EXHIBIT 10.10 CONSOLIDATED,
AMENDED AND RESTATED MASTER LEASE AGREEMENT DATED NOVEMBER 2, 2000
BETWEEN GETTY PROPERTIES CORP. AND GETTY PETROLEUM MARKETING
INC.
CONSOLIDATED,
AMENDED AND RESTATED
MASTER LEASE
DATED AS OF
NOVEMBER 2, 2000
BETWEEN
GETTY PROPERTIES CORP., AS LANDLORD,
AND
GETTY PETROLEUM MARKETING INC., AS
TENANT
This
CONSOLIDATED, AMENDED AND RESTATED MASTER LEASE (together with all
Exhibits and Schedules attached hereto, this “Restated
Lease”) is made and entered into as of November 2, 2000
between Getty Properties Corp., a Delaware corporation, whose
address is 125 Jericho Turnpike, Jericho, New York 11753 (formerly
known as Getty Realty Corp.,) (as further defined hereinafter,
“Landlord”), and Getty Petroleum Marketing Inc., a
Maryland corporation whose address is 125 Jericho Turnpike,
Jericho, New York 11753 (as further defined hereinafter,
“Tenant”).
R E C I T A L S
A. Pursuant to that certain Master Lease, dated February 1, 1997,
between Landlord and Tenant (the “1997 Master Lease”)
and the Post-Reorganization Leases (as hereinafter defined),
Landlord leased to Tenant, in addition to other properties, the
lands described in Exhibit A and subleased or sub-subleased to
Tenant, in addition to other properties, the lands described on
Exhibit B (all such lands described on Exhibit A and Exhibit B
being referred to hereinafter collectively as the
“Land”), together with all right, title and interest of
Landlord, if any, in and to: (a) all buildings, structures and
other improvements and appurtenances then located on the Land; (b)
the land lying in the bed of any street or highway in front of or
adjoining the Land to the center line of such street or highway;
(c) the appurtenances and all the estate and rights to the Land;
(d) any strips or gores adjoining the Land; and (e) any
furnishings, fixtures, equipment or other personal property
attached or appurtenant to any improvements then located on the
Land (all of the foregoing, as they exist as of the Restatement
Effective Date, including all Improvements (as hereinafter defined)
together with Landlord’s right, title and interest in and to
all easements, covenants, rights of way and similar rights
benefiting the Land, collectively, the “Premises”, as
further defined hereinafter, and individually, a
“Property,” as further defined hereinafter).
B. Landlord and Tenant desire, as of the Restatement Effective Time
(as hereinafter defined), to incorporate and consolidate the 1997
Master Lease and the Post-Reorganization Leases (individually and
collectively, the “Original Lease”) into a single
document and to further amend and restate the Original Lease, all
as set forth in this Restated Lease and desire that, from and after
the Restatement Effective Time, all rights and obligations of
Landlord and Tenant shall be governed by this Restated Lease such
that this Restated Lease shall consolidate, supersede and restate
in their entirety the Original Lease from and after the Restatement
Effective Time.
C. This Restated Lease is intended to constitute a single lease of
the Premises and may not be severed, bifurcated, divided, or
otherwise split in any manner whatsoever.
D. Landlord and Tenant acknowledge that (i) the entering into of
this Restated Lease is of primary importance to Tenant, and Tenant
would not have entered into (or caused any of its Affiliates or
Subsidiaries to enter into) the Merger Agreement (as hereinafter
defined) without there having been such an agreement, and (ii) the
agreement between Landlord and Tenant to treat this as a single
lease in all respects is of primary importance to Landlord, and
neither Landlord nor any of its Affiliates or Subsidiaries would
have entered into this Restated Lease without there being such an
agreement and such treatment of this Restated Lease.
NOW,
THEREFORE, in exchange for good and valuable consideration, as of
the Restatement Effective Time, Landlord hereby leases, subleases
and sub-subleases the Premises to Tenant and Tenant hereby takes
and hires the Premises from Landlord, subject only to the Permitted
Exceptions (as hereinafter defined) and the Subleases (as
hereinafter defined), for the Term (as hereinafter defined), upon
the terms and conditions of this Restated Lease. As of the
Restatement Effective Time, the Original Lease shall be deemed to
be consolidated, amended, restated and superceded in its entirety
as follows:
1. DEFINITIONS.
The following definitions shall apply throughout this Restated
Lease, in addition to any other definitions elsewhere in this
Restated Lease. An Index of Defined Terms follows the signature
page.
1.1 1998 Master Lease. The term “1998 Master Lease”
means that certain Master Lease, dated December 22, 1998, between
the Leemilt’s Lessor and Tenant.
1.2 Abandoned Properties. The term “Abandoned
Properties” means the ten (10) properties listed on Schedule
1 hereto, each of which were demised under the Original Lease and
shall not be demised under this Restated Lease. The term
“Abandoned Property” shall have the correlative
singular meaning.
1.3 Additional Rent. The term “Additional Rent” means,
whether or not designated as such, any and all sums and payments
that this Restated Lease requires Tenant to pay to Landlord, except
Fixed Rent. Additional Rent shall also include (a) all Impositions
and (b) all percentage rent, gallonage rent, and royalties payable
under Third Party Leases, if any.
1.4 Affiliate. The term “Affiliate” means, with respect
to any Person, (i) any other Person that, directly or indirectly,
controls or is controlled by or is under common control with such
Person, (ii) any other Person that owns, beneficially, directly or
indirectly, ten percent (10%) or more of the outstanding capital
stock, shares or equity interests of such Person, or (iii) any
officer, director, employee, partner or trustee of such Person or
any Person controlling, controlled by or under common control with
such Person. For the purposes of this definition,
“control” (including the correlative meanings of the
terms “controlled by” and “under common control
with”), as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person,
through the ownership of voting securities or partnership interests
or otherwise.
1.5 April 1999 Master Lease. The term “April 1999 Master
Lease” means that certain Master Lease, dated April 6, 1999,
between the Leemilt’s Lessor and Tenant.
1.6 Award. The term “Award” means compensation paid on
account of a Condemnation whether pursuant to judgment or by
agreement or otherwise.
1.7 Bankruptcy Default. The term “Bankruptcy Default”
means the occurrence of any of the following Non-Monetary Defaults:
(a) if Tenant shall make an assignment for the benefit of its
creditors; (b) if any petition shall be filed against Tenant in
any
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court, whether or not pursuant to
any statute of the United States or of any State, in any
bankruptcy, reorganization, composition, extension, arrangement,
insolvency or similar proceeding, and Tenant shall thereafter be
adjudicated bankrupt, or if any such proceeding shall not be
dismissed within ninety (90) days after the institution of the
same; or if any such petition shall be so filed by Tenant or a
liquidator; or (c) if, in any proceeding, a receiver, receiver and
manager, trustee or liquidator shall be appointed for all or any
portion of Tenant’s property, and such receiver, receiver and
manager, trustee or liquidator shall not be discharged within
ninety (90) days after the appointment of such receiver, receiver
and manager, trustee or liquidator.
1.8 Business Day. The term “Business Day” means any
weekday on which banks in the State of New York are generally open
to conduct regular banking business with bank personnel.
1.9 Casualty. The term “Casualty” means any damage or
destruction affecting any or all of the Improvements on any
Property.
1.10 Closure. The term “Closure” means:
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(a)
Receipt of written notice from the applicable Government that
“no further Remediation” of the Contamination is
required;
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(b)
Receipt of written notice from the applicable Government that the
approved Remediation plan for the Contamination has been
completed;
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(c)
Where expressly authorized by applicable Environmental Law, receipt
of written notice from a licensed site professional or similar
Remediation consultant approved by Tenant or Landlord (if chosen by
the other party), such approval not to be unreasonably withheld,
that the approved Remediation plan for the Contamination has been
completed, provided that Landlord or Tenant, as applicable, shall
remain responsible for any additional Remediation required by the
applicable Government resulting from the applicable
Government’s audit of the Remediation that the licensed site
professional or similar Remediation consultant has determined to
have been completed; or
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(d)
Landlord or Tenant as applicable, has requested a closure letter or
notice from the applicable Government, has not received any
response of any kind to its request for twelve (12) months, and
Landlord or Tenant, as applicable, has determined that the soil and
groundwater have been Remediated to levels below or equal to the
limits required by the applicable Government at the conclusion of
the twelve-month period following submission of the Closure letter
request based on four (4) successive quarterly monitoring tests by
a recognized environmental contractor.
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The satisfaction of any one of
the above conditions shall be referred to as “Closure”
herein. “No further Remediation” shall include, without
limitation, “closed” “no further action,”
“inactive site
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status” or similar terms,
even if such letters have qualifications such as “at this
time,” “does not meet state standards,” or the
like.
1.11
Commencement Date. The term “Commencement Date” means
(a) with respect to those Properties leased or subleased to Tenant
by the 1997 Master Lease, February 1, 1997; (b) with respect to
those Properties leased to Tenant by the 1998 Master Lease,
December 22, 1998 with respect to certain of such Properties and
otherwise the date set forth on Exhibit A thereto; (c) with respect
to those Properties leased to Tenant by the April 1999 Master
Lease, April 6, 1999; and (d) with respect to those Properties
leased to Tenant by the September 1999 Master Lease, (i) October 6,
1999 with respect to the Property having a street address of 592
Route 70, Brick, New Jersey and (ii) September 30, 1999 with
respect to the Property having a street address of 650 Route 15
South, Lake Hopatcong, New Jersey.
1.12 Condemnation. The term “Condemnation” means any
taking of title to any Property or any part of any Property by
exercise of any right of eminent domain by, or by any similar
proceeding or act of, any Government, quasi-public authority or
private corporation having the power and legal authority to do so.
For the purposes of this definition, the effective date of any such
condemnation shall be deemed to be the later of: (a) the date when
title to the applicable Property or part thereof is transferred by
such proceeding or act of the condemning authority, and (b) the
date when Tenant or the applicable Subtenant or other occupant is
no longer permitted to occupy such Property.
1.13 Construction Work. The term “Construction Work”
means any alteration, modification, demolition, or other
construction or reconstruction work, or the construction or
reconstruction of any new Improvements, or repair of any existing
Improvements, located on, under or at any Property.
1.14 Contamination. The term “Contamination” means
recoverable free liquid hydrocarbons, dissolved hydrocarbon
components, absorbed and vapor phase hydrocarbon, or other
environmental contamination that is required to be Remediated under
applicable Environmental Laws.
1.15 County. The term “County” means the county where
any Property is located.
1.16 CPI. The term “CPI” means the United States
Department of Labor, Bureau of Labor Statistics “Consumer
Price Index” for Urban Wage Earners and Clerical Workers
(CPI-W) published for New York - Northern New Jersey - Long Island,
NY-NJ-CT-PA, with a base of 1982-1984 = 100, or the successor index
thereto. If the CPI ceases to be published, and there is no
successor thereto, such other index as Landlord and Tenant shall
agree upon in writing shall be substituted for the CPI. The CPI for
any calendar month shall be deemed to mean the CPI last published
before such calendar month.
1.17 CPI Adjustment Factor. As of any date of determination, the
term “CPI Adjustment Factor” means the greater of (a)
1.00 or (b) the following fraction:
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CPI for the calendar month immediately preceding
such
date of determination
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CPI for the calendar month during which the
Restatement
Effective Date occurred.
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1.18 Default. The term “Default” means any Material
Monetary Default, Non-Material Monetary Default, Non-Monetary
Default or Landlord Default.
1.19 Depository. The term “Depository” means, at
Tenant’s or Leasehold Mortgagee’s election, any of the
following: (a) an Institutional Lender, (b) Leasehold Mortgagee,
(c) a national title insurance company reasonably acceptable to
Landlord and licensed to do business in the State of New York, or
(d) a servicer regularly used by Institutional Lenders in
connection with loan transactions. Tenant shall pay all fees and
expenses charged by the Depository.
1.20 Distribution Agreement. The term “Distribution
Agreement” means that certain Reorganization and Distribution
Agreement dated as of January 31, 1997 transferring to Tenant the
Marketing Assets and Marketing Business (as such terms are defined
therein) in connection with that certain distribution by Landlord
of the common stock of Tenant to the stockholders of Landlord, as
amended from time to time.
1.21 Environmental Agreement. The term “Environmental
Agreement” means that certain Environmental Indemnity
Agreement between Landlord and Tenant dated as of the date hereof,
as the same may be amended or modified from time to
time.
1.22 Environmental Law. The term “Environmental Law”
means all laws, ordinances, requirements, orders, directives,
rules, regulations, and applicable judicial and administrative
decisions, orders and decrees of any applicable Government
affecting the development, improvement, alteration, use,
maintenance, operation or occupancy of the Premises, any Property,
or any part of any Property, whether in force at the Commencement
Date or passed, enacted or imposed at some time in the future, to
the extent applicable to conditions on, under, or about the
Premises, any Property, or any part of any Property, or arising
from use or occupancy thereof, related to pollution, protection of
human health or the environment from exposure to Hazardous
Substances, including but not limited to, Laws relating to the
release or discharge of Hazardous Substances to the ambient air,
surface and subsurface soils, surface water and ground water, or
governing the use, generation, storage, transportation, disposal,
release, clean-up or control of Hazardous Substances in, on, at, to
or from the Premises, any Property, or any part of any Property,
subject in all cases, however, to all applicable waivers, variances
and exemptions limiting the application of the
foregoing.
