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EXHIBIT
10.1
AMENDED AND RESTATED LEASE
AGREEMENT
This Amended and Restated
Lease Agreement (this “Lease”) dated as of
September 1, 2007, is by and between PILGRIM
PARTNERSHIP , L.L.C., a Vermont limited liability
company having its office at Post Office Box 447, Waterbury,
Vermont 05676, hereinafter “Landlord” and GREEN
MOUNTAIN COFFEE ROASTERS, INC. , a Delaware corporation having
its principal place of business at 33 Coffee Lane, Waterbury,
Vermont, hereinafter “Tenant.” This Lease amends and
restates a certain Lease Agreement by and between Pilgrim
Partnership and Green Mountain Coffee, Inc. dated as of
April 28, 1993, as modified by various amendments over time
(the “Original Lease”).
ARTICLE 1. Premises;
Term
ARTICLE 1.1. Demised Premises .
Landlord leases to Tenant and Tenant hires from Landlord of Unit #1
as depicted in Exhibit D, Condominium Plan of Amended and Restated
Declaration of Pilgrim Commercial Park Condominiums, dated
September 28, 2006, and recorded in Book 250, Page 220-297 of
the Waterbury Land Records, hereinafter “the
Declaration,” consisting of 80,200 square feet. Said Plan is
also recorded in Map Slide 75 of the Waterbury Land Records. Also
included with Unit #1 are the common elements and limited common
elements appurtenant thereto, hereinafter “the Common
Areas” together with the reserved development rights in Sites
C and J as depicted on said Plan.
TO HAVE AND TO HOLD
the same unto Tenant for the lease term to expire on August 31,
2017, hereinafter “the Original Lease Term,” yielding
and paying the rents and additional rents hereinafter set forth,
all on the covenants, conditions, and agreements contained herein
(the “Demised Term,” said term including any extensions
or renewals thereof). Subject to Tenant’s renewal rights as
set forth in Section 1.2 hereof, in the event that Tenant
continues in possession of the Demised Premises upon the expiration
of the Demised Term of this Lease, the tenancy hereunder shall
become a month to month tenancy terminable by either party upon
thirty (30) days advance written notice to the other party. In
the event of any such holding over, all of the terms and conditions
of this Lease, to the extent applicable, shall continue in
effect.
ARTICLE 1.2. Option to Renew .
Tenant shall have an option to renew this Lease of the Demised
Premises or any portion of the Demised Premises for two
(2) successive five (5) year terms at an agreed upon rent
for the successive five year terms by providing Landlord with
written notice of Tenant’s intent to renew not later than six
(6) months prior to the end of the Original Lease Term or the
first of the within two successive five-year terms. The Fixed Rent
for the extension terms shall increase by two and one half percent
(2 1/2%) from the Fixed Rent of the preceding year.
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ARTICLE 1.3. Right of First Refusal
on the Demised Premises . Landlord hereby grants to Tenant a
right of first refusal on the Demised Premises. This right of first
refusal is not saleable or transferable by Tenant, except to
(a) an entity which purchases all or substantially all of
Tenant’s assets, (b) Tenants’s parent, Green
Mountain Coffee, Inc., or (c) a successor by merger to Tenant.
If Landlord receives a bona fide written offer to purchase the
Demised Premises, Landlord shall notify Tenant in writing of the
identity of the offeror, and the terms and conditions of the offer.
