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HomeMy WebLinkAbout98-02059 Q 1'1 ~ ~i i_- , ,il I J / ;//, ~, ! ~I I ~I "I . I ~j j 1 ... - 4, Attached hereto as Exhibit A Is n true nnd correct copy of the original Lease authorizing confession of judgment ns more specifically set forth in Article XXXI, Section 3\1\, (pnge 32), 5. The Lease was duly execuled by Defendant. who agreed 10 be legnlly bound by the terms of said Lense, 6. The Lease provides that Defendant shall pay monthly rent and Defendnnt's pro rata share of insurance. taxes and operating costs. as well as an annual percentage rent equal to seven percent (7%) of gross receipts, less the minimum nnnual rent paid for such period, as well as all other chnrges accruing under the Lease or idcntified as additional rent on the first day of each calendar month during the term of the Lense, 7, Despite repeated. numerous requests for rent. Defendant has willfully failed to pay base rent, additional rent. late payment charges or any other charges payable to Plaintiff under the Lease for the subject premises, 8, Defendant's failure to pay rent as per the terms of the Lease constitutes a material breach of the Lease. 9, The sum presently due and owing under the Lease is Ninety-Five Thousand Six Hundred Four Dollars and Forty-Four Cents ($95,604.44). \ O. Judgment has not becn entered in any jurisdiction on the attached instrument. \\, The attached instrument has not been assigned. t 2. The Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. -2- WHERBFOR ~ pJ""i ff e""p H IlJ Sh'Wi". e,,,,, A'''''Jot" "'''''If ," Y ""''''''', 'hi, H""""hk e,,,,, '"'" ;"d,,,,", hy ',"f",.i"" ""i,,, o,f"d"" f" "''''''''Y d,,,,,,,,, .. "~Ori,.., hy '" '''''h", i,...",,,,,, i, ~, """'" ofNi""'Y.Fi" "''''''''' 81, H"d"" Fo" I l' Do",,, "'d I',"y. F,,, e",.. 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(l- :'I ~ ~O ~\.: ~ ~.Jo0 't ~ ,>0, ~ ~O ,>0) ~ ~~ ~O O~ ~~ ~ ~~ 'I> 'tr~ '<:> 400 <t;~ ~'I> 400 ~ 400 .... <<" . t,:' ... ... . - LEASE AGRlEMlNT ARTICLB I , PAR'1'IES . 8.... ~ THIS LlASE AGRlEMlNT, Illade this <31' day of , 1'87, by and between KRAVITZ PROPERTIES, INC., a Pe nay vania corporation (hereinafter referred to as "Agent"), as ag nt for CAMP HILL SHOPPING CENTER ASSOCIATES, a partnership (hereinafter refetred to al "Landlord") and Barry D. I,eader. individually and trading a. Raintree Gallel'y , (hereinafter referred to aa "Tenant"), whose address is 122 W. High Street, Elizabethtown. PA 17022 and whose telllphone number is (717) 367-2990 . WIT N E SSE T H; Landlord and Tenant covenant and agree as follows; ARTICLE II DEPINED TERMS SECTION 201. The fOllowing terms shall have the following meaningsl A. Premises and Shopping C~nterl Landlord leases to Tenant and Tenant leases from Landlord, for the term and upon the terms and conditions set forth in this Lease, the store premises situate and known as Building Section No. F , Store No. 4 and being measured and descr ibed approximately by the outside bUilding lines, as follows; Front: 29 feet 0 inches (irregular) feet 0 inches (irregular) Depth; 54 Total Ar\!a :1.078 square feet locate~ approximately as outlined upon Exhibit "A" attached hereto, the same being a proposed site plan of a Shopping Center (the "Shopping Center") erected or to be erected upon the premises described thereon, together with the right to the nonexclusive use, in common with others, of all such automobile parking areas, driveways, footways and other facilities designed for common use, as may be installed by Landlord as hereinafter provided, and of such other and further facilities as may be provided or designated from time to time by Landlord for common use, subject however to the terms and conditions of this Lease and to reasonable rules and regulations for the use thereOf, as prescribed from time to time by Landlord. The purpose of the dimensions set forth above and the plan attached hereto as Exhibit "A" is to show the approximate size and location of the demised premises. All dimensions are approximate only. Landlord reserves the right to change the Size, layout and location of any bUildings, improvements, or common areas and facilities ahown on Exhibit "A" aa well aa reduce or expand the aizll of the Shopping Center. B. Terml The term of thh Lease ahall be for five (5 ) yean aa further provided in Article V below. .1. . " . . C. Permitted U.el The ..le, at retail of handcrafted marchandil' by American arti.tl, primarily consisting of Ind/or craf~ftd from, but not limited to the following: basketl, pottery, ruga/fiber/clothina, wood, paper, glau, iron/bronze/brau,-" 'fbr n 'OCnel:' purpose, leather, acrylic, and jewelry a., 0 D, Minimum Annual Rent: Years Olle (1) t)arQ1lgb $ 12,936.00 Years two (2) tbr()1t9" $ 15,092.00 Years three (3) UUQ\I';~ $ 17.2/18.00 Years four (4 ) through Bve (5) $ 19,404.00 ......,U \Iu'L'~'311 f E, Annual Percentage Rent: A sum equal to seven percent I 7 .) of gross receipts, less the minimum annual rent paid for such period. F. Security Deposit: $1,437,34 G. Initial Annual Common Area Maintenance Charge: $ 2,156,00 H. Initial Annual Merchants' Association Dues: $ 539.00 I. Initial Annual Real Estate Tax Charge: $ 539.00 J. Initial Annual Insurance Charge: $1.078.00 K. Tenant Trade Name: Raintree Gallery L. Estimated Date of Delivery of Possession I August 25 , 1987. ARTICLE: III POSSESSION Section 301, Landlord warrants that it is the owner of a leasehold estate in and to the tract of land shown on Exhibit "A" and agrees that it will develop upon said tract commercial buildings with parking area and improvements generally in accordance with said Plan, and that, subject to any delays caused by strikes, weather conditions, governmental restrictions, scarcity of labor or materials, or for other reasons beyond its control, it will proceed with due diligence to complete said project. Landlord has erected and installed or will erect and install the improvements upon the demised premises substantially as set forth upon Exhibit "B" attached hereto. Tenan~ shall fully comply with all of the terms, covenants and conditions of said Exhibit "S", whether or not Tenant i. currently in possession of the demised premises pursuant to an existing lease. haUIIl )OJ. '111'''\ IIIal1 h'~. \hl I,.ien, i. l'IlI'r~l.i.1l If the A_.I,_A p.?~1T9r ir A~' .~.,l.\.. ~r \he .... ~hish il liNty ., 2 ... e . . ; II it. ~l. r.m.dy iLlndlord not to b. lilbl. 0 T.nlnt oth.r p.r.on, fir. or corpor.tion for .ny 10.. or d . r..ulting th.r.from), of c.nc.lling thi. L.... ving writt.n notic. th.r.of to L.ndlord within f .n (15) d.y. .ft.r ..id d.t., provid.d, th.t if .ai lure to compl.t. i. c.u..d br .trik.., w..th.r conditi , gov.rnm.nt.l r..trict on., .c.reity of labo .at.rial, or oth.r cau.. b.yond L.ndlord". control d completion d.t. .hall be .xt.nd.d for. period .1 to the period of .uch de1.y. If, for Iny r...cn wh .ver the L.ndlord doe. not commence 'con.truction he demi..d pr..i.e. by September 1, 1984, the L.ndlord 1 have the option without liability of c.ncelling thi. se by giving .imil.r writt.n notic. to Tenant within con.truction of the d.mi..d premi.e. unle.. .nd until fi cing .cceptabl. to L.ndlord i. obtained. Should .uch finan 9 not be obt.in.d on or before Augu.t 1, 1984r Landlord ma 0 notify Tenant In writing, .nd cancel this Lea.e. If Land dean obtain financing or sati.fy the condition. of fi cing only upon the ba.is of modification. of the terms a. provisions of this Lease, Landlord shall have the right to ncel this Lease if Tenant refuses to approve in writing an uch modifications within thirty (30) days after Landlord's quest therefor which request .ay not be made after delivery possession. Tenant .hall not unreasonably withhold it. roval of the aforesaid aodific.tions. Within ten (10) day. of receipt of a request therefor from Landlord, Tenant a e8 to forward to Landlord a financial stat.ment of Tenant a lor, if applicable, Tenant's guarantor or surety, in form tisfactory to Landlord certified by an independent certified ublic accountant acceptable to Landlord. If the financi or credit rating of Tenant and/or, if appli cable, Tenant: ~ uarantor or lure ty 1$ not acceptable for the purpoaes of tpe aforesaid financing, Landlord shall have the right to c eel this Lease if Tenant refuses to execute or supply uch additional assurances and/or guarantors or .ureties as ndlord shall state as necessary for .uch acceptance wi in thirty (30) days after Landlord'. r.quest therefor wh requ..t may not b. made after delivery of po.....io. If any .uch right to canc.l i. exercised, this Lease 8 11 thereupon be null and void, each of the parties .hall e released from any other or 'further liabil ity, aflY see ity deposit made hereunder shall be refunded to Tenant w out interest and neither party shall have any liability to and premises have been completed in accordance with approved plans Section 303. and specifications as previously agreed upon by Tenant and Land:ord If Landlord is to perform any work in the demised premises pursuant to Exhibit "8", completion of the demised remise. shall be certified to Tenant in writing by Landlord's nspect ng arc teet, and the delivery of such certificate of completion to TenBnt .hall constitute delivery of the demised premises hereunder. Tenant, its agents, 's~rvants Bnd contractors, prior to the delivery of possession of the demised premiaea, shall have the right to enter upon the demised premises, for the purpose of taking measurements therein, but for no other purpo.e, provided r however,' that .uch entry ahall. 