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Exhibit 10-BBa
THIRD AMENDED AND RESTATED LEASE AGREEMENT
Dated as of June 27, 2008
between
SUNTRUST BANK,
as Lessor
and
TECH DATA CORPORATION,
as Lessee
This Third Amended and Restated Lease Agreement is subject to a
security interest in favor of SunTrust Equity Funding, LLC, as
Agent (the " Agent ") under a Third Amended and Restated
Security Agreement dated as of June 27, 2008, among SunTrust
Bank and the Agent, as further amended, modified, supplemented,
restated or replaced from time to time. This Third Amended and
Restated Lease Agreement has been executed in several counterparts.
To the extent, if any, that this Third Amended and Restated Lease
Agreement constitutes chattel paper (as such term is defined in the
Uniform Commercial Code as in effect in any applicable
jurisdiction), no security interest in this Third Amended and
Restated Lease Agreement may be created through the transfer or
possession of any counterpart other than the original counterpart
containing the receipt therefor executed by the Agent on the
signature page hereof.
TABLE OF
CONTENTS
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ARTICLE I
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1
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Section 1.1. Definitions
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1
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ARTICLE II
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1
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Section 2.1. Property
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1
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Section 2.2. Lease Term
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1
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Section 2.3. Title
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2
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Section 2.4. Lease Supplements
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2
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Section 2.5. Subsidiaries as
Lessee
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2
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ARTICLE III
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2
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Section 3.1. Rent
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2
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Section 3.2. Payment of Basic
Rent
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3
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Section 3.3. Supplemental Rent
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3
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Section 3.4. Performance on a Non-Business
Day
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3
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Section 3.5. Rent Payment
Provisions
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3
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ARTICLE IV
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4
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Section 4.1. Utility Charges;
Taxes
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4
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ARTICLE V
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4
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Section 5.1. Quiet Enjoyment
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4
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ARTICLE VI
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4
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Section 6.1. Net Lease
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4
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Section 6.2. No Termination or
Abatement
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5
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ARTICLE VII
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5
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Section 7.1. Ownership of the
Properties
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5
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ARTICLE VIII
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6
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Section 8.1. Condition of the
Properties
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6
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Section 8.2. Possession and Use of the
Properties
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7
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ARTICLE IX
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8
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Section 9.1. Compliance with Legal Requirements
and Insurance Requirements
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8
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ARTICLE X
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8
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Section 10.1. Maintenance and Repair;
Return
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8
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Section 10.2. Environmental Inspection
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9
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ARTICLE XI
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10
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Section 11.1. Modifications
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10
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ARTICLE XII
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10
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Section 12.1. Warranty of Title
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10
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ARTICLE XIII
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11
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Section 13.1. Permitted Contests Other Than in
Respect of Indemnities
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11
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ARTICLE XIV
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11
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Section 14.1. Public Liability and Workers’
Compensation Insurance
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11
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Section 14.2. Hazard and Other
Insurance
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12
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Section 14.3. Coverage
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12
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Section 14.4. Additional Insurance
Requirements
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13
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ARTICLE XV
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13
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Section 15.1. Casualty and
Condemnation
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13
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i
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Section 15.2. Environmental Matters
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15
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Section 15.3. Notice of Environmental
Matters
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15
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ARTICLE XVI
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15
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Section 16.1. Termination Upon Certain Events. If
any of the following occur
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15
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Section 16.2. Procedures
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16
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ARTICLE XVII
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16
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Section 17.1. Lease Events of Default
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16
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Section 17.2. Surrender of Possession
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19
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Section 17.3. Reletting
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19
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Section 17.4. Damages
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20
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Section 17.5. Final Liquidated Damages
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20
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Section 17.6. Waiver of Certain Rights
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21
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Section 17.7. Assignment of Rights Under
Contracts
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21
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Section 17.8. Environmental Costs
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21
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Section 17.9. Remedies Cumulative
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22
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Section 17.10. Notice of Default or Event of
Default
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22
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Section 17.11. Lessee’s Option to Cure by
Purchase of All Properties
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22
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Section 17.12. Liability Limited
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22
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ARTICLE XVIII
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22
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Section 18.1. Lessor’s Right to Cure
Lessee’s Lease Defaults
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22
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ARTICLE XIX
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22
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Section 19.1. No Termination With Respect to Less
than All of a Property
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23
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ARTICLE XX
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23
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Section 20.1. Purchase Prior to End of Term;
Purchase, Renewal or Sale Option; Purchase of Excess
Land
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23
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ARTICLE XXI
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24
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Section 21.1. Renewal
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24
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ARTICLE XXII
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25
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Section 22.1. Sale Procedure
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25
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Section 22.2. Application of Proceeds of
Sale
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27
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Section 22.3. Indemnity for Excessive
Wear
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27
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Section 22.4. Appraisal Procedure
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28
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Section 22.5. Certain Obligations
Continue
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28
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ARTICLE XXIII
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28
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Section 23.1. Risk of Loss
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28
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ARTICLE XXIV
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28
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Section 24.1. Assignment
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28
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Section 24.2. Subleases
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29
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ARTICLE XXV
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30
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Section 25.1. No Waiver
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30
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ARTICLE XXVI
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30
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Section 26.1. Acceptance of Surrender
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30
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Section 26.2. No Merger of Title
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30
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ARTICLE XXVII
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30
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Section 27.1. Notices
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30
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ii
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ARTICLE XXVIII
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30
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Section 28.1. Miscellaneous
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30
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Section 28.2. Amendments and
Modifications
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30
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Section 28.3. Successors and
Assigns
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30
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Section 28.4. Headings and Table of
Contents
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31
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Section 28.5. Counterparts
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31
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Section 28.6. GOVERNING LAW
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31
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Section 28.7. Calculation of Rent
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31
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Section 28.8. Memoranda of Lease and Lease
Supplements
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31
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Section 28.9. Allocations between the
Financing Parties
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31
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Section 28.10. Limitations on
Recourse
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31
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Section 28.11. WAIVERS OF JURY
TRIAL
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31
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Section 28.12. Original Leases
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32
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Section 28.13. Mortgage Grant and
Remedies
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32
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Section 28.14. Exercise of Lessor
Rights
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32
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iii
THIRD AMENDED AND RESTATED
LEASE AGREEMENT
THIS THIRD AMENDED AND RESTATED LEASE AGREEMENT (as further
amended, supplemented or modified from time to time, this "
Lease "), dated as of June 27, 2008, is between
SUNTRUST BANK, having its principal office at c/o SunTrust Equity
Funding, LLC, 303 Peachtree Street, 26 th Floor, MC 3951, Atlanta, Georgia
30308, as lessor (the " Lessor "), and TECH DATA
CORPORATION, a Florida corporation, having its principal place of
business at 5350 Tech Data Drive, Clearwater, Florida, as
lessee (the " Lessee ").