1.23 Equipment Liens. The term “Equipment Liens” means
purchase-money security interests, financing leases, personal
property liens, and similar arrangements (including the
corresponding UCC-1 financing statements) relating to
Tenant’s and/or Subtenant’s acquisition, encumbering or
financing of Personal Property, and used in connection with the
operation of any business on the Premises not prohibited by this
Restated Lease or any Third Party Lease, that are leased, purchased
pursuant to conditional sale or installment sale
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arrangements, encumbered by a
security agreement made by Tenant and/or any Subtenant, as the case
may be, or used under licenses, such as convenience food store
equipment, gasoline marketing equipment, USTs (not owned by
Landlord), furniture, fixtures and equipment, telephone,
telecommunications and facsimile transmission equipment, point of
sale equipment, televisions, radios, and computer systems, provided
that each Equipment Lien encumbers or otherwise relates to only the
property financed or otherwise provided by the secured party under
such Equipment Lien.
1.24 Estoppel Certificate. The term “Estoppel
Certificate” means a statement in writing containing all of
the following statements (identifying in reasonable detail any
exceptions that may exist at the time), as requested by either
party: (a) this Restated Lease has not been amended or modified,
constitutes the entire agreement between Landlord and Tenant
relating to the Premises (except as otherwise set forth in Section
33.9), and is in full force and effect (or, if there have been
amendments or modifications, that this Restated Lease as so amended
or modified is in full force and effect and stating such amendments
or modifications); (b) neither Landlord nor Tenant is in default
under this Restated Lease and to the best of the signer’s
knowledge no facts or circumstances exist that, with the passage of
time or the giving of notice or both, would constitute Defaults
under this Restated Lease by Landlord or Tenant (or, if there have
been any Defaults or potential Defaults, specifying the nature of
any such Default or potential Default); (c) Tenant has paid all
Fixed Rent to date and, to the best of Landlord’s knowledge,
all Additional Rent to date; (d) the Commencement Date, the
Restatement Effective Date, or any other then-ascertainable date
relevant to this Restated Lease; (e) this Restated Lease is a
single lease demising the Premises and may not be severed,
bifurcated, divided or otherwise split in any manner whatsoever;
and (f) such other matters as either party shall reasonably
request.
1.25 Fee Estate. The term “Fee Estate” means
Landlord’s fee estate in the Premises or any Property or, in
the case of a Property owned by a Third Party Lessor, the Power
Test Lessor, the Leemilt’s Lessor or the Gettymart Lessor,
the fee estate of such Third Party Lessor, the Power Test Lessor,
the Leemilt’s Lessor or the Gettymart Lessor in such
Property, as applicable.
1.26 Fee Mortgage. The term “Fee Mortgage” means any
mortgage, deed of trust, deed to secure debt, assignment, security
interest, pledge, financing statement or any other instrument(s) or
agreement(s) intended to grant security for any obligation
encumbering the Fee Estate or Landlord’s leasehold interest
in any Fee Estate owned by a Third Party Lessor, the Power Test
Lessor, the Leemilt’s Lessor or the Gettymart Lessor, as the
case may be, as existing, entered into, renewed, modified, amended,
extended or assigned from time to time during the Term.
1.27 Fixed Rent. The term “Fixed Rent” means all rent
payable under Section 3.1.
1.28 Fixed Rent Adjustment Procedures. The term “Fixed Rent
Adjustment Procedures” shall have the meaning ascribed to it
on Schedule 4.
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1.29 Fleet Mortgage. The “Fleet Mortgage” means those
certain Fee Mortgages securing the Power Test Lessor’s
obligations pursuant to that certain Amended and Restated Loan
Agreement between the Power Test Lessor and Fleet National Bank,
dated October 31, 1995, as subsequently amended.
1.30 GAAP. The term “GAAP” means generally accepted
accounting principles set forth in the opinions and pronouncements
of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other
statements by such other entity as have been approved by a
significant segment of the accounting profession of the United
States of America, in all cases as interpreted by a significant
segment of the accounting profession of the United States of
America.
1.31 Gettymart Lease. The term “Gettymart Lease” means
that certain Lease Agreement, dated as of the Restatement Effective
Date, between the Gettymart Lessor, as landlord, and Landlord, as
tenant.
1.32 Gettymart Lease Estoppel Certificate. The term
“Gettymart Lease Estoppel Certificate” means a
statement in writing containing all of the following statements
(identifying in reasonable detail any exceptions that may exist at
the time), as requested by Tenant: (a) the Gettymart Lease has not
been amended or modified, constitutes the entire agreement between
the Gettymart Lessor and Landlord relating to the Properties
subject to the Gettymart Lease and is in full force and effect (or,
if there have been amendments or modifications, that the Gettymart
Lease as so amended or modified is in full force and effect and
stating such amendments or modifications); (b) neither the
Gettymart Lessor nor Landlord is in material default under the
Gettymart Lease and, to the best of the Gettymart Lessor’s
knowledge, no facts or circumstances exist that, with the passage
of time or the giving of notice or both, would constitute material
defaults under the Gettymart Lease by the Gettymart Lessor or
Landlord (or, if there have been any material defaults or potential
material defaults, specifying the nature of any such material
default or potential material default); (c) Landlord has paid all
rent to date; (d) any then-ascertainable date relevant to the
Gettymart Lease; and (e) such other matters as Tenant shall
reasonably request.
1.33 Gettymart Lessor. The term “Gettymart Lessor”
means GettyMart, Inc., a Delaware corporation and its successors
and assigns under the Gettymart Lease.
1.34 Government. The term “Government” means each and
every applicable governmental authority, department, agency, bureau
or other entity or instrumentality having jurisdiction over the
Premises, including the federal government of the United States,
the State government and any subdivisions and municipalities
thereof, including the County government, and all other applicable
governmental authorities and subdivisions thereof.
1.35 Governmental Request. The term “Governmental
Request” means, with respect to any Person, such
Person’s filing for (or other similar process) a building
permit, fire underwriter’s certificate, zoning variance or
similar permit, certificate or license or such Person’s
making of any other inquiries with respect to any Property to the
applicable Government.
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1.36 Hazardous Substances. The term “Hazardous
Substances” means those flammable substances, explosives,
radioactive materials, asbestos, polychlorinated biphenyls,
chemicals known to cause cancer or reproductive toxicity,
pollutants, contaminants, hazardous wastes, medical wastes, toxic
substances or related materials, petroleum and petroleum products,
or other substances of any kind that are subject to regulation,
control or remediation under Environmental Laws.
1.37 Impositions. The term “Impositions” means all Real
Estate Taxes, water rents, rates and charges, sewer rents,
commercial rent taxes, occupancy taxes (other than those that are
treated as Real Estate Taxes), UST fees and taxes, and other
impositions and charges of every kind and nature whatsoever with
respect to any Property that may be assessed, levied, confirmed,
imposed or become a lien on any Property or that may be levied,
assessed or imposed upon the gross income arising from any Rent (in
all cases, other than on account of any actions or omissions of
Landlord, a Third Party Lessor, the Power Test Lessor, the
Leemilt’s Lessor or the Gettymart Lessor, or conditions
existing on, at or with respect to any Property before the
applicable Commencement Date), in all cases, by or for the benefit
of any Government with respect to any period falling within the
period from the Commencement Date through the end of the Term.
Notwithstanding the foregoing, all such obligations of a lessee in
a Third Party Lease, the Power Test Lease, the Leemilt’s
Lease and the Gettymart Lease (except to the extent, if any, such
item is included as Fixed Rent hereunder) are also Impositions. The
term “Impositions” shall, however, not include any of
the following, all of which Landlord shall pay before delinquent or
payable only with a penalty: (a) any franchise, income, excess
profits, estate, inheritance, succession, transfer, gift,
corporation, business, capital levy, or profits tax, or license fee
(other than a license fee imposed with respect to any Property or
the Improvements thereon the maintenance of which is Tenant’s
responsibility pursuant to the terms of this Restated Lease) of
Landlord, (b) the incremental portion of any of the items listed in
this Section that would not have been levied, imposed or assessed
but for any sale or other direct or indirect transfer of the Fee
Estate or of any interest in Landlord during the Term, (c) any
charges that would not have been payable but for any act or
omission of Landlord or conditions existing on, at or with respect
to the Property before the applicable Commencement Date, (d) any
charges that are levied, assessed or imposed against any Property
during the Term based on the recapture or reversal of any previous
tax abatement or tax subsidy, or compensating for any previous tax
deferral or reduced assessment or valuation, or based on a
miscalculation or misdetermination of any charge(s) of any kind
imposed or assessed with respect to the Premises, relating to any
period(s) before the applicable Commencement Date, and (e)
interest, penalties and other charges with respect to items
“a” through “d.”
1.38 Improvements. The term “Improvements” means all
buildings, structures, landscaping, recreational facilities, signs,
foundations, and other improvements, appurtenances and above-ground
storage tanks now or hereafter located on the Premises. Under no
circumstances shall the term “Improvements” be deemed
to include any of the USTs, for which separate provision is made
under this Restated Lease.
1.39 Indemnify. Wherever this Restated Lease provides that a party
shall “Indemnify” another from or against a particular
matter, such term means that the Indemnitor shall indemnify the
Indemnitee (and its partners, officers, directors, members,
shareholders,
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agents, contractors and
employees) and defend and hold the Indemnitee (and its partners,
officers, directors, members, shareholders, agents, contractors and
employees) harmless from and against any and all actual loss, cost,
claims, liability, penalties, judgments, damage or other injury,
detriment, or expense (including Legal Costs, interest and
penalties) actually incurred or suffered by the Indemnitee (and its
partners, officers, directors, members, shareholders, agents,
contractors and employees) on account of the matter that is the
subject of such indemnification or in enforcing the
Indemnitor’s indemnity. Notwithstanding the foregoing or
anything to the contrary contained in this Restated Lease,
Indemnitor shall under no circumstances whatsoever be liable for
consequential damages incurred by Indemnitee on account of the
matter that is the subject of such indemnification.
1.40 Indemnitee. The term “Indemnitee” means a party
that is entitled to be Indemnified pursuant to this Restated
Lease.
1.41 Indemnitor. The term “Indemnitor” means a party
that agrees to Indemnify another party pursuant to this Restated
Lease.
1.42 Institutional Lender. The term “Institutional
Lender” means a bank, trust company, insurance company or
savings bank having, at any and all times, a net worth of not less
than $500,000,000 (as increased on an annual basis, based on the
CPI Adjustment Factor) and net assets of not less than
$2,500,000,000 (as increased on an annual basis, based on the CPI
Adjustment Factor); provided that any such entity shall qualify as
an “Institutional Lender” only if such entity (a) is
not an Affiliate of Tenant (unless such entity is an Affiliate of
Tenant solely as a result of making a bona fide equity investment
in Tenant); and (b) is subject to (1) the jurisdiction of the
courts of the State of New York in any actions and (2) the
supervision of (A) the Comptroller of the Currency, (B) the
Department of Labor of the United States, (C) the Insurance
Department or the Banking Department or the Comptroller of New York
City, or any successor to any of the agencies or officials referred
to in clauses (A) through (C).
1.43 Insubstantial Condemnation. The term “Insubstantial
Condemnation” means any Condemnation other than a Substantial
Condemnation or a Temporary Condemnation.
1.44 Knowledge. The term “knowledge”, means, with
respect to Landlord, the actual knowledge of Leo Liebowitz, Randi
Young Filip, John Fitteron, Edwin C. Levy, Scott Hanley, Vincent
DeLaurentis, and Paul Stendardi, with inquiry, which inquiry (a)
shall consist of and be limited to inquiry of employees of Landlord
who may be reasonably expected to have information with respect to
the relevant matter and (b) shall in no event require any review of
any files, databases or records which may contain relevant
information. The phrase “to the best of Landlord’s
knowledge” shall have the same meaning.
1.45 Landlord. The term “Landlord” means Getty
Properties Corp. (formerly known as Getty Realty Corp.) and certain
of its Affiliates and/or Subsidiaries, who have approved this
Restated Lease on the signature page hereof, and their respective
successors and assigns.
1.46 Landlord’s Award. The term “Landlord’s
Award” means, at any point in time, an amount equal to the
then fair market value of the Fee Estate (which, for the purposes
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this definition, shall include
Landlord’s leasehold interest in the Fee Estates owned by a
Third Party Lessor, the Power Test Lessor, the Leemilt’s
Lessor or the Gettymart Lessor (it being understood that the Power
Test Lessor, the Leemilt’s Lessor or the Gettymart Lessor, as
applicable, as landlord thereunder, and Landlord, as tenant
thereunder, shall in no event seek Awards with respect to the same
estate or interest in the Fee Estate encumbered by any such Power
Test Lease, the Leemilt’s Lease or the Gettymart Lease, as
applicable) in the applicable Property (including the then fair
market value of the rights of the holder of such Fee Estate in and
to the Improvements thereon), considered: (i) as if the
Condemnation had not occurred; (ii) without adjusting for any
expectation of the Condemnation; (iii) as if this Restated Lease
had not terminated with respect to the applicable Property as of
the effective date of the Condemnation; and (iv) taking into
account the benefits and burdens of this Restated Lease, the
remaining Term (as further defined in this definition), all
Permitted Exceptions, and all other matters affecting such Fee
Estate and its valuation. For the purposes of calculating
“Landlord’s Award,” the Term of this Restated
Lease shall include only those Renewal Terms for which Tenant had
previously exercised its Renewal Option in accordance with the
provisions of this Restated Lease. “Landlord’s
Award” shall be determined independently of, and without
regard to, any valuation of the Fee Estate established in any
Condemnation proceeding.
1.47 Law. The term “Law” or “Laws” means
all laws, ordinances, requirements, orders, directives, rules,
regulations, and applicable judicial and administrative decisions,
orders and decrees of any applicable Government affecting the
development, improvement, alteration, use, maintenance, operation
or occupancy of the Premises, any Property, or any part of any
Property, whether in force at the Commencement Date or passed,
enacted or imposed at some time in the future, subject in all
cases, however, to all applicable waivers, variances and exemptions
limiting the application of the foregoing. Notwithstanding the
foregoing, for the purposes of this Restated Lease, the terms
“Law” and “Laws” shall in no event be
deemed to include Environmental Law or Environmental Laws, for
which separate provision is made herein.