'e880nably.DQUinterfere with or obstruct the progress of the work being done by Landlord. .3- lonabl; ,., ~ . . du. to any reaeon not the faUlt of Tenant . SECTION 401. ARTICLE IV USE; "otton 304. Upon rec.lvlng PO~....lon ot the de.l.ed pr.ml... fr~ Landlord, Ten.nt .hall with due dl1lgenc. prooeed to In.tall 'uOh ttxtUf.. .nd .qutp.ent .nd to f.rtor. .uoh oth.r Work .. 'h.ll b. requtr.d pur'U.nt to Ixhib t -8- or n.c....ry Ur .ppropri.tt tn ord.r to pr'P.r. the d.mt'.d pr..t... tor the op.ntng of bu.tn.... In the event th.t T.n.nt do.. not open the d..ta'd pr.mt.e. tor the Conduct ot tt. bu.tne.. on or b.tor. the Rent.l commence.ent D.te (.. d.tined tn S.ction SOl · OW , L.ndlord, tn addition to .11 oth'r r'.'di.. h.reunder, ...11 .... ... ...1..., I.) '.r.I..'I.. '.1. L.... by .1.1.. Ten.nt wrltten notio. ot auoh t.r.ination, wh.reupon this L.... .h.ll b. t.rminat.d unle.. by the date ot the giving ot 'aid written notioe, T.nant .h<<ll have Opened the demi8ed pr.mi'e. tor the conduct ot it. bu.ine.., or (b, of COllecting trom T.nant not only the minimu. rent h.r.tn provtded, but MI.o '..1.1...1 r... .. ... r... ., ... 11.', ..r.... ., 'h. '1.1... monthly r.nt.l per d.y for '.ch and Iv.ry d.te from the a.nt.l C........... D... ..'11 'h. ',y ...... ......... .. .. b..I.... I. ... ...1... pr..I.... ...... '.r... no, .. ........ '.y Work upon .ny portlon ot the demtaed premiaes until L.ndlord hee ',pr.... "''''.''. plo.. eo.. 'p,." I.. tI... I. .r it,.. ~nd Tenant has otherwise complied with the requirements set torth in Exhibit -S-. Any change. in 8aid plans or specifications mU8t be '1m11.rl~ apProved by Landlo~d. which approval shall not be unreason_bl. SICTIOH 305. Withheld or delayed . Unless otherwise 800ner terminated pursuant to tt. ter.s, 'any existing lease pursuant to which Tenant i. the tenant for space in the ShOPPing Center shall terminate on "."1 C.........., D... (.. ""." I. 'r'I.I. V b.I..,. 'I'h th. .ame force and eff.ct as if such date wer. Set fortn th.r.in as th. expiration dat, of said l.ase. Tenant ahall Continually USe and occupy the demised premises sOl.ly for the P.rmitted Use under the name or style of Tenarlt'. Trade Hame alld for no other purpose. Tenant acknOwledgos that Landlord's Obtainin9 a fair ... "."'bl. r"'.1 I. ......... 'PO. ........ ......'r...., .11 ., ," b..'.... "'.r.. V"h'. .h. "..r'ph'e.1 'r.. I. .hleh 'h. Sh.PP1., C'.'.r .. I...t.. .pO. ........ b..l.... ., ... ...,... pr'.l... .. .. .. ...1.1.. ........ Gr... S.I.., ... ...... '.r'h.r ......1..... 'h., '.y '.'I.I,y by ....., VI'h.. .... ....r.phl..1 .r.. I. ...r"I.. .r P.r.I.I".I.. .. the operatlng of . .imllar or cOmp.tlng bUlin.l. mu.t .""'.rlly h... .. "'.r.. ."... o. 'h. '.1... .f .,... S.I.. by...... ., 'h. ...l..d pr...... ., 'h. ""1.... ., L"'I", and wl11 d.prive Landlord of the fair rental to which the p.r'I.. '.r.... A'..'dl'.ly. I. .h. ..... .... '.rl.. ... '.r. ., 'hl. L.... .I".r ...... .r ........ ....,...... .r '.y ..r... .r '."'y "..r.II.' by...... .r ."'r.lll.. ....... .r ....r.II.' by 'h. .... ..,... .r '.'I'y .r p.r.... .r '.'1'1.. v.. ".'r.1 ....... .Ir'..ly .r 1..lr'..ly ..... .p.r.,... I. '"I.y.. I.. 'Ireo.. .r '.r... '.y .'h'r Pl... ., b..l..... ... ..... .r ...II.r '.. .r ......1.1.. vl.h. ........ bu.l.... .. . 4 . . " . . .et forth hereiro, vithin a radiu. of five (5) mil.. from the out.ide bOUn~~!f at the Shopping Center, which distance Ihall be ....ur.d ~a . .traight line without r.f.rence to ro.d mile.g., then the Gro.s Sales of .ny such other plac. of bu.in... shall b. includ.d in the Gross Sal.. mad. from the demi.ed pr.mis.s to d.t.rmine the Perc.nt.ge R.nt due und.r thi. Le.s., .s fully .s though such Gross Sales had actually b..n ..d. from the d.mi..d premises. In the .vent Landlord 10 electl, III of the provisionl of Article VI h.reof shall be applicable to the Grols Sal.s of, and all the boo~s ana records pertaining to, luch competing Itore, provided, however, the for.going geographic limitation shall not be applicable to any .xisting location of Tenant or any .uch other place of business which is operated in a regional shopping center directly or indirectly owned in whole or in part on the date hereof by Landlord or a principal of Landlord. SECTION 402. conunerc1all.y profitable Tenant shllll operate all of the demised premises during the entire term of this Lease with due dili ence and efficiency .~ as to produce the maximum gross rece p s w lC may be produced by .uch manner of operation, unless prevented from doing 80 by causes beyond Tenant's control. Subject to inability by reason of strikes or labor disputes or unavailability of goods or other reasons beyond Tenant's control, Tenant shall carry at all times in the demised premises a stock of merchandise of such size, character and quality as shall be reasonably designed to produce the maximum return to Landlord and Tenant. Tenant shall conduct its business in the demised premises during the regular customary days and hours for such business in the Shopping Center ared and will keep open for business from 9:30 A.M. until 9:30 P.M. every day (i~cluding, at Landlord's request/ Sunday) and during the same day., nights and hours as the majority of the chain Itores and department store or stores in the Shopping Center. ARTICLE V TERM and subject to Tenant's acceptance of such delivery of possession. SECTION 501. The term of this Lease shall commence on the date when Landlord shall deliver possession of the d mised remiSes to Tenant, as provided in Article III hereofr an s a en (unless sooner terminated as hereinafter provided) at Midnight on the date of the expiration of the full Term from the first day of the calendar month next lucceeding the WRental Commencement DateW, as defined in Article VI hereof, without the necessity of any notice from either party to the other to terminate the same, and Tenant hereby waives notice to vacate the premises and agrees that Landlord shall be entitled to the benefit of all provisions of law respecting summa.y recovery of possession from a tenant holding over to the same extent as if statutory notice had been given. Tenant's obligations with respect to accrued minimum, percentage or additional rent shall survive the expiration or earlier termination of this Lease. If requested by Landlord, Tenant hereto ~grees to execute, within thirty (30) days after the Rental Commencement Date, a supplement to this Lease, in the form attached hereto as , Supplement 1, confirming the Commencement Oate/ the Rental Commencement Date and expiration date and stating that this Le..e 11 in full forc. and .ffect. Entry upon the de.niled - 5 - .., " ~ ; ; . pre.b.. by Tenant prior to the aentll COlIIIencea.nt DaU Ihlll be lubj.ct to all of the tera., cov.nant. .nd condition. of thtl L.... except for alniau. and percentag_ rent, Tenant'. .han of real ..tate tax.., COMOn ar.. COltl, in.uranc. charge. and Merchantl' A..ooiation dUI', ARTICLE VI RENT IBCTION '01. Tenant Ihall pay to Landlord the .inimum ~nnu.1 rent in the .UI. let forth in Stctlon 20lDr payable in advance in equal ~nth1y In.ta1l.ent. on the fir.t day of each calend~r aonth during the tee. h.reof, wi thout prior de.anCl therefor. Such ainlau. rent .hall COl\llllnc. to accrue either (1) on the date when Tenant .hall open the de.t.ed pre.ile. for bUline'l, or (11) on the dtte which I. forty-five (45) daYI after the Landlord haa delivered pollellion of .aid pre.it.. to the Tenant, whichever date i. .arller, ..id date being herein lometimes referred to as the aRental Commenc.ment Date.