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LEASE AGREEMENT

Lease Agreement

LEASE AGREEMENT | Document Parties: COMMUNITY PARTNERS BANCORP | STAVOLA LEASING, LLC | TWO RIVER COMMUNITY BANK You are currently viewing:
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COMMUNITY PARTNERS BANCORP | STAVOLA LEASING, LLC | TWO RIVER COMMUNITY BANK

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Title: LEASE AGREEMENT
Governing Law: New Jersey     Date: 11/10/2005

LEASE AGREEMENT, Parties: community partners bancorp , stavola leasing  llc , two river community bank
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                                                                   Exhibit 10.14

 

                                 LEASE AGREEMENT

 

                                 BY AND BETWEEN

 

                              STAVOLA LEASING, LLC

                                656 SHREWSBURY AVE.

                                  TINTON FALLS

 

                                       AND

 

                            TWO RIVER COMMUNITY BANK

 

                                 APRIL    , 2000

 

<PAGE>

 

                                 TABLE OF CONTENTS

                                -----------------

 

                      Demised Premises                                         1

Article One            Term                                                     1

Article Two             Payment Of Rent                                          2

Article Three          Repairs And Care                                         3

Article Four           Landlord's Responsibility For Repair & Care              4

Article Five           Glass, etc. Damage Repairs                               4

Article Six            Alternations, Improvements                               4

Article Seven          Signs                                                    5

Article Eight          Compliance With Laws                                      6

Article Nine           Liability Insurance                                      6

Article Ten            Assignment                                               7

Article Eleven         Restriction of Use                                        9

Article Twelve         Mortgage Priority                                        9

Article Thirteen       Condemnation, Eminent Domain                             10

Article Fourteen       Fire & Other Casualty                                    10

Article Fifteen        Reimbursement of Landlord                                11

Article Sixteen        Inspection & Repair                                      11

Article Seventeen      Right to Exhibit                                         12

Article Eighteen       Increase of Insurance Rates                              12

Article Nineteen       Removal of Tenant's Property                             13

Article Twenty         Remedies Upon Tenant's Default                           13

Article Twenty-One     Termination on Default                                   14

Article Twenty-Two     Non-Liability of Landlord                                15

Article Twenty-Three   Non-Waiver of Landlord                                   16

Article Twenty-Four    Non-Performance by Landlord                              16

Article Twenty-Five    Validity of Lease                                        16

Article Twenty-Six     Notices                                                  16

Article Twenty-Seven   Title & Quiet Enjoyment                                   17

Article Twenty-Eight   Entire Contract                                          17

 

 

                                        i

<PAGE>

 

Article Twenty-Nine    Mechanic's Liens                                         17

Article Thirty         Security                                                 17

Article Thirty-One     Due Date for Payment                                     18

Article Thirty-Two     Habitual Late Payment Clause                             18

Article Thirty-Three   Non-Sufficient Funds Clause                              18

Article Thirty-Four    Late Fee                                                 18

Article Thirty-Five    Application of Minimum Rent                              19

Article Thirty-Six     Interest                                                  19

Article Thirty-Seven   Attorney's Fees                                          19

Article Thirty-Eight   Refuse Removal                                           19

Article Thirty-Nine    Operating Expenses (CAM Charges)                         20

Article Forty          H.V.A.C.                                                 20

Article Forty-One      Holdover                                                 20

Article Forty-Two      Parking of Business Use Vehicles                          21

Article Forty-Three    Liability                                                21

Article Forty-Four     Surrender of Premises                                    21

Article Forty-Five     Tenant's Compliance With Environmental, Health and

                       Safety Requirements                                      21

Article Forty-Six      Conformity with Laws & Regulations                       24

Article Forty-Seven    Waiver of Trial by Jury                                  24

Article Forty-Eight    Estoppel Certificate                                     24

Article Forty-Nine     General Provisions                                       25

Article Fifty          Broker                                                   26

Signatures                                                                      26

 

                                       ii

 

<PAGE>

 

                                      LEASE

                                      -----

 

            THIS LEASE, dated this -- day of April, 2000, by and between STAVOLA

LEASING,   LLC, a New Jersey limited liability   company,   having an office at 175

Drift Road, Tinton Falls, New Jersey,   07724,   (mailing address,   P.O. Box #482,

Red Bank, New Jersey   07701),   hereinafter   referred to as   "Landlord",   and TWO

RIVER COMMUNITY BANK, a New Jersey banking   corporation,   with office located at

1250 Highway 35 South,   Middletown,   New Jersey 07748 hereinafter referred to as

"Tenant".