1.48 Lease Termination Damages. The term “Lease Termination
Damages” means an amount per annum equal to the Annual Damage
Amount (as defined hereinafter), payable in accordance with the
following sentence. Landlord shall pay the Annual Damage Amount to
Tenant quarterly, in equal installments, for each calendar year (or
portion thereof) during the shortest of the following periods, as
applicable: (a) a five (5) year period commencing on the
termination of the applicable Third Party Lease, (b) the period of
the then remaining Term of this Restated Lease, and (c) the period
of the then remaining term of the terminated Third Party Lease. As
used herein, the term “Annual Damage Amount” means a
sum equal to the product of (a) the volume of gas sales in gallons
at the Property with respect to which a Third Party Lease has been
terminated in the twelve (12) full calendar months immediately
prior to the termination of such Third Party Lease, times (b) ten
cents ($.10), less an equitable amount attributable to
Tenant’s cost of doing business at such Property (including,
without limitation, the Rent allocable to such Property, the
determination of which shall be made in accordance with the
principles set forth in the Fixed Rent Adjustment Procedures)
during such period.
1.49 Lease Year. The first “Lease Year” of this
Restated Lease means the twelve-month period commencing on the
Restatement Effective Date and ending on the day
10
before the first anniversary of
the Restatement Effective Date. The second “Lease Year”
means the period commencing on the first anniversary of the
Restatement Effective Date and ending on the day before the second
anniversary of the Restatement Effective Date; and so on for each
subsequent twelve-month period during the Initial Term and, if any,
the Renewal Term(s).
1.50 Leasehold Estate. The term “Leasehold Estate”
means Tenant’s leasehold estate in any Property owned by
Landlord in fee and demised under this Restated Lease and, in the
case of a Property owned by a Third Party Lessor, the
Leemilt’s Lessor, the Power Test Lessor or the Gettymart
Lessor, Tenant’s subleasehold estate demised under this
Restated Lease, in all cases upon and subject to all the terms and
conditions of this Restated Lease.
1.51 Leasehold Mortgagee. The term “Leasehold
Mortgagee” means a Permitted Leasehold Mortgagee holding a
Permitted Leasehold Mortgage.
1.52 Legal Costs. The term “Legal Costs” means all
reasonable costs and expenses incurred by a party to this Restated
Lease in connection with any legal proceeding or contest, including
reasonable attorneys’ fees, consultant’s fees, court
costs, and expenses.
1.53 Leemilt’s Lease. The term “Leemilt’s
Lease” means (i) before the Restatement Effective Time, that
certain Lease Agreement, dated as of February 1, 1985, between the
Leemilt’s Lessor, as landlord, and Landlord, as tenant and
(ii) at and after the Restatement Effective Time, that certain
Lease Agreement dated as of the Restatement Effective Date between
the Leemilt’s Lessor, as landlord, and Landlord, as
tenant.
1.54 Leemilt’s Lease Estoppel Certificate. The term
“Leemilt’s Lease Estoppel Certificate” means a
statement in writing containing all of the following statements
(identifying in reasonable detail any exceptions that may exist at
the time), as requested by Tenant: (a) the Leemilt’s Lease
has not been amended or modified, constitutes the entire agreement
between the Leemilt’s Lessor and Landlord relating to the
Properties subject to the Leemilt’s Lease and is in full
force and effect (or, if there have been amendments or
modifications, that the Leemilt’s Lease as so amended or
modified is in full force and effect and stating such amendments or
modifications); (b) neither the Leemilt’s Lessor nor Landlord
is in material default under the Leemilt’s Lease and, to the
best of the Leemilt’s Lessor’s knowledge, no facts or
circumstances exist that, with the passage of time or the giving of
notice or both, would constitute material defaults under the
Leemilt’s Lease by the Leemilt’s Lessor or Landlord
(or, if there have been any material defaults or potential material
defaults, specifying the nature of any such material default or
potential material default); (c) Landlord has paid all rent to
date; (d) any then-ascertainable date relevant to the
Leemilt’s Lease; and (e) such other matters as Tenant shall
reasonably request.
1.55 Leemilt’s Lessor. The term “Leemilt’s
Lessor” means Leemilt’s Petroleum, Inc. and its
successors and assigns, as lessor under the Leemilt’s
Lease.
1.56 License Agreement. The term “License Agreement”
means that certain Amended and Restated Trademark License Agreement
dated as of the date hereof, as the same may be amended or modified
from time to time.
11
1.57 Major Violation. The term “Major Violation” means
a Preexisting Violation which results in a Government sending
written notice to Landlord, Tenant, a Subtenant, a Third Party
Lessor, the Power Test Lessor, the Leemilt’s Lessor, the
Gettymart Lessor, or a Property that such Preexisting Violation is
a violation of Law and requiring cure of the same.
1.58 Marketing Parent. The term “Marketing Parent”
means OAO LUKoil, a Russian Corporation, and its successors and
assigns.
1.59 Material Monetary Default. The term “Material Monetary
Default” means any failure by Tenant (A) to pay Fixed Rent or
Real Estate Taxes, in either case when, as and in the amount
required to be paid by Tenant pursuant to the terms of this
Restated Lease or (B) in the case of insurance, to maintain the
insurance coverage required in Article 12. Notwithstanding the
preceding sentence, a “Material Monetary Default” will
not be deemed to occur with respect to Tenant’s failure to
pay any Real Estate Tax unless Tenant fails to pay such Real Estate
Tax on or prior to the last day on which such Real Estate Tax may
be paid to the appropriate taxing authority without penalty or
interest.
1.60 Merger Agreement. The term “Merger Agreement”
means that certain Agreement and Plan of Merger dated as of the
date hereof among OAO LUKOIL, LUKOIL International GmbH, LUKOIL
Americas Corporation, Mikecon Corp., and Getty Petroleum Marketing
Inc., as the same may be amended or modified from time to
time.
1.61 Mortgage. The term “Mortgage” means a Fee Mortgage
or a Permitted Leasehold Mortgage.
1.62 New Contamination. The term “New Contamination”
means Contamination discovered at any Property at which Landlord is
conducting Remediation under Section 9.2, which Properties are set
forth on Schedule 3, after Landlord has commenced such Remediation
and before Closure is obtained by Landlord. Tenant shall have the
burden of proving that any such discovered Contamination is not New
Contamination but Contamination for which Landlord is obligated to
Remediate.
1.63 Non-Material Monetary Default. The term “Non-Material
Monetary Default” means any failure by Tenant to pay any
charge or sum(s) of money payable by Tenant pursuant to this
Restated Lease (other than Fixed Rent, Real Estate Taxes and
insurance premiums required to maintain the insurance coverage set
forth in Article 12 hereof), when, as, and in the amount required
to be paid by Tenant pursuant to the terms of this Restated
Lease.
1.64 Non-Monetary Default. The term “Non-Monetary
Default” means any failure by Tenant to comply with any terms
or provisions of, or perform as required by, this Restated Lease,
other than a Material Monetary Default or a Non-Material Monetary
Default. A Bankruptcy Default shall be considered a Non-Monetary
Default.
1.65 Notice. The term “Notice” means any notice,
demand, request, election, designation, approval, or consent,
including any of the foregoing relating to a Default by any party
hereunder, that is permitted, required or desired to be given by
either party in connection with this
12
Restated Lease. Notices shall be
delivered, and shall become effective, only in accordance with the
requirements of Article 20.
1.66 Pelham Manor Rezoning Event. The term “Pelham Manor
Rezoning Event” means the date when, as a result of the
enactment of a final, non-appealable change in Law, the use of the
Property having a mailing address of 4301 Boston Post Road, Bronx,
New York 10466 as a Petroleum Terminal Property is no longer
lawful.
1.67 Permitted Exception. The term “Permitted
Exception” means all liens, charges, estates and encumbrances
currently affecting the Premises as of the Restatement Effective
Date.
1.68 Permitted Leasehold Mortgage. The term “Permitted
Leasehold Mortgage” means any mortgage, deed of trust, deed
to secure debt, assignment, security interest, pledge, financing
statement or any other instrument(s) or agreement(s) that is held
by a Permitted Leasehold Mortgagee and is intended to grant
security for any obligation encumbering the entire Leasehold
Estate, as the same may be entered into, renewed, modified,
amended, extended or assigned from time to time during the
Term.
1.69 Permitted Leasehold Mortgagee. The term “Permitted
Leasehold Mortgagee” means any of (i) an Institutional
Lender, (ii) any of the entities described on Schedule 8, and (iii)
any other entity which has characteristics (as to, among other
things, reputation, financial viability and experience) similar to
those entities listed on said Schedule, as reasonably determined by
Tenant, and is not, at the time of the making of the Permitted
Leasehold Mortgage, in Landlord’s reasonable judgment, in
competition with Landlord.
1.70 Person. The term “Person” means any association,
bank, business trust, corporation, estate, general partnership,
Government, individual, joint stock company, joint venture, labor
union, limited liability company, limited partnership, non-profit
corporation, professional association, professional corporation,
trust or any other organization of any type or person.
1.71 Personal Property. The term “Personal Property”
means all Trade Equipment as well as supplies and inventory, books
and records, intangibles, and any and all other items of personal
property located at the Premises, except, in all cases, those which
are owned by a Third Party Lessor. Under no circumstances shall the
term “Personal Property” be deemed to include any of
the USTs, for which separate provision is made under this Restated
Lease.
1.72 Personal Property Letter. The term “Personal Property
Letter” means that certain letter agreement, dated as of the
date hereof, between Landlord and Tenant relating to the ownership
of Personal Property located on the Premises.
1.73 Petroleum Terminal Properties. The term “Petroleum
Terminal Properties” means those Properties which are
terminals for the storage and distribution of petroleum products
either owned or leased by Landlord or one of its Affiliates and/or
Subsidiaries. As of the date hereof, the Petroleum Terminal
Properties are as set forth on Exhibit J.
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1.74 Post-Reorganization Leases. The term
“Post-Reorganization Leases” means the 1998 Master
Lease, the April 1999 Master Lease, and the September 1999 Master
Lease.
1.75 Power Test Lease. The term “Power Test Lease”
means a lease between the Power Test Lessor, as landlord, and
Landlord, as tenant, for a Property, as such lease has been amended
as of the date hereof. As used in this definition, the term
“Landlord” shall be deemed to include any Affiliate
and/or Subsidiary of Landlord that is the tenant under any Power
Test Lease. The term “Power Test Leases” shall have the
correlative plural meaning.
1.76 Power Test Lease Estoppel Certificate. The term “Power
Test Lease Estoppel Certificate” means a statement in writing
containing all of the following statements (identifying in
reasonable detail any exceptions that may exist at the time), as
requested by Tenant: (a) the Power Test Leases have not been
amended or modified, constitute the entire agreement between the
Power Test Lessor and Landlord (which term “Landlord”
shall be deemed to include any Affiliate and/or Subsidiary of
Landlord that is the tenant under any Power Test Lease for the
purposes of this definition) relating to the Properties subject to
the Power Test Leases and are in full force and effect (or, if
there have been amendments or modifications, that the Power Test
Leases as so amended or modified are in full force and effect and
stating such amendments or modifications); (b) neither the Power
Test Lessor nor Landlord is in material default under the Power
Test Leases and, to the best of the Power Test Lessor’s
knowledge, no facts or circumstances exist that, with the passage
of time or the giving of notice or both, would constitute material
defaults under the Power Test Leases by the Power Test Lessor or
Landlord (or, if there have been any material defaults or potential
material defaults, specifying the nature of any such material
default or potential material default); (c) Landlord has paid all
rent to date; (d) any then-ascertainable date relevant to the Power
Test Leases; and (e) such other matters as Tenant shall reasonably
request.
1.77 Power Test Lessor. The term “Power Test Lessor”
means Power Test Realty Company Limited Partnership and its
successors and assigns, as lessor under the Power Test
Leases.
1.78 Premises. The term “Premises” shall have the
meaning set forth in the first Recital paragraph of this Restated
Lease, except that the term “Premises” shall not be
deemed to include any Property which may be deleted from this
Restated Lease from time to time (a) pursuant to the express
provisions of Article 13, 14, 15, 22 or 25 of this Restated Lease;
or (b) by the mutual agreement of the parties hereto.
1.79 Prime Rate. The term “Prime Rate” means the prime
rate or equivalent “base” or “reference”
rate for corporate loans that, at Landlord’s election, by
Notice to Tenant, is: (a) published from time to time in the Wall
Street Journal; (b) announced from time to time by the commercial
banking unit of the Chase Manhattan Corporation, New York, New
York, or any other large United States “money center”
commercial bank designated by Landlord; or (c) if such rate is no
longer so published or announced, then a reasonably equivalent rate
published by an authoritative third party designated by Landlord.
Notwithstanding anything to the contrary in this Section, the Prime
Rate shall never exceed the highest rate of interest legally
permitted to be
14
charged in transactions of the
character of this Restated Lease between parties of a character
similar to Landlord and Tenant.