~ The first full month's minimum rent and added chargts (as defined in Section 3102 below) Ihall be paid upon execution of this Lease. The next rental payment date her.under Ihall be the firlt day of the firlt calendar lonth following the Rental C~.nce.tnt Date and Ihall include the pro-rated amount of rent and added chargel applicable to the period frol the Rental Commenceaent Date to luch rental pa~.nt dat.. SECTION 602. For .ach lease year or portion thereof during the term hereof, Tenant Ihall pay, in addition to minimum rent, percentage rent ~~ I,"t forth in Section 20lE. Anything herein to the contrary notwithstanding, there Ihall be no abatement, apportionment or suspension of the perclntage rent payable hereund.r. SECTION 603. Th. firet lease year shall b.gin on the Rental Commence~ent Date and Ihall .xtend for one (1) full eai.ndar y.ar. Thereafter each luse year Ihall commence on the day following the expiration of the preceding lease year and .hlll end at the expiration of twelve (12) calendlr monthl thereafter . SECTION 604. iifteen (15) Within teA (1~) dlYI after the end of elch calendar lonth during the tel" of thi. Leale, Tenlnt Ihall lubmit to Landlord In accurate, unauditld, written .tatement ligned by Tenant on itl behalf by a duly authorized officer or representative, Iho~in9 the full amount of Tenant's gross receipts in the demised pr.misee during the preceding calendar aonth. With Ilch quartlrly .tat.ment, Tlnant Ihall pay to Landlord the percentage rent, if .nYr accrued .nd payable with relpect to the preceding quarterly period. . IBCTION 605. Within forty-five (45) d.y. aft.r the end of e.ch 1.... y.ar, cO".ncin9 with the firlt 1.... y..r, T.nant Ihall - 6 - " ~ . .ubmit to Landlord a complete statement oertified by ~ '1~.epeRd'R' a.r'I.I.. publio acoountant acceptable to Landl~~d and Ml.o oertified by Tenant or on its behalf by a duly authorized officer or representative, showing aocurately and in suoh detail as rea&onably required by Landlord the full amount of Tenant's gross receipts in the demised premises during the immediately preceding lease year. At the same time Tenant .hall pay to Landlord the full balance of peroentage rent payable for said lease year, if any. Any exces. of percent1ge rental. that T.nant may have paid for such lease year ahall be refunded promptly by Landlord to Tenant. . SECTION 606. The term "gross receipts- as used herein is hereby defined to mean gross receipts of Tenant and of all licens3ls, concessionair~s and tenants of Tenant, from all business conducted upon or from the demised premises, whether such receipts be obtained at the demised premises or elsewhere, and whether such business be conducted by Tenant or by any licensees, concessionaires or tenants of Tenant, and whether such receipts be evidenced by cheek, credit, charge account, exchange or otherwise, and shall include, but not be limited to, the amounts received from the sale of goodsr wares and merchandise (including commissions on lottery sales, if any) and for services rendered, together with the amount of all orders taken, received or filled at the demised premises, whether such orders be filled from the demised premises or elsewhere. If anyone or more departments or other divisiond of Tenant's business shall be sublet by Tenant or conducted by any person, firm or corporation other than Tenant, there shall be included in gross receipts for the purpose of fixing the percentage rent payable hereunder all the gross receipts of such departments or divisions, whether such receipts be obtained at the demised premises or elsewhere, in the same manner and with the same effect as if the business or sales of such departments and divisions of Tenant's business had been conducted by Tenant itself. Gross receipts shall not include sales or merchandise for which cash has been refunded, or allowances made on merchandise claimed to be oefective or unyatisfactory, provided they shall have been previously included in gross receipts; and there shall be deducted from gross receipts the sales price of merchandise returned by customera for exchange, provided that the sales price of the merchandi3e delivered to the cust.omer in exchange shall be nclude in gross receipts.r Gross receipts shall not include the amQunt of any sales or use tax levied directly on sales and collected from customers and paid by Tenant, provided that specific recora is made at the time of each sale of the amount of such sales or use tax and the amount thereof is separately charged to the customer. No franchise or capital stock tax and no income or similar tax based upon income or profits as such and no gross receipts tax shall be deducted from gross receipts. SECTION 607. The business of Tenant and of any sub-lessee, licensee or concessionaire upon the demised premises shall be operated so that a duplicate sales slip, invoice or cash rlgistvr receipt, serially numbered, shall be issued with each Rale or transaction, whether for CAsh, credit or exchange or Tenant will use Buch other system for accurately reporting gross receipts as shall be approved by Landlord. Tenant shall k.r? at all times during the term hereof, at the demised premises.pr at the general office of the tenant, full complete and accurate Gross receipts shall not include uncollectible d~bts on Tenant's retail sales. pro- vided such uncollectible debts do not exceed one percent of Tenant's gross receipts in any lease year. Gross receipts shall not include custom carved signs personallv carved by Barry Leader but shall include carvings of production signs sold at the Camp Hill Shopping Mall store, - 7 - ~ ~ . . 'bookl of account and record. in acpordance witb accepted . accounting practice. with r.spect to all operation. of the bu.in... to be conduct.d in or fr~ the d_=i..d pr..i,.. including tht recordin9 of 9fO.. r.c.ipt. and the r.ceipt of all ..rch.ndi.. into and the d.liv.ry of all ..rchandi,. fr~ the d..i..d pre.i... durin9 the ter. hefeof, and .hall retain , .uoh book. and record., a. well I' all contr.ct., voucher., ch.ck., inv.ntory r.cord., Ind oth.r docu.ent. and p.p.r. in any ~ay relatl~9 to the op.ration of .uch bu.ine.., for at l.a.t two (2) y..r. fro. the .nd of the 1.... y.ar to which th.y .r. applicabl., or, if any audit i. r.quir.d or . controv.r.y .hould .ri.. betw..n the p.rti.. hereto r.g.rding the rent p.yabl. h.r.und.r, until .uoh audit or controv.r.y i. t.r.inated. Such book. .nd r.cord. .hall .t all r...onabl. time. during th. r.t.ntion p.riod abov. r.f.rr.d to b. op.n to th. in.pection of L.ndlord or it. duly authori..d r.pres.ntativ.., who .hall hlv, full .nd fret .cce.. to the .... and the right to require of Ten.nt, it. .gent. and ..ploye.., .uch infor..tion or ..plan.tion with r..p.ct to the .... .1 .ay be n.c....ry for a prop.r ....in.tion th.reof. SICTION liD8. If it i. d.t.rain.d th.t the .ctual gro.. r.c.ipt. for Iny p.riod cov.r.d by the .tlte..nt requir.d pur.uant to S.ction 605 of thi. Article VI .hall .,c.ed the amount thereof .hown in ..id .tat..ent byl:tlt,u In!...",' (~ aort, ~~nlnt five perc.. .hlll pay IU the .xp.nseI incurr.d by Lanarordln deterafiiIiii (5%) the actual grol. r.c.ipt. fo~ .aid period. SECTION 609. U teen Tenant .hall, without prior notice or demand and without any setoff or deduction whltsoever, pay all r.nt.l. and oth.r charg.s and r.nder all .tatement. her.in pre.crib.d .t the office of Agent, 1700 M.rket Str.et, Philad.lphia, Pennlylvania or to luch other person or corporation, .nd at .uch other plIC', as Ih.ll be delignat.d by Landlord in writin9 at least t.n 110) day I prior to the next en.uing rent.l payment date. If Landlord .h.ll pay .ny .onie., ~r incur .ny expen.e. in correction of .ny violation of any cov.,~nt of Tenant herein .et forth, the .mountl .0 paid or incurred th.U, at L.ndlord'. option Ind on notic. to Tenant, be considered additional rentall payable by Tenant with the first install..nt of rent.l thereafter to become due and payable, and .ay be coll.cted or enforced .. by l'~,provlded with respect to rent.l.. T.n.nt coven.nt. and agree. th.t all IU.. to be p.id under thi. L...., (15) d w t ti~. (I) day. .ft.r du., .h.ll bear int.re.t on the unpaid port on thereof at the ute of 11111'"" (It'l ten (10%) percent per .nnum fro~ the d.t. vhen due but not in exc... of the highe.t 1.g11 rat... In addition, if Tenant faill to pay .ny .u. to be p.id by T.nant her.under, Landlord ..y i.po.e a late chuge in the ..ount of ten (10'1 percent of the .um due. SECTION 610. Landlord acknowledges receipt fro. T~nant of the Security Deposit as .et forth in Section 2DIF, to be h.ld a. collateral .ecurity for the paym.nt of any r.ntal. and otn.r .ums of money plyabl. by Tenant und.r thi. L.as., .nd for the faithful performance of all other coven.nt. .nd .gr....nt. of Tenant hereunder; the amount of said deposit, without interest, to be repaid to Tenant after the termination of this Lease and any renewal thereof, provided T.n.nt .hall have ..de .11 .uch p.ym.nt. and perfor..d all .uch cov.nant. .nd .gr....nt.. 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'~" ;0, ::. ~ '..:,::';";:' ,,:O';'~"~ :_,:,;..,:: </,__.;0,0,. ':' :" ' 0, ..' " .... _, ,. . 'i '. 0 ,,' .' ," ''''''00, ,.:~<:':.,<< ,,/': '. .~" 'i':0.:0;'.:0 00. 'o. ,.0,0 <<' '" 0.'.0,""0 '0.,,1<'0 "0 ",.-A (0... ~~ '.(0. ~ " ..t." C>o '" (0.. I'; './' "" C!I ..-./..~ .., J>.' '~.. ~. "..., 0 '" o. ,..g.", .'. ". '.'. 0".0.,0 '...' '-.,.. ~ (f,"'~ Po ""l- ..~ ~ C!I<",-O' '././,'1} 'I') '.