 

                               W I T N E S S E T H

                               - - - - - - - - - -

 

                                DEMISED PREMISES

 

            In consideration of the rents and covenants herein set forth herein,

Landlord   hereby leases to Tenant,   and Tenant hereby rents from   Landlord,   the

premises containing   approximately 3650 square feet, actual square footage to be

determined   located at the 656 Shrewsbury   Avenue,   Tinton Falls, New Jersey, as

depicted   on   Schedule A   (hereinafter   called   "Leased   Premises"   or   "Demised

Premises")   and other   improvements   thereon,   hereinafter   collectively   called

"Building".   This Lease shall be for the Term set forth below and subject to the

terms and conditions set forth in this Lease and the Schedules attached hereto.

 

            It is understood and agreed that the architectural design, aesthetic

appeal and use of the Building is and shall remain always in the sole control of

Landlord.   Notwithstanding   anything to the contrary contained herein,   Landlord

does hereby   reserve the right from time to time or at any time to make   changes

and additions,   without   restrictions,   to the Building,   improvements   or other

areas,   including   without   limitation,   eliminating   land,   adding other lands,

decreasing   or changing the   Building,   except the Demised   Premises,   which are

deemed desirable by Landlord,   and the making of such changes or additions shall

not   invalidate or affect this Lease or any rights   hereunder nor   constitute an

eviction   of Tenant or a breach   of this   Lease,   nor give rise to any claim for

damages.

 

                                   ARTICLE ONE

                                      TERM

 

            The   Term of   this   Lease   shall   commence   August   1,   2000   ("Term

Commencement   Date") and, except as may otherwise be provided   herein,   the Term

shall expire at the end of ten (10) years from the Term   Commencement   Date. The

Demised   Premises   shall be used and occupied only for and for no other purposes

than a retail   bank and bank   administrative   offices   to   conduct   any   banking

activities permitted under the laws of the State of New Jersey and any other use

is a violation of this   restriction.   Rent shall commence   thirty (30) days from

the Term Commencement Date (Rent Commencement   Date).   Landlord and Tenant agree

to execute a writing   setting forth the Term   Commencement   Date, the Expiration

Date and Rent Commencement Date.

 

 

                                       1

<PAGE>

 

                                   ARTICLE TWO

                                 PAYMENT OF RENT

 

            2.01   Minimum   Rent.   Tenant   covenants   to pay to Landlord   without

notice, demand, setoff, deduction or abatement at Landlord's address first above

set forth,   or at such other place as may   hereafter be designated in writing by

Landlord,   on the days   and in the   manner   herein   prescribed   for the   payment

thereof, guaranteed minimum rent and additional rent for the Demised Premises as

set forth in this Article.

 

            Tenant   covenants   to pay a fixed   guaranteed   minimum   annual rent,

herein called "Minimum Rent", as follows:

 

            YEAR 1:     $26.00/SF         $94,900.00/YEAR      $7,908.33/MONTH

            YEAR 2:     $27.04/SF         $98,700.00/YEAR      $8,225.00/MONTH

            YEAR 3:     $28.12/SF         $102,638.00/YEAR     $8,553.17/MONTH

             YEAR 4:     $29.24/SF         $106,725.00/YEAR     $8,893.75/MONTH

            YEAR 5:     $30.41/SF         $111,000.00/YEAR     $9,250.00/MONTH

            YEAR 6:     $31.68/SF         $115,440.00/YEAR     $9,620.00/MONTH

            YEAR 7:     $32.90/SF         $120,084.00/YEAR     $10,007.00/MONTH

            YEAR 8:     $34.22/SF         $125,000.00/YEAR     $10,416.67/MONTH

            YEAR 9:     $35.59/SF         $129,900.00/YEAR     $10,825.00/MONTH

            YEAR 10:    $37.00/SF         $135,050.04/YEAR     $11,254.17/MONTH

                                                           

The Minimum Rent shall be payable in the monthly amounts in advance on the first

day of each month throughout the Term of this Lease,   however, the first month's

Minimum Rent shall be payable in advance upon   execution of this Lease,   and the

second   month's   Minimum   Rent   payable in advance on the first day of the month

following the Term Commencement Date. The Minimum Rent for a period of less than

one calendar month shall be prorated.

