EXHIBIT 10.1
LEASE
Between
OLP ____________________ LLC, a
Delaware limited liability company
Landlord
and
OFFICE DEPOT, INC., a Delaware
corporation
Tenant
located at
September 26, 2008
TABLE OF
CONTENTS
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Page
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Article 1
FUNDAMENTAL LEASE PROVISIONS; EXHIBITS; DEFINITIONS
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1
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Fundamental
Lease Provisions
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1
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Exhibits
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3
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Definitions
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3
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Article 2 LEASE
OF PROPERTY; TERM
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4
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Lease of
Property
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4
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Term
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4
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Extension
Options
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5
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Net
Lease
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5
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Property
Name
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5
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Landlord’s Work
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5
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Tenant's
Work.
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5
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Article 3
RENT
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6
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Fixed
Rent
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6
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Real Estate
Taxes.
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6
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Article 4
MAINTENANCE
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7
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Maintenance
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7
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Article 5
UTILITIES AND SERVICES
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7
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Utilities in
General
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7
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Additional
Utilities
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7
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Article 6
LANDLORD'S AFFIRMATIVE AND NEGATIVE COVENANTS
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7
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Affirmative
Covenants
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7
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Negative
Covenants
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8
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Article 7
LANDLORD'S REPRESENTATIONS, WARRANTIES AND ADDITIONAL
COVENANTS
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9
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Landlord's
Representations, Warranties and Additional Covenants
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9
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Article 8
TENANT'S REPRESENTATIONS, WARRANTIES AND COVENANTS
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9
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Tenant’s
Representations and Warranties
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9
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Covenants
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10
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Article 9
ASSIGNMENT AND SUBLETTING
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12
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Rights and
Conditions
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12
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Non-Disturbance
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13
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Article 10
DAMAGE AND DESTRUCTION; CONDEMNATION
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14
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Fire or Other
Casualty.
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14
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Eminent
Domain.
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14
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Article 11
DEFAULT AND REMEDIES
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15
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Tenant's
Default
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15
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Cross-Default
by Tenant
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16
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Holdover by
Tenant
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17
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Effect of
Waivers of Default by Landlord or Tenant
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17
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Landlord's
Default
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17
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Breach of a
Covenant
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17
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Interest on
Late Payments
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18
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Article 12
MISCELLANEOUS PROVISIONS
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18
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Notices from
One Party to the Other
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18
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Brokerage
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18
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Brokerage
Indemnities
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18
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Relationship of
the Parties
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18
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Subordination,
Non-Disturbance and Attornment.
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19
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Estoppel
Certificates
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19
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Applicable Law
and Construction
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19
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Binding Effect
of Lease
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20
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Memorandum of
Lease
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20
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Effect of
Unavoidable Delays.
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20
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Waiver of
Claims and Subrogation
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20
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No Construction
Against Preparer
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20
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Number and
Gender
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20
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Waiver of
Landlord's Lien
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21
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No Express or
Implied Covenant of Continuous Operation
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21
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Exterior and
Interior Signage.
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21
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Covenants
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21
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Entire
Agreement
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21
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Legal
Expenses
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21
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Counterparts
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22
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Investment Tax
Credits
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22
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Financial
Statements
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22
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Confidentiality
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22
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Waiver of Trial
by Jury
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22
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Radon
Disclosure
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22
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Article 13
LEASEHOLD MORTGAGES
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23
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Leasehold
Mortgages.
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23
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Event of
Default.
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23
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Exercise of
Remedies. .
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23
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Termination of
Lease..
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24
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Limited
Liability.
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24
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E X H I B I T
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PROPERTY LEGAL
DESCRIPTION
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SITE
PLAN
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[Reserved]
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[Reserved]
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[Reserved]
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[Reserved]
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[Reserved]
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PERMITTED
EXCEPTIONS
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EXHIBIT
I
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SUBORDINATION,
NON-DISTURBANCE AND ATTORNMENT AGREEMENT
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MEMORANDUM OF
LEASE
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RECIPROCAL
EASEMENT AGREEMENT
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RELATED
LEASES
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L E A S
E
ARTICLE
1
FUNDAMENTAL LEASE
PROVISIONS; EXHIBITS; DEFINITIONS
Section 1.1 Fundamental Lease Provisions.
These are the provisions of this
Lease, except as they may be modified hereafter.
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DATE OF
LEASE.
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September 26,
2008, being the date that both this Lease and the Memorandum of
Lease attached hereto as EXHIBIT J
have been executed by both parties and returned to the first to
execute, sometimes referred to herein as the “Effective
Date”.
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LANDLORD:
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OLP
__________________ LLC, a Delaware limited liability
company
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ADDRESS OF
LANDLORD FOR THE PAYMENT OF RENT HEREUNDER:
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60 Cutter Mill
Road, Suite 303
Great Neck, NY
11021
Attention:
Alysa Block
Tax I.D. #
13-3147497
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TENANT:
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OFFICE DEPOT,
INC.,
a Delaware
corporation
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ADDRESS OF
TENANT:
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2200 Old
Germantown Road
Delray Beach,
Florida 33445
(561)
438-4000
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TENANT'S
INITIAL TRADE NAME:
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LEASE
TERM:
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Subject to
Section 2.2, the Expiration Date of the “Lease Term”
(as defined in Section 2.2 below) shall be the date which is one
hundred twenty (120) full calendar months from and after the Lease
Term Commencement Date (as defined in Section 2.2 below) (the
“Initial Term”), unless extended (the “Extended
Lease Term(s)”) pursuant to the provisions of Section 2.3
hereof, or unless sooner terminated in accordance with the terms
and provisions of this Lease
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FIXED
RENT:
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Annual Total
Fixed Rent
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Years of
Lease Term
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1-5
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6-10
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11-15
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16-20
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21-25
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26-30
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Annual Total
Fixed Rent will be adjusted prorata for any partial year during the
term.