Tenant shall notify Landlord of its intent to exercise its right to
purchase the Demised Premises of first refusal within sixty
(60) days of receipt of the notice, and thereafter the closing
of the sale of the Demised Premises shall occur no later than the
later of the date set for closing in the bona fide offer to
purchase or one hundred twenty (120) days of the date Tenant
receives the offer from Landlord. If Tenant does not exercise its
right of first refusal, Landlord may sell the Demised Premises to
the original offeror upon the original terms and conditions for a
period up to one hundred eighty (180) days after
Tenant’s receipt of notice. If Landlord does sell the Demised
Premises to the original offeror for such original terms and
conditions within said one hundred eighty (180) day period,
Tenant’s right of first refusal shall forever terminate. If
Landlord does not sell the Demised Premises within said one hundred
eighty (180) day period, Tenant’s right of first refusal
as provided herein shall apply to a next offer to purchase the
Demised Premises. For purposes of this ARTICLE 1.3. the term
“written offer to purchase the Demised Premises” shall
be deemed to be a written offer to purchase Unit #1 together with
its limited common elements and interest in common elements as set
forth in the Declaration, as may be amended. The term
“written offer to purchase the Demised Premises” shall
not be deemed to be an offer to purchase any other portion of the
Condominium from which the Demised Premises is derived nor shall
the term “written offer to purchase the Demised
Premises” be deemed to be an offer to purchase multiple Units
of the Condominium which shall include the Demised Premises, nor
shall the term “written offer to purchase the Demised
Premises” be deemed to be an offer to purchase a fractional
interest in the Demised Premises or a fractional interest in any
portion of the Condominium from which the Demised Premises is
derived or a factional interest in multiple Units of the
Condominium which shall include the Demised Premises. The right of
first refusal provided herein shall be self terminating upon the
filing in the Waterbury Land Records of an affidavit sworn to or
affirmed by Landlord, its successors or assigns, setting forth i)
the date the notice of the offer to purchase the Demised Premises
was received by Tenant, ii) that sixty (60) days expired and
no letter of intent was received by Tenant or that iii) one hundred
eighty (180) days have passed after Tenant’s receipt of
the notice and Landlord closed on the transaction and iv) five
(5) business days have passed since Landlord sent Tenant a
copy of the required affidavit.
ARTICLE 1.4. Option to Purchase .
Landlord hereby grants to Tenant an option to purchase the Demised
Premises. This option to purchase is not saleable or transferable
by Tenant, except to (a) an entity which purchases all or
substantially all of Tenant’s assets,
(b) Tenants’s parent, Green Mountain Coffee, Inc., or
(c) a successor by merger to Tenant, or (d) any company
in which Tenant or Green Mountain Coffee, Inc. owns stock (or other
equity interest) representing at least 50% voting control of such
company. At all times thereafter during the term of this Lease, as
the same may be renewed by Tenant, Tenant shall have the option to
purchase (i) the Demised Premises, and (ii) the Future
Development Rights reserved in the areas designated on the Plan as
Site C and Site J (“Future Development Rights Site C and Site
J”), in each case at the applicable price set forth below.
Tenant
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may exercise each such option
separately. Such option may be exercised by written notice from
Tenant to Landlord. Landlord agrees that during the term of the
Lease, it shall not transfer, convey or lease any rights in the
optioned premises, or any portion thereof subject to said options
to any party other than Tenant and any mortgagee; however any
transfer to a mortgagee shall be subject to Tenant’s rights
herein. The purchase price for each such option (in each case, the
“Purchase Price”) shall be as set forth below increased
annually commencing on September 1, 2007 and each anniversary
thereof, by two and one-half percent (2.5%). Commencing on
September 1, 2017 and continuing until the end of the lease
term, the increase shall be two percent (2%) on each
anniversary date. The Purchase Price shall be set as of the date of
exercise of the option:
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|
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|
Premises
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Purchase Price |
| Future
Development Rights Site C and Site J |
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$950,000 |
| Demised
Premises |
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$3,800,000 |
If Tenant exercises any of
the foregoing purchase options, Landlord shall convey the subject
property, to Tenant, or its designee, by warranty deed, conveying
fee simple title to such property free and clear of all liens and
other encumbrances except as set forth in the Declaration. Closing
of the transaction shall occur as soon as reasonably practicable.
Rent and other payments due under this Lease or any other
applicable lease between Landlord and Tenant shall be prorated to
the date of closing. Taxes and other related charges shall also be
prorated as of the closing. Tenant shall be responsible for any
transfer taxes payable with respect to any conveyance hereunder and
Landlord shall be responsible for any capital gains tax, land tax
or similar tax which may be payable in connection with such
conveyance.
Landlord acknowledges that
its breach of its obligation to sell any of the option premises
with respect to which Tenant validly exercises its purchase option
hereunder would cause Tenant irreparable harm. As a result,
Landlord agrees that, in addition to all other available remedies,
Tenant shall be entitled to compel Landlord’s specific
performance of its obligations under this Article 1.4.
To the extent there is a
conflict between the provisions contained in this Article 1.4 and
option provisions concerning Future Development Rights Site C and
Site J and the Demised Premises contained in any other lease
agreement between the parties hereto, the terms of this Lease
Agreement shall govern the option to purchase Future Development
Rights Site C and Site J and the Demised Premises.