 

            2.02   Additional   Rent.   In addition to the Minimum Rent   stipulated

herein,   Tenant   covenants   and agrees to pay to   Landlord as   additional   rent,

hereafter   "Additional   Rent", all other sums and charges which are, pursuant to

the terms of this Lease, to be paid as Additional Rent by the Tenant.   Except as

otherwise   provided in this Lease,   Additional   Rent shall be due and payable on

the first day of the month following the date on which Tenant is given notice of

Additional Rent due.

 

            2.03 Late Payment. In the event Tenant shall fail to pay any part of

Minimum Rent and/or   Additional   Rent when due in accordance   with terms of this

Lease,   and such default   shall   continue   for 10 days then,   in addition to the

Landlord's   rights as   contained   in Article 20,   interest   shall at   Landlord's

option   accrue   thereon at the rate of fifteen   (15%) percent per annum from the

tenth day after the due date to the date of payment.

 

            2.04   Option   to   Extend   Term.   So long as   Tenant   has not been in

default   during the Term of this Lease or any   previous   option   period,   Tenant

shall   have the   option to renew   the   within   Lease for two (2),   five (5) year

periods.   The First Option Period shall commence the day after the expiration of

the original Lease Term and end five years thereafter.   The Second Option Period

shall   commence the day after the   expiration of the First Option Period and end

five (5) years   thereafter.   Tenant covenants to pay a fixed guaranteed   Minimum

Rent for the First and Second Option Periods as follows:

 

 

                                       2

<PAGE>

 

      FIRST, FIVE (5) YEAR OPTION

 

      YEAR 11:     $38.48/SF          $140,448.00/YEAR     $11,704.00/MONTH

      YEAR 12:     $40.02/SF          $146,073.00/YEAR     $12,172.75/MONTH

      YEAR 13:     $41.62/SF          $151,920.00/YEAR     $12,660.00/MONTH

      YEAR 14:     $43.28/SF          $157,980.00/YEAR     $13,165,00/MONTH

      YEAR 15:     $45.00/SF          $164,250.00/YEAR     $13,687.50/MONTH

                                                      

      SECOND, FIVE (5) YEAR OPTION                  

 

      YEAR 16      $46.80/SF          $170,820.00/YEAR     $14,235.00/MONTH

      YEAR 17      $48.67/SF          $177,648.00/YEAR     $14,804.00/MONTH

      YEAR 18:     $50.62/SF          $184,764.00/YEAR     $15,397.00/MONTH

      YEAR 19:     $52.64/SF          $192,132.00/YEAR     $16,011.00/MONTH

      YEAR 20:     $54.75 SF          $199,821.00/YEAR     $16,651.80/MONTH

                                                       

Tenant must exercise each renewal option in writing,   by certified mail,   return

receipt   requested,   to   Landlord,   no later than one hundred   eighty (180) days

prior to the   expiration   date of original   Lease Term or prior renewal term, as

applicable.   Time is "of the essence" with respect to the exercising all renewal

options.

 

            2.05   Utilities.   Tenant shall pay when due all the rents or charges

for all   utilities   used by the Tenant,   which are or may be assessed or imposed

upon the Leased Premises,   or which are or may be charged to the Landlord by the

suppliers thereof during the Term hereof, and if not paid, such rents or charges

shall be added to and become payable as Additional   Rent with the installment of

rent next due or within thirty (30) days of demand   therefor,   whichever   occurs

sooner. If separately metered, Tenant shall register all utility accounts in its

own name.

 

                                  ARTICLE THREE

                                REPAIRS AND CARE

 

            Tenant has   examined   the Leased   Premises and has entered into this

Lease without any representation on the part of the Landlord as to the condition

thereof.   Landlord   shall   deliver   Leased   Premises to Tenant in "as-is"   clean

condition,   with all walls,   partitions,   lighting   and other fit up,   excluding

existing bank counters and bank   equipment.   Landlord shall make every effort to

provide   the bank   vault   that is   currently   located   in the   Leased   Premises,

provided   however,   in the event that the bank vault is   removed,   Landlord   and

Tenant shall adjust the Minimum Rent to provide for the cost of a suitable vault

of the same standard and   specification   as the existing vault. The Tenant shall

take good care of the Leased   Premises   and shall,   at the Tenant's own cost and

expense, make all repairs, including painting and decorating, and shall maintain

the Leased   Premises in good   condition   and state of repair,   and at the end or

other   expiration of the Term hereof,   shall deliver the Leased Premises in good

order and condition,   wear and tear from a reasonable use thereof, and damage by

the elements not   resulting   from the neglect or fault of the Tenant,   excepted.