1.80 Prohibited Liens. The term “Prohibited Lien” means
any mechanic’s, vendor’s, laborer’s or material
supplier’s statutory lien or other similar lien arising by
reason of work, labor, services, equipment or materials supplied,
or claimed to have been supplied, to Tenant, which lien either: (a)
is filed against the Fee Estate or Landlord’s leasehold
interest in any Fee Estate owned by a Third Party Lessor, the
Leemilt’s Lessor, the Gettymart Lessor, or the Power Test
Lessor or (b) is filed against the Leasehold Estate and, upon
termination of this Restated Lease, would under the Law of the
State attach to the Fee Estate or Landlord’s leasehold
interest in any Fee Estate owned by a Third Party Lessor, the
Leemilt’s Lessor, the Gettymart Lessor, or the Power Test
Lessor. Notwithstanding anything to the contrary in this Restated
Lease, an Equipment Lien shall not constitute a Prohibited Lien and
nothing in this Restated Lease shall prohibit Tenant and/or
Subtenant from creating, or require Tenant and/or Subtenant, as the
case may be, to remove, any Equipment Lien except upon termination
of this Restated Lease.
1.81 Property. The term “Property” shall have the
meaning set forth in the first Recital paragraph of this Restated
Lease, except that the term “Property” shall not be
deemed to include any property which may be deleted from this
Restated Lease from time to time (a) pursuant to the express
provisions of Article 13, 14, 15, 22 or 25 or (b) by the mutual
agreement of the parties hereto. The term “Properties”
shall have the correlative plural meaning.
1.82 Real Estate Taxes. The term “Real Estate Taxes”
means all taxes and special and general assessments that may be
assessed, levied, confirmed, imposed or become a lien on any
Property (other than on account of any actions or omissions of
Landlord, a Third Party Lessor, the Leemilt’s Lessor, the
Gettymart Lessor, or the Power Test Lessor or conditions existing
on, at or with respect to any such Property before the applicable
Commencement Date) by or for the benefit of any Government with
respect to any period during the Term, together with any taxes,
assessments and occupancy taxes that may be levied, assessed or
imposed by any Government in lieu of or as a substitute, in whole
or in part, for any of the foregoing. Notwithstanding the
foregoing, all such items referred to above which are the
obligation of a lessee under a Third Party Lease, the
Leemilt’s Lease, the Gettymart Lease, and a Power Test Lease
(except to the extent, if any, such item is included as Fixed Rent
hereunder) are also “Real Estate Taxes.” The term
“Real Estate Taxes” shall, however, not include any of
the following, all of which Landlord shall pay before delinquent or
payable only with a penalty: (a) any franchise, income, excess
profits, estate, inheritance, succession, transfer, gift,
corporation, business, capital levy, or profits tax, or license fee
(other than a license fee imposed with respect to any Property or
the Improvements thereon the maintenance of which is Tenant’s
responsibility pursuant to the terms of this Restated Lease) of
Landlord, (b) the incremental portion of any of the items listed in
this Section that would not have been levied, imposed or assessed
but for any sale or other direct or indirect transfer of the Fee
Estate or of any interest in Landlord during the Term, (c) any
charges that would not have been payable but for any act or
omission of Landlord or conditions existing on, at or with respect
to any Property before the applicable Commencement Date, (d) any
charges that are levied, assessed or imposed against any Property
during the Term based on the recapture or reversal of
any
15
previous tax abatement or tax
subsidy, or compensating for any previous tax deferral or reduced
assessment or valuation, or based on a miscalculation or
misdetermination of any charge(s) of any kind imposed or assessed
with respect to the Premises, relating to any period(s) before the
applicable Commencement Date, and (e) interest, penalties and other
charges with respect to items “a” through
“d.”
1.83 Realty Parent. The term “Realty Parent” means
Getty Realty Corp., and its successors and assigns.
1.84 Remediate. The term “Remediate,”
“Remediation,” and/or “Remediated” means
those activities, including investigation, monitoring and, as
necessary, cleaning up, removing, treating, covering or in any
other way remediating Contamination in the environment at or
emanating from any Property, including those Properties set forth
on Schedule 2, Schedule 3 and Exhibit C so as to achieve Closure,
but excluding the repair, removal or replacement of USTs, except as
set forth in Section 7.6. The required levels of Remediation at any
particular Property shall be limited solely to those limits in
place by the applicable Government at the time of the
Closure.
1.85 Renewal Option. The term “Renewal Option” means
the right to renew this Restated Lease as provided in Section 2.1
hereof.
1.86 Rent. The term “Rent” means Fixed Rent and
Additional Rent.
1.87 Restatement Effective Date. The term “Restatement
Effective Date” means the initial acceptance for payment of
shares of Company Common Stock (as defined in the Merger Agreement)
pursuant to the Offer (as defined in the Merger
Agreement).
1.81A Restatement Effective Time. The term “Restatement
Effective Time” means the time which is two (2) hours prior
to the time that the conditions referred to in the definition of
Restatement Effective Date have been satisfied.
1.88 September 1999 Master Lease. The term “September 1999
Master Lease” means that certain Master Lease, dated
September 30, 1999, between Landlord and Tenant.
1.89 Service Station Properties. The term “Service Station
Properties” means Properties which are currently used to sell
motor fuels or convenience store items or both, and in some
instances are used for motor vehicle repairs and/or other services
ancillary to the sale of motor fuels or convenience store
items.
1.90 State. The term “State” means the State or
Commonwealth where the Properties are located.
1.91 Sublease. The term “Sublease” means any sublease
or sub-sublease of any Property or any part of any Property, or any
other agreement or arrangement (including a license agreement,
occupancy agreement or concession agreement) made by Tenant
granting any third party the right to occupy, use or possess any
Property or any portion of any Property, including, without
limitation, those subleases between Tenant and lessee-dealers with
respect to certain Service Station Properties. The term
“Subleases” shall have the correlative plural
meaning.
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1.92
Subsidiary. The term “Subsidiary” means, with respect
to any Person, any other Person (i) in which such Person owns
directly, or indirectly through one or more subsidiaries, more than
fifty percent (50%) of the voting or beneficial interest, or (ii)
which such Person otherwise has the right or power to control
(whether by contract, through ownership of securities or
otherwise). The term “Subsidiaries” shall have the
correlative plural meaning.
1.93 Substantial Casualty. The term “Substantial
Casualty” means any Casualty that, in Tenant’s
reasonable judgment, renders a Property unsuitable for the then
current use of such Property at the time of the
Casualty.
1.94 Substantial Condemnation. The term “Substantial
Condemnation” means any Condemnation that, in Tenant’s
reasonable judgment, renders the remaining portion of a Property
unsuitable for the conduct of the then current use of the Property
at the time of the Condemnation. Tenant may waive its right to
treat as a Substantial Condemnation any Condemnation that would
otherwise qualify as such.
1.95 Subtenant. The term “Subtenant” means any person
having rights of occupancy, use or possession under a Sublease, and
any concessionaires, occupants and licensees that Tenant elects to
treat as Subtenants, including, without limitation, lessee-dealers
subleasing any Service Station Property.
1.96 Temporary Condemnation. The term “Temporary
Condemnation” means a Condemnation relating to the temporary
right to use or occupy a Property or any part of a
Property.
1.97 Tenant. The term “Tenant” means (a) for certain
Service Station Properties located in the Mid-Hudson Valley,
Kingston Oil Supply Corp. and for all other Service Station
Properties, Getty Petroleum Marketing Inc. and (b) for certain
Petroleum Terminal Properties located in the Mid-Hudson Valley,
Kingston Oil Supply Corp. and for all other Petroleum Terminal
Properties, Getty Terminals Corp., including, in all cases, any and
all successors and assigns of such entities as may be permitted
hereunder.
1.98 Tenant Improvements. The term “Tenant
Improvements” means any and all Improvements constructed on
any Property by Tenant at any time between the applicable
Commencement Date with respect to such Property and the Restatement
Effective Date and at any time during the Term.
1.99 Tenant’s Award. The term “Tenant’s
Award” means, at any point in time, an amount equal to the
then fair market value of the Leasehold Estate in the applicable
Property (including the then fair market value of the rights of
Tenant in and to any Improvements thereon), considered: (i) as if
the Condemnation had not occurred; (ii) without adjusting for any
expectation of the Condemnation; (iii) as if this Restated Lease
had not terminated with respect to the applicable Property as of
the effective date of the Condemnation; and (iv) taking into
account the benefits and burdens of this Restated Lease, the
remaining Term (as further defined in this definition), all
Permitted Exceptions, and all other matters affecting such
Leasehold Estate and its valuation. For the purposes of calculating
“Tenant’s Award,” the term of this Restated
Lease
17
shall include only those Renewal
Terms for which Tenant had previously exercised its Renewal Option
in accordance with the provisions of this Restated Lease.
“Tenant’s Award” shall be determined
independently of, and without regard to, any valuation of the
Leasehold Estate established in any Condemnation
proceeding.
1.100 Tenant’s Condemnation Share. The term
“Tenant’s Condemnation Share” means the following
fraction:
|
|
|
Tenant’s Award
|
|
|
|
The sum of Tenant’s Award and
Landlord’s Award
|
1.101
Termination Date. The term “Termination Date” means the
date when this Restated Lease terminates or expires (i) for the
Premises, whether pursuant to the expiration of the Term as
provided for in this Restated Lease or pursuant to Landlord’s
exercise of remedies upon occurrence of a Material Monetary Event
of Default or (ii) for any Property, (a) pursuant to the express
provisions of Article 13, 14, 15, 22 or 25 of this Restated Lease
or (b) by the mutual agreement of the parties hereto to delete such
individual Property from this Restated Lease.
1.102 Third Party Lease. The term “Third Party Lease”
means a lease between a Third Party Lessor, as landlord and
Landlord, or an Affiliate and/or Subsidiary of Landlord, as tenant,
for any Property. The Power Test Lease, the Leemilt’s Lease,
and the Gettymart Lease are not Third Party Leases for any purpose
hereunder.
1.103 Third Party Lease Estoppel Certificate. The term “Third
Party Lease Estoppel Certificate” means a statement in
writing containing all of the following statements (identifying in
reasonable detail any exceptions that may exist at the time), as
requested by Tenant: (a) the applicable Third Party Lease has not
been amended or modified, constitutes the entire agreement between
the Third Party Lessor and Landlord relating to the Property
subject to such Third Party Lease and is in full force and effect
(or, if there have been amendments or modifications, that such
Third Party Lease as so amended or modified is in full force and
effect and stating such amendments or modifications); (b) neither
the Third Party Lessor nor Landlord is in default under such Third
Party Lease and, to the best of the Third Party Lessor’s
knowledge, no facts or circumstances exist that, with the passage
of time or the giving of notice or both, would constitute a default
under the Third Party Lease by the Third Party Lessor or Landlord
(or, if there have been any defaults or potential defaults,
specifying the nature of any such default or potential default);
(c) Landlord has paid all rent to date; (d) any then-ascertainable
date relevant to the Third Party Lease; and (e) such other matters
as Tenant shall reasonably request.
1.104 Third Party Lease Spread. The term “Third Party Lease
Spread” means an amount equal to the difference between (a)
the Original Term Rent Allocation (as defined in Section 22.2.2)
with respect to a Property subject to a Third Party Lease and (b)
the rental due and payable by Landlord to the Third Party Lessor of
such Property immediately prior to the expiration of the term of
such Third Party Lease.
18
1.105
Third Party Lease Renewal Option. The term “Third Party Lease
Renewal Option” means any right to extend and renew a Third
Party Lease for a renewal term.
1.106 Third Party Lessor. The term “Third Party Lessor”
means a Person who owns a Property and leases it to Landlord or an
Affiliate and/or Subsidiary of Landlord.
1.107 Trade Equipment. The term “Trade Equipment” means
all furniture, furnishings, trade fixtures and equipment installed
or used on the Premises by Tenant or any Subtenant from time to
time during the Term, other than those which may be owned by a
Third Party Lessor.
1.108 Transfer Tax Agreement. The term “Transfer Tax
Agreement” means that certain Tax Indemnity Agreement between
Landlord and Tenant dated as of the date hereof.
1.109 Unavoidable Delay. The term “Unavoidable Delay”
means a delay in the performance of any obligation under this
Restated Lease (excluding in any case any obligation to pay money)
arising from or on account of any cause whatsoever beyond the
reasonable control of the person required to perform, including
strikes, labor troubles, litigation, Casualty, Condemnation,
accidents, Laws, governmental preemption, war, riots, and other
causes beyond such party’s reasonable control, whether
similar to or dissimilar to the causes specifically enumerated in
this Section. In no event shall Unavoidable Delay be deemed to
include any delay caused by a Person’s financial
condition.
1.110 Uneconomic. The term “Uneconomic” means the cost
to cure an Eligible Legal Violation is not economically
practicable, given the business being conducted at a particular
Property and the cost of curing such violation.
1.111 Use Restriction Event. The term “Use Restriction
Event” means, with respect to a Property, the date when, (a)
as a result of the enactment of a final, non-appealable change in
Law, the use of such Property as of the Restatement Effective Date
as a Service Station Property or a Petroleum Terminal Property, as
applicable, is no longer permitted; (b) as a result of any
non-appealable action by the Government, Tenant is no longer able
to use the Property for its use as of the Restatement Effective
Date, provided that (i) such action by the Government did not
result, either directly or indirectly, from the acts or omissions
of Tenant, Subtenant or their respective agents, contractors,
employees, licensees or invitees, (ii) such action of the
Government was not a Law enforcement or violation related action
and was more in the nature of a change in zoning or a
Condemnation-like action, and (iii) such action of the Government
was unrelated to Environmental Laws; or (c) as a result of any
non-appealable or unappealable (by Landlord or Tenant) action by
Government access to such Property is materially denied to Tenant
or Tenant’s customers or invitees. Anything contained in the
foregoing sentence to the contrary notwithstanding, a “Use
Restriction Event” shall not be deemed to occur in the event
that the use of any such Property as of the Restatement Effective
Date is or becomes a permissible non-conforming use under
applicable Law such that Tenant is not permitted to rebuild or
reconstruct such Property for its current use as of the Restatement
Effective Date after the occurrence of a Casualty or
Condemnation.