WITNESSETH :
A. WHEREAS, the SunTrust Equity Funding, LLC, as lessor
(the " Prior Lessor "), and Lessee entered into a Second
Amended and Restated Lease Agreement, dated as of July 31,
2003 (as amended prior to the date hereof, the " Existing
Lease "), pursuant to which the Prior Lessor leased certain
Properties to Lessee (or to certain Subsidiaries acting as
alternative lessees); and
B. WHEREAS , the Lessor, contemporaneously herewith,
shall acquire the Properties, subject to the Existing Lease;
and
C. WHEREAS, the Lessee desires to renew the Existing
Lease, and Lessee and Lessor desire to amend and restate the
Existing Lease on the terms and conditions set forth herein;
and
D. WHEREAS, Lessor desires to continue to lease to Lessee
(or to certain alternative Lessees permitted by
Section 2.5 ), and Lessee desires to continue to lease
(or cause such alternative Lessees to lease) from Lessor, each
Property;
NOW, THEREFORE, in consideration of the foregoing, and of other
good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Existing Lease is hereby amended
and restated in its entirety, and the parties hereto agree as
follows:
ARTICLE I
Section 1.1. Definitions . Capitalized terms used
but not otherwise defined in this Lease have the respective
meanings specified in Appendix A to the Third Amended and Restated
Participation Agreement of even date herewith (as such may be
further amended, modified, supplemented, restated and/or replaced
from time to time, the " Participation Agreement ") among
the Lessee, the Lessor, the Lenders party thereto and the
Agent.
ARTICLE II
Section 2.1. Property . Subject to the terms and
conditions hereinafter set forth and contained in the respective
Lease Supplement relating to each Property, Lessor hereby leases to
Lessee and Lessee hereby leases from Lessor, each Property.
Section 2.2. Lease Term . The term of this Lease
with respect to each Property (the " Term ") has previously
commenced and shall end on June 27, 2013 (the " Basic Term
Expiration Date "), unless the Term is earlier terminated in
accordance with the provisions of this Lease or unless this Lease
shall be renewed in accordance with Section 21.1 .
Section 2.3. Title . Each Property is
leased to Lessee without any representation or warranty, express or
implied, by Lessor and subject to the rights of parties in
possession (if any), the existing state of title (including,
without limitation, the Permitted Exceptions) and all applicable
Legal Requirements. Lessee shall in no event have any recourse
against Lessor for any defect in Lessor’s title to any
Property other than for Lessor Liens.
Section 2.4. Lease Supplements . Lessee and Prior
Lessor previously executed and delivered a Lease Supplement for
each Property, which Lease Supplements are being assigned to Lessor
effective as of the date hereof. Lessee hereby consents to such
assignment, and Lessee and Lessor hereby acknowledge that such
Lease Supplements, as so assigned to Lessor, remain in full force
and effect. Lessee agrees to promptly execute and deliver such
assignments, consents and acknowledgements as Lessor shall
reasonably request to evidence and record such assignment by Prior
Lessor to Lessor.
Section 2.5. Subsidiaries as Lessee . Subject to the
consent of the Administrative Agent and the delivery of such
agreements and documents as the Administrative Agent may require
(including without limitation the Guaranty of Tech Data), documents
perfecting the liens of the Lessor, Agent and Financing Parties
under the Operative Agreements and written opinions of counsel for
the Lessee and any applicable Subsidiary, a Subsidiary of Tech Data
may become party to this Lease as a Lessee (each, an "
alternative Lessee ") of a Property, and shall be liable
(jointly and severally with Tech Data) for all obligations as
Lessee. Without limiting the generality of the foregoing,
(a) Tech Data shall remain fully liable for all obligations as
Lessee with respect to each Property, and (b) Tech Data, as
and on behalf of the Lessee with respect to each Property, shall
have the right to give any notice, consent or waiver, to exercise
any option permitted under any Operative Agreement, and to agree to
any amendment or modification with respect to any Operative
Agreement or any Property (and each alternative Lessee hereby
grants to Tech Data an irrevocable power-of-attorney to take any
such actions) without the necessity of obtaining any consent of any
alternative Lessee, and any other party to the Operative Agreements
shall be fully protected in relying on any such actions taken by
Tech Data or (with respect to the applicable Property) by an
alternative Lessee. Without limiting the generality of the
foregoing, any Operative Agreement may be amended or modified
without obtaining the consent of any alternative Lessee.
ARTICLE III
Section 3.1. Rent .