The Tenant shall neither encumber nor obstruct the sidewalks,   driveways, yards,

entrances,   hallways and stairs, but shall keep and maintain the same in a clean

condition, free from debris, trash, refuse, snow and ice.

 

 

                                       3

<PAGE>

 

                                  ARTICLE FOUR

                   LANDLORD'S RESPONSIBILITY FOR REPAIR & CARE

 

            Tenant   stipulates   and agrees   that the only duty of   Landlord   for

repair   and care of the   Leased   Premises   is the duty to   repair,   care for and

maintain the structural   elements of the Building   housing the Leased   Premises.

Interior and exterior doors provide access to or through the Leased Premises are

non-structural elements and any and all damage to such doors, no matter what the

cause may be, shall be the repair, replacement and maintenance responsibility of

the Tenant.   Landlord   shall maintain all other doors in the Common Areas of the

Building.   Tenant is advised to protect all non-structural   elements with proper

insurance.   Any and all requests to Landlord from Tenant for repair must be sent

to Landlord by certified mail.

 

                                  ARTICLE FIVE

                           GLASS, ETC. DAMAGE REPAIRS

 

            In case of the   destruction   of, or any   damage to, the glass in the

Leased   Premises,   or the   destruction   or damage of any kind   whatsoever to the

Leased   Premises,   the Tenant shall repair the said damage or replace or restore

any   destroyed   parts of the Leased   Premises,   as speedily as possible,   at the

Tenant's own cost and expense.

 

                                   ARTICLE SIX

                            ALTERATIONS, IMPROVEMENTS

 

            6.01 Tenant shall make no alterations,   decorations,   installations,

additions or improvements   (hereinafter   "Tenant   Changes") in or to the Demised

Premises   without   in each   instance   obtaining   the   Landlord's   prior   written

consent,   and then   only by   contractors   or   mechanics   subject   to   Landlord's

approval,   which shall not be   unreasonably   withheld   and in   conformance   with

detailed   plans and   specifications   previously   submitted   to the   Landlord and

subject to the Landlord's   prior written   approval.   All Tenant Changes shall be

done at   Tenant's   sole cost and expense and at such times and in such manner as

Landlord may from time to time   designate.   All Tenant   Changes upon the Demised

Premises,   made by either party (excepting only Tenant's movable trade fixtures)

shall,   unless Landlord shall elect otherwise (which election may be made at any

time   prior to   expiration   or other   termination   of this   Lease),   become   the

property of Landlord,   and shall   remain   upon,   and be   surrendered   with,   the

Demised Premises as a part thereof at the end of the Term. In the event Landlord

shall elect   otherwise as to any Tenant Changes upon the Demised   Premises,   the

same shall be removed by Tenant and Tenant shall restore the Demised Premises to

the condition existing immediately prior to such Tenant Changes and such removal

and restoration shall be at Tenant's own cost and expense,   which covenant shall

survive the termination of this Lease.

 

            6.02 Tenant   agrees that any Tenant   Changes shall be done in a good

and workmanlike manner, in conformity with the plans and specifications approved

by Landlord,   and shall comply with all laws,   ordinances and regulations of all

public authorities having   jurisdiction over the Tenant Changes.   All salvage in

connection therewith shall be properly disposed of by the Tenant.

 

            6.03 Tenant agrees that it will also procure all   necessary   permits

before making any Tenant Changes.   Landlord agrees that, without cost or expense

to Landlord,   it will cooperate  

 

 

                                       4

<PAGE>

 

with Tenant in obtaining such permits.   Tenant agrees to pay when due the entire

cost of any work done by or for Tenant   upon the   Demised   Premises   so that the

Demised   Premises   shall at all times be free of liens   for labor or   materials.

Tenant agrees to require all   contractors   and   materialmen to waive any and all

rights they may have to any mechanics   notices of intention and mechanics liens.