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1.112
UST. The term “UST” means an underground storage tank
including related piping, underground pumps, wiring and their
monitoring devices. The term “USTs” shall have the
correlative plural meaning.
1.113 UST Upgrade. The term “UST Upgrade” means the
replacing, upgrading or closure of UST systems (tanks and
connective piping) in accordance with 40 C.F.R. Part 280 or similar
Government requirements in effect on the Commencement Date of the
1997 Master Lease.
1.114 Waiver of Subrogation. The term “Waiver of
Subrogation” means a provision in, or endorsement to, any
insurance policy required by this Restated Lease, by which the
insurance carrier agrees to waive all rights of recovery by way of
subrogation against either party to this Restated Lease in
connection with any loss covered by such insurance
policy.
2.
TERM.
2.1 Initial Term and Renewal Term(s). The initial term of this
Restated Lease (the “Initial Term”) shall commence on
the Restatement Effective Date. The Initial Term shall end
immediately prior to the fifteenth (15th) anniversary of the
Restatement Effective Date. Except as provided or otherwise set
forth to the contrary in Article 22, Tenant shall have the absolute
and unconditional right and option (each such right and option, a
“Renewal Option”) to extend and renew this Restated
Lease as to all but not less than all of the Properties then
demised by this Restated Lease at the time of such extension and
renewal upon the same terms and conditions (except to the extent
Rent may be adjusted as required hereunder) as this Restated Lease,
for four (4) additional successive periods, with the first three
(3) being of ten (10) years each and the last one being of three
(3) years and ten (10) months (each such renewal period, a
“Renewal Term”) following expiration of the Initial
Term. Tenant shall exercise each Renewal Option, if at all, by
giving Landlord Notice thereof (in compliance with this Restated
Lease) at least thirteen (13) months before the first day of the
corresponding Renewal Term. Wherever this Restated Lease refers to
the “Term,” such reference means the Initial Term as
extended from time to time, pursuant to Tenant’s Renewal
Option(s), to include one or more Renewal Term(s), so that upon
Tenant’s exercise of any Renewal Option(s), the
“Term” shall include the corresponding Renewal Term. At
the expiration or termination of the final Renewal Term provided
for below, Tenant shall have no further rights to renew or extend
this Restated Lease. The Renewal Options and Renewal Terms are as
follows:
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2.1.1 First Renewal Term. The “First Renewal Term”
shall be for a period of ten (10) years beginning on the fifteenth
(15th) anniversary of the Restatement Effective Date and ending
immediately prior to the twenty-fifth (25th) anniversary of the
Restatement Effective Date.
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2.1.2 Second Renewal Term. The second Renewal Term shall be for a
period of ten (10) years beginning on the twenty-fifth (25th)
anniversary of the Restatement Effective Date and ending
immediately prior to the thirty-fifth (35th) anniversary of the
Restatement Effective Date.
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2.1.3
Third Renewal Term. The third Renewal Term shall be for a period of
ten (10) years beginning on the thirty-fifth (35th) anniversary of
the Restatement Effective Date and ending immediately prior to the
forty-fifth (45th) anniversary of the Restatement Effective
Date.
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2.1.4 Fourth Renewal Term. The fourth and final Renewal Term shall
be for a period of three (3) years and ten (10) months, beginning
on the forty-fifth (45th) anniversary of the Restatement Effective
Date and ending immediately prior to the forty-eighth (48th) and
ten (10) month anniversary of the Restatement Effective
Date.
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2.2 Default by Tenant. Provided only that this Restated Lease has
not been terminated and that no uncured Material Monetary Event of
Default then exists hereunder, there shall be no conditions
(express or implied) to Tenant’s exercise of any Renewal
Option(s) for the Premises (except as set forth in Article 22 at it
pertains to Third Party Leases).
2.3 Title to Tenant Improvements and Personal Property.
Notwithstanding anything to the contrary in this Restated Lease,
all Tenant Improvements and all Personal Property owned by Tenant
located in, on or at any Property or otherwise constituting part of
the Premises shall at all times during the Term be owned by, and
shall belong to, Tenant. All the benefits and burdens of ownership
of the foregoing shall be and remain in Tenant during the
Term.
3. RENT.
3.1 Fixed Rent. Throughout the Initial Term and all Renewal Terms,
Tenant shall pay Landlord, without notice or demand, in lawful
money of the United States of America, at Landlord’s office
or as Landlord shall otherwise designate, a net annual rental (the
“Fixed Rent”) as follows:
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3.1.1
Calculation of Fixed Rent. During the first Lease Year, Fixed Rent
shall be $57,729,216 (or $4,810,768 per month), as adjusted
pursuant to this Article. The Fixed Rent during the Initial Term
and all Renewal Terms shall be adjusted in accordance with the
Fixed Rent Adjustment Procedures at the time that any Property may
be deleted from this Restated Lease (a) pursuant to the express
provisions of Article 13, 14, 15, 22 or 25 of this Restated Lease;
or (b) by the mutual agreement of the parties hereto.
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3.1.2
Rent Escalations. At the beginning of each Lease Year commencing
after the first Lease Year, the Fixed Rent for such Lease Year
shall be increased by an amount equal to two percent (2%) of the
Fixed Rent in effect at the end of the immediately preceding Lease
Year, after giving effect to any adjustment to such Fixed Rent
required under Section 3.1.1.
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3.2 Payment; Proration; Etc. Tenant shall pay Fixed Rent in equal
monthly installments in advance on the first day of each month.
Rent for partial months at the beginning or
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end of the Term shall be prorated
based on the number of days in such month within the Term divided
by the total number of days in the entire month. Tenant shall pay
all Rent payable to Landlord by wire transfer of currently
available federal funds to Landlord’s bank account as
designated by Landlord.
3.3 Additional Rent. In addition to Fixed Rent, Tenant shall pay
Landlord, as additional rent under this Restated Lease, all
Additional Rent within twenty (20) days after receipt of invoice
therefor or as otherwise set forth in Article 4.
3.4 No Allocation to Personal Property; Allocation to Royalty Fee.
None of the Rent provided for under this Restated Lease is
allocable to any personal property included in the Premises.
Notwithstanding anything to the contrary contained herein or in the
License Agreement, a sum equal to Two Million Dollars ($2,000,000)
(as escalated pursuant to the provisions of Section 3.1.2 above) of
the Fixed Rent payable hereunder per Lease Year shall be deemed to
constitute payment for the granting by Landlord to Tenant of an
exclusive license to use the Licensed Marks (as defined in the
License Agreement) on the terms and conditions set forth in the
License Agreement (such annual payment being referred to herein as
the “Royalty Fee”). Notwithstanding the foregoing, if
the License Agreement terminates for any reason during the Term,
then the amount of Fixed Rent payable hereunder per annum shall be
deemed to be increased by an amount equal to the Royalty Fee that
would have been payable had the License Agreement not terminated.
The net effect of the foregoing is that the amount paid by Tenant
to Landlord under Section 3.1 shall not be affected by the
termination of the License Agreement.
3.5 Offsets. Except as specifically provided in Section 31.1 hereof
and except as provided below, Tenant shall pay all Rent without
offset, defense, claim, counterclaim, reduction, deduction, or
exercise of recoupment rights of any kind whatsoever.
Notwithstanding anything to the contrary in this Restated Lease,
Tenant shall be entitled to offset against Rent an amount equal to
any of the following obligations required to be performed by
Landlord (a) except as otherwise provided in clause (b), to the
extent Landlord fails to perform any such obligation within thirty
(30) days after Tenant shall have delivered to Landlord a Notice
describing such failure in reasonable detail; or (b) in the case of
a failure that cannot with due diligence be cured within thirty
(30) days from such Notice, to the extent that Landlord does not
(x) within 30 days from Tenant’s Notice advise Tenant of
Landlord’s intention to take all reasonable steps necessary
to remedy such failure, (y) duly commence the cure of such failure
within such period, and then diligently prosecute to completion the
remedy of such failure and (z) complete such remedy within a
reasonable time under the circumstances.
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3.5.1
Landlord’s UST Upgrade obligation pursuant to Section 7.6 at
the Properties set forth in Schedule 2, to the extent Tenant is
required to expend monies therefor;
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3.5.2
Landlord’s obligation pursuant to Section 9.1 with respect to
(a) the ongoing Remediation at the Properties set forth on Schedule
3 and (b) any Remediation required as a result of any Contamination
resulting from UST Upgrades at the Properties set forth on Schedule
2 and Exhibit C, to the extent Tenant is required to expend monies
therefor; and
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3.5.3
Landlord’s obligation pursuant to the Environmental
Agreement, to the extent Tenant is required to expend monies
therefor.
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Notwithstanding anything to the
contrary contained herein or in the Environmental Agreement, if, at
any time after the date hereof, UST Upgrade or Closure has been
completed, as applicable, with respect to any Property set forth on
Schedule 2, Exhibit C or Schedule 3 by Landlord as required under
this Restated Lease, Tenant shall have no right to any offset
against Rent with respect to any such Property from and after the
date on which such UST Upgrade or Closure has been completed, as
applicable, with respect to such Property. In the event that Tenant
elects to offset any amount against Rent in accordance with this
Section 3.5 or Section 31.1, Tenant shall give Landlord Notice of
such election to offset at least twenty (20) days prior to
effecting the same, which Notice shall include the amount that
Tenant plans to offset and the timing of such offset.
4. ADDITIONAL PAYMENTS BY TENANT; IMPOSITIONS.
4.1 Landlord’s Net Return. The parties intend that this
Restated Lease shall constitute a “net lease,” so that
the Rent shall provide Landlord with “net” return for
the Term, free of any expenses or charges with respect to the
Premises, except as specifically provided in this Restated Lease.
Accordingly, except as specifically set forth to the contrary in
this Restated Lease, the Environmental Agreement or the Transfer
Tax Agreement, Tenant shall pay as Additional Rent and discharge,
before failure to pay the same shall create a material risk of
forfeiture or give rise to a penalty, each and every item of
expense, of every kind and nature whatsoever, related to or arising
from the Premises, or by reason of or in any manner connected with
or arising from the development, leasing, operation, management,
maintenance, repair, use or occupancy of the Premises or any
Property or any portion thereof. Notwithstanding anything to the
contrary in this Restated Lease, Tenant shall not be required to
pay any of the following incurred by Landlord: (a) principal,
interest, or other charges payable under any Fee Mortgage; (b)
depreciation, amortization, brokerage commissions, financing or
refinancing costs, management fees or leasing expenses incurred by
Landlord with respect to any Property; (c) consulting, overhead,
travel, legal, staff, and other similar costs incidental to
Landlord’s ownership of its fee or leasehold interest in any
Property, other than Legal Costs that Tenant has expressly agreed
to pay; (d) any costs arising from or pursuant to any instrument or
agreement affecting any Property that is not a Permitted Exception
and to which Landlord is a party and Tenant is not a party; and (e)
the obligations of Landlord set forth in Section 7.6 and Section
9.1 of this Restated Lease, in the Environmental Agreement, or in
the Transfer Tax Agreement.
4.2 Impositions. Subject to Tenant’s right to contest set
forth in Section 11.1, for any period within the Term (with daily
prorations for periods partially within the Term and partially
outside the Term), Tenant shall pay and discharge all Real Estate
Taxes pursuant to the procedures set forth in Section 4.4 or
Section 4.5 and shall pay and discharge, before failure to pay the
same shall create a material risk of forfeiture or give rise to a
penalty, all other Impositions. Tenant shall pay all interest and
penalties assessed by any Government on account of late payment of
any Real Estate Taxes, unless such late payment was caused by (a)
Landlord’s failure to promptly forward to Tenant or
Depository, as applicable, a copy of any tax or other bill related
to any such Real Estate Tax received by Landlord or (b)
Landlord’s failure to timely pay
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any such Real Estate Tax after it
has timely received Tenant’s or Depository’s payment
with respect thereto as provided in Section 4.4 or 4.5, in which
case Landlord shall pay such interest and penalties. Except as
otherwise provided herein, Tenant shall also pay interest and
penalties assessed by any Government on account of late payment of
any other Imposition (paid to Landlord by Tenant), except late
payment caused by Landlord’s failure to remit any such
Imposition in accordance with Tenant’s reasonable
instructions or Landlord’s failure to promptly forward Tenant
a copy of any tax or other bill related to any such Imposition
received by Landlord, in which case Landlord shall pay such
interest and penalties. Tenant shall within a reasonable time after
Notice from Landlord provide Landlord with reasonable proof that
Tenant has paid or escrowed, as applicable, any Imposition(s) that
this Restated Lease requires Tenant to have paid or escrowed, as
applicable. Landlord shall be entitled to any refund of any
Impositions (and penalties and interest paid by Landlord) and
interest earned thereon to the extent such Imposition was due and
payable prior to the applicable Commencement Date based on
Landlord’s prior overpayment of such Imposition, and Tenant
shall remit to Landlord any amounts received by Tenant on account
of such overpayment promptly upon receipt of the same. Tenant shall
be entitled to any refund of any Impositions (and penalties and
interest paid by Tenant) and interest earned thereon to the extent
such Imposition was due and payable on or after the applicable
Commencement Date based upon Tenant’s prior overpayment of
such Imposition, whether such refund is made during or after the
Term, and Landlord shall remit to Tenant any amounts received by
Landlord on account of such overpayment promptly upon receipt of
the same.
4.3 Assessments in Installments. To the extent that it may be
permitted by applicable Law and by the applicable Third Party
Lease, Tenant shall have the right to apply for conversion of any
Imposition to cause it to be payable in installments. After any
such conversion, Tenant shall pay and discharge only such
installments of any such Impositions as shall become due and
payable during the Term, provided that any payment relating to
periods prior to the expiration of this Restated Lease shall be
paid prior to the Termination Date.