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NUMBER OF
SUCCESSIVE FIVE (5) YEAR RENEWAL OPTIONS:
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PROPERTY
LOCATION:
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NAME OF
CENTER:
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BROKER(S):
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1.1.13 PERMITTED USES; NATURE OF TENANT'S BUSINESS.
The Property (as later defined) may be used for the operation of an
office and consumer supply, furniture, equipment and products and
service store as is now or in the future being operated by Tenant
for any one (1) or more of the following sales and services: office
and consumer supplies, furniture, machines, storage supplies and
products, and other related equipment used in offices, home offices
and homes; school supplies and products; computer hardware,
software and related equipment and supplies; educational and
entertainment supplies, software and goods, including, but not
limited to, books, newspapers, magazines, periodicals, records,
audio and video tapes, DVD's, games, digital technology, Internet
products and services; consumer and business electronics; cellular
telephones, and telecommunications equipment and devices; art,
architectural and engineering supplies; photocopy, facsimile,
printing, shipping and related services; business services
(including, without limitation, tax and financial services); gifts,
novelties and related items; any technological evolution or
replacement of any of the foregoing; the sale of goods and the
provision of such other services customarily sold or provided now
or in the future in office and consumer supply and product and
service stores or in other stores of Tenant, and for any other
lawful retail purpose (the “Permitted Use”).
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MINIMUM GENERAL
LIABILITY INSURANCE COVERAGE:
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Two Million
Dollars ($2,000,000.00) Combined Single Limit Coverage, or such
additional amount as Landlord’s mortgagees may
require.
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TENANT
ALLOWANCE:
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CRITICAL
DATES:
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Estimated
Delivery Date:
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September 26,
2008
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Outside
Delivery Date:
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October 1,
2008
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ARTICLE 12
INFORMATION:
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Notices to
Landlord shall be sent to:
60 Cutter Mill
Road, Suite 303
Great Neck, NY
11021
Attention:
Alysa Block
Telephone:
(561) 773-2746
Facsimile:
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With a copy
to:
60 Cutter Mill
Road, Suite 303
Great Neck, NY
11021
Attention:
Lawrence Ricketts
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Section 1.2 Exhibits . The exhibits attached to this Lease are
incorporated into this Lease by this reference and are to be
construed as an integral part of this Lease.
Section 1.3 Definitions . Certain terms used in this Lease with an
initial capital letter are defined within the text of those
Sections in which the same are mentioned. For convenience, certain
other terms are defined in this Section 1.3 as follows:
1.3.1 The term “Additional Charges” shall
mean all payments required to be made hereunder by Tenant, other
than “Fixed Rent.”
1.3.2 The term “Building Permits” shall
mean all necessary building permits and other governmental
approvals for the performance of “Tenant's Work”
(including without limitation the installation of its exterior
building and pylon signage as set forth in Section 12.15
hereof).
1.3.3 The term “Delivery Date” shall mean
the date that exclusive actual possession of the entire Property is
delivered to Tenant.
1.3.4 The term the “Floor Area” shall
mean the number of square feet of ground floor space in all areas
constructed on the Property within the exterior faces of exterior
walls, store fronts, corridors and service areas (except party and
interior walls, as to which the center thereof shall be used),
including, by way of illustration and not by limitation, sales
areas, warehousing or storage areas, office or clerical areas and
employee facilities. Floor Area shall exclude any truck wells and
loading dock areas, unless fully enclosed within the exterior walls
of the building, any non-sales mezzanine space and any basement
space.
1.3.5 The term “Hazardous Substances”
shall mean any hazardous or toxic materials, substances or wastes,
such as (a) substances defined as “hazardous
substances,” “hazardous materials,” or
“toxic substances” in the Comprehensive Environmental
Response, Compensation and Liability Act of 1980
(“CERCLA”), the Resource Conservation and Recovery Act
of 1976 (“RCRA”), and/or the Hazardous Materials
Transportation Act (49 USC Section 1801, et seq.), as any of such
acts are amended from time to time; (b) any materials, substances
or wastes which are toxic, ignitable, corrosive or reactive and
which are regulated by any local governmental authority, any agency
of any State in which the Property is located or any agency of the
United States of America; (c) asbestos, petroleum and petroleum
based products, urea formaldehyde foam insulation, polychlorinated
biphenyls (PCBs), and freon and other chlorofluorocarbons; and (d)
those substances defined as any of the foregoing in the regulations
adopted and publications promulgated pursuant to each of the
aforesaid laws.