(a) Lessee shall pay Basic Rent on each Payment Date, and on any
date on which this Lease shall terminate with respect to any or all
Properties during the Term.
(b) Basic Rent shall be due and payable in lawful money of the
United States and shall be paid in immediately available funds on
the due date therefor (or within the applicable grace period) to
such account or accounts as Lessor shall from time to time
direct.
(c) Lessee’s inability or failure to take
possession of all or any portion of any Property when it was
delivered by Lessor, whether or not attributable to any act or
omission of the Lessor, Lessee or any other Person, or for any
other reason whatsoever, shall not delay or otherwise affect
Lessee’s obligation to pay Rent for such Property in
accordance with the terms of this Lease.
Section 3.2. Payment of Basic Rent . Basic Rent
shall be paid absolutely net to Lessor or its designee, so that
this Lease shall yield to Lessor the full amount of Basic Rent,
without setoff, deduction or reduction.
Section 3.3. Supplemental Rent . Lessee shall pay to
Lessor or its designee or to the Person entitled thereto any and
all Supplemental Rent promptly as the same shall become due and
payable, without setoff, deduction or reduction, and if Lessee
fails to pay any Supplemental Rent, Lessor shall have all rights,
powers and remedies provided for herein or by law or equity or
otherwise in the case of nonpayment of Basic Rent. Without limiting
the generality of the definition of "Supplemental Rent," Lessee
shall pay to Lessor as Supplemental Rent, among other things, on
demand, to the extent permitted by applicable Legal Requirements,
(a) any and all unpaid fees, charges, prepayment penalties,
Taxes, insurance costs, indemnities, expenses, payments and other
obligations (except the obligations of Lessor to pay the principal
amount of the Loans) due and owing by Lessor or the Lessee under
the Credit Agreement or any other Operative Agreement and
(b) interest and Yield at the applicable Overdue Rate on any
installment of Basic Rent not paid when due (subject to the
applicable grace period) for the period for which the same shall be
overdue and on any payment of Supplemental Rent not paid when due
or demanded by the appropriate Person for the period from the due
date or the date of any such demand, as the case may be, until the
same shall be paid. The expiration or other termination of
Lessee’s obligations to pay Basic Rent hereunder shall not
limit or modify the obligations of Lessee with respect to
Supplemental Rent. Unless expressly provided otherwise in this
Lease, in the event of any failure on the part of Lessee to pay and
discharge any Supplemental Rent as and when due, Lessee shall also
promptly pay and discharge any fine, penalty, interest or cost
which may be assessed or added, pursuant to any Operative Agreement
or otherwise, in each case for nonpayment or late payment of such
Supplemental Rent, all of which shall also constitute Supplemental
Rent.
Section 3.4. Performance on a Non-Business Day . If
any Basic Rent is required hereunder on a day that is not a
Business Day, then such Basic Rent shall be due on the
corresponding Scheduled Interest Payment Date. If any Supplemental
Rent is required hereunder on a day that is not a Business Day,
then such Supplemental Rent shall be due on the next succeeding
Business Day.
Section 3.5. Rent Payment Provisions . Lessee shall
make payment of all Basic Rent and Supplemental Rent when due
regardless of whether any of the Operative Agreements pursuant to
which same is calculated and is owing shall have been rejected,
avoided or disavowed in any bankruptcy or insolvency proceeding
involving any of the parties to any of the Operative Agreements.
Such provisions of such Operative Agreements and their related
definitions are incorporated herein by reference and shall survive
any termination, amendment or rejection of any such Operative
Agreements.
ARTICLE IV
Section 4.1. Utility Charges; Taxes . Lessee shall
pay or cause to be paid all charges for electricity, power, gas,
oil, water, telephone, sanitary sewer service and all other rents
and utilities used in or on a Property and related real property
during the Term. Lessee shall be entitled to receive any credit or
refund with respect to any utility charge paid by Lessee,
provided that Lessee must collect any such credit or refund
from Lessor or the respective utility company (as the case may be)
and shall not be entitled to offset any such amount owed to Lessee
against Rent payable by the Lessee hereunder. Unless a Lease
Default or Lease Event of Default shall have occurred and be
continuing, the amount of any credit or refund received by Lessor
on account of any utility charges paid by Lessee, net of the costs
and expenses incurred by Lessor in obtaining such credit or refund,
shall be promptly paid over to Lessee. In addition, Lessee shall
pay or cause to be paid all taxes or tax assessments against a
Property. All charges for utilities and all taxes or tax
assessments imposed with respect to a Property for a billing period
(or in the cases of tax assessments, a tax period) during which
this Lease expires or terminates shall be adjusted and prorated on
a daily basis between Lessor and Lessee, and each party shall pay
or reimburse the other for such party’s pro rata share
thereof.
ARTICLE V
Section 5.1. Quiet Enjoyment . Subject to the rights
of Lessor contained in Sections 17.2 and 17.3 and the
other terms of this Lease and the other Operative Agreements and so
long as no Lease Event of Default shall have occurred and be
continuing, Lessee shall peaceably and quietly have, hold and enjoy
each Property for the applicable Term, free of any claim or other
action by Lessor or anyone rightfully claiming by, through or under
Lessor (other than Lessee) with respect to any matters arising from
and after the applicable Basic Term Commencement Date.