// ~.t ~o ,,~~q "'(0 .1')0 ~"~..,, t, O(ol}.I')9 0<", 6.~. .." "'O~ ~ O<",+./'. ~... 0<", ~ 0 ~t .. ~., ~9 ~C!I ~~ " ~... (o~ ".f tl} ., <S'. .... ~ ~.~ fa I" ~ "t # './0 .o"'~ ~., ~. ~(o'J-. '.(f' ~ 0" C!I. './'",,,~O" 'D "0' '/'(0 ~ , . "a ~a ~ ,,~ -t~ o~ 1> 0" -t~. ~c ;...~ ~ <$', >f~ ~ t-- .t.s" -t~ ".t.t <5'" ~ ~~~" ~~ .tl: '.t J>.t ~~ " (I . . , , common are.. faollltles for any fiscal year of Landlord exceeda the common area malntenance chargea actually paid by Tenant for luchperlod, within ninety (gO) day a after the .nd of Landlord'l tlacal yeer, Landlord will deliver to Tenant a Itatement Ihowing in reasonabl. detail Tenant's proportionate Ihare of luch actual OOlt and, within twenty (201 days after delivery of luch statement, Tenant will pay auch exceaa ahown to be due by laid atatement, as additional rent. Tenantra proportionate share of the actual coats of operation of the Shopping Center and maintenance of the common areas and facilities Ihall be in the .amo proportion to the total costs of luch operations and maintenance as the total grols rentable area of the demised premises bears to the total gross number of rentable square teet of ground floor lease,ble area contained within all mall stores (excluding Department StoreR, the aupermarket and ,stores not attached to the mall, collectively referred to as -Separate Storea-I. The statement submitted by Landlord shall be sufficient evidence of the actual costs of the aforesaid operation and maintenance. The aforesaid costs of operation and maintenance shall include all expenditures incurred by or on behalf of Landlord in operating the Shopping Center and f"... 4.nta ining the common areas and he il it les, including, without limitation, the cost of cleaning, heating, ventilating and air-conditioning the enclosed malll the cost of all of Landlord's insurance relating to the Shopping Center and the common areas and facilities (including, but not limited to, bodily injury, public liability, property damage liability, automobile insurance, sign insurance, and any other insurance carried by Landlord for the Shopping Center and the common areas and facilities in limits reasonably selected by Landlord, but excluding insurance described in Section 703 belowll gardening and landscaping I assessments I repairs, repaving, replacements, preventive maintenance, repainting, including ustr iping c.l: parking lot and accesswaysl rental of sigM and equipmentl li9htingl sanitary controll removal of snow/ trash, rubbish, garbage and other refusel depreCiation over a period not exceeding sixty (60) months of machinery, equipment and other assets used in the operation and maintenance of the Shoppi,ng Center, repair and/or replacement of on-site water lines, sanitary sewer linesr storm water lines and electrical lines and equipment serving the propertYI the cost of police, se~urity and traffic control servicesl the cost of all personnel required to supervile, implement and accomplish all of the foregoing, and an administrative charge equal to fifteen (15') percent of said costs. Contributions towards such costs by Separate Stores shall be deducted. At anytime or times that Landlord determines that Tenant's share of actual costs will exceed the monthly installments then due from Tenant hereunder, Landlord may adjust the amount of the monthly installments thereafter due from Tenant on account of itA proportionate Ihare of the costs of operation of the Shopping Center and maintenance of the common areas and facilities by increasing such installments by an amount equal to one-twelfth II/12th) of the excess, if any, of Tenant's estimated share of such costs over the annual common area maintenance charge then due hereunder. SECTION 703. For each year of the term hereof, Tenant shall pay to' Landlord, as additional rent, Tenant's proportionate share of all premium COlts for fire and broad form all risks extended coverage inlurance and rent insurance respecting all buildings - 10 - ~ " and improvements upon the Shopping Center. A8 and for Tenant'l proportionate sharer Tenant Ihall pay to Landlord the initial annual insurance charge as let forth in Section 20lJ (Iubjeot to adjultment as s~t forth below) payable as additional rent in equal monthly installments at the lame time. al fixed minimum rent il payable hereunder, without demand and without Iny deduotion or setoff whatsoever. If Tena~t'l proportionate Ihare of the actual oost of luch insurance for any insuranoe year of Landlord exeeeds said annual insuranoe charge actually paid by Tenant for luch perioor within ninety (90) days after the end of Landlord's insuranoe year, Landlord will deliver to Tenant a statement Ihowing in reasonable detdil Tenant's proportionate share of suoh actual insurance costs and, within twenty (20) days after delivery of suoh statement, Tenant will pay luch excess shown to be due by said statement, as addtional rent (SUbject to adjustment as set forth below). Tenant's proportionate share shall be the same as set forth in Seotion 702 with respect to oommon Irea maintenanoe charges. The first insurance year shall be the period covered by annual insurance premiums. The statement submitted by Landlord shall be sufficient evidence of the actual insurance costs. At anytime or times that Landlord determines that Tenant's share of actual costs will exceed the monthly installments then due from Tenant hereunder, Landlord may adjust the amount of the monthly installments thereafter due from Tenant on account of its proportionate share of the costs of insurance by increasing suoh installments by an ~mount equal to one-twelfth (1/12th) of the excess, if any, of Tenant's estimated share of such costs over the annual insurance charge then due hereunder. SECTION 704. Sums due pursuant to Section 702 ana Section 703 shall be appropriately adjusted for any partial years at the beginning or end of the term hereof. ARTICLE VIII MERCHANT'S ASSOCIATION SECTION 801. Tenant shall join and maintain membership in an Association authorized and recognized by Landlord and established by the Tenants in the Shopping Center. Tenant shall pay to the Association each lease year luch reasonable assessments as may be fixed from time to time by the Assooiation for creating and maintaining a fund to be used by the Association for general promotional, advertising and welfare purposes, inoluding any assessments or dues for advertising, publicity and general public relations, provided the oost to Tenant for the first year shall be as set forth in Seotion 20lH. Tenant will comply with such bylaws, ru ea an regulations as may be adopted from time to time by said Association and take suoh action as shall from time to time he necessary to remain in good standing in the Association. Tenant agrees to use the name of the Shopping Center prominently in all of its advertising and promotional literature regarding the demised premises. reasonable and non- discriminatory SECTION 802. Tenant agrees that the bylaws of the Assooiation shall provide. (i) each .e.ber whioh il prelent at a meeting and not - 11 - " ~ . delinquont in any of ita paymenta to the A.aociation ahall have one vote for each aquare foot of floor area in ita demised premhes, (11) each delinquent .ember ahall b" Uable to thl Association for ita coats (inoludin9 attorney'a fees) inourred in colleoting luch member'e delinquent debts to the AI.ociation, (iii) Landlord ahall have a number of votes equal to the lelser of twenty-five peroent (25\) of the total of all votes in the ASlooiation inoluding the votel of Landlord or the percentage whioh Landlord'l oontribution to the Assooiation for the association year bears to the total amount of all dues payable to the ASlooiation for luch asaooiation year (iv) the Landlord, a. agent for the Assooiation, may, at its option, oolleot all aBses.ments due including delinquent assessments or designate another party to oollect such aS8essments, (v) Landlord may, at its option, elect to provide the Assooiation with the servioes of a promotion director and all staff deemed necessary by Landlord to effectively carry out the promotion and public relations objectives of the Association and/or such reasonable space within the Shopping Center as may be necessary to carry out the funotions of the promotion director and his or her staff and the Association shall reimburse Landlord for such, and (vi) Landlord may provide that the occupant of ar" department store and/or supermarket shall have a seat on the Board of Directors. Furthermore, no bylaw, rule or regulation of the Association shall conflict with the provisions of this Lease, and more particularly with any rules and regulations adopted by Landlord or in any respect ~iminish the rights of Landlord hereunder. ililiTI9W 8tl). Association, as additional rent, the sum of - ive ($.25) cents per rentable square foot of tota leased by Ten~nt upon receipt of notice from Lan at the demised prem1,,'s are ready for occupancy nt's share of the cost of the .Grand Opening- of opping Center, said payment to be aue even if Ten not open for business for the .urand opening. so 1 enant is required to open for business hereunder . - . ARTICLE IX PUBLIC UTILITIES SECTION 901. In addition to all rentals herein specified, Tenant shall be responsible for and shall pay for all utilities, used or consumed in or upon the demised premises, and all water oharges, as and when the charges therefor shall become due and payable, commencing on the date Landlord notifies Tenant that the demised premises are ready for occupancy. Unless supplied by Landlordr Tenant shall promptly make all appropriate applioations to the local utility companies and pay all required deposits, connection fees and charges for meters and service for all utilities. SECTION 902. In the event any utility or utility services are furnished to Tenant for which a lien oould be filed against the demised premises or any portion thereof (such as water rent or .ewag' di.po.al), the Tenant Ihall at Landlord'. requestr pay . 