1.3.6 The term “Institutional Mortgagee”
shall mean any commercial bank, federal or state savings and loan
association, life insurance company, pension fund, real estate
investment trust, nationally recognized credit company or
investment bank, any affiliate, subsidiary, successor or assignee
of any of the foregoing, or any other legal entity (not affiliated
with Landlord) holding a mortgage on the Property.
1.3.7 The term “Interest Rate” shall mean
that rate of interest which is the lesser of (a) the maximum
interest rate permitted under applicable usury laws; or (b) the
“prime rate” as published from time to time in the
Money Section of The Wall Street Journal or, if The Wall Street
Journal should at any time cease to be published or should The Wall
Street Journal cease to publish a “prime rate,” the
term “prime rate” shall mean the reference rate as
charged from time to time by Bank of America.
1.3.8 The term “Permitted Exceptions”
shall mean all those certain title exceptions, which in Tenant's
reasonable judgment will not impair Tenant's rights and
entitlements under this Lease or its use and enjoyment of the
Property. The Permitted Exceptions are listed on EXHIBIT
H attached hereto.
1.3.9 The term “Premises” shall mean, in
aggregate, all vertical improvements to the Property including
without limitation the building containing Tenant’s retail
store.
1.3.10 The “Property” shall mean the real
property legally described on EXHIBIT A
hereto, together with the improvements now or hereafter constructed
thereon.
1.3.11 The term “Tenant’s Unamortized
Improvements” shall mean the unamortized portion (as of the
date of such termination) of the total sums expended by Tenant as
set forth in Tenant's books and records in the performance of
Tenant's Work and any subsequent leasehold improvements, with
amortization to be on a straight-line basis over the useful life of
such improvements, commencing upon the date of each applicable
expenditure. The total sums expended by Tenant in the performance
of Tenant's Work and any subsequent leasehold improvements shall be
reflected in a written itemization provided by Tenant.
1.3.12 The term “REA” as used herein shall
mean that certain __________________ dated __________ by and
between ________________ and ____________________, filed
____________, recorded under County Clerk's File No. _____________
County, ______________. The Property is subject to the REA,
attached hereto as EXHIBIT K . Landlord
hereby grants and warrants to Tenant, its successors and assigns,
for the Lease Term, the non-exclusive right and easement
appurtenant to and for the benefit of the Property and any occupant
thereof and its customers, employees, and invitees, to use, for
purposes of access, ingress and egress, and parking all those
certain access, ingress and egress, and parking easement areas
granted to or established under the REA.
ARTICLE
2
LEASE OF PROPERTY;
TERM
Section 2.1 Lease of Property . Landlord is the fee simple owner of the
Property. Landlord hereby leases to Tenant and Tenant hereby leases
from Landlord, subject to and with the benefit of the terms,
covenants, conditions and provisions of this Lease, the Property,
together with all appurtenant rights and easements.
Section 2.2 Term .
The term of this Lease (the “Lease Term”) shall begin
(the “Lease Term Commencement Date”) on September 26,
2008. The Lease Term shall end on the Expiration Date set forth in
Section 1.1.7 hereof, unless extended or sooner terminated, as
hereinafter provided. Provided no Event of Default has occurred and
is continuing at the time of exercise, at the option of Tenant
exercised by Tenant delivering written notice to Landlord at least
nine (9) months prior to what otherwise would be the last day of
the Lease Term, the Lease Term shall be extended to and shall
include the next February 28 th if the last day of the
Lease Term would otherwise occur between the dates of August 1 and
February 27. In the event Tenant elects to extend the Lease Term to
February 28 as permitted by this Section, it shall be deemed to
have waived any additional extension options, if any, that Tenant
may have at that time.
Section 2.3 Extension Options . Provided no Event of Default has occurred and
is continuing at the time of exercise, Tenant shall have the number
of successive five (5) year options of extension as set forth in
Section 1.1.9 (each of which periods is referred to herein as an
“Extended Term”), provided written notice of the
election of such options shall be sent to Landlord not less than
nine (9) months prior to the expiration of the then expiring term
(Initial Term or Extended Term, as applicable). Notwithstanding the
foregoing, if Tenant does not exercise any option of extension in
the time period or in the manner provided in this Section, such
option of extension shall nevertheless continue in full force and
effect, shall not lapse and may be exercised by Tenant until
fifteen (15) days after Tenant has received written notice from
Landlord that such deadline has passed and that Landlord has not
received such notice. If said options are duly exercised, the Lease
Term shall be automatically extended for the period of the next
ensuing option, without the requirement of any further instrument,
upon all of the same terms, provisions and conditions set forth in
this Lease, except that Fixed Rent during the option periods shall
be as set forth in Section 1.1.8.
Section 2.4 Net Lease . The Fixed Rent reserved herein shall be net to
the Landlord so that this Lease shall yield net to the Landlord the
Fixed Rent specified, and all costs, expense and obligations
pertaining to the Property (including, without limitation, any rent
tax or tax on rental income), shall, except as provided otherwise
in this Lease, be the obligation of and paid by the
Tenant
Section 2.5 Property Name . The name of the Property shall be as set forth
in Section 1.1.11. Landlord shall not have the right to change the
name or address of the Property without the prior written consent
of Tenant, which consent shall not be unreasonably withheld,
conditioned or delayed.