4.4
Deposits for Real Estate Taxes.
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4.4.1
Advanced Real Estate Tax Payments. Due to the number of properties
demised by this Restated Lease, Real Estate Taxes will be due and
payable with respect to at least one Property during each calendar
month of each Lease Year. In order to assure the timely payment of
all Real Estate Taxes, Tenant shall deposit with Landlord on the
first day of each calendar month during the Term a sum equal to the
amount of Real Estate Taxes due and payable in the next calendar
month (such sum being referred to hereinafter as the “Monthly
Tax Payment”). The amount of each Monthly Tax Payment shall
be determined by reference to the Monthly Tax Payment for the
corresponding calendar month of the previous Lease Year, as
adjusted to reflect any reassessment, tax increase or change of due
date therefor of which Tenant has received Notice from Landlord at
least twenty (20) days prior to the date on which such Monthly Tax
Payment is due and payable. For the first Lease Year, the amount of
Monthly Tax Payment shall be determined by reference to Schedule
10, as adjusted to reflect any reassessment, tax increase or change
of due date therefor of which Tenant has received Notice from
Landlord at least twenty (20) days prior to the date on
which
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such Monthly Tax Payment is due.
In addition, on or prior to the Restatement Effective Date, Tenant
shall deposit with the Landlord a sum of money equal to the amount
of Real Estate Taxes due in the calendar month in which the
Restatement Effective Date occurs and the following calendar month,
as determined by reference to Schedule 10, as adjusted to reflect
any reassessment, tax increase or change of due date therefor of
which Tenant has received Notice from Landlord at least twenty (20)
days prior to the Restatement Effective Date. Notwithstanding the
foregoing, if Tenant does not receive any Notice of adjustment from
Landlord with respect to a Monthly Tax Payment referred to in this
Section at least twenty (20) days prior to the date on which such
Monthly Tax Payment is due, then Tenant shall, within twenty (20)
days after receipt of such Notice of adjustment from Landlord,
deposit with Landlord such additional funds as may be required
under such Notice. By way of example, if the Restatement Effective
Date occurs on January 12, 2001, then Tenant shall deposit with
Landlord on such date an amount equal to the Real Estate Taxes due
during the months of January and February of such year, as
determined by reference to Schedule 10, as adjusted pursuant to the
preceding provisions. On February 1, 2001, Tenant shall deposit
with Landlord an amount equal to the Real Estate Taxes due in the
month of March of such year, as so adjusted, and so on throughout
the Term of this Restated Lease. Notwithstanding the foregoing or
anything else to the contrary contained herein, if the funds
deposited pursuant to the preceding provisions are insufficient to
pay any Real Estate Tax at least twenty (20) days before such Real
Estate Tax is due and payable without penalty or interest, Tenant
shall, within twenty (20) days after receipt of demand therefor
from Landlord, deposit with Landlord such additional funds as may
be necessary to pay any such Real Estate Tax in full. If the
Monthly Tax Payment so deposited pursuant to this Section exceeds
the amount required to pay the Real Estate Taxes due and payable
for any month, the excess shall be credited against the Monthly Tax
Payment next due and payable.
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4.4.2
Expiration or Termination. Notwithstanding anything to the contrary
contained in Section 4.4.1, if this Restated Lease shall expire
before any credit referred to in Section 4.4.1 shall have been
fully applied, Landlord (a) shall retain an amount sufficient to
pay unpaid Real Estate Taxes to the extent such Real Estate Taxes
accrue with respect to any period of time during the Term and (b)
shall refund to Tenant the balance of such credit within thirty
(30) days after the end of the Term. Notwithstanding the foregoing,
if this Restated Lease shall have terminated as a result of a
Material Monetary Event of Default, then all amounts held by
Landlord pursuant to this Section 4.4 shall belong to Landlord,
which amounts shall be used by Landlord only to pay Real Estate
Taxes that would have accrued if this Restated Lease had not
terminated as a result of such Material Monetary Event of Default.
If a Property is deleted from this Restated Lease pursuant to the
express terms of this Lease (a) pursuant to the express provisions
of Article 13, 14, 15, 22 or 25; or (b) by the mutual agreement of
the parties hereto, then the amount required to be deposited by
Tenant pursuant to this
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Section 4.4 shall thereupon be
reduced by an amount equal to the Real Estate Taxes attributable to
the Property so deleted, but Tenant shall remain liable for all
such Real Estate Taxes which accrued prior to the date of such
deletion.
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4.5 Leasehold Mortgage Real Estate Tax Deposits. Anything contained
in the foregoing provisions of this Article notwithstanding, if any
procedures with respect to deposits for Real Estate Taxes set forth
in a Permitted Leasehold Mortgage shall be inconsistent with any of
the procedures set forth in this Article or if such Permitted
Leasehold Mortgage requires the establishment of a traditional tax
escrow whereby Tenant pays into such escrow an amount equal to
one-twelfth of the Real Estate Taxes due in a particular Lease Year
on a monthly basis, then, to such extent, the procedures set forth
in such Permitted Leasehold Mortgage shall take precedence over,
and shall be in lieu of, the inconsistent procedures set forth in
this Restated Lease, except as otherwise set forth in this Section.
Any such Permitted Leasehold Mortgage may provide that deposits for
Real Estate Taxes shall be paid by Tenant to either (a) Landlord or
(b) Depository. In order for deposits for Real Estate Taxes to be
paid by Tenant to Depository, Depository must have previously
entered into a depository agreement with Landlord pursuant to which
Depository agrees (i) to hold all amounts deposited with Depository
pursuant to this Section 4.5 in a segregated, interest-bearing
escrow account (which interest may be distributed to Tenant on a
quarterly basis, provided that no uncured Material Monetary Event
of Default then exists hereunder) in the name of Tenant (so as not
to be considered an asset of Depository) for the sole purpose of
paying the Real Estate Taxes for which such amounts shall have been
deposited as the same become due; (ii) to remit to Landlord the
aforesaid deposits for such purpose not later than twenty (20) days
prior to the last day on which such Real Estate Taxes may be paid
without penalty or interest; (iii) that in no event shall any
amount deposited with Depository hereunder be deemed to constitute
additional security for any amounts that may be owed by Tenant or
any Affiliate or Subsidiary of Tenant to Leasehold Mortgagee or any
Affiliate or Subsidiary of Leasehold Mortgagee or any other Person,
(iv) to otherwise be bound by the provisions of this Restated
Lease, including, without limitation, this Section 4.5.
Notwithstanding clause (ii) of the foregoing sentence, such
Permitted Leasehold Mortgage may provide that Depository will pay
Real Estate Taxes directly to the appropriate taxing authority
rather than remitting the same to Landlord pursuant to this Section
4.5. If such Permitted Leasehold Mortgage provides that Depository
will pay Real Estate Taxes directly to the appropriate taxing
authority, then Tenant shall (x) use commercially reasonable
efforts to obtain and furnish to Landlord proof, reasonably
satisfactory to Landlord, of payment by Depository of Real Estate
Taxes and (y) furnish to Landlord copies of any checks that Tenant
sends to Depository on account of Real Estate Taxes or other
evidence of payment thereof, except to the extent that a lockbox or
similar arrangement is then in effect such that such amounts are
automatically deposited with Depository.
4.6 Direct Payment by Landlord. If any Imposition or other item of
Rent is required to be paid directly by Landlord, then Landlord
shall appoint as Landlord’s attorney in fact (1) Depository
for the purpose of making any such payment of Real Estate Taxes if
Depository is entitled to make such payments directly pursuant to
the provisions of Section 4.5, and (2) Tenant for the purpose of
making any such payment of any other Imposition or other item of
Rent. Notwithstanding the foregoing, if the person entitled to
receive such payment refuses to accept it from Depository or
Tenant, as applicable, then Depository or Tenant, as applicable,
shall give Landlord Notice of such fact and shall remit payment of
such Imposition or other item of
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Rent to Landlord in a timely
manner accompanied by reasonable instructions as to the further
remittance of such payment. Landlord shall with reasonable
promptness comply with the Depository’s or Tenant’s, as
applicable, reasonable instructions and shall Indemnify Depository
or Tenant, as applicable, against Landlord’s failure to do
so.
4.7 Tax Lots. In the event that any Property does not constitute a
single parcel separate and apart from any other land for the
purpose of Real Estate Taxes, Landlord shall use its reasonable
best efforts to allocate such Real Estate Taxes on an equitable
basis between or among the occupants or users of the parcel that
contains such Property, unless such allocation has been made by a
Third Party Lessor.
4.8 Utilities. Tenant shall pay all fuel, gas, light, power, water,
sewage, garbage disposal, telephone and other utility charges, and
the expenses of installation, maintenance, use and service in
connection with the foregoing, relating to the Premises during the
Term.
5.
USE.
Tenant
may use each Property demised hereunder for a gasoline service
station/convenience store, for the storage and distribution of
petroleum products, and/or for any other lawful purpose, including
without limitation, any use that may exist on any such Property as
of the Restatement Effective Date, subject to any restrictions
contained in a Third Party Lease. In using the Premises, Tenant
shall comply, in all material respects, with all restrictions and
mandates set forth in the Permitted Exceptions and the Third Party
Leases, where applicable. Notwithstanding the foregoing, to the
extent that any failure to fully comply in all respects with a
restriction or mandate set forth in a Third Party Lease would cause
a default to occur under such Third Party Lease, Tenant shall fully
comply with such restriction or mandate, except as specifically
provided in Section 25.2. Tenant shall not have any obligation to
actually operate any Property or otherwise conduct business of any
nature thereon, and Tenant may discontinue operation of any
Property at any time or from time to time, except as may be
required under a Third Party Lease. Landlord shall in no event
declare that Tenant has committed a Default under this Article of
this Restated Lease by reason of Tenant continuing to use such
Property in the same manner as such Property is being used on the
Restatement Effective Date. Notwithstanding the foregoing, nothing
contained herein shall be deemed to in any way affect
Landlord’s right to declare that Tenant has committed a
Default hereunder to the extent that, as a result of a change in
Law subsequent to the Restatement Effective Date, Tenant’s
then current use of any Property becomes unlawful, and Tenant
continues to operate such Property for such use after such change
in Law becomes effective.
6. COMPLIANCE WITH LAW.
Except as otherwise expressly set forth in Section 7.6, Section
9.1, Article 25 and the Environmental Agreement, Tenant shall
during the Term, at Tenant’s expense: (a) observe and comply
with all Laws affecting each Property in all material respects; (b)
procure every material permit, license, certificate or other
authorization required in connection with the lawful and proper
maintenance, operation, use and occupancy of each Property or
required in connection
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with any Construction Work or
Improvements erected thereon; and (c) comply with all such permits,
licenses, certificates and other authorizations in all material
respects. Notwithstanding the foregoing, Tenant shall have the
right to contest any such Laws in accordance with this Restated
Lease.
7. MAINTENANCE AND ALTERATIONS.
7.1 Obligation to Maintain. During the Term, Tenant shall, except
as otherwise expressly provided in this Restated Lease, keep and
maintain the Premises and each Property in good order, condition
and repair in all material respects, subject to Casualty and
Condemnation (governed by separate applicable provisions of this
Restated Lease), reasonable wear and tear, and any other conditions
that this Restated Lease does not require Tenant to repair.
Tenant’s obligations to maintain the Premises in the manner
set forth in the preceding sentence shall extend to all repairs
that any Property (including plumbing, heating, air conditioning,
ventilating, electrical, lighting, walls, roof, foundations,
ceilings, floors, windows, doors, plate glass, skylights,
landscaping, driveways, parking lots, fences and signs located in,
on or at such Property, together with any sidewalks adjacent to
such Property) may require from time to time during the Term,
whether structural or nonstructural, foreseen or unforeseen,
including such repairs as may be required by conditions in
existence at the Commencement Date, except as otherwise provided in
the Environmental Agreement and in Section 25.2, and those Tenant
is obligated to perform under Section 7.6.
7.2 Tenant’s Right to Perform Alterations. Tenant shall have
the right, at Tenant’s sole cost and expense and subject to
the provisions of any Third Party Lease, at any time and from time
to time during the Term of this Restated Lease, to construct,
alter, repair, remodel and/or replace any and all Improvements on
any Property and to demolish, raze or otherwise remove the same,
provided that, unless Landlord consents, which consent shall not be
unreasonably withheld, conditioned or delayed, Tenant shall be
obligated to rebuild Improvements at such Property (a) at least
equal in value to the amortized or depreciated cost of the
Improvements so demolished, razed, or removed, as such amortized or
depreciated cost is set forth on the most recent financial
statements of Landlord then available; and (b) of the same type,
nature and quality as those that have been demolished, removed, or
razed, unless Tenant’s decision to rebuild on such Property
Improvements of a different type, nature or quality is commercially
reasonable under the circumstances. Except as provided in the
immediately preceding sentence, Tenant shall not be obligated to
re-erect any outbuildings, recreational facilities, service
buildings, maintenance sheds or the like which are not material to
the use and operation of such Property. All Tenant Improvements
shall be and remain the property of Tenant throughout the Term and
Tenant shall retain all rights to depreciation and/or amortization
deductions and tax credits arising from ownership thereof. Such
Tenant Improvements (subject to the reversionary interest of
Landlord, the Power Test Lessor, the Leemilt’s Lessor, the
Gettymart Lessor and/or the Third Party Lessors therein) shall be
considered a part of Tenant’s Leasehold Estate for purposes
of Articles 13 and 14. However, upon the Termination Date, title to
such Tenant Improvements shall be deemed to be and become part of
the realty and the sole and absolute property of Landlord (or the
applicable Third Party Lessor, the Power Test Lessor, the
Leemilt’s Lessor, or the Gettymart Lessor, as the case may
be) as of the Termination Date and shall be surrendered to Landlord
at that time, free and clear of the liens of mortgages, deeds
of
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trust, liens of mechanics,
laborers or materialmen, and all other liens and encumbrances other
than (a) any such liens and encumbrances incurred by Landlord
arising from Landlord’s actions or the actions of any Third
Party Lessor, the Leemilt’s Lessor, the Power Test Lessor, or
the Gettymart Lessor, and (b) any easements or similar rights
burdening such Tenant Improvements the creation of which Landlord,
the Leemilt’s Lessor, the Power Test Lessor, or the Gettymart
Lessor, shall have consented to in writing. Upon an early
termination of this Restated Lease, if Leasehold Mortgagee
exercises its right to obtain a new lease and obtains such new
lease pursuant to the provisions of Section 26.6 hereof, then title
to such Tenant Improvements shall not vest in Landlord if a new
lease is given to a Permitted Leasehold Mortgagee (or its nominee
or designee) as provided for in Section 26.6, but shall vest in
Leasehold Mortgagee (or its nominee or designee), and its
successors and assigns as tenant permitted hereunder, who shall
have the right to depreciation and/or amortization deductions and
tax credits arising from ownership of such Tenant Improvements but
title to such Tenant Improvements shall vest in Landlord upon
termination of such new lease. Tenant shall perform all
Construction Work in a good, professional, safe, and workmanlike
manner, using licensed and insured contractors and otherwise in
compliance with Law.