12 . . ... \;, the co.t thereof to Landlord a. .nd vhen the eh.r,.. th.refor btc~e due .nd p.y.bl., oth.rwi.., Tenant .h.ll deliver ori,in.l r.c.ipted bill. th.r.for to Landlord within thirty lJO) dart aft.r the .... .r. due and pay.bl. vithout int.r..t or pena ty. .ICTION 'OJ. Ii) In the .vent L.ndlord .hall .lect or b. r.quir.d to furni.h .ny utility ..rvice. to Ten.nt lother th.n .lectricity .nd Conditioned Air .. d..crib.d belov), T.nant h.r.by .gr... to purch... and pay for the .... froa Landlord, provid.d Landlord .h.ll ch.rg. th.r.for not acr. th.n the .... con.ua.r r.t. .. i. ch.rg.d by the public ..rvic. corpor.tion or aunicip.l luthority, .. the ca.. may be, .upplying .i.ilar usage .nd ..rvic.. to I r.t.il cu.to..r in the ,.ner.l ar.. in vhich the d..i..d pr.ai... .r. .itu.t.d. . Iii) T,nlnt agre.. to purch... fro. L.ndlord and p.y for Conditioned Air to be u..d by T.n.nt fOr,h..ting and .ir conditioning the d..i..d pr..i..., .. .dditional r.nt, upon pr...nt.tion of bill. th.r.for, .t the r.t.- ..t forth in and .ubj.ct to adju.tment. in accordanc. with LII~lcrd'. Conditioned Air Charg. Rate Adju.t..nt Sch.dul. attach.d her.to II Exhibit -D.' liv.eton Wat.r Co,plny via .t l.a.t four (4) a.t.r.d . at four (4) ..t.r rooa location.. Elch do...tic r viii ..rvic. I grouping of a.ll .tor... A capped v.lv. outl.t will b. provid.d for .ach T.nl f T.n.nt r.quir.. great.r than I 3/4' wlter .ervic and lord will furni.h Ind in.tall the requir.d wlter ng and aodifica~ion, at Tenant'. ..pen... At Landlord' tion, T.nant viiI in.tall a water aetee with relDO Idee. Landlord wBl onl,' require aetee ing of llrge u.. tenant. .uch .. beauty parlor., r.st.ur.nt., .tc. lallYr .Iall r.tail .tor.. with only toil.t room. wilL ad ,. ~. "l.c.'. .uppll.d to obtlin the av.rag. wat.r COlt per ,a andlord viii ch.rg. I.t.r.d T.nant. for wat.r u. .d on the aver.g. co.t p.r gallon aultipl .t.red gallon. con.u.ed. L.ndlord wil educt frol the tot.l wat.r co.t, the ..ount bill .tered Tenants and the balance of the w.ter all b. .pportioned on . gro.. l....bl. Ir.. ba.i. (l~) Tha.. i. eWlr'R'ly ft. '.~.r .stat. t..... In the .v.nt the 10cIl authority, .uni ty, utility or other body collects for the .ewera aRit.ry ..rvie., Ten.nt covenant. .nd .gr..s to e ..w.r r.nt ch.rge lboth tiniaue .nd oth.rwi .ny other t.., r.nt, l.vy, connection f.e or .e other charg. which nov oe heee.fter i. ...... po.ed oe lay becole . li.n upon the premises, or realty of which they are I part, pursuant to law, or regulation .ade or i.sued in connection with the .ew.ra,a eeftft.e~iaft ar 'N.~&.. (v) Landlord .ay, .ft.r thirty (301 day.' notice to. T.nant, ca.s. to furnlah .ny one or lOre of the utility ..evic.. to the pre.i..., without any e..pon.ibllity to Ten.nt, elcapt to conn.ct Tan.nt'. dl.teibution f.clliti.. therefor with another .oure. for the utilit1 ..rvic. .0 di.Qontinued. . l' . ~ . (vi) It is intend.d th.t the cost of .l.ctricity b. included in the minimum .nnu.l rent. Since the ch.r.cterIstics of Ten.nt'. electric.l .qui~ment and fixtures .r. not known at the time of the execution of this lesse, Landlord .nd T.n.nt .r. not .bl. to .gr.. upon the .um to be includ.d in the minimum r.nt for electricity (said .um being h.r.in.fter c.ll.d the -El.ctricity compon.nt'). For that r.ason, the minimum annual rsnt .et forth in this lea.. doe. not include the Electricity Component. At .uch time .. the Electricity Compon.nt .h.ll be determin.d in accord.nce with Exhibit 'E- of this 1...., the minimum .nnual rent shall be adjusted to includ. the Electricity Component. SECTION 904. Landlord shall not be liable to Tenant for any damages should the furnishing of any utilities by Landlord be interrupted, curtailed or required to be terminated because of n.cessary repairs or improvements or any cause beyond the r.asonable control of Landlord. Any interruption, curtailment or cessation of utilities or service shall not relieve Tenant from the performance of any ~f Tenant's covenants, conditions and agreements under this Lease. ARTICLE X TAXES SECTION 1001. Tenant shall pay to Landlord ~~ch fiscal year or years of the taxing authorities' during the term hereof (appropriately apportioned for any partlal vellt at tlce beginning or end of the term hereof) on demand, as a~ditional rent, "Tenant's share of r.al .state taxes", as hereinafter described, based upon the fiscal years of the taxing authorities. SECTION 1002. Tenant's share of real estate taxes for any such fiscal year shall be an amount equal to the product obtained by multiplying the number of gr08s rentable square feet of ground floor area l.ased by Tenant by the .current tax per square foot" in such fiscal year. The current tax per square foot shall be computed by dividing the amount of the total real estate taxes and assessments levied on the Shopping Center by the total gross number of square feet of rentable ground floor area in the Shopping Center or portion ther.of reflected in such assessment. SECTION 1003. Tenant shall be responsible for and shall pay before delinquency all taxes assessed .gainst any leasehold interest or personal property of any kind owned or placed in, upon or about the demised premises by the Tenant. SECTION 1004. If at any time during the term of this Lease the m.thods of taxation prevailing at the commencement of the term her.of .hall be alt.red 10 that in li.u of or al lupplement to . 14 . . ";~~1 -.'.;' fro;' '. or . .ub.titute for the whole or any p.rt of the real estate t.... or .....sm.nt. now l.vi.d, ..s....d or impoled on the Shopping C.nter, t~ere .hall be levied, a.se..ed, or impo.ed (i) . tax, aueum.nt, l.vy, imposition or charg., wholly or partially a. . capital levy or otherwi.e, on the rent. received therefrom, or (ii) a tax, as.e..ment, levy (inclUding, but not limited to, any municipal, .tate or federal levy), impo.ition or charge mea.ured by or baa.d in whole or in part upon the Shopping Center and impo.ed upon the Landlord, or (iii) a lic.nae fee meaaured by the rent payable under thia L.ase, then .11 .uch taxea, as.easmenta, levie., impositions and charg.., or the part thereof .0 measured or based, .hall be deemed to be inoluded in the general real estate taxes and asse.sments payable by the Tenant pursuant to Section 1001 above to the extent that such taxes, assessments, levies, impositions and charges would be payable if the Shopping Center were the only property of the Landlord subject thereto, and the Tenant shall pay and discharge the same as herein provided in respect to the payment of general real estate taxes and assessments. Real estate taxes shall include all taxes attributable to improvements now or hereafter made to the Center or any part thereof or t~~ present or future installation of fixtures, machinery or equipment thereon or therein, all real estate taxes, assessments, water and sewer rents (not bRsed on consumption) and other impOSitions and charges of every kind and nature whatsoever, nonrecurring as well as recurring, special or extraordinarYr ordinary, foreseen and unforseen and all installments thereof levied, assessed or imposed or due and payable are liens upon or arising in connection with the use, occupancy or possession of, or any interest in, the Center or any part thereof, or any land, building or other improvements therein. SECTION 1'0,05 As and for Tenant's proportionate share of real estate taxes, Tenant shall pay to Landlord the initial annual real estate tax charge as set forth in Section 2011, payable as additional rent in equal monthly installments at the same times as fixed minimum rent is payable hereunderr without demand and without any deduction or ~etoff whatsoever. If Tenant's proportionate share of the actual real estate taxes and assessments for any fiscal year exceeds said real estate tax charge actually paid by Tenant for such period, Landlord will deliver to Tenant . statement Showing in reasonable detail Tenant's proportionate share of such actual real estate taxes and assessments and, within twenty (20) days after delivery of such statement, Tenant will pay such excess shown to be aue by said statement as additional rent. The official tax bill and the statement submitted by Landlord shall be sufficient evidence of the actual real estate taxes and assessments. If at any time or times Landlord receives notice of an increase in the assessment or tax rate, Landlord may adjust the amount of th~ monthly installments thereafter due from Tenant an aooount of its proportionate share of real estate taxes and alsessments by increaSing such installments by an amQunt equal to one-twelfth (1/12th) of the exceEs, if any, of Tenant's estimated share of such real estate taxes and assessments over the real estate tax charge then due from Tenant hereunder. .. 