ARTICLE VI
Section 6.1. Net Lease . This Lease shall constitute
a net lease. Lessee shall pay all operating expenses arising out of
the use, operation or occupancy of each Property. Any present or
future law to the contrary notwithstanding, this Lease shall not
terminate, nor shall Lessee be entitled to any abatement,
suspension, deferment, reduction, setoff, counterclaim, or defense
with respect to the Rent, nor shall the obligations of Lessee
hereunder be affected (except as expressly herein permitted and by
performance of the obligations in connection therewith) by reason
of: (a) any damage to or destruction of any Property or any
part thereof; (b) any taking of any Property or any part
thereof or interest therein by Condemnation or otherwise;
(c) any prohibition, limitation, restriction or prevention of
Lessee’s use, occupancy or enjoyment of any Property or any
part thereof, or any interference with such use, occupancy or
enjoyment by any Person or for any other reason; (d) any title
defect, Lien or any matter affecting title to any Property;
(e) any eviction by paramount title or otherwise; (f) any
default by Lessor hereunder; (g) any action for bankruptcy,
insolvency, reorganization, liquidation, dissolution or other
proceeding relating to or affecting the Agent, any Financing Party,
Lessor, Lessee or any Governmental Authority; (h) the
impossibility or illegality of performance by Lessor, Lessee or
both; (i) any action of any Governmental Authority or any
other Person; (j) Lessee’s acquisition of ownership of
all or part of any Property; (k) breach of any warranty or
representation with
respect to any Property or any Operative
Agreement; (l) any defect in the condition, quality or fitness
for use of any Property or any part thereof; or (m) any other
cause or circumstance whether similar or dissimilar to the
foregoing and whether or not Lessee shall have notice or knowledge
of any of the foregoing. The foregoing clause (j)
shall not prevent the termination of this Lease in accordance
with the terms hereof if the Lessee purchases all of the Properties
pursuant to Section 20.1 , or the termination of the
Lease with respect to an individual Property if the Lessee
purchases such Property pursuant to Section 20.1 . The
parties intend that the obligations of Lessee hereunder shall be
covenants, agreements and obligations that are separate and
independent from any obligations of Lessor hereunder and shall
continue unaffected unless such covenants, agreements and
obligations shall have been modified or terminated in accordance
with an express provision of this Lease. Lessor and Lessee
acknowledge and agree that the provisions of this
Section 6.1 have been specifically reviewed and subject
to negotiation.
Section 6.2. No Termination or Abatement . Lessee
shall remain obligated under this Lease in accordance with its
terms and shall not take any action to terminate, rescind or avoid
this Lease, notwithstanding any action for bankruptcy, insolvency,
reorganization, liquidation, dissolution, or other proceeding
affecting Lessor, any other Person or any Governmental Authority,
or any action with respect to this Lease or any Operative Agreement
which may be taken by any trustee, receiver or liquidator of
Lessor, any other Person or any Governmental Authority or by any
court with respect to Lessor, any other Person or any Governmental
Authority. Lessee hereby waives all right (a) to terminate or
surrender this Lease (except as permitted under the terms of the
Operative Agreements) or (b) to avail itself of any abatement,
suspension, deferment, reduction, setoff, counterclaim or defense
with respect to any Rent. Lessee shall remain obligated under this
Lease in accordance with its terms and Lessee hereby waives any and
all rights now or hereafter conferred by statute or otherwise to
modify or to avoid strict compliance with its obligations under
this Lease. Notwithstanding any such statute or otherwise, Lessee
shall be bound by all of the terms and conditions contained in this
Lease.
ARTICLE VII
Section 7.1. Ownership of the Properties .
(a) Lessor and Lessee intend that for federal and all state and
local income tax purposes and other tax purposes, for bankruptcy
purposes, creditor’s rights purposes, environmental law
purposes, for purposes of exercising remedies against the Lessee or
the Properties, and for all other legal purposes (A) this
Lease will be treated as a loan and financing arrangement and not a
true lease, (B) Lessee will be treated as the owner of the
Properties and will be entitled to all tax benefits ordinarily
available to owners of property similar to the Properties for such
tax purposes, and (C) all payments of Basic Rent shall be
deemed to be interest payments. Consistent with the foregoing,
Lessee intends to claim depreciation and cost recovery deductions
associated with the Property, and Lessor agrees not to take any
inconsistent position on its income tax returns. Neither Lessor,
the Agent nor any Financing Party makes any representation or
warranty with respect to the foregoing matters described in this
Section 7.1 and will assume no liability for the
Lessee’s accounting or tax treatment of this transaction.
(b) Lessor and Lessee further intend and agree
that, for the purpose of securing Lessee’s obligations
hereunder, (i) this Lease shall be deemed to be a security
agreement and financing statement within the meaning of Article 9
of the Uniform Commercial Code respecting each of the Properties to
the extent such is personal property and an irrevocable grant and
conveyance of a lien and mortgage on each of the Properties to the
extent such is real property; (ii) the acquisition of title
(or to the extent applicable, a leasehold interest) in each
Property referenced in Article II shall be deemed to be
(A) a grant by Lessee to Lessor of a lien on and security
interest in all of Lessee’s right, title and interest in and
to each Property and all proceeds (including without limitation
insurance proceeds) of any of the Property, whether in the form of
cash, investments, securities or other property, and (B) an
assignment by Lessee to Lessor of all rents, profits and income
produced by any of the Property; and (iii) notifications to
Persons holding such property, and acknowledgments, receipts or
confirmations from financial intermediaries, bankers or agents (as
applicable) of Lessee shall be deemed to have been given for the
purpose of perfecting such security interest under applicable law.
Lessor and Lessee shall promptly take such actions as may be
necessary or advisable in either party’s opinion (including
without limitation the filing of Uniform Commercial Code Financing
Statements or Uniform Commercial Code Fixture Filings) to ensure
that the lien and security interest in each Property will be deemed
to be a perfected lien and security interest of first priority
under applicable law and will be maintained as such throughout the
Term.