7.3 Plans and Specifications. To the extent that Tenant performs or
causes to be performed any Construction Work and obtains plans and
specifications or surveys (including working plans and
specifications and “as-built” plans and specifications
and surveys) for such Construction Work, Tenant shall promptly upon
Landlord’s request provide Landlord, for Landlord’s
information only, with a true and complete copy of such plans and
specification(s) or survey(s), subject to the terms of any
agreement between Tenant and the applicable outside architect,
engineer or surveyor. Tenant shall exercise reasonable efforts to
cause its agreements with such outside professionals to permit the
deliveries described in this Section.
7.4 Excavations. If an excavation shall be made (or authorized)
upon land adjacent to the Land, then at Tenant’s election
Tenant shall either: (a) afford to the person causing or authorized
to cause such excavation, license to enter the applicable Property,
in accordance with Tenant’s reasonable instructions, to
perform such work as such person shall reasonably deem necessary or
desirable, and as Tenant shall reasonably approve, to preserve and
protect the applicable Property from injury or damage and to
support the same by proper foundations, or (b) perform or cause to
be performed, without cost or expense to Landlord in its capacity
as Landlord under this Restated Lease, work of the nature described
in clause (a) to the extent reasonably necessary under the
circumstances. Tenant shall not, by reason of any excavations or
work described in this Section, have any claim against Landlord in
its capacity as Landlord under this Restated Lease for damages or
for indemnity or for suspension, diminution, abatement or reduction
of any Rent or any claim against the owner of any Fee Estate
subject to a Third Party Lease or a Power Test Lease with respect
to the same.
7.5 Cooperation by Landlord. Upon Tenant’s request, subject
to the provisions of any Permitted Exception, or any Third Party
Lease, Landlord shall, without cost to Landlord, promptly join in
and execute and cause the Leemilt’s Lessor, the Power Test
Lessor and the Gettymart Lessor to join in and execute (or assist
Tenant in obtaining the requisite consent of a Third Party Lessor)
any instruments including, but not limited to, applications for
building permits, demolition permits, alteration permits, consents,
zoning, rezoning or use
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approvals, amendments and
variances, easements, encumbrances, and/or liens (excluding
Mortgages) against any Property (Fee Estate and Leasehold Estate),
and such other instruments as Tenant may from time to time request
in connection with Construction Work or to enable Tenant from time
to time to use and operate the Premises in accordance with this
Restated Lease, provided each of the foregoing is in reasonable and
customary form and does not cause the Fee Estate or
Landlord’s leasehold interest in any Fee Estate owned by a
Third Party Lessor, the Leemilt’s Lessor, the Power Test
Lessor, or the Gettymart Lessor to be encumbered as security for
any obligation and does not otherwise expose the Fee Estate or
Landlord’s leasehold interest in any Fee Estate owned by a
Third Party Lessor, the Leemilt’s Lessor, the Power Test
Lessor, or the Gettymart Lessor, to any material risk of forfeiture
during or after the Term or any liens, encumbrances or easements
subsequent to Term. Tenant shall reimburse Landlord’s Legal
Costs and all other actual out-of-pocket costs incurred by Landlord
in performing under this Section.
7.6 USTs. Landlord shall complete UST Upgrades for each of the USTs
at the Properties set forth on Schedule 2 and, to the extent
required by Law, the Property set forth on Exhibit C. Tenant shall
be responsible for all repair, maintenance, replacement and removal
of all USTs listed on Schedule 2 for which UST Upgrades have been
completed and all other USTs at the Premises, except Tenant shall
not be responsible for the removal or closure in place of the USTs
at the Property set forth on Exhibit C. At the time that an UST
Upgrade is completed at a particular Property set forth in Schedule
2 and Exhibit C, except for Landlord’s obligations under
Section 9.1 to Remediate, if any, Landlord shall no longer have any
responsibility or obligation with respect to such UST and Tenant
shall be solely responsible therefor. In the event that Tenant
exercises the Renewal Option in the First Renewal Term for the
Premises pursuant to the express provision of Section 2.1, on or
before the first day of such First Renewal Term, Landlord shall by
a Bill of Sale (containing a representation by Landlord that it has
complied with its UST Upgrade obligations under this Restated
Lease) transfer the USTs under the Properties listed on Exhibit C
(to the extent such USTs have not already been removed from such
Properties) and Schedule 2 to Tenant for nominal consideration,
except the foregoing shall not apply to any USTs owned by any Third
Party Lessor.
8. PROHIBITED LIENS.
8.1 Tenant’s Covenant. If at any time during the Term,
whether during the period of construction or reconstruction of
buildings, or at any other time, any Prohibited Liens shall be
filed against any Property or any part thereof relating to work
authorized or approved by Tenant or Subtenant or their respective
agents, contractors, or employees in respect of such Property,
Tenant shall, at its expenses cause the same to be discharged, by
payment, bonding or otherwise as provided by Law, within forty-five
(45) days after Tenant receives Notice from Landlord that the
Prohibited Lien was filed (but in any case within fifteen (15) days
after receipt of Notice from Landlord of commencement of
foreclosure proceedings), except for such liens that may have been
incurred by Landlord arising from Landlord’s, a Third Party
Lessor’s, the Leemilt’s Lessor’s, the Power Test
Lessor’s or the Gettymart Lessor’s actions. Nothing
herein contained shall in any way prejudice the rights of Tenant to
contest to final judgment or decree any such Prohibited Lien prior
to payment thereof pursuant to the provisions of Article 11 hereof.
The mere existence of a Prohibited Lien shall not be construed as a
Non-Material Default under this Restated Lease unless Tenant fails
to take action as aforesaid. Should a Prohibited Lien be
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filed against the Premises or any
Property as a result of the actions of Landlord, the
Leemilt’s Lessor, the Power Test Lessor, or the Gettymart
Lessor, Landlord shall, at its sole cost and expense, likewise
cause such Prohibited Lien to be cleared of record.
8.2 Protection of Landlord. Notice is hereby given that Landlord
shall not be liable for any labor or materials furnished or to be
furnished to Tenant upon credit, and that no mechanic’s or
other lien for any such labor or materials shall attach to or
affect the Fee Estate or Landlord’s leasehold interest in any
Fee Estate subject to a Third Party Lease, the Leemilt’s
Lease, a Power Test Lease, or the Gettymart Lease. Nothing in this
Restated Lease shall be deemed or construed in any way to
constitute Landlord’s consent or request, express or implied,
by inference or otherwise, to any contractor, subcontractor,
laborer, equipment or material supplier for the performance of any
labor or the furnishing of any materials or equipment for any
improvement, alteration or repair of, or to, any Property, or any
part thereof, nor as giving Tenant any right, power or authority to
contract for, or permit the rendering of, any services, or the
furnishing of any materials that would give rise to the filing of
any liens against the Fee Estate or Landlord’s leasehold
interest in any Fee Estate subject to a Third Party Lease, the
Leemilt’s Lease, or a Power Test Lease, or the Gettymart
Lease. Nothing contained in the preceding sentence shall be deemed
to require Landlord’s consent to such matters. Tenant shall
Indemnify Landlord against any Construction Work performed on any
Property for or by Tenant, including any Prohibited Lien arising
from such Construction Work performed by or on behalf of Tenant or
Subtenant or their respective agents, contractors, or
employees.
9. ENVIRONMENTAL MATTERS.
9.1 Landlord Remediation. Landlord shall, at Landlord’s
expense, Remediate the Contamination at or emanating from the
Properties set forth on Schedule 3 and any Contamination resulting
from the UST Upgrades at the Properties set forth on Schedules 2
and Exhibit C. Landlord’s obligation to Remediate
Contamination at any of the Properties on Schedule 2, Schedule 3
and Exhibit C shall continue until Closure is obtained for the
particular Properties. Landlord shall be entitled to the benefit of
any government reimbursement funds that may be available for such
Remediation of Contamination by Landlord. Landlord or its agents
shall control administrative efforts to recover such reimbursement
at Landlord’s sole cost and expense.
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9.1.1
Negotiations. Landlord or its agents shall conduct all negotiations
with the Government for the Remediation of the Contamination for
which Landlord is responsible under Section 9.1; provided, however,
Tenant may attend, but not actively participate in any such
negotiations, and provided further that Tenant may take such
actions as may be necessary to ensure that it can continue to
operate the Property, such actions to be at Tenant’s sole
cost and expense. Landlord shall not negotiate Closure limits less
stringent than required by applicable Law. Tenant agrees that it
shall not independently negotiate with the Government in connection
with Landlord’s Remediation of Contamination under Section
9.1. Further, Tenant shall not negotiate Closure limits more
stringent than required by applicable Law. Landlord shall provide
Tenant with copies of any correspondence or documents it provides
to or receives from the Government
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relating to its Remediation of
Contamination under Section 9.1. Tenant shall provide Landlord with
copies of any correspondence or documents it provides to or
receives from the Government relating to Landlord’s
Remediation of Contamination under Section 9.1.
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9.1.2
New Contamination. If New Contamination is discovered at or
emanating from any of the Properties being Remediated by Landlord
under Section 9.1, but prior to Closure, Tenant shall make all
reporting or notification required by the Environmental Laws, shall
promptly notify Landlord, and shall act promptly to minimize the
effects of the New Contamination. If Landlord reasonably determines
that such New Contamination will make Landlord’s Remediation
at the applicable Properties more expensive, more difficult or will
extend the time required to complete the Remediation, Landlord and
Tenant agree to secure promptly the services of an environmental
consultant (the “Environmental Consultant”), mutually
acceptable to Landlord and Tenant, who shall make an assessment of
the Contamination and New Contamination, including the remaining
cost to complete Landlord’s Remediation absent the New
Contamination and an estimate of the cost of the additional work
that will be required due to the New Contamination. Based upon this
assessment, the Environmental Consultant shall make an
apportionment of the costs and Tenant shall begin paying Landlord
for the additional expenses incurred by Landlord in remediating the
New Contamination. At Tenant’s election, and with
Landlord’s consent, which shall not be unreasonably withheld,
Tenant may assume the Remediation of the New Contamination.
Further, Landlord and Tenant may negotiate a transfer of the
Remediation responsibility for the Contamination and New
Contamination from Landlord to Tenant with the costs of such
Remediation continuing to be shared between Landlord and Tenant as
set forth in this Section. If such transfer of Remediation
responsibility is made, Tenant shall execute and deliver to
Landlord a release of Remediation liability for the Contamination,
and such release shall include an assignment to Tenant of
Landlord’s rights to reimbursement from the state
reimbursement fund, if any for the applicable Property. Tenant
covenants to pay to Landlord within forty-five (45) days of receipt
of Notice from Landlord, with evidence of payment by Landlord, all
costs associated with Landlord’s Remediation of the New
Contamination as Remediation work is performed and as invoices for
such work are presented to Landlord.
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9.1.3
Access. Tenant shall provide for and permit access, at no cost to
Landlord, as Landlord and its employees, agents, and contractors
may require to each of the Properties under Schedule 2, Schedule 3
and Exhibit C, as is required for Landlord to meet all
environmental obligations for Remediation of Contamination or for
UST Upgrades. Such access shall include the right to conduct such
tests, take such groundwater or soil samples, excavate, remove,
dispose of, and treat the soil and groundwater, and undertake such
other actions as are necessary in the sole judgment of Landlord.
Landlord shall expeditiously remove from the applicable Property as
soon as reasonably practicable or as required by Environmental Law
all drums containing drill cuttings, soil, debris or
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liquids generated from
Landlord’s Remediation or investigation activities. Landlord
shall restore the surface and existing structures, if any, on the
applicable Premises to a condition substantially similar to that at
the time immediately prior to the action taken by Landlord and
shall replace or repair damage to Tenant’s equipment and
personal property on such Property caused by Landlord or its
contractors. Landlord shall, to the extent practical, undertake the
actions necessary to complete its Remediation of Contamination in a
manner that will not unreasonably disrupt the operations of Tenant
on the applicable Property. In no event, however, shall Landlord
have liability to anyone, including Tenant, for business
disruption, lost profits, or consequential damages arising from
such actions or access. Landlord or its contractors shall provide
Tenant as much advance notice as possible of all potentially
disruptive or intrusive activities to be taken on any of the
applicable Properties. Such notice may be in the form of a periodic
schedule of activities. No advance notice shall be required for
non-disruptive activities, such as periodic monitoring of wells.