15 .. ... " ;, . provided. however. that Tenant shall .::'e re~ulred to lIlake the aforesaid' repalrl , replacement. only Ie (1) the Ite. requlrlnl rep.lr or replacement 1. not covered by a warranty ,iven by landlord for landlord'. work or lueh warrlnty hat expired or (il) th. rlpair or replace.lnt II not nlcelliClted due to thl ne.ll.ent perforaancI or In.tlll.tlon of Landlord'. work. ARTICLE II REPAIRS SECTION 1101. L.ndlord will ke.p the r~f .nd the .xt.rior w.lll of the de.lI.d prellh.., in proper replir, nc.pting any work done by Ten.nt, .ny gllll, doorl, door clo.erl or fr...., .nd .xcepting Iny work don. by Ten.nt .nd work required by rellon of Ten.nt'. n.glig.nc. or .i.ule of the de.ilea pr~mil", provid.d that in .aoh c... T.n.nt .hall h.ve given L.ndlord prior written notice of the nece..ity of luch r.p.ir.. Th. rep.ir or r.pl.cement of work done by Ten.nt, glls" door., door clo.er. .nd fr..e. .nd dl..ge clu.ed by Tenant'. negligence or .i.u.e of the d..i.ed pre.ilel Ih.ll b. the re.pon.ibility of .nd sh.ll be done by the Tenant. Ten.nt will 11.0 ..k. .11 n.c....ry rep.irl and repl.ce.ent. in order to keep the interior of the.de.i.edi~re.~'~~:A~~':'~~~ ~t~~pJll :::::::::t. i:~;:~f::i.:: :~::.{=, rm ~oou, ~oor closera .nd i~c~udin. frame., all pllte glas. and door and window gla.. fra.e. and ii~i~~~ion .11 fixture., e ui m nt and .tock clean .nd in ood order and proper repa i r. . using m.teri.ls and l.bor of kind and quality .qu.l to the original work, .nd will .urr.nder the demi.ed premise. at the .xpir.tion or earlier ter.ination of this L.... in a. good condition II when received, ..cepting only d.terioration caused by ordinary wear and te.r .nd damage by .ccidentll fire or other c..ualty of the kind insured Iglinst in .tandard policies of firl insur.nce with extended cover.ge not caused by Tenant, ts Igents, .mp oyees an nv l,t.es; III""" 1....iAlta..e ruvU", Llndlord sh.ll h.ve ...e oblig.tion to repair, replace, maintlin, alter or modify the .I.i... pr..i... vr .ar plr' \h".II, Ir Ifty plumbing, heating, Ilectricll, air-conditioning or oth.r mechanical installation II .,wi,..ftt therein I~' 'h. .IMe .hlll ~e 'he respansi8ili'y II the Teftlftt. Under no circumstlnces .hall Landlord be obligated to repair, replace or _Iintlin any pllte glass or door or window glass, frame. or door coverl and Tenlnt .hlll It III ti.e. clrry in . reputlble COmplny, full coverlge in.urlnce on III pllte gla.. in the demi.ed premise. Ind .hlll CIUle pro.pt repllce~ent if Chipped, cricked or broken, .Iid policy or a certificlte thereof shall be deposited with L.ndlord and .hlll provide that it .hall not b. clncelled or .edified for Iny rea.on without at leaHt twenty (20) dlYI prior notic. thereof to Llndlord. Anything herlin to tne contrary notwithstlnding, Iny work or Ilterltion made by tenant to the roof, exterior walls or .ffecting the structural integrity of the building of which the demiled premises Ire I p.rt (even if with Llndlord'. con.ent) .hall relea.e and di.charge the Landlord of and fro~ any duty Landlord may hive to keep Ind ~Iintlin the .a~. in good ord.r and r.p.ir, and Tenant Igrees to be .olely re'pon.ible for Ind therelfter to replir Ind to ..intlin the roof, exterior wall. Ind the structural Integrity of the building to or on which Tenant has caused any work to be done or Ilteration made. No holes are to be cut through the roof without Landlord'. prior written con.ent. In the Ivent Iny hole. .re required to be cut in the roof, Tenlnt will InV.g. L.ndlord'. rOOfing contr.ctor or any. roofer approv.d by Llndlord'l bonding co.plny, to flalh and Pitch .uch hol.. .0 I' to .Iintlin the validity of L&ndlord'. roof bond .nd respon.ibility thereunder. ;~O~~da.~; Qft th: a~ovI lfltld ite.1 bl da.aald al a re.ult of Tenlnt'l nl.llalnce t t ,IU 0 t e nlS iaence of any cUlto.ar of tlnant then tenant .hall a enant I expenlw, rlpair and rlplacl Iuch damaaad ite.. ' ft flit which con.ent .hall not be unreasonably withheld provided such cost of Improvements doe. not IIc..d the llIIOunt of one thou..nd ($1.000.) and such Igprov....'t. are condit ~ith the d..i.n .t.nd.rd. .et by the .hoppln. c.nt~r. U'l'ICLI XU TINANT'S RIGHT TO MAli ALTERATIONS SECTION 1201. t.nant .hall not ..k. any alt.ration., iaprov..ent. or .dditiQn. to the d.ai..d pr..l.e. durlng the t.r. of thi. L.I.. or any .xt.n.ion or r.n.w.l th.r.of without fir.t obt.ining the writt.n consent of L.ndlord. Ten.nt .hall not cut or drill lnto, or ..cure .ny flxture, 'pPlr.tu. or .qu~pm.nt of any kind to any part of the demi..d pr..i... without fir.t obt.ining the t n. non ord All .It r.tion. ia rove..nt. .nd . ton..a. y t.nant .. .for...id " r.m. n upon . pr..i... .t the ..pir.tion or .arli.r t.r.in.tion of thi. L.... .nd .h.ll beco.e the property of L.ndlord, unl... L.ndlord .h.ll, prior to the ..pir.tion or t.r.in.tion of thi. L...., h.ve giv.n writt.n notice to Tenant to re.ove the ...., in which .v.nt T.n.nt .h.ll re.ove .uch .It.r.tion., i.prove..nt. .nd .ddition. .nd r..tor. the pre.i.e. to the .... good order .nd condition in which it w.. .t the commencement of thi. L..... Should Ten.nt f.il .0 to do, L.ndlord .,y do '0, coll.cting, at L.ndlord'. option, the co.t and ..p.n.. th'L~of fro. the tenant as addltional r.nt. SECTION 1202. with the exception of tenant's t.rade fixtures Tenlnt sh.ll .t .11 times ..intain fire insurance with broad for. .11 rlsks ..tended cov.r.g. endor.ement insuring tn. interest of L.ndlord, Agent .nd of ten.nt in co.p.ni.s .cc.pt.ble to L.ndlord .t .11 time. .nd in .n amount .ccept.ble to L.ndlord at .11 times a. .dequate to cover the full costs of replacement of .11 such .lterltionsr .ddition.r i.provem.nts or change. in the event of fir. or e.tended coverage losl. T~nlnt .hlll deliver to the L.ndlord certificate. of .uch fire insur.nee coverager .nd .uch policy .hlll contain. clause re~uiring the insurer to give the Landlord twenty (20) dlY" prior notice of c.ncellation. Tenant shall deliver to L.ndlord new or renewll in.urance certificatel twenty (20) day. prior to tec.in.tion or c.ncellation of the pcior policy. ARTICLE XIII AFFIRMATIVE COVENANTS OF TENANT SECTION 1301. Tenlnt .h.lll (l) Comply with any and all current or futuce require.ents of .ny of the constituted public authorities, Ind with the terms of .ny St.t. oc rederll .tltut. or loc.l ordinlnce or regulation .pplic.ble to Tenant or it. u.e or occupancy of the de.l.ed pre.i..., and .ave Llndlord hlr.l... from penalties, fines, costs, expenses or damagel resultin9 from failure to do 101 (ii) Give to L.ndlord pro.pt .ritten notic. of any ,ccident, fire or da.age occurin9 on or to the de.i.ed pre.i.e., (11 1) Load and unlold goodl at lueh U... inthe are.. .nd througb lueb .ntr.nee ., al1 be delignated for .uch purpo.e. by L.ndlord. Such tr.iler. or truckl .hall not be per.itted to re..in p.cked, overnight, in .ny ar.. of Shopping Center, whetber lo.ded or unloaded, . 17 . . ~ . l..~ ~ I)t cs. .1/."'0." z. f ~1. ". 0,. .., 1,,'1 "I. . 0 'd ..to 'IJ~;'IJ. ~ /,.J'. ". " ~d '1'. . ,. .... is. (0<< · t. o "- t .~ -. ~." ~ ~t,.. t"".~f".) lI'f/l.I./.:t t~ d_. 