ARTICLE VIII
Section 8.1. Condition of the Properties . LESSEE
ACKNOWLEDGES AND AGREES THAT IT IS LEASING EACH PROPERTY "AS IS"
WITHOUT REPRESENTATION, WARRANTY OR COVENANT (EXPRESS OR IMPLIED)
BY LESSOR AND IN EACH CASE SUBJECT TO (A) THE EXISTING STATE
OF TITLE, (B) THE RIGHTS OF ANY PARTIES IN POSSESSION THEREOF
(IF ANY), (C) ANY STATE OF FACTS WHICH AN ACCURATE SURVEY OR
PHYSICAL INSPECTION MIGHT SHOW, (D) ALL APPLICABLE LEGAL
REQUIREMENTS AND (E) VIOLATIONS OF LEGAL REQUIREMENTS WHICH
MAY EXIST ON THE DATE OF THE APPLICABLE LEASE SUPPLEMENT OR THE
DATE HEREOF. NEITHER LESSOR NOR THE AGENT NOR ANY FINANCING PARTY
HAS MADE OR SHALL BE DEEMED TO HAVE MADE ANY REPRESENTATION,
WARRANTY OR COVENANT (EXPRESS OR IMPLIED) OR SHALL BE DEEMED TO
HAVE ANY LIABILITY WHATSOEVER AS TO THE TITLE, VALUE, HABITABILITY,
USE, CONDITION, DESIGN, OPERATION, MERCHANTABILITY OR FITNESS FOR
USE OF ANY PROPERTY (OR ANY PART THEREOF), OR ANY OTHER
REPRESENTATION, WARRANTY OR COVENANT WHATSOEVER, EXPRESS OR
IMPLIED, WITH RESPECT TO ANY PROPERTY (OR ANY PART THEREOF), AND
NEITHER LESSOR NOR THE AGENT NOR ANY FINANCING PARTY SHALL BE
LIABLE FOR ANY LATENT, HIDDEN, OR PATENT DEFECT THEREON OR THE
FAILURE OF ANY PROPERTY, OR ANY PART THEREOF, TO COMPLY WITH ANY
LEGAL REQUIREMENT. THE LESSEE HAS OR WILL HAVE BEEN AFFORDED FULL
OPPORTUNITY TO INSPECT EACH PROPERTY AND THE IMPROVEMENTS THEREON
(IF ANY), IS OR WILL BE (INSOFAR AS THE LESSOR, THE AGENT, EACH
FINANCING PARTY ARE CONCERNED) SATISFIED WITH THE
RESULTS OF ITS INSPECTIONS AND IS ENTERING INTO
THIS LEASE SOLELY ON THE BASIS OF THE RESULTS OF ITS OWN
INSPECTIONS, AND ALL RISKS INCIDENT TO THE MATTERS DESCRIBED IN THE
PRECEDING SENTENCE, AS BETWEEN THE LESSOR, THE AGENT, THE FINANCING
PARTIES, ON THE ONE HAND, AND THE LESSEE, ON THE OTHER HAND, ARE TO
BE BORNE BY LESSEE.
Section 8.2. Possession and Use of the Properties
.
(a) At all times during the Term with respect to each Property,
such Property shall be used by Lessee in the ordinary course of its
business. Lessee shall pay, or cause to be paid, all charges and
costs required in connection with the use of the Properties as
contemplated by this Lease. Lessee shall not commit or permit any
waste of the Properties or any part thereof.
(b) Lessee represents and warrants that its location (as defined
in Section 9-307 of the Uniform Commercial Code of any
applicable jurisdiction) is Florida, and Lessee will provide Lessor
with prior written notice of any change of such location. Regarding
each Property, Lessee represents and warrants that each Lease
Supplement correctly identifies the initial location of the related
Equipment and Improvements and contains an accurate legal
description for the related parcel of Land. Lessee has no other
places of business where the Equipment or Improvements will be
located other than those identified on the applicable Lease
Supplement; provided that, so long as no Lease Event of
Default shall have occurred and be continuing, it is understood
that the Lessee may relocate any Equipment (not constituting
fixtures) with an aggregate Property Cost of $1,000,000 or less
over the Term from any Property to another Property.
(c) Lessee will not attach or incorporate any item of Equipment
to or in any other item of equipment or personal property or to or
in any real property (except the Land identified in the Lease
Supplement in which such Equipment is also described) in a manner
that could give rise to the assertion of any Lien (other than a
Permitted Lien) on such item of Equipment by reason of such
attachment or the assertion of a claim that such item of Equipment
has become a fixture and is subject to a Lien in favor of a third
party that is prior to the Liens thereon created by the Operative
Agreements.
(d) Each Lease Supplement delivered under the terms of this
Lease contained, in regard to the relevant Property, an Equipment
Schedule that had a complete description of each item of Equipment,
an Improvement Schedule that had a complete description of each
Improvement and a legal description of the Land, to be leased
hereunder as of the date of such Lease Supplement. Such Equipment,
Improvements and Land have been accepted by Lessee for all purposes
of this Lease and are subject to this Lease.
(e) At all times during the Term with respect to each Property,
Lessee will comply with all obligations under, and (to the extent
no Event of Default has occurred and is continuing and provided
that such exercise will not impair the value of such Property)
shall be permitted to exercise all rights and remedies under, all
operation and easement agreements and related or similar agreements
applicable to such Property.
ARTICLE IX
Section 9.1. Compliance with Legal Requirements and
Insurance Requirements . Subject to the terms of Article
XIII relating to permitted contests, Lessee, at its sole cost
and expense, shall (i) comply with all Legal Requirements
(including without limitation all Environmental Laws), and all
Insurance Requirements relating to the Properties, including the
use, development, construction, operation, maintenance, repair,
refurbishment and restoration thereof, whether or not compliance
therewith shall require structural or extraordinary changes in the
Improvements or interfere with the use and enjoyment of the
Properties, and (ii) procure, maintain and comply with all
licenses, permits, orders, approvals, consents and other
authorizations required for the construction, use, maintenance and
operation of the Properties and for the use, development,
construction, operation, maintenance, repair and restoration of the
Improvements.