Tenant also agrees to   indemnify   and save   Landlord   harmless   from any and all

liens,   and any and all   injury,   loss,   claims,   or   damages   to any   person or

property occasioned by or in connection with any Tenant Changes.

 

            6.04 Prior to the   commencement   of any Tenant   Changes that involve

any   structural   elements   of   the   Demised   Premises,   Tenant   shall   also,   if

requested,   furnish   and   deliver to the   Landlord,   at   Tenant's   sole cost and

expense,   performance and payment bonds from a recognized   surety licensed to do

business in the State of New Jersey for the   performance and payment of Tenant's

Changes.   Such   bonds are   subject   to the   Landlord's   approval   as to form and

amount.   Tenant   shall not be   required to post bonds for   nonstructural   Tenant

Changes.

 

            6.05 All Tenant   Changes shall be performed in such manner as not to

interfere   with the   occupancy   of any other tenant in the Building nor delay or

impose any additional expense upon Landlord in the construction,   maintenance or

operation of the Building. Throughout the performance of Tenant Changes, Tenant,

at its   expense,   shall   carry   or   cause to be   carried,   and duly   maintained,

worker's compensation and employers liability insurance in statutory limits, and

general   public   liability   insurance   insuring the Landlord   against any an all

liability or claims of liability   arising out of the   performance   of the Tenant

Changes,   occasioned by or resulting   from any accident or otherwise in or about

the Leased   Premises   for   injuries to any person or persons for limits not less

than   $1,000,000.00 for injuries to one person and $3,000,000.00 for injuries to

more than one person, in any one accident or occurrence,   and for loss or damage

to the   property   of any   persons,   for not   less   than   $1,000,000.00,   for any

occurrence in or about the Building,   on which Landlord and its managing   agent,

if any, shall be named as parties insured, with insurers reasonably satisfactory

to   Landlord.   Tenant shall   furnish   Landlord   with   evidence   satisfactory   to

Landlord   that such   insurance is in effect   before the   commencement   of Tenant

Changes   and,   on   request,   at   reasonable    intervals   thereafter   during   the

construction of Tenant's Changes.

 

                                  ARTICLE SEVEN

                                      SIGNS

 

            Tenant shall not place nor allow to be placed any   flashing   lights,

sound devices,   advertisements or signs of any kind whatsoever upon, in or about

the Leased   Premises or any part thereof,   except for a design and structure and

in or at such   places   as may be   indicated   and   consented   to by   Landlord   in

writing.   In the   case the   Landlord   or the   Landlord's   agents,   employees   or

representatives   shall   deem it   necessary   to remove any such signs in order to

paint or make any repairs,   alterations   or   improvements   in or upon the Leased

Premises,   or any part thereof,   they may be so removed.   Any signs permitted by

the Landlord shall, at all times, conform with all municipal ordinances or other

laws and regulations applicable thereto. Tenant recognizes and stipulates that a

violation of this covenant is a material and substantial breach of the terms and

grounds for termination and eviction,   for which Landlord may institute   summary

dispossess   action in a court of competent   jurisdiction.   Tenant shall have the

right to seek

 

 

                                        5

<PAGE>

 

approval   of a time   and   temperature   sign to be   placed   at a   location   to be

approved by Landlord.   Tenant shall secure all necessary   governmental approvals

for such signage.

 

            If   Tenant's   sign is in   undesirable   condition   and/or   disrepair,

Landlord may require   Tenant to   repair/replace   sign   immediately   upon written

notice from   Landlord,   which   notice will state the   conditions   found to be in

disrepair.   If Tenant does not repair or replace such sign,   Landlord may remove

sign at Tenant's expense.

 

                                  ARTICLE EIGHT

                              COMPLIANCE WITH LAWS

 

            Tenant   shall   promptly   comply   with all laws,   ordinances,   rules,

regulations,   requirements   and   directives of the federal,   state and municipal

governments   or public   authorities   and of all their   departments,   bureaus and

subdivisions   applicable to and affecting   the Demised   Premises,   their use and

occupancy, the correction,   prevention and abatement or nuisances, violations or

other   grievances   in, upon or connected with the Demised   Premises,   during the

Term   hereof,    and   shall   promptly    comply   with   all   orders,    regulations,

requirements   and   directives   of the   Board   of Fire   Underwriters   or   similar

authority and of any insurance companies which have issued or are about to issue

policies of insurance   covering the Demised   Premises and its contents,   for the

prevention of fire or other casualty, damage or injury, at the Tenant's own cost

and expense.