Section 2.6 Landlord’s Work . Tenant acknowledges and agrees that the
Premises are existing and that it shall lease the Premises in their
“as is, where is” condition. Accordingly, there is no
“Landlord’s Work” required in connection with the
delivery of the Premises to Tenant.
Section 2.7 Tenant's Work.
(a) Tenant shall be solely responsible for the
construction, at its cost, of any improvements to the Property that
it elects to make during the Term (“Tenant’s
Work”). Tenant shall have the right to complete
Tenant’s Work without the prior consent of Landlord provided
that (i) no Event of Default has occurred and is then continuing,
(ii) Tenant constructs the Tenant’s Work in accordance with
the Site Plan, the Permitted Exceptions and all applicable
governmental approvals and permits, (iii) the Tenant’s Work
does not involve any structural alteration of the existing
Premises, and (iv) except in case of the emergency, Tenant delivers
written notice of the planned Tenant’s Work at least thirty
(30) days prior to commencing the Tenant’s Work including
with such notice a copy of any and all relevant plans,
specifications and working drawings.
(b) In the event Tenant performs any Tenant’s
Work hereunder, Landlord shall cooperate with Tenant and assist
Tenant in Tenant’s efforts to obtain Tenant’s Building
Permits (including signing any applications) and an unconditional
permanent certificate of occupancy, or the local equivalent thereof
(the “Certificate of Occupancy”), provided Tenant
reimburses Landlord for the reasonable out-of-pocket costs and
expenses incurred by Landlord in connection with such cooperation,
and provided, further, any applications or other documents to be
signed by Landlord are in form and substances reasonably acceptable
to Landlord.
(c) So long as Tenant makes payments of Fixed Rent
and Additional Charges required under this Lease the failure to
perform or complete any Tenant’s Work within any specified
period of time shall not be deemed an Event of Default hereunder.
Notwithstanding the foregoing, any Tenant’s Work undertaken
by Tenant shall be diligently pursued to completion by Tenant, and
in any event shall be completed before the expiration of the Lease
Term.
(d) Tenant shall indemnify, protect, defend and
hold Landlord and its agents, contractors, and employees harmless
from and against all damages, suits, losses, costs, expenses,
claims, and causes of action relating to any liens for labor and
materials for any work on the Property undertaken by or for Tenant.
Tenant shall, at its own expense, defend all actions brought
against Landlord, its contractors, agents or employees, for which
Tenant is or may be responsible for indemnification hereunder, with
legal counsel reasonably acceptable to Landlord and if Tenant fails
to do so, Landlord (at its option, but without being obligated to
do so) may, at the expense of Tenant and upon notice to Tenant,
defend such actions, and Tenant shall pay and discharge any and all
judgments that arise therefrom. This Section shall survive the
expiration or earlier termination of this Lease.
ARTICLE
3
RENT
Section 3.1 Fixed Rent . Commencing on the Delivery Date (the
“Rent Commencement Date”), Fixed Rent shall be payable
in advance, in equal monthly installments, on or before the first
(1 st ) day of each calendar month included in the Lease
Term; and, for any portion of a calendar month included at the
beginning or end of the Lease Term, one-thirtieth (1/30
th ) of such a monthly installment for each day of such
portion, payable on the first (1 st ) day of the month
at the beginning (or end as the case may be) of the Lease Term. At
Tenant’s election, Fixed Rent, Additional Charges and any
other sums due hereunder may be paid by Tenant to Landlord by
electronic wire or funds transfer or by other means of payment
generally accepted and customarily used by Tenant. The Fixed Rent
provided for in this Lease is acknowledged by the parties to be
sufficient consideration for the leasehold estate granted
hereby.
Section 3.2 Real Estate Taxes.
(a) The Property constitutes a separate tax parcel
for purposes of real property taxes. Commencing on the Rent
Commencement Date, Tenant shall be solely responsible for payment
of Taxes (as defined below) accruing during the Lease Term solely
with respect to the land and improvements comprising the
Property.
(b) The term “Taxes” shall mean and
include all general ad valorem real estate taxes (both real and
personal), assessments (both general and special) and other
governmental impositions, including (i) any form of tax or
assessment, license fee, license tax, excise or tax on rent which
may be imposed in lieu of (but not in addition to) ad valorem real
estate taxes, and (ii) any levy, charge, expense or imposition
(individually and collectively, "Impositions") imposed by any
Federal, state, county or city authority having jurisdiction, or
any political subdivision thereof, or any school, agricultural,
lighting, drainage or other improvement or special assessment
district (individually and collectively, "Governmental Agencies"),
upon any interest of Landlord or Tenant (including any legal or
equitable interest of Landlord or its mortgagee, if any) in the
Property, including but not limited to: (A) any Impositions
(whether or not such Impositions constitute tax receipts to
Governmental Agencies) in substitution, partially or totally, of
any Impositions now or previously included within the definition of
real estate taxes including those imposed or required by
Governmental Agencies to increase tax increments to Governmental
Agencies, and for services such as fire protection, street,
sidewalk and road maintenance, refuse removal or other governmental
services formerly provided without charge to Premises owners or
occupants; (B) any Impositions allocable to or measured by the area
of the Property or the sales generated from the Property, and (C)
any Impositions upon this Lease transaction or any document to
which Tenant is a party creating or transferring an interest or an
estate in the Property. Landlord shall provide to Tenant a copy of
each tax bill received with respect to the Property and Tenant
shall pay directly, prior to delinquency, all Taxes levied or
assessed against the Property. Nothing contained in this Lease
shall require Tenant to pay any estate, inheritance, succession,
capital levy, corporate franchise, taxes on rentals, transfer or
income tax of Landlord, nor shall Tenant be liable for any real
estate tax attributable to a revaluation of the tax parcel arising
out of a sale or other change in the ownership thereof or of any
interest therein. If any assessment may be paid in installments,
only the installment coming due during the term hereof shall be
included within Taxes when due (assuming Landlord had paid the
assessment over the longest installment period
permitted).