ARTICLE X
Section 10.1. Maintenance and Repair; Return .
(a) Lessee, at its sole cost and expense, shall maintain each
Property in good condition, repair and working order (ordinary wear
and tear excepted) and make all necessary repairs thereto, of every
kind and nature whatsoever, whether interior or exterior, ordinary
or extraordinary, structural or nonstructural, or foreseen or
unforeseen, in each case as required by all Legal Requirements,
Insurance Requirements, and manufacturer’s specifications and
standards and on a basis consistent with the operation and
maintenance of properties or equipment comparable in type and
function to the applicable Property and in compliance with standard
industry practice, subject, however, to the provisions of
Article XV with respect to Condemnation and Casualty.
(b) Lessee shall not move or relocate any component of any
Property beyond the boundaries of the Land described in the
applicable Lease Supplement without Lessor’s prior written
consent, which consent shall not be unreasonably withheld or
delayed; provided that it is understood that the Lessee may
relocate Equipment (not constituting fixtures) with an aggregate
Property Cost of $1,000,000 or less over the Term from any Property
to another Property.
(c) If any material component of any Property becomes worn out,
lost, destroyed, damaged beyond repair or otherwise permanently
rendered unfit for use, Lessee, at its own expense, will within a
reasonable time replace such component with a replacement component
which is free and clear of all Liens (other than Permitted Liens)
and has a value, utility and useful life at least equal to the
component replaced. All components which are added to any Property
(other than Severable Improvements not financed by Fundings) shall
immediately become the property of, and title thereto shall vest
in, Lessor, and shall be deemed incorporated in such Property and
subject to the terms of this Lease as if originally leased
hereunder. Lessee may remove, without the Lessor’s consent,
any Severable Improvements that were not financed by Fundings so
long as Lessee (at its own expense) repairs any damage to the
Property as the result of such removal in accordance with the terms
of this Section 10.1 .
(d) Upon reasonable advance notice, Lessor and
its agents shall have the right to inspect each Property and all
maintenance records with respect thereto at any reasonable time
during normal business hours but shall not materially disrupt the
business of Lessee and shall follow all security requirements and
visitor’s rules.
(e) Lessor or the Agent (at Lessee’s sole expense) may
cause to be prepared (at Lessee’s sole expense) any
additional Appraisals (or reappraisals) as Lessor or the Agent may
deem appropriate (i) if a Lease Event of Default or a Guaranty
Event of Default has occurred and is continuing, or (ii) if
any one of Lessor, the Agent or, any Financing Party is required
pursuant to any applicable Legal Requirement to obtain such an
Appraisal (or reappraisal).
(f) Lessor shall under no circumstances be required to build any
improvements on any Property, make any repairs, replacements,
alterations or renewals of any nature or description to any
Property, make any expenditure whatsoever in connection with this
Lease or maintain any Property in any way. Lessor shall not be
required to maintain, repair or rebuild all or any part of any
Property, and Lessee waives the right to (i) require Lessor to
maintain, repair, or rebuild all or any part of any Property
(unless such repairs are needed to cure damage to a Property caused
by the gross negligence or willful misconduct of the Lessor), or
(ii) make repairs at the expense of Lessor pursuant to any
Legal Requirement, Insurance Requirement, contract, agreement,
covenants, condition or restriction at any time in effect.
(g) Lessee shall, upon the expiration of the Term or earlier
termination of this Lease with respect to a Property, if Lessee
shall not have exercised its Purchase Option with respect to such
Property, surrender such Property to Lessor, or the third party
purchaser, as the case may be, subject to Lessee’s
obligations under this Lease (including without limitation
Sections 9.1 , 10.1(a)-(f) , 10.2 ,
11.1 , 12.1 , 15.1 , 22.1 and
23.1 ).
Section 10.2. Environmental Inspection . If Lessee
has given notice pursuant to Section 20.1(b) of its
election to remarket the Properties pursuant to
Section 22.1 , not more than one hundred twenty
(120) days nor less than sixty (60) days prior to the
Expiration Date, Lessee shall, if requested by Lessor and the
Agent, at Lessee’s sole cost and expense, provide to Lessor
and the Agent a report by a reputable environmental consultant
selected by Lessee, which report shall be in form and substance
reasonably satisfactory to Lessor and the Agent and shall include
without limitation a "Phase I" environmental report (or update of a
prior "Phase I" report that was previously delivered to the Lessor
and the Agent) on each of the Properties. If the report delivered
pursuant to the preceding sentence recommends that a "Phase II"
report or other supplemental report be obtained, the Lessee shall,
at its own cost and expense, not less than thirty (30) days
prior to the Expiration Date, provide to Lessor and the Agent such
"Phase II" or other report, in form and substance reasonably
satisfactory to Lessor and the Agent. If Lessee fails to provide
such Phase I, Phase II or other supplemental reports with respect
to any Property within the time periods required by this
Section 10.2 , or if such report or reports are not
satisfactory in scope or content to the Agent or the Lessor (in
their sole discretion), then notwithstanding any other provision of
this Lease, Lessor may require Lessee to purchase all of the
Properties on the Expiration Date for the Termination Value
thereof, plus all Rent due and payable, and all other amounts due
and owing under any Operative Agreement.