ARTICLE 2. Commencement of
Term
ARTICLE 2.1. Commencement Date .
The term of this Lease shall commence on September 1, 2007
(“Commencement Date”) and end on August 31, 2017.
The rent payment obligation provided for herein shall commence on
September 1, 2007.
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ARTICLE 2.2. Possession . Tenant
is in possession of the Demised Premises and Tenant continues
occupancy of the Demised Premises in the condition as exists on the
date hereof, except that it is a condition of the Lease that
Landlord perform the work required by Article 20.1.
ARTICLE 3. Rent
ARTICLE 3.1. Rent Payments .
During the term of this Lease, Tenant covenants and agrees to pay
Landlord a fixed, minimum rent commencing September 1, 2007
according to the schedule set out on Schedule 3.1, attached hereto.
Rent shall be payable in equal monthly installments in advance on
the first day of each month during the term of this Lease at the
office of Landlord or such other place as Landlord may designate,
without any set-off or deduction whatsoever.
ARTICLE 3.2. Additional Rent .
All costs, charges, expenses and adjustments to rent which Tenant
assumes, agrees or is obligated to pay Landlord pursuant to this
Lease and the Exhibits annexed hereto, shall be deemed additional
rent, and, in the event of the nonpayment thereof, Landlord shall
have all the rights and remedies with respect thereto as are herein
provided for in case of the nonpayment of rent. Tenant covenants to
pay Landlord the rent, additional rent and adjustments of rent as
herein provided when due, without notice or demand, at the time and
in the manner herein specified and, in default of payment may, at
the option of Landlord, be added to the next or any other
installment of fixed minimum rent subsequently becoming
due.
ARTICLE 3.3. Late Payment Penalty
. Tenant acknowledges that late payment by Tenant to Landlord of
rent and other sums due hereunder will cause Landlord to incur
costs not contemplated by this Lease, the exact amount of which
will be extremely difficult to ascertain. Accordingly, if any
installment of rent or any other sum due from Tenant shall not be
received by Landlord or Landlord’s designee within ten
(10) days after notice by Landlord to Tenant that such amount
is past due, Tenant shall pay to Landlord a late charge equal to
five percent (5%) of such overdue amount. The parties agree
that such late charge represents a fair and reasonable estimate of
the costs Landlord will incur by reason of late payment by Tenant.
Acceptance of such late charge by Landlord shall in no event
constitute a waiver of Tenant’s default with respect to such
overdue amount nor prevent Landlord from exercising any of the
other rights and remedies granted hereunder.
ARTICLE 4. Use
ARTICLE 4.1. Use, Density .
Tenant shall use and occupy the Demised Premises for business
activities of Tenant or assignees or subtenants permitted under
ARTICLE 10 hereof only and for no other purposes, without
Landlord’s consent not to be unreasonably withheld, delayed
or conditioned.
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ARTICLE 4.2. Adverse Use . Tenant
shall not knowingly suffer or permit the Demised Premises or any
part thereof to be used in any manner, or anything to be done
therein, or suffer or permit anything to be brought into or kept in
the Demised Premises which would in any way (a) violate any
law or requirement of public authorities, (b) cause structural
injury to the Demised Premises or any part thereof,
(c) interfere with the normal operations of the heating,
air-conditioning, ventilating, plumbing or other mechanical or
electrical systems of the Demised Premises or the elevators
installed therein, (d) constitute a public or private
nuisance, (e) alter the appearance of the exterior of the
Demised Premises, or (f) violate the non smoking provisions of
Section 24.1.
ARTICLE 5. Repairs;
Alterations; Fixtures
ARTICLE 5.1. Landlord Maintenance
. Landlord shall at Landlord’s own expense make all
structural repairs (excluding roof unless caused by the actions of
Landlord, its successors, assigns, employees, agents, invitees, or
licensees, and including foundation, building exterior, parking
lots and sidewalks as more particularly described in
Section 19.1 hereof) of the Demised Premises. Except those
repairs required to be made by Tenant pursuant to Section 5.2,
Landlord shall, at Landlord’s own expense, make all repairs
to the Demised Premises. Tenant shall endeavor to promptly notify
Landlord of the necessity of any repairs of which Tenant may have
knowledge and for which Landlord may be responsible under the
provisions of this Section 5.1.
ARTICLE 5.2. Tenant Maintenance .