(c) Any rebates, refunds or abatements of Taxes
received by Landlord with respect to the Property subsequent to
payment of the Taxes by Tenant shall be refunded to Tenant within
ten (10) days of receipt thereof by Landlord.
(d) In the event Tenant’s tangible net worth
is less than Five Hundred Million Dollars ($500,000,000.00),
Landlord may, by written notice to Tenant, require Tenant to pay
the Taxes directly to Landlord in advance, in twelve equal monthly
installments on the first calendar day of each month commencing
after delivery of Landlord’s notice, with a final payment
from Tenant or credit from Landlord due within thirty (30) days
following receipt by Tenant of a billing therefor from Landlord
containing the calculation for the actual Taxes and evidence (e.g.,
the tax bill from the taxing authority) of the amount of the Taxes
due and payable for the applicable year. In the event Landlord
collects the Taxes from Tenant as provided in this Section 3.2(d),
Landlord shall be solely responsible for the timely payment of the
Taxes due with respect to the Property to the taxing
authority.
Section 3.3 Sales Tax . With each installment of Fixed Rent or
Additional Charges paid by Tenant to Landlord hereunder, Tenant
shall pay to Landlord all sales taxes due thereon.
ARTICLE
4
MAINTENANCE
Section 4.1 Maintenance . Tenant shall be solely responsible for
maintaining, at its sole cost, the Property. The Property shall be
operated, repaired, replaced and maintained for their intended
purposes in compliance with all laws and in such manner as is
consistent with the operation and maintenance of a first-class or
well maintained retail store center similar in nature to and within
the same metropolitan area as the Property. Tenant shall be solely
responsible for performing any obligations required to comply with
the terms of the REA, including without limitation any
contributions to shared expenses pursuant to the REA.
ARTICLE
5
UTILITIES AND
SERVICES
Section 5.1 Utilities in General . Tenant acknowledges that, as of the Delivery
Date, the utilities required to operate the Premises for the
Permitted Use are existing and adequate. Tenant or the applicable
utility authority shall be solely responsible for the performance
of any and all repairs to all utility lines (or to cause the
utility company to do the same), pipes and other facilities leading
to the Property. Tenant shall select and pay the utility companies
directly for all charges incurred for the use and connection of
utility services to the Property including, without limitation,
sanitary sewer, storm sewer, water, gas, electric, telephone and
other utilities consumed by Tenant on the Property.
Section 5.2 Additional Utilities . Tenant shall have the right throughout the
Lease Term, with the consent of Landlord (such consent not to be
unreasonably withheld, conditioned or delayed), to install,
replace, maintain and use such additional utility lines, conduits
and facilities on the Property as Tenant may deem necessary. In the
event any such utilities at the Property must be installed through,
over or under the Property, Landlord hereby agrees to grant the
utility companies (public or private) providing said utility lines,
facilities and/or service to the Property, perpetual, non-exclusive
rights and easements to install, replace, relocate, repair, operate
and maintain lines, pipes, wires, conduits and other facilities
(together with the right of ingress and egress and other rights
appurtenant thereto), on, under, across and within the Property, as
may from time to time be necessary or desirable to supply the
Property with adequate utility service.
ARTICLE
6
LANDLORD'S AFFIRMATIVE
AND NEGATIVE COVENANTS
Section 6.1 Affirmative Covenants . Landlord covenants and agrees throughout the
Term of this Lease, as follows:
6.1.1 To permit Tenant to lawfully, peaceably and
quietly have, hold, occupy and enjoy the Property for the Permitted
Use and any appurtenant rights granted to Tenant under this Lease
during the Lease Term without hindrance or ejection by Landlord or
the successors or assigns of Landlord or anyone acting by, through
or under Landlord (including without limitation any mortgagee of
Landlord).
6.1.2 To indemnify, protect, defend and hold Tenant
and its agents and employees harmless from and against all damages,
suits, loss, costs, expenses, claims, causes of action,
liabilities, and injuries, including without limitation reasonable
attorney's, consultant's and expert's fees and costs and litigation
expenses relating or resulting from personal injuries, bodily
injuries (including death) and from injury or destruction to
tangible property (i) occurring on the Property as a result of the
acts or omissions of Landlord, its contractors, agents or
employees, or (ii) occurring as a result of a breach by Landlord of
any of its obligations hereunder; provided, however, such
indemnification shall not extend to any suit, claim, or damage to
the extent caused by the willful misconduct or gross negligence of
Tenant, its directors, officers, agents and employees. Landlord
shall, at its own expense, defend all actions brought against
Tenant, its agents or employees, for which Landlord is or may be
responsible for indemnification hereunder, with legal counsel
reasonably acceptable to Tenant and if Landlord fails to do so,
Tenant (at its option, but without being obligated to do so) may,
at the expense of Landlord and upon notice to Landlord, defend such
actions, and Landlord shall pay and discharge any and all judgments
that arise therefrom. The provisions of this Section 6.1.2 shall
survive the expiration or earlier termination of this
Lease.