ARTICLE XI
Section 11.1. Modifications . Lessee at its sole
cost and expense, at any time and from time to time without the
consent of Lessor may make alterations, renovations, improvements
and additions to any Property or any part thereof and substitutions
and replacements therefor (collectively, " Modifications ")
(and shall make any Modification required by applicable Legal
Requirements or by any Governmental Authority); provided ,
that: (i) except for any Modification required to be made
pursuant to a Legal Requirement, no Modification shall materially
impair the value, utility or useful life of any Property from that
which existed immediately prior to such Modification; (ii) the
Modification shall be done expeditiously and in a good and
workmanlike manner; (iii) Lessee shall comply with all Legal
Requirements (including all Environmental Laws) and Insurance
Requirements applicable to the Modification, including without
limitation the obtaining of all permits and certificates of
occupancy, and the structural integrity of any Property shall not
be adversely affected; (iv) to the extent required by
Section 14.2(a) , Lessee shall maintain builders’
risk insurance at all times when a Modification is in progress;
(v) subject to the terms of Article XIII relating to
permitted contests, Lessee shall pay all costs and expenses and
discharge any Liens (other than Permitted Liens) arising with
respect to the Modification; (vi) such Modification shall
comply with the requirements of this Lease (including without
limitation Sections 8.2 and 10.1 ); and (vii) no
Improvements shall be demolished unless (x) such Improvement
is a Severable Improvement and (y) Lessee shall finance the
proposed Modification outside of this lease facility. Modifications
that are Severable Improvements shall become property of the
Lessee, and title to such Modifications shall rest with the Lessee.
Except as set forth in the immediately preceding sentence, title to
each Modification shall immediately vest in Lessor, and each such
Modification shall be subject to this Lease.
ARTICLE XII
Section 12.1. Warranty of Title .
(a) Lessee agrees that, except as otherwise provided herein and
subject to the terms of Article XIII relating to permitted
contests, Lessee shall not directly or indirectly create or allow
to remain, and shall promptly discharge at its sole cost and
expense, (i) any Lien, defect, attachment, levy, title
retention agreement or claim upon any Property or any Modifications
or (ii) any Lien, attachment, levy or claim with respect to
the Rent or with respect to any amounts held by the Agent pursuant
to the Credit Agreement, in each case other than Permitted Liens
and Lessor Liens. Lessee shall promptly notify Lessor in the event
it receives actual knowledge that a Lien other than a Permitted
Lien or Lessor Lien has occurred with respect to a Property, and
Lessee represents and warrants to, and covenants with, Lessor that
the Liens in favor of the Lessor created by the Operative
Agreements are first priority perfected Liens subject only to
Permitted Liens.
(b) Nothing contained in this Lease shall be construed as
constituting the consent or request of Lessor, expressed or
implied, to or for the performance by any contractor, mechanic,
laborer, materialman, supplier or vendor of any labor or services
or for the furnishing of any materials for any construction,
alteration, addition, repair or demolition of or to any Property or
any part thereof. NOTICE IS HEREBY GIVEN
THAT LESSOR IS NOT AND SHALL NOT BE LIABLE FOR
ANY LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO
LESSEE, OR TO ANYONE HOLDING A PROPERTY OR ANY PART THEREOF THROUGH
OR UNDER LESSEE, AND THAT NO MECHANIC’S OR OTHER LIENS FOR
ANY SUCH LABOR, SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT THE
INTEREST OF LESSOR IN AND TO ANY PROPERTY.
ARTICLE XIII
Section 13.1. Permitted Contests Other Than in Respect
of Indemnities . Except to the extent otherwise provided for in
Section 10 of the Participation Agreement, Lessee, on its own
or on Lessor’s behalf but at Lessee’s sole cost and
expense, may contest, by appropriate administrative or judicial
proceedings conducted in good faith and with due diligence, the
amount, validity or application, in whole or in part, of any Legal
Requirement, or utility charges payable pursuant to
Section 4.1 or any Lien, attachment, levy, encumbrance
or encroachment, and Lessor agrees not to pay, settle or otherwise
compromise any such item, provided that (a) the
commencement and continuation of such proceedings shall suspend the
collection of any such contested amount from, and suspend the
enforcement thereof against, the applicable Properties, Lessor, the
Agent and each Financing Party; (b) there shall not be imposed
a Lien (other than Permitted Liens) on any Property and no part of
any Property nor any Rent shall be in any danger of being sold,
forfeited, lost or deferred; (c) at no time during the
permitted contest shall there be a risk of the imposition of
criminal liability or material civil liability on Lessor, the Agent
or any Financing Party for failure to comply therewith; and
(d) in the event that, at any time, there shall be a material
risk of extending the application of such item beyond the end of
the Term, then Lessee shall deliver to Lessor an Officer’s
Certificate certifying as to the matters set forth in clauses
(a) , (b) and (c) of this
Section 13.1 . Lessor, at Lessee’s sole cost and
expense, shall execute and deliver to Lessee such authorizations
and other documents as may reasonably be required in connection
with any such contest and, if reasonably requested by Lessee, shall
join as a party therein at Lessee’s sole cost and
expense.
ARTICLE XIV
Section 14.1. Public Liability and Workers’
Compensation Insurance . During the Term of each Property,
Lessee shall procure and carry, at Lessee’s sole cost and
expense, commercial general liability insurance for claims for
injuries or death sustained by persons or damage to property while
on the Properties or the premises where the Equipment is located
and such other public liability coverages as are then customarily
carried by similarly situated companies conducting business similar
to that conducted by Lessee. Such insurance shall be on terms and
in amounts (and with deductibles and limitations on coverage) that
are (a) reasonably satisfactory to Lessor and the Agent and
(b) no less favorable than insurance maintained by Lessee with
respect to similar properties and equipment that it owns and are
then carried by similarly situated companies conducting business
similar to that conducted by Lessee. The policies shall be endorsed
to name Lessor, the Agent and the Financing Parties as additional
insureds. The policies shall also specifically provide that such
policies shall be considered primary insurance which shall apply to
any loss or claim before any contribution by any insurance which
Lessor, the Agent or any Financing Party may have in force. Lessee
shall, in the operation of the Properties, comply with the
applicable workers’ compensation laws and protect Lessor, the
Agent and each Financing Party against any liability under such
laws.
