Committee). 

(b) Shareholder Rights. Each Grantee who receives Restricted Stock shall have all of the rights of a shareholder with
respect to such shares, subject to the restrictions set forth in subsection (c), including the right to vote the shares and receive dividends and other distributions. Any shares of Common Stock or other securities of the Company received by a
Grantee with respect to a share of Restricted Stock as a stock dividend, or in connection with a stock split or combination, share exchange or other recapitalization, shall have the same status and be subject to the same restrictions as such
Restricted Stock. Any cash dividends with respect to a Grantee’s Restricted Stock shall be paid to the Grantee at the same time as such dividends are paid to other shareholders. Unless the Administrator determines otherwise, certificates
evidencing shares of Restricted Stock will remain in the possession of the Company until such shares are free of all restrictions under the Plan and the Grantee has satisfied any federal, state and local tax withholding obligations applicable to
such shares. 
 (c) Restrictions. Except as otherwise specifically provided in the Plan, Restricted Stock may not
be sold, assigned, transferred, pledged, or otherwise encumbered or disposed of, and if the Grantee incurs a Termination of Service for any reason, must be offered to the Company for purchase for the amount of cash (or cash equivalents) paid for the
shares of Common Stock, or forfeited to the Company if no cash (or cash equivalent) was so paid.  
 (d) Lapse of
Restrictions. 
 (1) In General. Upon the lapse of all restrictions in accordance with this subsection (d) or
Section 13, shares of Common Stock shall cease to be Restricted Stock for purposes of the Plan. 
 (2) Restricted Stock
Other Than Performance Stock. With respect to Restricted Stock that is not Performance Stock, the restrictions described in subsection (c) shall lapse at such time or times, and on such conditions (such as performance-based
requirements), as the Administrator may specify in the Award Agreement. The Administrator may at any time accelerate the time at which the restrictions on all or any part of the shares of Restricted Stock (other than Performance Stock) will
lapse. 
 (3) Performance Stock. With respect to Performance Stock, the restrictions described in subsection
(c) shall lapse at the end of the applicable performance period if and to the extent the Performance Goals (established in accordance with Section 2(r)) have been achieved for such period. The Committee shall certify the extent to which
the Performance Goals are achieved and shall have the discretion to decrease (but not increase) the extent to which such restrictions lapse on account of such achievement. The restrictions described in 

  
 9 

 
subsection (c) shall also lapse (A) as provided in Section 13, or (B) if and to the extent determined by the Committee in the case of the Grantee’s death or disability.
If the Grantee’s Termination of Service occurs for any reason prior to the end of the performance period, the Grantee shall forfeit all Performance Stock granted with respect to such performance period except (i) as provided in
Section 13, (ii) as determined by the Committee in the case of the Grantee’s death or disability, or (iii) the Committee may provide that restrictions lapse with respect to a pro-rata portion of the number of shares of
Performance Stock for which the restrictions would have lapsed had the Grantee been employed on the last day of the performance period, under such circumstances as the Committee, in its sole discretion, determines. 

(e) Notice of Tax Election. Any Grantee making an election under Code §83(b) for the immediate recognition of income
attributable to the award of Restricted Stock must provide a copy thereof to the Company within 10 days of the filing of such election with the Internal Revenue Service. 

SECTION 9 - RSUs 
 (a)
Nature of RSUs. An RSU entitles the Grantee to receive, with respect to each RSU that vests in accordance with subsection (c) or Section 13, one share of Common Stock, cash equal to the Fair Market Value of a share of Common Stock
on the date of vesting, or a combination thereof as determined by the Administrator and set forth in the Award Agreement. Any fractional RSU shall be payable in cash. 

(b) Grant of RSUs. At the time of grant, the Administrator shall determine (1) the number of RSUs subject to the
Award, (2) whether the RSU is a PSU (where vesting is based on Performance Goals), or an RSU that is not a PSU (where vesting is based on times and/or conditions determined by the Administrator), and (3) when such RSUs shall vest in
accordance with subsection (c). The Company shall establish a bookkeeping account in the Grantee’s name which reflects the number and type of RSUs standing to the credit of the Grantee. 

(c) Vesting.  