Tenant shall take good care of the interior of the Demised
Premises. Tenant shall, at Tenant’s own expense, make all
Tenant repairs to the interior of the Demised Premises, and repairs
of and maintenance to the roof of the Demised Premises (unless roof
repair or damage is due to the actions of Landlord, its successors,
assigns, employees, agents, invitees, or licensees). All damage or
injury to the Demised Premises, caused by Tenant moving property in
or out of the Demised Premises or by installation or removal of
furniture, fixtures, or other property, or resulting from fire,
explosion, short circuits, flow or leakage of water, steam,
illuminating gas, sewer gas, sewerage, or by frost or by bursting
or by leaking of pipes or plumbing solely due to carelessness,
omission, gross neglect, or willful misconduct by Tenant, its
servants, employees, agents, visitors, or licensees, shall be
repaired, restored, or replaced promptly by Tenant at
Tenant’s sole cost and expense, except to the extent that
such cost and expense is covered by the proceeds of Insurance
recovered by Landlord. All of said repairs and any restorations or
replacements required in connection therewith shall be of a quality
and class at least equal to the original work or installations, and
shall be done in a good and workmanlike manner.
ARTICLE 5.3. Additional
Alterations .
(1) Tenant shall make no
structural or mechanical alterations, installations, additions, or
improvements in or to the Demised Premises costing in excess of
$100,000.00. , including, but not limited to, water coolers,
heating, air-conditioning or cooling systems, units or
part
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thereof, or other apparatus of other or
like nature, without Landlord’s prior written consent and
then as to any such work required to be performed by professionals,
only by contractors or mechanics approved in writing by Landlord.
Landlord agrees not to unreasonably withhold its consent to such
work and contractors or mechanics. All such work, alterations,
installations, additions, or improvements shall be done at
Tenant’s sole expense, and in full compliance with all laws,
rules, regulations, and requirements of all governmental bureaus
and bodies having jurisdiction thereof. Without limiting the
foregoing, it is understood that Tenant shall be permitted to make
non-structural cosmetic and/or decorative improvements to the
Demised Premises without the necessity for consent by Landlord
unless such cosmetic and/or decorative improvements are visible
from the exterior of the Demised Premises in which case such
cosmetic and/or decorative improvements shall be permitted upon
notice to and consent by Landlord which consent shall not be
unreasonably withheld. Any alterations, decorations, installations,
additions, or improvements shall, at the election of Tenant, become
the property of Landlord and shall remain upon and be surrendered
with the Demised Premises as a part thereof at the end of the
Demised Term, or prior expiration thereof, shall be removed by
Tenant. In the event Tenant shall elect to remove the alterations,
installations, additions or improvements made by Tenant upon the
Demised Premises, then such of the alterations, installations,
additions or improvements made by Tenant upon the Demised Premises
as Tenant may select (as well as any communications equipment or
equipment leased by Tenant) shall be removed by Tenant, and Tenant
shall restore the Demised Premises to their original condition
(except with respect to those items which Tenant has elected to
remain) at Tenant’s own cost and expense at or prior to the
expiration of the Demised Term. In the case of either election,
upon the termination of Tenant’s occupancy of the Demised
Premises, Tenant shall have the obligation to turn over condition
of the Building in a broom clean condition and the Building and the
Demised Premises free from trash, litter, debris, and refuse.
Notwithstanding anything to the contrary contained in this Article
5.3, Tenant’s installation of production or packaging
equipment, or other Tenant equipment used in connection with its
business operations at the Demised Premises shall not be deemed an
Additional Alteration requiring Landlord’s approval,
regardless of the cost.
(2) If any mechanic’s
lien is filed against the Building and/or any other portion of the
Demised Premises for work claimed to have been done for, or
materials claimed to have been furnished to Tenant, it shall be
discharged by Tenant within ten (10) days thereafter, at
Tenant’s expense, by filing any bond required by law or
payment or otherwise.
(3) Landlord shall not be
liable for any failure of any Building facilities or services
including, but not limited to, the heating, air-conditioning and
ventilating equipment in the Demised Premises installed by Landlord
caused by alterations, installations, and/or additions by Tenant
and Tenant shall correct any such faulty installation. Upon
Tenant’s failure to correct same, Landlord may make such
correction and charge Tenant for the cost thereof. Such sums due
Landlord shall be deemed additional rent and shall be paid by
Tenant promptly upon being billed therefor.