 

                                  ARTICLE NINE

                               LIABILITY INSURANCE

 

            9.01   Tenant,   at Tenant's   own cost and   expense,   shall   obtain or

provide and keep in full force for the benefit of the Landlord,   during the Term

hereof, general public liability insurance insuring the Landlord against any and

all liability or claims of liability   arising out of, occasioned by or resulting

from any accident or   otherwise in or about the Leased   Premises for injuries to

any person or persons for limits not less than $1,000,000.00 for injuries to one

person   and   $3,000,000.00   for   injuries   to more than one   person,   in any one

accident or   occurrence,   and for loss or damage to the property of any persons,

for not less than $1,000,000.00. The policy or policies of insurance shall be of

a company or   companies   authorized   to do   business   in New Jersey and shall be

delivered to the Landlord, together with evidence of the payment of the premiums

therefor,   not less than   fifteen   days   prior to the   commencement   of the Term

hereof or of the date when the Tenant   shall   enter into   possession,   whichever

occurs sooner.   At least thirty (30) days prior to the expiration or termination

date of any policy,   the Tenant shall   deliver a renewal or   replacement   policy

with proof of the payment of the premium therefor. The Tenant also agrees to and

shall save,   hold and keep harmless and indemnify   Landlord from and for any and

all payments, expenses, costs, attorney fees and from and for any and all claims

and   liability   for   losses or damage to the   property   or   injuries   to persons

occasioned   wholly or in part by or resulting   from any acts or omissions by the

Tenant   or   the   Tenant's   agents,   employees,    guests,   licensees,    invitees,

subtenants,   assignees   or   successors,   or for any cause or   reason   whatsoever

arising   out of or by reason of the   occupancy   by the Tenant and the conduct of

Tenant's business.

 

            In the event that at any time during the Term or any Renewal Term of

this Lease,   Landlord   shall be advised by its   insurance   representatives   that

increases in one or more insurance

 

 

                                       6

<PAGE>

 

coverages    are    reasonably    necessary   to   comply   with    insurance    company

recommendations,   Tenant shall   secure such   increases in coverage to the extent

that such coverages are available.

 

            9.02 All of the aforesaid insurance and any other insurance policies

of the Tenant   shall be   considered   primary   insurance,   and except for workers

compensation,   shall   be   issued   in the name of   Tenant   and   Landlord   and any

designees and/or mortgagees of Landlord,   as additional   insureds,   and shall be

written by one or more qualified,   licensed insurance companies   satisfactory to

Landlord and in form   satisfactory   to   Landlord,   which   approval   shall not be

unreasonably   withheld;   all such insurance policies shall contain   endorsements

providing for at least thirty (30) days prior written   notice to Landlord of any

material change in or cancellation of such policy or coverage.

 

            9.03 Tenant shall be solely   responsible for payment of premiums and

Landlord   (or its   designee)   shall not be   required to pay any premium for such

insurance.   Tenant shall   deliver to Landlord at least thirty (30) days prior to

the   time   such   insurance   is first   required   to be   carried   by   Tenant,   and

thereafter at least forty-five (45) days prior to the expiration of such policy,

either a duplicate   original or   certificate   of insurance   and true copy of all

policies procured by Tenant in compliance with obligations   hereunder,   together

with satisfactory evidence of the payment of the premiums therefor, it being the

intention   of the parties   hereto that the   insurance   required   under the terms

hereof shall be continuous during the entire term of this lease and renewal,   if

any,   and any other   period of time during   which,   pursuant to the term hereof,

said insurance is required.

 

            9.04   With   respect   to   the   Demised   Premises   and   the   contents,

improvements,   and   betterments   therein,   Landlord   shall not be liable for any

damage   by fire or   other   peril   includable   in the   coverage   afforded   by the

standard form of all risk property   coverage   insurance   policy   (whether or not

such coverage is in effect),   no matter how caused, it being understood that the

Tenant will look solely to Tenant's insurer for reimbursement.

 

            9.05 If as a result of the   failure   of   Tenant   to comply   with the

foregoing   provisions,   Landlord   is   adjudged   a   co-insurer   by its   insurance

carrier,   then any loss or damage Landlord shall sustain by reason thereof shall

be borne by   Tenant   and shall be   immediately   paid by   Tenant   upon   demand as

Additional Rent.