(1) RSUs Other Than PSUs. With respect to RSUs that are not PSUs, the Administrator shall determine when such RSUs shall vest and any
conditions (such as continued employment or performance measures) that must be met in order for such RSUs to vest at the end of the applicable restriction period. The Administrator may at any time accelerate the time at which RSUs (other than PSUs)
shall vest. 
 (2) PSUs. PSUs shall vest at the end of the applicable performance period if and to the extent the
Performance Goals (established in accordance with Section 2(r)) have been achieved for such period. The Committee shall certify the extent to which the Performance Goals are achieved and shall the have the discretion to decrease (but not
increase) the extent to which PSUs vest on account of such achievement. PSUs shall also vest (A) as provided in Section 13, or (B) if and to the extent determined by the Committee in the case of the Grantee’s death or disability.
If the Grantee’s Termination of Service occurs for any reason prior to the end of the performance period, the Grantee shall forfeit all PSUs granted with respect to  

  
 10 

 
such performance period except (i) as provided in Section 13, (ii) as determined by the Committee in the case of the Grantee’s death or disability, or (iii) the Committee
may provide for vesting of a pro-rata portion of the PSUs that would have vested had the Grantee been employed on the last day of the performance period, under such circumstances as the Committee, in its sole discretion, determines. 

(3) Payment. Except as otherwise provided in the Award Agreement, upon the vesting of an RSU in accordance with this
subsection (c) or Section 13, payment, in Common Stock or cash (as applicable), shall be made in the Short-Term Deferral Period. 

(d) Dividend Equivalent Rights. The Company shall credit to the Grantee’s bookkeeping account, on each date that the
Company pays a cash dividend to holders of Common Stock generally, an additional number of RSUs equal to the total number of RSUs credited to the Grantee’s bookkeeping account on the dividend record date, multiplied by the dollar amount of the
per share cash dividend, and divided by the Fair Market Value of a share of Common Stock on the dividend payment date. RSUs attributable to such dividend equivalent rights shall be subject to the same terms and conditions as the RSUs to which such
dividend equivalent rights relate. 
 SECTION 10 - STOCK GRANTS 

The Administrator may make a Stock Grant to an Employee, Non-Employee Director or Consultant. Such Stock Grant shall be fully vested on the
date made. 
 SECTION 11 - AWARD AGREEMENTS 

Awards granted under the Plan shall be evidenced by Award Agreements in such form as the Administrator shall from time to time approve which
shall include such provisions as the Administrator shall deem advisable that are not inconsistent with the provisions of the Plan, Code §409A and, for ISOs, Code §422(b). For example, an Award Agreement may require forfeiture or payment of
gains to the Company in the event of the Grantee’s misconduct. The Award Agreements shall specify the type of Award granted. Each Grantee shall enter into, and be bound by, an Award Agreement as soon as practicable after the grant of an Award.

 SECTION 12 - ADJUSTMENT IN CASE OF CHANGES IN COMMON STOCK 

The following shall be adjusted to reflect any stock dividend, stock split, reverse stock split, spin-off, distribution, recapitalization,
share combination or reclassification, or similar change in the capitalization of the Company: 
 (a) The maximum number and type of shares
under the limits set forth in Section 4; and 
 (b) The number and type of shares issuable upon exercise or vesting of outstanding
Options, SARs and RSUs under the Plan (as well as the option price per share under outstanding Options and the Fair Market Value of a share on the date an outstanding SAR was granted); provided, however, that (i) no such adjustment shall be
made to an outstanding ISO if such adjustment would constitute a modification under Code §424(h), unless the Grantee consents to such adjustment, and (ii) no such adjustment shall be made to an outstanding Option or SAR if such adjustment
would cause the Option or SAR to be subject to Code §409A. 

  
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 In the event any such change in capitalization cannot be reflected in a straight mathematical adjustment of the
number of shares issuable upon the exercise or vesting of outstanding Options, SARs and RSUs (and a straight mathematical adjustment of the exercise price or Fair Market Value on the date of grant of a SAR), the Committee shall make such adjustments
as are appropriate to reflect most nearly such straight mathematical adjustment. Such adjustments shall be made only as necessary to maintain the proportionate interest of Grantees, and preserve, without exceeding, the value of Awards. 

SECTION 13 - CHANGE IN CONTROL 

(a) Full Vesting. Notwithstanding any other provision of this Plan, each outstanding Award shall become fully vested and exercisable
upon a Change in Control unless the Award Agreement evidencing the Award provides otherwise; provided, however, that this Section 13 shall not increase the extent to which an Award is vested or exercisable if the Grantee’s Termination of
Service occurs prior to the Change in Control. 
 (b) Definitions. 