(4) Any of Tenant’s
personal property which shall remain in the Demised Premises
following the expiration of the Demised Term, or any earlier
termination of this Lease and the removal of Tenant from the
Demised Premises, may, at the option of Landlord, be deemed to
have
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been abandoned and either may be
retained by Landlord as its property or be disposed of at
Tenant’s expense, or at Landlord’s option may be
disposed of without accountability in such manner as Landlord may
see fit. In the event of Tenant’s failure to leave the
Demised Premises in “broom clean” condition free from
trash, litter, debris, and refuse, Landlord may cause the Demised
Premises to be cleaned and the trash, litter, debris and refuse to
be removed from the Demised Premises and any other damage to the
Demised Premises caused by Tenant’s removal of its property
from the Demised Premises may be repaired at Tenant’s cost
and expense and Tenant shall pay to Landlord upon demand
accompanied by a description of the clean-up work and invoices for
the same, all such costs and expenses. The provisions hereof shall
survive the expiration or termination of this Lease.
ARTICLE 5.4. Permits, Insurance .
Prior to commencing any work which requires Landlord’s
consent, pursuant to the provisions of Section 5.2, Tenant
shall furnish to Landlord:
(1) Copies of any
governmental permits and authorizations required in connection with
such work. Landlord agrees to cooperate with Tenant in obtaining
any such permits and authorizations.
(2) A certificate evidencing
that Tenant (or Tenant’s contractors) have procured
workmen’s compensation insurance covering all persons
employed in connection with the work who might assert claims for
death or bodily injury against Landlord, Tenant, the Demised
Premises or the Land.
ARTICLE 6. Laws; Ordinances;
Requirements of Public Authorities
ARTICLE 6.1. Tenant Compliance .
Tenant shall, at its expense, comply with all laws, orders,
ordinances and regulations of federal, state, county and municipal
authorities and with any direction made pursuant to law of any
public officer or officers which shall, with respect to the
occupancy, use or manner of use of the Demised Premises or to any
abatement of nuisance caused by Tenant, impose any violation,
order, or duty upon Landlord or Tenant arising solely from
Tenant’s occupancy, use, or manner of use of the Demised
Premises or any installations made therein by or at Tenant’s
request or required by reason of a breach of any of Tenant’s
covenants or agreements hereunder. Tenant may at its expense
contest the validity of any such law, ordinance, rule, order or
regulation. Landlord has no knowledge that Tenant on the date
hereof is not in compliance with this Section 6.1.
Notwithstanding and without limiting the foregoing, Tenant shall
have no obligation to correct or cure at its expense any failure by
Landlord, its predecessors, successors or assigns, to comply with
any law, order, ordinance or regulation in connection with the
construction of the Demised Premises or the development and
maintenance of the so-called Pilgrim Park of which the Demised
Premises are a portion, it being understood that Tenant shall only
be responsible for matters within Tenant’s control related to
its operations at and occupancy of the Demised Premises.
ARTICLE 6.2. Notice of Violations
. If either party receives notice of any violation of law,
ordinance, rule, order, or regulation applicable to the Demised
Premises, it shall give prompt notice thereof to the other
party.
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ARTICLE 6.3. Landlord Compliance
. Except as aforesaid, Landlord shall, at its expense, comply with
or cause to be complied with, all laws, orders, ordinances, and
regulations of federal, state, county and municipal authorities and
any direction made pursuant to law of any public officer or
officers which shall, with respect to the public portions of the
Demised Premises, or which affect Tenant’s access to the
Demised Premises or parking areas, impose any violation, order or
duty upon Landlord or Tenant and with respect to which Tenant is
not obligated by Section 6.1 to comply. Landlord may at its
expense contest the validity of any such law, ordinance, rule,
order or regulation.
ARTICLE 7.
Insurance
ARTICLE 7.1. Compliance With
Insurance Regulations . Tenant shall not do or permit to be
done any act or thing in or upon the Demised Premises which will
invalidate or be in conflict with any certificate of occupancy or
the terms of the insurance policies covering the Building and/or
the fixtures, equipment, and property therein. Tenant shall not
knowingly do or permit anything to be done in or upon the Demised
Premises or bring or keep anything therein or use the Demised
Premises in a manner which increases the rate of insurance upon the
Building or on any property or equipment located therein over the
rate in effect at the commencement of the term of this Lease.
Landlord has no knowledge that Tenant on the date hereof is not in
compliance with this Section 7.1.