6.1.3 To indemnify, protect, defend and hold Tenant
and its agents, contractors and employees harmless from and against
all damages, suits, losses, costs, expenses, claims, and causes of
action relating to any liens for labor and materials for any work
on the Property undertaken by or for Landlord. Landlord shall, at
its own expense, defend all actions brought against Tenant, its
contractors, agents or employees, for which Landlord is or may be
responsible for indemnification hereunder, with legal counsel
reasonably acceptable to Tenant and if Landlord fails to do so,
Tenant (at its option, but without being obligated to do so) may,
at the expense of Landlord and upon notice to Landlord, defend such
actions, and Landlord shall pay and discharge any and all judgments
that arise therefrom. This Section shall survive the expiration or
earlier termination of this Lease.
6.1.4 (a) To defend and indemnify Tenant, and hold Tenant
harmless, from and against any and all claims, demands, causes of
action, suits, damages, liabilities and expenses (including
reasonable attorneys' fees and litigation expenses) of any nature
whatsoever arising out of or in connection with a breach of the REA
by Landlord (except for breaches caused solely by Tenant’s
failure to perform its obligations under Section 8.2.7(a)
hereof);
(b) On notice from Tenant, to enforce the
provisions of the REA against all parties and other persons that
are subject thereto (which enforcement may be satisfied by
Landlord’s assignment of its enforcement rights with respect
to any particular matter, to Tenant). In the event that Landlord
fails to make a diligent effort to enforce the REA as provided in
this subparagraph, Tenant shall have the right, after fifteen (15)
days notice to Landlord requesting enforcement of the REA, to
enforce the REA on Landlord's behalf. Any costs incurred in the
enforcement of the REA, together with interest at the Interest
Rate, will be payable by Tenant to Landlord as Additional Charges
within ten (10) days of Landlord’s demand therefor;
and
(c) To provide Tenant copies of all notices
(including, without limitation, default notices) received by it or
which are sent by it (concurrently with the sending thereof) in
connection with the REA.
Section 6.2 Negative Covenants . Landlord covenants and agrees throughout the
Term of this Lease, as follows:
6.2.1 Except as expressly set forth herein and except
in the case of emergency, not to enter the Property or conduct work
therein without the prior written consent of Tenant.
6.2.2 Except as expressly authorized by Tenant, not
to permit any encumbrance to Landlord’s title to the Property
to exist other than the Permitted Exceptions or in connection with
a financing of the Property by Landlord.
6.2.3 Whenever, pursuant to the REA, consent shall be
required by or requested from Landlord, or an election made by
Landlord, not to grant such consent or make such election without
the prior consent of Tenant (which shall not be unreasonably
withheld).
6.2.4 Not to materially amend, modify or terminate
the REA without the prior consent of Tenant (which shall not be
unreasonably withheld).
ARTICLE
7
LANDLORD'S
REPRESENTATIONS, WARRANTIES AND ADDITIONAL
COVENANTS
Section 7.1 Landlord's Representations, Warranties and
Additional Covenants .
Landlord, in order to induce Tenant to enter into this Lease,
hereby represents, warrants and covenants:
7.1.1 That Landlord is duly organized and validly
existing, is authorized to transact business in the state in which
the Property is located and has full power and authority to enter
into this Lease, without the consent, joinder or approval of any
other person or entity, including, without limitation, any
mortgagee(s).
7.1.2 That Landlord is not a party to any agreement
or litigation which could adversely affect the ability of Landlord
to perform its obligations under this Lease or which would
constitute a default on the part of Landlord under this Lease, or
otherwise adversely affect Tenant's rights or entitlements under
this Lease.
7.1.3 Landlord is the sole fee simple owner of the
Property and has good and marketable title thereto, subject only to
the Permitted Exceptions.
7.1.4 That any construction activities being
conducted by, through or under Landlord on or around the Property
shall be performed in a manner having as little adverse effect as
possible (under the circumstances) on Tenant's operations in the
Premises, and in no event shall any portion of the Property be used
for the staging of trucks or equipment or the storage of materials,
nor shall access to the Property be adversely affected. Landlord
shall notify Tenant in writing at least ten (10) days prior to the
commencement of any reconstruction, repairing or repaving of the
Property and/or any restriction or closure of any access roads or
entrances to the Property in respect of any construction activities
being conducted by, through or under Landlord. If such
reconstruction, repairing, repaving, restriction, and/or closure
substantially impedes or interferes with normal access to the
Property in a manner which interferes with Tenant’s business
therein, and such condition continues in excess of two (2) business
days after notice to Landlord from Tenant, then until such work no
longer substantially impedes or interferes with normal access to
the Premises, Fixed Rent shall be equitably abated during the
period subsequent to such two (2) day period until such condition
ceases. Except in the event of an emergency, in no event shall such
reconstruction, repaving or repairing activities occur during the
period from August 1, through September 15 or November 20 through
January 7 of any calendar year
ARTICLE
8
TENANT'S REPRESENTATIONS,
WARRANTIES AND COVENANTS
Section 8.1 Tenant’s Representations and
Warranties .