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Tenant .hall not do any of the fOllowing without the prior Qonsent in writing of Landlordl (1) u.. or operate any .achinery that, in Landlord'. opinion, i. harmful to the building or di.turbing to other tenant. in the building of which the demi.ed pre.ise. i. a part, nor .hall Tenant u.e any loud .peaker., televi.ions, phonograph., radios or other device' in a 8anner .0 a. to ~e h.ard or .e.n out.id. of the de.i.ed pre.i.e., nor di.play .erchandl.e on the .xt.rior of the de.i.ed pre.i... .ither for .ale or for promptional purpo.e., (ii) Do or .uffer t~ be done, any act, .atter or thing objectionable to the -ire insurance cQmpanle. whereby the fire i~surance or any other in.uranc. now in force or hereafter to be placed on the demised pre.ises or any part thereof, or on the building of which the demised pre.ises .ay be a part, shall become void or suspended, or wher.by the sa.e .hall be rated as a ~re hlzardou. ri.k than at the date when Tenant receive. po.....ion her.under. In ea.e of a breach of this covenant, in addition to all other re.edi.. of LandlQrd her.under, Tenant agrees to pay to Landlord al additional rent any and all increase or increases of prelliu.s on insurance carried by Landlord on the de.iled pre.ises, the Shopping Center or any part thereof, cau.ed in any way by the occupancy ot Tenant, (iii) Attach any avnin9, antenna or other projection to the root ~r the outside valls of the demised premises or the building of which the demiled premise. are a part, (iv) Conduct any auction, fire, bankruptcy, or .elling-out ..le on or about the de.i.ed pre..i.e., (v) Be oP4n for bu.in.ss on any Sunday unle.. the Mall i. opened and operated by Landlord, (vi) If Tenant i. a corporation, mergft with another entity or liquidate or di.solve, nor .hall control of said corporation change or be affected by the transfer of .took except by re..on of de.th of 1 Shareholder, (vii) Ixeoute or deliver Iny .ecurity intere.t in Iny trade fixtures or other property placed Upoll the demised pre.is.. at any ti.e, and (viii) Solicit busine.. or di.tribute any handbilll or other adverti.in9 ..atter in the common area. of the Shopping Center I (ix) Oper5te unaer any name other than Tenant'. 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II ~ .. ~.. ..::,0....... . Q,"'t;':'\:~c:. ....'b~#::'l!. 0.,: ..........0.'tJ<l .0.. Q. ...... Co .. ..~ 't) <<:: t;: @ ~....;;: 0 "'............ 0"00, v .... Q.~ . .. : 4Q... .1 <- ..... ,,04: .... ~ ' . ,,~ . 0 ~ .. OJ o~~ ....00 .... < .........,.... 'StI".. ~"o.. -::...:; - 0...4 . -.... -e ~".'" .... 0000 ;;@..... II. "'-e .,:.. .Q.-. ~ .... ~ ~.~.E -::~ ",:;. . · ff..<-::;. .. 0 .....0....... .... -, . 'b ,,'b.~... :;"tI~....~ ...;:. ...@: ~~;;,~ CI-:::. · ....ff....o. '-l .. .E ~... tJ 0. I:: o tJ-c: 0. ....., ....".. ~c........ ~0~0.~9:0:" Q.'l!~"" ~~ t; ct .... · ~ ~~ 0 _ -c:- ~_,._ ~ .... ":]10"1 "'.. 0 <<:: -.......'b::J.. ....-c:-O... .... "... CIJ....<- ..'b...... C:c:: ......"""..... ....j Ji..o "'o~...~ OtJ<-.~ tI(I ....... ....IO....~.O tI.. "..~. "'.. -... Q.; e . . r.aov.d III oc lub.tantll1l1 III of '.n.nt'l pcopect, fco. the d..l..d pce.l..., Landlocd .a" prior to the ..pication or t.c.lnltion of the t.c. of thl. L...., without c.l.I.Ing '.nlnt fco. Iny of Tenantl. obligation. pur,ulnt to thl. L...., lncludln9, without 11.itatlon, T.nant'. obligat.ion. to c.pair and r..tor. the d..i..d pre.i.e. and to pa, the full rent and o,ther .u.. due hereunder, ia.diatel, .nter upon the dell1l.d pr..l.8. and alter, cenov.tl .nd deoor.tl the ..... ARTICLE XVII DAMAGE TO PREMISES SECtION 1701. If th. dl.i... pr,.i... .h.ll be da...g,d b, firl or oth.r in.ur.d ca.u.lt" not due to '.nant'. n.tl1'8nc., but are not therlb, r,nder.d unt.nantabl. in whole or n part, Landlord .hall proaptly .t 1t. own ,xpen'l cau.. .uch d'lI.g. to b. rep.ired, .nd the .inimulI .nnu.l rent .hall not be .b.ted. If b, reason of an, .uch occurrlnce, the delli.ed prelli.e. .hall be rendered untlnutable only in part, Llndlord .h.ll pro..p~.' y at 1t. own expense cause the d.llage to be rlp.1red, .nd the ainillulI rent me.nwhile .h.ll be abated proportionately a. to the portion of the demi.ed prellise. rendered untenantable. If the demi.ed premis.. .hall be rlndered wholly untenant.ble by re..on of .uch occurr.nce, the Landlord .hall prollptl, .t it. own e.pen.. c.use .uch da.age to be repa1red, .nd the .inlllu. rent lIeanwh1le Ihall be abat,d In whole, prov1ded, however, th.t L.ndlord Ihall have the rightr to be exerciled by notic. in writing d.livered to Tenant within .ixty (60) d.y. froll and .fter .aid occurrence, to elect not to recon.truct the destroyed prellises, .nd in .uch event thi. L.... .nd the tenancy hereby created ahall cease a. of the date of .aiu occurr.nce, the rent to be adjusted a. of .uch dat.. L.ndlord'. obligations h.reunder sh.ll ~6 limited t~ the building .hell .nd work origin.lly done by Landlord at Landlor d I. oos t. Tenant shal ~ properly Insure the demised premises against loss or dam.ge by flre or other casualty for store con.tructlon perfonae~ by Landlord on page ll-l4A. paragraph Z contained herein. ARTICLE XVI1 I INDEMNIFICATION AND PUBLIC LIABILITY INSURANCE SECTION 180. Unless caused by negHgence of Landlord, its agents. employees. contractors and sub~contractors Tenant will indellnif, Landlord .n~ .ave it har.le.. from and .glinst any .nd .11 clai.., action., dallage., liability and expen.e in oonnection with 10.. of life, per.on'l injury and/or damage to property occurring In or about, or ari.ing froll or out of, the demi.ed premi.e. and .dj.cent sidew.lk. .nd loading pl.tfor.. or .reas or DCc..ioned Wholly or in .rt b .n act or omi..ion of Ten.nt, it. agent., contractor., cu.tomer. or e.p oye.. Ten.nt .hall keep in force It its own ex?ense public liability insurance in co.paniel at .11 time. acceptable to Landlord lufficient to cover luch ind..nific.tion and na.ing a. in.ured. Landlord, Agent .nd Tenant, land, upon requ..t, ,ny other party n..ed by Landlord) and containing .n expre.. waiver of .ny right of .ubrogatlon again.t L.ndlord .nd other n...d in.ured. designated by L.ndlord, with .inimu. lillit. of rive Bundred Thou.and Dollar. 1$500,000) on .ocount of per.on.l injurie. to or death of one per.on, and One MHUon 00l1.n ($1,000,000) on account of p.rlon.l injuri.. to or d.ath of lOre than one prOVided th.t luch el.l. or 10" il not e.uI.d by th. nlgllg.ncl of thl Landlord, . 22 . " ~ ..... .. ,.. ....,' .t ..y ... ...,60.' .' ,""".,, ... ,I.' t...... ........ 0011'" ",'00.0001 on ......, .t ...... CO .. ."1 ... ....., .111 t..,..' 6O~.1' ,.. ..ll.y .. !o,l.I....t ..... I......... .' .." It I."" ".. ..t. .1" ~"'." .1" ..1..... .t ,.y".' .t ,...1.' .' .1' ,I'" .......... .1" ,.. ..,. ....., tl'" ..,... .... ,oo ....... ....... t.. ..y ........ .... ..".y ..." ,...... ......, , ".,".. ..,..., ,...,y \'01 ..y.' ,.... ...".. ..,... ,. ~~~~. ......... L...,.....y ....1.. ...,..... ......... """ .t ."....1.'. t.. .1.11" .....,.... .. ,.. ..., .t ,.. ShOppin9 center at .n~ time. ~~nCLI XIX ~~IV&~ Or CLAIMS ..-,(11 "". ",.., I" 1M ...u..." .1 .."".. ,.. ....... ...,.,..., ~. eonttaetora and .ab_~ontr.etora. L.."." ... L...,.r'" ....,.. ..,'.'....... . b- ...,,,.,.,,' ..... no' .. 1\"" I.', '.' ....., ..~..~ ~.,"'" , .. .., .r ...... ,. ...oon .. ,...."y ...,.... y ,,,..,,,, ~...~, .' .,y ."... .,""" ,...... ,.0'" ....,,10' .... anY ,.." ",,' ... I'"'' ....."... .. .00" ,I.' .. .. .... ... .....~. ,..~,..' .' ..,,'"0' 01 ..,c. ,..y ...., .. · ,.r', I.cl"'o" ..' no' ,1,lt.. to .... cl.I" I.r ...... ,...,,10' 1.00 ,'1 .,y ..I.ct 10.' 1.11." .1 ,1'ob'''' ...".. .. .1......1'.00... ........,. ."C"'c ...... .. 1""""'.' .... .ot. .. ,.. ".... ...,,,. ,,11\'" .' .. ".. ,.11 ..y ...1....' .. ."..t..".... .....10. .., .1 ..,.." \1111 t.' ....,.... ...,\.. or ,,'0'" .1 ..y "0" .....'.0.. ..,.. clo..t. ...,. ,I'" ...'0 .' .oy ot..' ,I" 01 t.oo I.. ,,,0 .. .....t ..c. ..".... .r ,ro.,.... \'.1 ,.. ....,.. ., .1 "y ..." ,I" .r ........." ,.1 ,.. ....,. 01 .,.., .. bO' .."" ,.11 .. ,... ..... or ... ",I" .... .1 .0: '0' tOr .... ,.. 1.01 .1 .., .,..r ,1'.' .... o. 0'" ..c. ..1,"0' .. ,...1'" .1 0..... "" ,.111 t" to"'" 01 ,.y "',,,,, """' .. · "cco, \.,"1 "00" .1..., ." .,., .,y .., o. 00,..'0' 01 '0,"0"" 01 ot... ooc...ot. o' ..,. .."""" 01 01 ,'jo..I.. o. contl9UoUI property or ouil4inQI. SE',cr10N 190'1. " ,.. ...., ,.. ...1... ....,... o' "" '0,"0" ... ....... o. ","Oy" ., I'" o. .t'" lo..r.' .....,t,. ,.. II."" II .oy. 01 .,t... ...,y ....'0 ",'0" ,.. ot." .". ......, '0 ..c. ...... 01 ...".C,.OO ... ..,..., ... .11 ..,..,.' 01 I'" '0'/0' ....0... cO'."'. 0' ot'.' ,.....oc, cO...lo, ,.. ...,.., ,...,... o' ". coo,.o,. ..." '00,.'0 · cl"" o. ...0'....0' "0.""0' '0 ....,.... ,.., ,.. .o....oc. ..." 00' .. ,r.jod"" .1 ,.. .o..r." .... ..,... t.' .1." 01 "cOO'I' 1.00 ..y ,...0. o' ..,'0" ,.101 '0 ,.. ,.t' .00 time of loll or 4.m,qer if any. ~"'1'lCLt Xl '1'l',M)E rU:ru1\ES 'torefront e11n .nd otber 1t'" a" ,.... I..'.... '0""'.' by "0'" 10 ,,. ,..... ,,,,.... ..... ,. ... o. ......,,'y ,"00.,,"00.' ... ...... .M ...-' ...,.....,y 01 "0'" ... ..."" .......,. ., ,.. ..,..."00 .' ...,," ,.,a'o"'OO .1 ,.., ..... o' .nY ......, O' S&C'rlON 200 l. .. ~3 .. ~ ~ -..t.n.lon th.r.of, provided t.n.nt .h.ll not .t luch tl.. b. in def.ult und.r .ny cov.nant or .gr....nt cont.in.d in thi. L....' .nd rrovldtd furth.r, th.t in the .v.nt of .uch r.