 

                                   ARTICLE TEN

                                   ASSIGNMENT

 

            10.01 Tenant shall not assign, mortgage, hypothecate,   pledge, or in

any manner,   transfer this Lease or any estate or interest   hereunder whether by

operation of law or otherwise   (collectively   "assign") and shall not sublet the

Demised   Premises or any part or parts thereof   ("sublet")   without the previous

written consent of Landlord in each instance.   If Tenant violates the provisions

of this Article 10,   Landlord may, in addition to any remedies it has under this

Lease, accept from any assignee, licensee, concessionaire or anyone who claims a

right to any part of the   interest   of Tenant   under   this   Lease   (collectively

"assignee"),   or   anyone   who   occupies   any part or the   whole   of the   Demised

Premises   ("sublessee"),   the payment of Minimum Rent and Additional Rent and/or

the performance of any of the other   obligations of Tenant under this Lease, but

acceptance   shall   not be deemed to be a waiver   by   Landlord   of the   breach by

Tenant of the   provisions of this Article 10, nor a recognition by Landlord that

any such assignee or

 

 

                                       7

<PAGE>

 

sublessee   has   succeeded   to the rights of Tenant   hereunder,   nor a release by

Landlord   of Tenant   from   further   performance   by Tenant of the   covenants   on

Tenant's part to be performed under this Lease; provided,   however, that the net

amount of rent actually   collected from any such assignee or sublessee   shall be

applied by Landlord to the rent to be paid hereunder. Any consent by Landlord to

any such assignment, transfer, mortgage license or concession or other matter or

thing   contained in this Article 10   (collectively   "assignment")   or subletting

shall not in any way be construed   to relieve   Tenant from   obtaining   the prior

written consent of Landlord to any other or future assignment or subletting.

 

            10.02 In the event of a merger or   consolidation,   or if at any time

during   the Term of this   Lease,   (i) if the Tenant is a   corporation   and there

shall occur any change in the   ownership   of, or power to vote,   the majority of

the outstanding   capital stock of Tenant, or (ii) if the Tenant is a partnership

and/or joint venture and the partners and/or joint venturers, owners, or members

of any such partnership   and/or joint venture change in any manner, the Landlord

shall   thereafter   have the right,   at its option,   to   terminate   this Lease by

notice to Tenant.   If such option is exercised,   the Term of this Lease shall in

no event be   earlier   than the end of the   calendar   month in which   occurs   the

thirtieth   (30th) day after the giving of such   notice.   In any such event,   the

collection of rent and/or   acceptance by Landlord of the   performance   of any of

the obligations of Tenant under this Lease shall not be deemed to be a waiver by

Landlord of any of its rights under the provisions of this Section   10.02.   This

Section   10.02 shall not be applicable   to any   corporation   in which all of the

outstanding   voting   stock is, on the date of this   Lease,   listed on a national

securities   exchange   (as defined in the   Securities   Exchange   Act of 1934,   as

amended),   or if sixty percent (60%) or more of the   outstanding   shares of such

voting stock is on such date owned by any fifty (50) or more shareholders.

 

            10.03   If   Landlord    consents   in   writing   to   an    assignment   or

subletting,   then such consent to an   assignment   or   subletting   shall   (unless

expressed   clearly to the contrary in said consent) be deemed   conditioned   upon

Tenant's further compliance with the following provisions:

 

            (a) At Landlord's   option, the assignment and/or subletting must be,

respectively,   of all of Tenant's   leasehold   interest and of the entire Demised

Premises and, in the case of assignment, shall also transfer to the assignee all

of the   Tenant's   rights in,   and   interest   under,   this   Lease   including   the

security, if any, deposited hereunder. However,   notwithstanding anything to the

contrary in this Lease,   Tenant,   and the   guarantor,   if any, shall continue to

remain liable,   jointly and   severally,   with any such assignee or subtenant for

all of the obligations of "Tenant" under this Lease.

 

            (b) At the time of such   assignment   and/or   subletting,   this Lease

must be in full force and effect without any breach or default thereunder on the

part of the Tenant.