(1) For purposes of this Plan, a “Change in Control” with respect to the Company shall mean any of the following events: 

(A) a merger or consolidation of the Company with any other corporation, other than a merger or consolidation resulting in the voting power of
the securities (as described in clause (D) below) of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting stock of the surviving entity) more than a
majority of the combined voting power of the securities of the Company (or such surviving entity) outstanding immediately after such merger of consolidation; 

(B) any sale, lease, exchange, or other transfer (in one transaction or in a series of related transactions) of all, or substantially all, of
the assets of the Company; 
 (C) the dissolution and liquidation of the Company; or 

(D) any person or “group” (other than a benefit plan sponsored by either the Company or a subsidiary of the Company and other than
Richard A. Hayne or his estate, personal representative or the beneficiaries under his will), becoming after December 12, 2016 the “beneficial owner,” directly or indirectly, of securities representing a majority of the combined
voting power of the then outstanding securities of the Company ordinarily (and apart from the rights accruing under special circumstances) having the right to vote in the election of directors (calculated as provided in paragraph (d) of Rule
13d-3 in the case of rights to acquire such securities). 

  
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 (2) For purposes hereof, the terms “group” and “beneficial owner” shall have
the meanings given to them in Rule 13d-3; and Rule 13d-3 shall mean Rule 13d-3 of the Securities and Exchange Commission promulgated under the Exchange Act. 

SECTION 14 - CERTAIN CORPORATE TRANSACTIONS 

In the event of a corporate transaction (such as, for example, a merger, consolidation, acquisition of property or stock, separation,
reorganization, or liquidation), the surviving or successor corporation shall assume each outstanding Award or substitute a new award of the same type for each outstanding Award; provided, however, that, in the event of a proposed corporate
transaction, the Committee may terminate all or a portion of the outstanding Awards, effective upon the closing of the corporate transaction, if it determines that such termination is in the best interests of the Company. If the Committee decides so
to terminate outstanding Options and SARs, the Committee shall give each Grantee holding an Option or SAR to be terminated not fewer than seven days’ notice prior to any such termination, and any Option or SAR which is to be so terminated may
be exercised (if and only to the extent that it is then exercisable under the terms of the Award Agreement and Section 13) at any time prior to such termination. Further, as provided in Sections 6(d), 7(b), 8(d)(2) and 9(c)(1), the
Administrator may, in its discretion accelerate, in whole or in part, the date on which any or all Awards become exercisable or vested (to the extent such Award is not fully exercisable or vested pursuant to the Award Agreement or Section 13).

 The Committee also may, in its discretion, change the terms of any outstanding Award to reflect any such corporate transaction, provided
that (i) in the case of ISOs, such change would not constitute a “modification” under Code §424(h), unless the Grantee consents to the change, and (ii) no such adjustment shall be made to an outstanding Option or SAR if such
adjustment would cause the Option or SAR to be subject to Code §409A. 
 SECTION 15 - AMENDMENT OF THE PLAN AND OUTSTANDING AWARDS

 The Board, pursuant to resolution, may amend or suspend the Plan, and, except as provided below, the Administrator may amend an
outstanding Award in any respect whatsoever and at any time; provided, however, that the following amendments shall require the approval of shareholders — 

(a) a change in the class of employees eligible to participate in the Plan with respect to ISOs; 

(b) except as permitted under Section 12, an increase in the maximum number of shares of Common Stock with respect to which ISOs may be
granted under the Plan; 
 (c) a modification of the material terms of the “performance goal,” within the meaning of Treas. Reg.
§ 1.162-27(e)(4)(vi) or any successor thereto (to the extent compliance with section 162(m) of the Code is desired); and 
 (d) any
amendment for which shareholder approval is required under the rules of the exchange or market on which the Common Stock is listed or traded. 

  
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 Except as provided in Section 14, no amendment or suspension of an outstanding Award shall
(i) adversely affect the rights of the Grantee or cause the modification (within the meaning of Code §424(h)) of an ISO, without the consent of the Grantee affected thereby, or (ii) cause an Option or SAR to become subject to Code
§409A. 
 SECTION 16 - TERMINATION OF PLAN; CESSATION OF ISO GRANTS 

The Board, pursuant to resolution, may terminate the Plan at any time and for any reason. No ISOs shall be granted hereunder after
December 11, 2026, which date is within 10 years after the date the Plan was adopted, or the date the Plan was approved by the shareholders of the Company, whichever is earlier. Nothing contained in this Section, however, shall terminate or
affect the continued existence of rights created under Awards granted hereunder which are outstanding on the date the Plan is terminated and which by their terms extend beyond such date. 