8.1.1 That Tenant is duly organized and validly
existing, is authorized to transact business in the state in which
the Property is located and has full power and authority to enter
into this Lease, without the consent, joinder or approval of any
other person or entity, including, without limitation, any
mortgagee(s).
8.1.2 That Tenant is not a party to any agreement or
litigation which could adversely affect the ability of Tenant to
perform its obligations under this Lease or which would constitute
a default on the part of Tenant under this Lease, or otherwise
adversely affect Landlord's rights or entitlements under this
Lease.
8.1.3 Except as disclosed in that certain
Environmental Site Assessment dated _______ prepared by
_______________ (the “Environmental Report”), (i) no
Hazardous Substances have been installed, used, generated,
manufactured, treated, handled, refined, produced, processed,
stored or disposed of, or otherwise present in, on or under the
Property by Tenant or, to Tenant’s knowledge, by any third
party, except in such amounts and of such types as are permitted by
the Environmental Laws for the operation of Tenant’s
business; (ii) no activity has been undertaken with respect to the
Property by Tenant or, to Tenant’s knowledge, any third party
which would cause a violation or support a claim under
Environmental Laws, (iii) no investigation, administrative order,
litigation or settlement with respect to any Hazardous Substances
is in existence with respect to the Property, nor, to
Tenant’s knowledge, is any of the foregoing threatened, (iv)
no written notice has been received by Tenant from any entity,
governmental body or individual claiming any violation of any
Environmental Law, or requiring compliance with any Environmental
Law, or demanding payment or contribution for environmental damage
or injury to natural resources; and (v) Tenant has not obtained
and, to Tenant’s knowledge, is not required to obtain, and
Tenant has no knowledge of any reason Landlord will be required to
obtain, any permits, licenses, or similar authorizations to occupy,
operate or use the Improvements or any part of the Property by
reason of any Environmental Law.
8.1.4 That a certificate of occupancy has been issued
for the Property and remains in effect, unless a certificate of
occupancy is not required by law. [INCLUDED FOR PALO ALTO,
EL PASO AND CHICAGO ONLY]
Section 8.2 Covenants . Tenant covenants and agrees throughout the
Term of this Lease, as follows:
8.2.1 To maintain and keep the Property in a good
condition and state of repair, including all equipment, facilities
and fixtures therein, and to return the Property to the Landlord
upon the expiration or prior termination of the Lease Term in the
same or better state of repair and condition as existed on the
Delivery Date, subject to normal wear and tear, alterations and
additions permitted hereunder and/or Approved Subleases to the
extent permitted hereunder. This provision shall expressly survive
the expiration or prior termination of this Lease.
8.2.2 To cause the Property to be free of liens for
labor and materials for any work on the Property undertaken by
Tenant and to indemnify, protect, defend and hold Landlord harmless
from and against all damages, suits, losses, costs, expenses,
claims, and causes of action relating to any liens for labor and
materials for any work in the Property undertaken by
Tenant.
8.2.3 To save Landlord harmless and indemnified from
all injury, loss, claims or damage to any person or property while
on the Property after the Delivery Date, unless caused by the gross
negligence or willful misconduct of Landlord, its agents and
employees; and, subject to Section 12 hereof, to save Landlord
harmless and indemnified from all injury, loss, claims or damage to
any person or property occasioned by any negligent act or omission
of Tenant, its agents, employees or contractors; and to save
Landlord harmless and indemnified, from and against any and all
claims, demands, causes of action, suits, damages, liabilities and
expenses (including reasonable attorneys' fees and litigation
expenses) arising as a result of Tenant’s failure to have a
certificate of occupancy for the Property, unless a certificate of
occupancy is not required by law or the failure to have a
certificate of occupancy does not have a material and adverse
effect on Tenant’s ability to operate the Premises for the
Permitted Use. [DELETE LAST PHRASE FOR ALL BUT PALO ALTO,
EL PASO AND CHICAGO]
8.2.4 To maintain, with responsible companies
qualified to do business in the state in which the Property is
located, (i) general or commercial public liability insurance
covering the Property, naming Landlord as an additional insured,
with limits at least equal to those set forth in Section 1.1.14 and
commercially reasonable deductibles, (ii) casualty insurance
insuring the full replacement value of the Premises with a
commercially reasonable deductible and (iii) workers' compensation
insurance (with the limits required by applicable law) covering all
of Tenant's employees working in the Premises, and to deposit with
Landlord certificates for such insurance bearing the endorsement
that the policies will not be canceled or reduced in scope of
coverage or amount of coverage until thirty (30) days after written
notice to Landlord, which policies will, in any event, be
reasonably satisfactory to any mortgagee of Landlord. Tenant agrees
to name Landlord and its mortgagee, if any, as additional insureds
on the policies required to be maintained by Tenant hereunder.