 

            (c) The assignee or sublessee   shall assume,   by written   recordable

instrument, in form and content satisfactory to Landlord, the due performance of

all of Tenant's obligations under this Lease,   including any accrued obligations

at the time of the assignment or subletting.

 

            (d) A copy of the assignment or sublease and the original assumption

agreement (both in form and content satisfactory to the Landlord) fully executed

and acknowledged by the assignee and/or sublessee together with a certified copy

of properly executed corporate resolutions authorizing such documents,   shall be

delivered to the Landlord   within five (5) days from the effective   date of such

assignment or subletting.

 

 

                                       8

<PAGE>

 

            (e) Any permitted   sublease or assignment   shall be on similar terms

as this Lease insofar as compliance with laws and regulations and permitted uses

are concerned.

 

            (f) Tenant shall reimburse Landlord's reasonable attorney's fees for

examination   of and/or   preparation   of any   documents in   connection   with such

assignment and/or subletting.

 

            (g) Landlord may, as a condition of consenting to any   assignment or

subletting,   require   Tenant and any   assignee or   sublessee of Tenant to pay to

Landlord   as   Additional   Rent any and all   consideration   payable   to Tenant in

excess of the Minimum   Rent   required   hereunder   for the area   involved for any

assignment or subletting,   as and when such consideration is payable pursuant to

the assignment or sublease.   Said   consideration   to be computed on the basis of

average   square foot rent for the gross   square   footage   Tenant has assigned or

sublet.

 

            If this Lease is   assigned   or if the   Demised   Premises or any part

thereof be subleased or occupied by anybody   other than Tenant,   whether with or

without Landlord's consent,   Landlord may collect from the assignee,   sublessee,

occupant,   licensee or   concessionaire,   any rental or other charges   payable by

Tenant under this Lease,   and apply the amount collected to the rental and other

charges herein reserved,   but such collection by Landlord shall not be deemed an

acceptance of the assignee,   sublessee,   occupant, licensee or concessionaire as

tenant nor a release of Tenant from the performance by Tenant of this Lease.

 

                                  ARTICLE ELEVEN

                               RESTRICTION OF USE

 

            The Tenant   shall not occupy or use the Leased   Premises or any part

thereof,   nor permit or suffer the same to be occupied or used for any   purposes

other than as herein limited, nor for any purpose deemed unlawful, disreputable,

or extra hazardous, on account of fire or other casualty.

 

                                 ARTICLE TWELVE

                                MORTGAGE PRIORITY

 

            This   Lease   shall not be a lien   against   the   Leased   Premises   in

respect to any first   mortgage   that may   hereafter   be placed   upon said Leased

Premises.   The recording of such mortgage   shall have   preference and precedence

and be   superior   and prior in lien to this Lease,   irrespective   of the date of

recording and the Tenant agrees to execute any instruments,   without cost, which

may be deemed   necessary or desirable,   to further effect the   subordination   of

this   Lease to any such   mortgage.   A   refusal   by the   Tenant to   execute   such

instruments   shall   entitle the Landlord to the option of canceling   this Lease,

and the term hereof is hereby expressly limited accordingly.

 

 

                                       9

<PAGE>

 

                                ARTICLE THIRTEEN

                          CONDEMNATION, EMINENT DOMAIN

 

            If the land and   premises   leased   herein   or of   which   the   Leased

Premises are a part or any portion thereof,   shall be taken under eminent domain

or condemnation proceedings,   or if suit or other action shall be instituted for

the taking or   condemnation   thereof,   or if in lieu of any formal   condemnation

proceedings   or actions,   the Landlord   shall grant an option to purchase and or

shall sell and convey said premises or any portion thereof,   to the governmental

or other public authority,   agency, body or public utility, seeking to take said

land and premises or any portion thereof,   then this Lease, at the option of the

Landlord,   shall terminate, and the Term hereof shall end as of such date as the

Landlord   shall fix by notice in writing   and the Tenant   shall have no claim or

right to claim or be entitled to any portion of any amount   which may be awarded

as damages or paid as the result of such condemnation proceedings or paid as the

purchase   price   for   such   option,    sale   or   conveyance   in   lieu   of   formal

condemnation   proceedings   and all rights of the Tenant to damages,   if any, are

hereby   assigned to the   Landlord.   The Tenant agrees to execute and deliver any

instruments   at the   expense   of the   Landlord,   as may be deemed   necessary   or

required to expedite


 
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