ARTICLE 7.2. Tenant Caused
Increases . If, because of anything done, caused, or permitted
to be done, permitted, or omitted by Tenant, the rate of liability,
fire, boiler, sprinkler, water damage or other insurance (with all
extended coverage) on the Building or on the property and equipment
of Landlord shall be greater than the rate of liability, fire,
boiler, sprinkler, water damage or other insurance (with all
extended coverage) on the Building as of the date this Lease
Agreement is executed, Tenant shall reimburse Landlord for the
additional insurance premiums thereafter paid by Landlord which
shall have been charged because of the aforesaid reasons. Tenant
shall make any such reimbursement on the first day of the month
following such payment by Landlord. In any action or proceeding
wherein Landlord and Tenant are parties, a schedule or Amake up@ of
any insurance rate for the Building or Demised Premises is issued
by a body establishing insurance rates for the Building shall be
conclusive evidence of the facts therein stated and of the several
items and charges in the insurance rates then applicable to the
Building and/or the Demised Premises. Landlord acknowledges
Tenant’s existing uses of the Building include the roasting
and packaging of coffee, and Landlord agrees that the foregoing
provision related to Tenant caused increases shall only apply in
the event of a change from Tenant’s existing uses of the
Demised Premises which change directly corresponds to a higher rate
of insurance on the Building.
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ARTICLE 7.3. Liability Insurance
.
(1) Tenant at Tenant’s
own cost and expense shall maintain insurance against any and all
claims for injury or damage to persons or property, or for the loss
of life, or for the loss of property occurring upon, in or about
the Demised Premises. Such insurance shall provide for minimum
combined single limit of liability of $1,000,000 each occurrence
for Bodily Injury and Property Damage and with a general aggregate
limit of not less than $2,000,000, and shall name Landlord as an
additional insured.
(2) All such insurance shall
be effected under valid and enforceable policies (which may cover
the Demised Premises and other locations), shall be issued by
insurers of recognized responsibility acceptable by Landlord and
shall contain a provision whereby the insurer agrees not to cancel
the insurance without thirty (30) days prior written notice to
Landlord.
On or before the Commencement Date,
Tenant shall furnish Landlord with a certificate or certificates
evidencing the aforesaid insurance coverage, and renewal
certificates shall be furnished to Landlord from time to time upon
request by Landlord.
ARTICLE 7.4. Waiver of
Subrogation . Each party agrees to use its best efforts to
include in each of its insurance policies (a) a waiver of the
insurer’s right of subrogation against the other party, or
(b) an express agreement that such policy shall not be
invalidated if the insured waives the right of recovery against any
party responsible for a casualty covered by the policy before the
casualty, or (c) any other form of permission for the release
of the other party. If such waiver or permission shall not be, or
shall cease to be, obtainable without additional charge or at all,
the insured party shall so notify the other party promptly after
learning thereof. In the case of an additional charge, if the other
party shall so elect and shall pay such charge, such waiver or
permission shall be included in the policy. Each party hereby
releases to the other party with respect to any claim (including a
claim for negligence) which it might otherwise have against the
other party for loss, damage, or destruction with respect to its
property by fire or other casualty (including rental value or
business interest, as the case may be) occurring during the term of
this Lease to the extent that it is not prohibited under a policy
or policies containing a waiver of subrogation or permission to
release liability or naming the other party as an additional
insured. If such waiver is not obtainable for any reason then there
shall be no such release of the other party. The waiver of
subrogation or permission for release referred to herein shall
extend to the agents of each party and its and their employees and
shall be coextensive therewith, and, in the case of Tenant shall
also extend to all other persons and entities occupying or using
the Demised Premises in accordance with the terms of this Lease,
but only if and to the extent that such waiver or permission can be
obtained without additional charge (unless such party shall pay
such charge).
ARTICLE 7.5. Landlord’s
Insurance Obligation . Landlord shall maintain in effect, at
its own cost and expense, sufficient insurance i) to meet its
repair obligations under ARTICLE 8 hereof in the event of fire or
other damage and ii) cover the full replacement value of the
Demised Premises.
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ARTICLE 8. Damage by Fire or
Other Cause
ARTICLE 8.1. Damage .