Section 14.2. Hazard and Other
Insurance .
(a) During the Term for each Property, Lessee shall keep, or
cause to be kept, such Property insured against loss or damage by
fire and all other risks, and shall maintain builders’ risk
insurance during construction of any Improvements or Modifications,
in each case in amounts not less than the replacement value from
time to time of such Property and on terms that (i) are no
less favorable than insurance covering other similar properties
owned by Lessee and (ii) are then carried by similarly
situated companies conducting business similar to that conducted by
Lessee. The policies shall be endorsed to name Lessor and the Agent
(for itself and on behalf of the Financing Parties), to the extent
of their respective interests, as additional insureds and loss
payees; provided , that so long as no Lease Event of Default
has occurred and is continuing, any loss payable under the
insurance policies required by this Section will be paid to
Lessee.
(b) If during the Term with respect to a Property the area in
which such Property is located is designated a "flood-prone" area
pursuant to the Flood Disaster Protection Act of 1973, or any
amendments or supplements thereto, then Lessee shall comply with
the National Flood Insurance Program as set forth in the Flood
Disaster Protection Act of 1973. In addition, Lessee will fully
comply with the requirements of the National Flood Insurance Act of
1968 and the Flood Disaster Protection Act of 1973, as each may be
amended from time to time, and with any other Legal Requirement
concerning flood insurance to the extent that it may apply to any
such Property.
Section 14.3. Coverage .
(a) As of the date of this Lease and annually thereafter, Lessee
shall furnish Lessor and the Agent with certificates prepared by
the insurers or insurance broker of Lessee showing the insurance
required under Sections 14.1 and 14.2 to be in
effect, naming (except with respect to workers’ compensation
insurance) Lessor, the Agent and each Financing Party as an
additional insured on all insurance described in
Section 14.1 , and the Agent (for itself and on behalf
of the Financing Parties) as additional insured and loss payee on
all insurance described in Section 14.2 , and in each
case evidencing the other requirements of this Article XIV .
All such insurance shall be at the cost and expense of Lessee and
provided by nationally recognized, financially sound insurance
companies with an A.M. Best rating of not less than A- (A minus).
Such certificates shall include a provision for thirty
(30) days’ advance written notice by the insurer to
Lessor and the Agent in the event of cancellation or material
alteration of such insurance. If a Lease Event of Default has
occurred and is continuing and Lessor so requests, Lessee shall
deliver to Lessor copies of all insurance policies required by
Sections 14.1 and 14.2 .
(b) Lessee agrees that any insurance policy required by
Sections 14.1 , 14.2(a) and 14.2(b) shall
include an appropriate provision that in respect of the interests
of each additional insured, such policy will not be invalidated
should Lessee waive any or all rights of recovery against any party
for losses covered by such policy or due to any
breach of warranty, fraud, action, inaction or
misrepresentation by Lessee or any Person acting on behalf of
Lessee. Lessee hereby waives any and all such rights against the
Lessor, the Agent and the Financing Parties to the extent of
payments made to any such Person under any such policy.
(c) Neither Lessor nor Lessee shall carry separate insurance
concurrent in kind or form or contributing in the event of loss
with any insurance required under this Article XIV ,
except that Lessor may carry separate liability insurance at
Lessor’s sole cost so long as (i) Lessee’s
insurance is designated as primary and in no event excess or
contributory to any insurance Lessor may have in force which would
apply to a loss covered under Lessee’s policy and
(ii) each such insurance policy will not cause Lessee’s
insurance required under this Article XIV to be subject to a
coinsurance exception of any kind.
(d) Lessee shall pay as they become due all premiums for the
insurance required by Section 14.1 and
Section 14.2 , shall renew or replace each policy prior
to the expiration date thereof, and shall otherwise maintain the
coverage required by such Sections without any lapse in
coverage.
Section 14.4. Additional Insurance Requirements .
Without limiting the generality of Sections 14.1 through
14.3 above or any other provision of any Operative
Agreement, Lessee shall obtain any and all additional insurance
policies with regard to the Properties or otherwise with respect to
the transactions contemplated by the Operative Agreements, as
requested from time to time by Lessor.
ARTICLE XV
Section 15.1. Casualty and Condemnation .
(a) Subject to the provisions of this Article XV and
Article XVI (in the event Lessee delivers, or is obligated
to deliver, a Termination Notice), and prior to the occurrence and
continuation of a Lease Default or Lease Event of Default, Lessee
shall be entitled to receive (and Lessor hereby irrevocably assigns
to Lessee all of Lessor’s right, title and interest in) any
award, compensation or insurance proceeds under Sections
14.2(a) or (b) to which Lessee or Lessor may
become entitled by reason of their respective interests in a
Property (i) if all or a portion of such Property is damaged
or destroyed in whole or in part by a Casualty or (ii) if the
use, access, occupancy, easement rights or title to such Property
or any part thereof is the subject of a Condemnation;
provided , however , if a Lease Default or Lease
Event of Default shall have occurred and be continuing such award,
compensation or insurance proceeds shall be paid directly to Lessor
or, if received by Lessee, shall be held in trust for Lessor, and
shall be paid over by Lessee to Lessor and held in accordance with
the terms of this paragraph (a) . All amounts held by Lessor
hereunder on account of any awar
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