SECTION 17 - SHAREHOLDER APPROVAL 

This Plan shall become effective on December 12, 2016; provided, however, that if the Plan is not approved by the shareholders of the
Company within 12 months before or after the date the Plan was adopted, the Plan and all Awards granted hereunder shall be null and void and no additional Awards shall be granted hereunder. 

SECTION 18 - MISCELLANEOUS 

(a) Rights. Neither the adoption of the Plan nor any action of the Board or the Administrator shall be deemed to give any individual
any right to be granted an Award, or any other right hereunder, unless and until the Administrator shall have granted such individual an Award, and then his or her rights shall be only such as are provided in the Award Agreement. Notwithstanding any
provisions of the Plan or the Award Agreement with an Employee, the Company and any Related Corporation shall have the right, in its discretion but subject to any employment contract entered into with the Employee, to retire the Employee at any time
pursuant to its retirement rules or otherwise to terminate his or her employment at any time for any reason whatsoever, or for no reason. A Grantee shall have no rights as a shareholder with respect to any shares covered by his or her Award until
the issuance of a stock certificate to him or her for such shares, except as otherwise provided under Section 8(b) (regarding Restricted Stock). 

(b) Indemnification of Board and Committee. Without limiting any other rights of indemnification which they may have from
the Company and any affiliate of the Company, the members of the Board and the members of the Committee shall be indemnified by the Company against all costs and expenses reasonably incurred by them in connection with any claim, action, suit, or
proceeding to which they or any of them may be a party by reason of any action taken or failure to act under, or in connection with, the Plan, or any Award granted hereunder, and against all amounts paid by them in settlement thereof (provided such
settlement is approved by legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit, or proceeding, except a judgment based upon a finding of 

  
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willful misconduct or recklessness on their part. Upon the making or institution of any such claim, action, suit, or proceeding, the Board or Committee member shall notify the Company in writing,
giving the Company an opportunity, at its own expense, to handle and defend the same before such Board or Committee member undertakes to handle it on his or her own behalf. The provisions of this Section shall not give members of the Board or the
Committee greater rights than they would have under the Company’s by-laws or Pennsylvania law. 
 (c) Transferability;
Registration. No ISO, Restricted Stock or RSU shall be assignable or transferable by the Grantee other than by will or by the laws of descent and distribution. During the lifetime of the Grantee, an ISO shall be exercisable only by the
Grantee or, in the event of the Grantee’s legal disability, by the Grantee’s guardian or legal representative. Except as provided in an Employee’s or Consultant’s Award Agreement, such limits on assignment, transfer and exercise
shall also apply to NQSOs and SARs. 
 A Non-Employee Director may transfer an NQSO or SAR for no consideration to (1) the
Non-Employee Director’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including
adoptive relationships, or any person sharing the Non-Employee Director’s household (other than a tenant or employee) (“Permitted Transferees”), (2) a trust in which one or more Permitted Transferees in the aggregate have more
than 50% of the beneficial interest, (3) a foundation in which one or more Permitted Transferees (or the Non-Employee Director) in the aggregate control the management of assets, and (4) any other entity in which one or more Permitted
Transferees (or the Non-Employee Director) in the aggregate own more than 50% of the voting interests. Except as provided in the preceding sentence, or by will or the laws of descent and distribution, an NQSO or SAR granted to a Non-Employee
Director shall not be assignable or transferable by the Non-Employee Director, and during the lifetime of the Non-Employee Director, the NQSO shall be exercisable only by the Non-Employee Director or by his guardian or legal representative. Any NQSO
or SAR transferred by a Non-Employee Director shall not be assignable or transferable by the transferee. 
 If the Grantee so requests at
the time of exercise of an Option or an SAR, or at the time of grant of Restricted Stock or vesting of an RSU, the certificate(s) shall be registered in the name of the Grantee and the Grantee’s spouse jointly, with right of survivorship. 

(d) Deferrals. The Committee may permit or require Grantees to defer receipt of any Common Stock issuable upon the lapse
of the restriction period applicable to Restricted Stock or RSUs, subject to such rules and procedures as it may establish, which may include provisions for the payment or crediting of interest, or dividend equivalents, including converting such
credits into deferred Common Stock equivalents. In no event, however, shall such deferrals be permitted unless the Grantee’s Award Agreement specifically permits deferrals under this Section. 