Landlord and Tenant agree to cooperate on the placement and the
location of Landlord’s Remediation equipment. Any cost or
expense to repair or replace monitoring and Remediation equipment
resulting from the acts or omissions of Tenant or Subtenant or
their respective employees, agents, licensees, invitees, Subtenants
and contractors shall be the responsibility of Tenant.
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9.1.4
Maintenance of Records. During the course of Landlord’s
Remediation of Contamination at any of the Properties on Schedule
2, Schedule 3, and Exhibit C, Tenant shall maintain UST inventory
and tank line maintenance records for the applicable Premises as
required to comply with the Environmental Laws. Landlord shall have
the right to review these records as Landlord deems necessary so as
to be assured of the integrity of Tenant’s UST system at the
applicable Properties.
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9.2 Tenant Obligations. Except for those particular obligations of
Landlord set forth in Sections 7.6, 9.1 and 25.3 herein and set
forth in the Environmental Agreement, Tenant shall, except as
provided in Section 25.3, be solely responsible, at its own cost
and expense, for compliance with all Environmental Laws applicable
to the Premises after the Commencement Date of the 1997 Master
Lease. Tenant shall be solely responsible, at its own cost and
expense, for any Remediation required by the applicable Government
resulting from Remediation limits changed after Closure has been
completed at any of the Properties on Schedule 2, Schedule 3 and
Exhibit C. The obligations of Tenant set forth in this Section 9.2
shall survive the expiration or earlier termination of this
Restated Lease.
10. INDEMNIFICATION; LIABILITY OF LANDLORD.
10.1 Mutual Indemnity Obligations. Landlord and Tenant shall each
Indemnify the other against: (a) any wrongful act, wrongful
omission or negligence of the Indemnitor (and, in the case of (i)
Tenant, that of any of Tenant’s Subtenants, and
Tenant’s and any of their respective partners, directors,
officers, members, contractors, employees, agents, licensees and
invitees; and (ii) Landlord, that of the Leemilt’s Lessor,
the Power Test Lessor, the Gettymart
33
Lessor and their respective
partners, directors, officers, members, contractors, employees,
agents, licensees and invitees); and (b) any breach or Default by
the Indemnitor under this Restated Lease or the Environmental
Agreement. In addition to and without limiting the generality of
the foregoing indemnity, Tenant shall Indemnify Landlord and Realty
Parent (and with respect to clause (y) below, Third Party Lessors,
the Leemilt’s Lessor, the Power Test Lessor, and the
Gettymart Lessor) against all the following matters (except to the
extent any claim arises from any wrongful act, wrongful omission or
negligence of Landlord, Realty Parent, any Third Party Lessor, the
Leemilt’s Lessor, the Power Test Lessor, or the Gettymart
Lessor) relating to: (t) any Remediation of New Contamination for
which Tenant is obligated pursuant to Section 9.1 and for breach of
Tenant’s obligations to comply with Environmental Laws
pursuant to Section 9.2; (u) the operation or occupancy of any
Property; (w) any Construction Work performed during the Term; (x)
the condition of any Property or any street, curb or sidewalk
adjoining such Property, whether or not such condition existed
before the Restatement Effective Date; or of any vaults, tunnels,
passageways or space under, adjoining or appurtenant to the
Premises whether or not such condition existed before the
Restatement Effective Date; (y) any accident, injury or damage
whatsoever caused to any person or their property occurring during
the Term, in or on the Premises or upon or under the sidewalks
adjoining such Property; and (z) any wrongful termination of a
Sublease. Notwithstanding the foregoing, Tenant shall have no
obligation to Indemnify Realty Parent if (a) a conflict of interest
exists such that the use of a single counsel to represent both
Realty Parent and Landlord is not advisable, (b) the claims and
defenses available to Realty Parent and Landlord with respect to
any such claim are not substantially identical, and (c) the
inclusion of Realty Parent as an Indemnitee would cause Tenant to
incur more than a de minimis amount of additional cost or expense
in discharging its indemnification obligations pursuant to this
Article. In addition, Landlord shall Indemnify Tenant and Marketing
Parent for (i) any UST Upgrade Landlord is obligated to perform
pursuant to Section 7.6, (ii) any Remediation of Contamination for
which Landlord is obligated under Section 9.1, and (iii) any matter
whatsoever relating to the Abandoned Properties, including, without
limitation, compliance with Environmental Laws. Notwithstanding the
foregoing, Landlord shall have no obligation to Indemnify Marketing
Parent if (a) a conflict of interest exists such that the use of a
single counsel to represent both Marketing Parent and Tenant is not
advisable, (b) the claims and defenses available to Marketing
Parent and Tenant with respect to any such claim are not
substantially identical, or (c) the inclusion of Marketing Parent
as an Indemnitee would cause Landlord to incur more than a de
minimis amount of additional cost or expense in discharging its
indemnification obligations pursuant to this Article.
Notwithstanding anything to the contrary in this Restated Lease,
neither party shall be required to Indemnify the other party from
or against such other party’s intentional acts or
negligence.
10.2
Liability of Landlord. Except with respect to the obligations of
Landlord pursuant to the Environmental Agreement and Sections 7.6
and 9.1 hereof, Tenant shall be deemed to be in exclusive control
and possession of the Premises during the Term as provided in this
Restated Lease. Landlord shall not be liable for any injury or
damage to any Property or to any Person occurring on or about any
Property nor for any injury or damage to any property of Tenant, or
of any other person, during the Term, unless caused by
Landlord’s, the Leemilt’s Lessor’s, the Power
Test Lessor’s, or the Gettymart Lessor’s wrongful acts
and/or omissions or acts of negligence or a breach of
Landlord’s obligations under this Restated Lease either
by
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Landlord, the Leemilt’s
Lessor, the Power Test Lessor, the Gettymart Lessor or any of their
respective agents, employees, contractors, licensees or invitees.
The provisions of this Restated Lease permitting Landlord to enter
and inspect any Property are intended to allow Landlord to be
informed as to whether Tenant is complying with the agreements,
terms, covenants and conditions of this Restated Lease, and to the
extent permitted by this Restated Lease, to perform such acts
required by Landlord under this Restated Lease and of Tenant if
Tenant shall fail to perform. Such provisions shall not be
construed to impose upon Landlord any obligation, liability or duty
to third parties, but nothing in this Restated Lease shall be
construed to exculpate, relieve or Indemnify Landlord from or
against any obligation, liability or duty of Landlord to third
parties existing at or before the applicable Commencement Date or
its obligations arising under Sections 7.6 or 9.1 hereof or the
Environmental Agreement.
10.3
Indemnification Procedures. Wherever this Restated Lease requires
an Indemnitor to Indemnify an Indemnitee, the following procedures
and requirements shall apply:
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10.3.1
Prompt Notice. The Indemnitee shall give the Indemnitor prompt
Notice of any claim. To the extent, and only to the extent, that
both (a) the Indemnitee fails to give prompt Notice and (b) the
Indemnitor is thereby prejudiced, the Indemnitor shall, except as
otherwise required under a Third Party Lease, be relieved of its
indemnity obligations under this Restated Lease.
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10.3.2
Selection of Counsel. The Indemnitor shall be required to select
counsel reasonably acceptable to the Indemnitee. Counsel to the
Indemnitor’s insurance carrier shall be deemed satisfactory.
Indemnitee may have its own counsel, at Indemnitee’s expense,
consult with Indemnitor’s counsel.
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10.3.3
Settlement. The Indemnitor may, with the consent of the Indemnitee,
not to be unreasonably withheld, settle the claim, except that no
consent by the Indemnitee shall be required as to any settlement by
which (x) the Indemnitor procures (by payment, settlement, or
otherwise) a release of the Indemnitee pursuant to which the
Indemnitee is not required to make any payment whatsoever to the
claimant, (y) neither the Indemnitee nor the Indemnitor acting on
behalf of the Indemnitee makes any admission of liability, and (z)
the continued effectiveness of this Restated Lease is not adversely
affected in any material respect.
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10.4
Insurance Proceeds. The Indemnitor’s obligations shall be
reduced by net insurance proceeds actually collected by the
Indemnitee on account of the loss.
10.5
Survival. All indemnities set forth in this Restated Lease shall
survive the expiration or earlier termination of this Restated
Lease but each such indemnity shall in no event survive the earlier
to occur of the following: (a) the seventh (7th) anniversary of the
Termination Date, and (b) the date when the time period set forth
in the statute of limitations applicable to the subject matter of
such indemnity has run.
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11.
RIGHT OF CONTEST.
11.1
Tenant’s Right. Notwithstanding anything to the contrary in
this Restated Lease, and subject to the terms of Third Party
Leases, Tenant shall have the right to contest, at its sole
expense, by appropriate legal proceedings diligently conducted in
good faith, the amount or validity of any Imposition or Prohibited
Lien; the valuation, assessment or reassessment (whether proposed
or final) of any Property for purposes of Real Estate Taxes; the
validity of any Law or Environmental Law or the application of any
Law or Environmental Law to any Property; or the validity or merit
of any claim against which Tenant is required to Indemnify Landlord
under this Restated Lease (any of the foregoing, a
“Contest”). Tenant may defer payment of the contested
Imposition or compliance with the contested Law or performance of
any other contested obligation pending the outcome of the Contest,
provided that such deferral does not subject (a) the applicable
Property or any portion thereof to any risk of imminent forfeiture
or foreclosure of any Fee Mortgage, or (b) Landlord to any risk of
criminal liability.
11.2
Landlord’s Obligations and Protections. Landlord shall not be
required to join in any Contest unless a Law or Environmental Law
shall require that such Contest be brought in the name of Landlord
or any owner of the Fee Estate. In such case, Landlord shall
cooperate with Tenant, as Tenant shall reasonably request, so as to
(a) permit such Contest to be brought in Landlord’s or the
Power Party Lessor’s name, as applicable, or (b) in the case
of a Property owned by a Third Party Lessor, request that such
Contest be brought in such Third Party Lessor’s name. Tenant
shall pay all reasonable costs and expenses (including Legal Costs)
incident to a Contest. Tenant shall Indemnify Landlord, the Power
Test Lessor, the Leemilt’s Lessor, the Gettymart Lessor and
the Third Party Lessors against any Contest brought by Tenant,
whether or not such Contest is brought in Tenant’s
name.
11.3
Miscellaneous. Tenant shall be entitled to any refund of any
Imposition (and penalties and interest paid by Tenant) based upon
Tenant’s prior overpayment of such Imposition, whether such
refund is made during or after the Term. Upon termination of
Tenant’s Contest of an Imposition, Tenant shall pay the
amount of such Imposition (if any) as has been finally determined
in such Contest to be due, together with any costs, interest,
penalties or other liabilities in connection with such Imposition.
Upon final determination of Tenant’s Contest of a Law or
Environmental Law, as applicable, Tenant shall comply with such
final determination. Landlord shall not enter any objection to any
Contest. Tenant’s right to contest any Imposition or the
valuation, assessment or reassessment of any Property for tax
purposes shall not be to the exclusion of Landlord, and Landlord
shall have the right to contest the foregoing upon Notice to
Tenant.
11.4
Cooperation. Landlord and Tenant shall, upon request of the other,
reasonably cooperate with the other party and otherwise provide
such data as are maintained by the party to whom the request is
made with respect to any Property as may be necessary to prepare
any required returns and reports or as may be necessary in
connection with the pursuit of any Contest permitted hereunder.
Landlord shall cause the Power Test Lessor, the Leemilt’s
Lessor, and the Gettymart Lessor to and shall request that any
Third Party Lessors, upon Tenant’s request, reasonably
cooperate with Tenant and otherwise provide the data referred to in
the preceding sentence with respect to any Property subject to a
Power Test Lease, the Leemilt’s
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Lease, the Gettymart Lease or a
Third Party Lease, as applicable. Landlord, to the extent it
possesses the same, and Tenant, to the extent it possesses the
same, will provide the other party, upon request, with cost and
depreciation records necessary for filing returns for any property
classified as personal property or necessary in connection with the
pursuit of any Contest permitted hereunder. Landlord will cause the
Power Test Lessor, the Leemilt’s Lessor, and the Gettymart
Lessor, to the extent such parties possesses the same, and will
request that the applicable Third Party Lessor, to the extent such
Third Party Lessor possesses the same, provide Tenant, upon
request, with the records referred to in the preceding sentence
with respect to any Property subject to a Power Test Lease, the
Leemilt’s Lease, the Gettymart Lease or Third Party Lease, as
applicable. Landlord shall give and shall cause the Power Test
Lessor, the Leemilt’s Lessor and the Gettymart Lessor to give
prompt Notice to Tenant of all Real Estate Taxes payable by Tenant
hereunder for which Landlord, the Leemilt’s Lessor, the Power
Test Lessor, the Gettymart Lessor, as applicable, receives an
invoice or other statement. Landlord shall request that each Third
Party Lessor give prompt Notice to Tenant of all Real Estate Taxes
payable by Tenant hereunder for which such Third Party Lessor
receives an invoice or other statement. All information made
available under this Section 11.4 shall be treated as
“confidential” by the recipient and not be disclosed to
any third party except to the extent absolutely necessary to
implement such permitted Contest.
12.
INSURANCE.
12.1
Tenant to Insure. Tenant shall, at Tenant’s sole cost and
expense, during the Term, maintain the following insurance (or its
then reasonably available equivalent) or such greater coverage as
may be required by a Third Party Lease:
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12.1.1
Building. Building insurance providing coverage for the Premises
and all equipment, fixtures, and machinery at or in the Premises,
against lo
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