Tenant may maintain the general or commercial public liability
insurance referred to in (i) above on a blanket basis and/or may
self-insure the general or commercial public liability insurance
referred to in (i) above so long as Tenant's net worth (or that of
its parent company to the extent such parent shall guarantee the
Tenant's obligations under this Lease) is in excess of One Hundred
Million Dollars ($100,000,000.00), as increased by the percentage
increase in the National Consumer Price Index (CPI) (all items
1982-84 equals 100) as published by the Bureau of Labor Statistics
of the U.S. Department of Labor, as evidenced by annual financial
statements provided to Landlord by Tenant's accountants or by
reports published in accordance with the Securities Exchange
Commission's reporting requirements for publicly traded companies,
as computed in accordance with generally-accepted accounting
principles. Notwithstanding the foregoing, in the event an
Institutional Mortgagee objects to Tenant maintaining any of the
foregoing coverages through self-insurance, Tenant and such
Institutional Mortgagee shall negotiate in good faith to satisfy
the concerns of the Institutional Mortgagee and cause such
Institutional Mortgagee to accept Tenant’s program of
insurance (including obtaining the insurance coverages required
above in lieu of self-insurance if required by such Institutional
Mortgagee).
8.2.5 Tenant shall, as its own cost and expense,
obtain any and all licenses and permits necessary for any Permitted
Use. Tenant shall comply with all governmental laws, ordinances and
regulations applicable to the use of the premises including without
limitation The Americans with Disabilities Act, all requirements of
the Occupational Safety and Health Administration, and
Environmental Law as defined herein, and shall promptly comply with
all governmental orders and directives for the correction,
prevention and abatement of nuisances in or upon, or connected
with, the premises, all at Tenant’s sole expense. Tenant
shall not permit any objectionable or unpleasant odors, smoke,
dust, gas noise or vibrations to emanate from the premises, nor
take any other action which would constitute a nuisance. Tenant
shall not receive, store or otherwise handle any product, material
or merchandise which is explosive or highly inflammable (other than
Permitted Materials handled in compliance with Environmental Law),
without Landlord’s prior written consent. Tenant will not
permit the Premises to be used for any purpose or in any manner
(including without limitation any method of storage) which would
render the insurance thereon void.
8.2.6 (a) As used in this lease, “Environmental
Law” shall mean all federal, state and local laws, statutes,
ordinances, regulations, rules, judicial and administrative orders
and decrees, permits, licenses, approvals, authorizations and
similar requirements of all federal, state and local governmental
agencies or other governmental authorities pertaining to the
protection of human health and safety or the environment, now
existing or later adopted during the term of this lease. As used in
this lease, “Permitted Materials” shall mean the
materials handled by Tenant in the ordinary course of conducting
Permitted Uses.
(b)
Tenant hereby agrees that: (a)
Tenant shall not conduct, or permit to be conducted, on the
Premises any activity which is not a Permitted Use; (b) Tenant
shall not use, store or otherwise handle, or permit any use,
storage or other handling of, any Hazardous Substance which is not
a Permitted Material on or about the Premises; (c) Tenant shall
obtain and maintain in effect all permits and licenses required
pursuant to any Environmental Law for Tenant’s activities on
the Premises, and Tenant shall at all times comply with all
applicable Environmental Laws; (d) Tenant shall not engage in the
storage, treatment or disposal on or about the Premises of any
Hazardous Substance except for any temporary accumulation of waste
generated in the course of Permitted Use; (e) Tenant shall not
install any aboveground or underground storage tank or any
subsurface lines for the storage or transfer of any Hazardous
Substance, except for the lawful discharge of waste to the sanitary
sewer, and Tenant shall store all Hazardous Substances in a manner
that protects the Premises and the environment from accidental
spills and releases; (f) Tenant shall not cause or permit to occur
any release of any Hazardous Substance other than Permitted
Materials, or any condition of pollution or nuisance on or about
the Premises in violation of Environmental Law, whether affecting
surface water or groundwater, air, the land or the subsurface
environment; (g) Tenant shall promptly remove from the Premises any
Hazardous Substance introduced, or permitted to be introduced, onto
the premises by Tenant which is not a Permitted Material and, on or
before the date Tenant ceases to occupy the Premises, Tenant shall
remove from the Premises all Hazardous Substances and all Permitted
Materials handled by or permitted on the Premises by Tenant; (h) if
any release of a Hazardous Substance to the environment, or any
condition of pollution or nuisance, occurs on or about or beneath
the Premises in violation of Environmental Law as a result of any
act or omission of Tenant or its agents, officers, employees,
contractors, invitees of licensees, Tenant shall, at Tenant’s
sole cost and expense, promptly undertake all remedial measures
required to clean up and abate or otherwise respond to the release,
pollution or nuisance in accordance with all applicable
Environmental Laws. Landlord and Landlord’s representatives
shall have the right, but not the obligation, to enter the Premises
at any reasonable time for the purpose of inspecting the storage,
use and handling of any Hazardous Substance on the Premises in
order to determine Tenant’s compliance with the requirements
of this lease and applicable Environmental Law. If Landlord gives
written notice to Tenant that Tenant’s use, storage or
handling of any Hazardous Substance may not comply with this lease
or applicable Environmental Law, Tenant shall correct any such
violation within five (5) days after Tenant’s receipt of such
notice from Landlord. Tenant shall indemnify and defend Landlord
against and hold Landlord harmless from all claims, demands,
actions, judgments, liabilities, costs, expenses, losses, damages,
penalties, fines and obligations of any nature (including,
reasonable attorneys
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