(e) Listing and Registration of Shares. Each Award shall be subject to the requirement that, if at any time the Committee
shall determine, in its discretion, that the listing, registration, or qualification of the shares of Common Stock covered thereby upon any securities exchange or under any state or federal law, or the consent or approval of any governmental 

  
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regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such Award or the purchase of shares of Common Stock thereunder, or that action by the
Company, its shareholders, or the Grantee should be taken in order to obtain an exemption from any such requirement or to continue any such listing, registration, or qualification, no such Award may be exercised, in whole or in part, and no
Restricted Stock, RSU or Stock Grant may be awarded, unless and until such listing, registration, qualification, consent, approval, or action shall have been effected, obtained, or taken under conditions acceptable to the Committee. Without limiting
the generality of the foregoing, each Grantee or his or her legal representative or beneficiary may also be required to give satisfactory assurance that such person is an eligible purchaser under applicable securities laws, and that the shares
purchased or granted pursuant to the Award shall be for investment purposes and not with a view to distribution; certificates representing such shares may be legended accordingly. 

(f) Withholding and Use of Shares to Satisfy Tax Obligations. The obligation of the Company to deliver shares of Common
Stock or cash upon the exercise of any Award, upon the vesting of Restricted Stock or RSU, or upon the making of a Stock Grant shall be subject to applicable federal, state and local tax withholding requirements. If the exercise of any Award, the
vesting of Restricted Stock or RSU, or making of a Stock Grant is subject to the withholding requirements of applicable federal, state or local tax law, the Administrator, in its (or his) discretion, may permit or require the Grantee to satisfy the
federal, state and/or local withholding tax, in whole or in part, by electing to have the Company withhold shares of Common Stock (or by returning previously acquired shares of Common Stock to the Company); provided, however, that the Company may
limit the number of shares withheld to satisfy the tax withholding requirements with respect to any Award to the extent necessary to avoid adverse accounting consequences. Shares of Common Stock shall be valued, for purposes of this subsection, at
their Fair Market Value (determined as of the date(s) such shares are withheld to satisfy the applicable withholding requirements). The Committee shall adopt such withholding rules as it deems necessary to carry out the provisions of this
subsection. 
 (g) Acquisitions. Notwithstanding any other provision of this Plan, Awards may be granted
hereunder in substitution for awards held by employees, consultants or directors of other entities who are about to, or have, become Employees, Consultants or Non-Employee Directors as a result of a merger, consolidation, acquisition of assets or
similar transaction by the Company or Related Corporation. The terms of the substitute Awards so granted may vary from the terms set forth in this Plan to such extent the Committee may deem appropriate to conform, in whole or in part, to the
provisions of the awards in substitution for which they are granted; provided, however, that no substitute Award shall be granted which will subject the Award to section 409A of the Code (if it previously was not subject to such Code section).

 (h) Application of Funds. Any cash received in payment for shares pursuant to an Award shall be added to the
general funds of the Company. Any Common Stock received in payment for shares shall become treasury stock. 
 (i) No
Obligation to Exercise Award. The granting of an Award shall impose no obligation upon a Grantee to exercise such Award. 

  
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 (j) Governing Law. The Plan shall be governed by the applicable Code
provisions to the maximum extent possible. Otherwise, the laws of the Commonwealth of Pennsylvania (without reference to principles of conflicts of laws) shall govern the operation of, and the rights of Grantees under, the Plan, and Awards granted
thereunder. 
 (k) Unfunded Plan. The Plan, insofar as it provides for Awards, shall be unfunded, and the Company
shall not be required to segregate any assets that may at any time be represented by Awards under the Plan. Any liability of the Company to any person with respect to any Award under this Plan shall be based solely upon any contractual obligations
that may be created pursuant to the Plan. No such obligation of the Company shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the Company. 

(l) Recoupment Policy. Notwithstanding any provision of this Plan to the contrary, a Grantee’s right to receive or
retain an Award, to retain any amount received pursuant to an Award (in cash or Common Stock) and, in the case of Common Stock received pursuant to an Award, to retain any profit or gain the Grantee realized in connection with such an Award, shall
be subject to any recoupment or “clawback” policy adopted by the Company. 

  
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