(1) Tenant shall give
immediate notice to Landlord in case of fire or other damage in the
Demised Premises. If the Demised Premises shall be partially
damaged by fire or other cause without the fault or neglect of
Tenant, Tenant’s servants, employees, agents, invitees, or
licensees, the damage shall be repaired by and at the expense of
Landlord and the fixed minimum rent until such repairs shall be
made shall be apportioned according to the part of the Demised
Premises which is unusable by Tenant. If such partial damage is due
to the fault or neglect of Tenant, Tenant’s servants,
employees, agents, invitees, or licensees, without prejudice to any
other rights and remedies of Landlord and, except as provided in
Section 7.4. without prejudice to the rights of subrogation of
Landlord’s insurer, the damage shall be repaired by Landlord,
but there shall be no apportionment or abatement of rent. Any such
repairs required to be made by Landlord shall be commenced promptly
and diligently completed. If such repairs are not substantially
completed within ninety (90) days after the Landlord’s
receipt of such notice, Tenant shall have the right to either
(i) terminate this Lease upon thirty (30) days advance
written notice to Landlord; or (ii) complete such repairs on
behalf of Landlord and deduct the costs of the same from the next
installment(s) of rent due hereunder, unless completion of such
repairs is practically impossible within such period of time, in
which event said ninety (90) day period shall be extended to a
reasonable completion date, provided Landlord has commenced and is
diligently pursuing repairs to completion, and rent shall continue
to abate.
If the Demised Premises as a
whole are totally damaged or are rendered wholly untenantable by
fire or other cause, or if the Building shall be substantially
damaged and unsuitable for Tenant’s purposes so that Landlord
shall decide to demolish the Demised Premises, Landlord may, within
thirty (30) days after such fire or other cause, give Tenant
notice of such decision, and thereupon the Demised Term of the
Demised Premises shall expire by lapse of time ten (10 ) days after
such notice is given, and Tenant shall vacate the Demised Premises
and surrender the same to Landlord. Tenant’s liability for
rent and other charges under the Lease for the Demised Premises
shall cease as of the day following the casualty. Notwithstanding
the foregoing or anything to the contrary contained in this Lease,
in the event that Landlord elects to demolish the Demised Premises
as provided for herein, then Tenant after receipt of
Landlord’s notice of the same (the “Demolition
Notice”), may elect to exercise its Option to Purchase as to
either or both of the Demised Premises and the Future Development
Rights Site C and Site J as set forth in Article 1.4 by giving
Landlord written notice of the same within twenty (20) days
after receipt of Landlord’s Demolition Notice. Thereafter,
Landlord shall be obligated to sell such property and/or
development rights, as the case may be, to Tenant and Landlord
shall assign to Tenant all of Landlord’s right, title and
interest in and to insurance monies and proceeds recovered or to be
recovered as a result of such fire or other casualty.
10
ARTICLE 8.2. Limitation . No
damages, compensation, or claims shall be payable by Landlord for
inconvenience, loss of business or annoyance arising from any
repair or restoration of any portion of the Demised Premises or of
the Building effected pursuant to this ARTICLE 8 except for rent
abatement as provided in Section 8.1. or claims for the same
related to Landlord’s failure to comply with its obligations
hereunder without good and sufficient cause. Landlord shall use
commercially reasonable efforts to minimize interference if Tenant
is occupying the Demised Premises or any portion thereof while
repair or restoration work is undertaken.
ARTICLE 9. Assignment;
Subletting; Mortgaging
ARTICLE 9.1. Conditions,
Requirements .
(1) Except as hereinafter
provided, Tenant will not by operation of law or otherwise, assign
this Lease without Landlord’s prior consent, which consent
shall not be unreasonably withheld, delayed or conditioned. Tenant
shall submit to Landlord in writing the terms and conditions of any
proposed assignment together with any other information reasonably
requested by Landlord. The consent by Landlord thereto shall not in
any manner be construed to relieve Tenant from obtaining
Landlord’s consent to any other or further assignment.
Notwithstanding the foregoing and provided that Tenant is in
compliance with the terms of this Lease, Tenant shall have the
right, without Landlord’s consent, to assign the Demised
Premises or any part thereof to another entity which i) is
controlled by, or under common control with, Tenant or which has
succeeded to substantially all of the assets of Tenant or which has
merged with Tenant or which is an entity which has purchased
substantially all of the stock of Tenant; or (ii) has a net
worth of not less than the then net worth of Tenant; provided in
the case of any such assignment, the assignee agrees to assume all
of Tenant’s obligations under this Le
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