~v.l t.n.nt .h.l pro.ptly r..tor. the pr..i... to th.ir original ord.r and condition. Any .uch tr.d. fixtur.. not r..ov.d .t or prior to .uch t.r.ination Ih.ll b. and b.co~. the prop.rty of Landlord, All i.provo..nt. .nd fixtur.. in.t.ll.d by T.n.nt oth.r th.n tr.d. fixtur.. including but not li.it.d to, .. ng .qu plen, 9 n9 fixtur.., .ir-conditioning equip.ent, .tor. front, ceiling, wall tr.at.ent, floor cov.ring, pluabing and .lect.ic.l .y.t.m. .nd fixtur.., whether or ROt in.t.lled by Tenant, .h.ll not be reaov.ble .t or before the .xpir.tion or 'Irlier t.rmin.tion of thi. L.I.. or at the ..pirltion of .ny ren.w.l or ..ten.ion th.r.ofr .nd .hlll beco.e the property of Landlord without Iny compen.ation th.r.for to T.n.nt. .torefront lian .nd other it.... ARTICLE XXI ASSIGNING, MORTGAGING, SUBLETTING SECTION 2101. Tenant shill not assign, mortgage, pledge or encumber this Lease, in whole or in part, or .ublet the whole or .ny part of the demi.ed premise., or perlit the u.e of the whole or .ny p.rt of the de.ised premise. by .ny lic.n.e. or concessionaire, without first obtlining the writt.n consent 'of L.ndlord. This prOhibition .hlll b. construed to include a prohibition ag.inst Iny Issignment or subletting by operation of llw. In the .vent of Iny luch assign.ent, .ubletting, licensing Or gr.nting or . conc.s.ion, aade with the written consent of the Landlord I' aforeslid, Tenant will nev.rtheless remlin liable for the p.rf~r.ance of III the terms, conditions, Ind covenants of this Leise. Any pefmitted I.signment or subletting shill be by agreement in fora and content Icc.ptlble to Llndlord. If Tenant i. . corporltion, .nd if control thereof or of it. parent changes It Iny time during the term h.r,of, Landlord, .t ita option, alY, by giving .ixty (60) days prior writt.n notic. to Tenant, d.clar. such chang. . br.ach of this L..... Landlord h.reby consents to the .ssignm.nt of this Lease or the .ubl.tting of the deai..d pr.mis'l to I wholly owned sub.idilry of Tenant, subject to the prOVisions above respecting continued liability of Tenant and the fora and substance of the agreem.nt. If any assignment or subletting involv.s a chAnge of use, Landlord may condition it. approval, inter !!i!, upon a revision of the percentage rent rste as .ay be .ppropriat. for such different u... ARTICLE XXII SUBORDINATION SECTION 2201. This L.a.e, upon request by Landlord, shall b. automltically subj.ct and aubordinat. to Iny and sll non-occup.ncy 1....., mort9agts or de.ds of trust (col~ectively called 'Mortgag..-) now or her,in.ft.r plac.d upon the Shopping Cent.r, or .ny part th.reof, and to .11 future ~ific.tion., con.o1id.tion., r.place.ent., ext.ensions Ind renew.l. of, .nd .11 ..end.ent. .nd .upple..nts to .aid Mortgag.s. Notwithlt.ndlng luch subordin.tion, II .fore.aid, thi. L...., . 24 . o ~ . , . . except .. otherwi.e herein.fter provided, .hall not termin.te or be div'lted by foreclolure or other def.ult proceeding. under I.id ~ort9.g.. or oblig.tion. lecur.d th.r.by, .nd ~.n.nt ,h.ll .ttorn to .nd r.cogni.. the L..lor, Mortgag.., Trult.. or the purcha.er .t the for.clo.ur. ..1. in the .v.nt of auch for.clo.ur. or oth.r d.f.ult proc..ding, ., T.n.nt'e L.ndlord for the b.l.nce of the ter. of thi. L...., .ubj.ct to .11 of the ter.. .nd provi.ion. her.of. Such ~e'.ot, Mortg.gee or the purch...r .t ..id for.clo.ur. ,.1. .h.ll not b., (i) (ii) Li.ble for .ny .ct or omi..ion of L.ndlord, Subj.ct to any off..t. or d.f.nl.. which Ten.nt might h.ve .g.inst L.ndlord, Bound by any r.nt or .ddition.l rent which T.n.nt .,y have paid to Landlord for more th.n the current .onth, and (iv) Bound by any amendment or .odif.ication of this Leas. .ade without it. con.ent. (iii) SECTION 2202. Notwithstanding the attornment ~9reements hereinabove set forth, the beneficiary of any such .ttornment .greements ..y elect to decl.re said attornment provt.ions to be null .nd void .nd of no force .nd eff.ct. SECTION 2203. Tenant agrees to execute, acknowledge and deliver any and all documents required to effectu.te the provisions of this Article XI' SECTION 2204. Tenant agrees to give any such Lessors, Mortgagees and/or trust deed holders by registered mail a copy of any notice of def.ult .erv.d upon the L.ndlord, provided th.t prior to .uch notic., Ten.nt h.. been notified in writing (by w.y of Notice of Assignment of Rent. and Le...., or otherwile) of the address of luch Lelsers, Mortgagee. and/or trust deed holders. Tenant further agrees that if Landlord shall h.ve failed to cure such default within the time provided for in this Lease, then such Lessors, Mortgagees and/or trust deed holders shall have an additional 60 days within which to cure such default or if such default cannot be cured within that time, then such additional time as ..y be n.cessary to cure such detault (inCluding, but not limited to, commencement of foreclosure or default proceedings, if necessary, to effect such cure) in which event this Lease shall not be t.rminated while such r.medie. are b.ing eo dilig.ntly pur.ued. SECTION 2205. In the event that Landlord, any mortgagee or proposed mortgage. of the Shopping Cent.r of which the d..ieed pre.iles are a part, or any govern~ental or qua'lMgov.rn.ental body cont.mplating the i.luance of or having ilsued Obligation. with re.pect to the Shopping C.nter of which the d..i.ed pr.mi.e. .re a part or 'ny part ther,of (the -Authority.), or .ny of their r'spective couns.l, .h.ll d.e. Ten.nt to be . 'principal uler' (within the ..aning of S.ction I03(b) (6) of the Int.rnal Rev.nu. Cod. of 1'54, .1 "ended (tbe -Cod.-)) of .n1 facilit1 . 25 . e fit . with re.pect to wh~ch the Authority shall authorize the issuance or or shall have i.sued obligations intended to qualiry ~hder said Section l03Cbl C61 or the Code, Tenant ehall provide, upon written request of Landlord from time to time Cil . statement or capital expenditures made by Tenant and related persons Cas defined in Section l03(bl C61 (CI of the Codel in the county or incorporated municipality in which the demised premises are located during the period beginning three C31 y.ars before the date of issue of the Obligation of the Authority, and (ii) supplemental statements of capital expenditures during the period ending three (31 yeare after the date of such issue. Such statements of capital expenditures by Tenant shall be made in a manner complying with the regulations promulgated under Section 103 of the Code (which regulations currently require, inter alia, the listing of dates and amounts of each capital. expenditure)"and shall also, where required by such regUlations, be filed with or submitted to the Internal Revenue Service and/or the Authority. ARTICLE XXI 11 OFFSET STATEMENT SECTION 2301. Within ten (10) days after request therefor by Landlord, or in the event that upon any sale, assignment, lease or hypothecation of the leased premises and/or the land thereunder by Landlord, an offset statement shall be required from Tenant, Tenant agrees to deliver in recordable form a ' certificate to ar.y proposed Mortgagee, Lessor or purchaser, or to to the Landloro, certifying (if such be the easel that this Lease is in full force and effect and there are no defenses or offsets thereto, or stating those claimed by Tenant. ARTICLE XXIV TRANSFER BY LANDLORD SECTION 2401. The term 'Landlordw as used in this Lease means the Owner, only for the time being, of fee title or a leasehold estate in and to the demised premises. So long as all sums held in escrow by Landlord are paid over to any transferee of said premises or assignee of said leasehold estate, Landlord shall be and is hereby relieved of all covenants and obligations of Landlord hereunder after the date of transfer Gf said demised premises or assignment of said le~sehold estate, as the case may be, and it shall be construed without further agreement between the parties that the transfer.ee has assumed and agreed to oarry out any and all oovenants and obligations of Landlord hereunder from the date of such transfer. ARTICLE XXV CONDEMNATION SECTION 2501. Tenant hereby waives II to Landlord and the condemning authority any aWlrd or damage or claim therefor for loss or .. 26 .. ..." ~_:,,;-, ~ ~...g. to T.n.nt A' the r..ult of the .I.rel.. of the pow.r of e.ln.nt do..in of .ny gov.rn.ent.l body, wheth.r .uch 10.. or d...Ag. n.ult. h~ ,cond.llIn.tlon of put or 111 of the d.. lied pr..i... or .ny ~)()rtlon of the p.rk!ng .r.. or ..rvlo. .ntr.no.. and .xAt.. Should .ny pow.r of ..In.nt d08.in be .I.roi.ed .ft.t Tenant i. In po.....ion, luch .x.rci.. .hall not void or h:p.ir thh Agr.....nt unlll. the .mount of the d..h.d .prtlllh.. 80 t.k.n i. .uch .. .to .ub.tanUaUy Imp.ir the u..fuln.,. of the d.ml.ed pr..I... for the purpo.e for which the .am. .re her.by d.mi..d In which .v.nt .Ith.r party .IY c.ne.l thi. L.... by notlc. to the oth.r within .Ixty (60) dlY' Ift.r po.....lon i. tlken Ind the r.ntal h.r.ln provided .h.ll .blt. (proportlon.t.ly or .ntirtly, a. the eaDe m.y b.) .1 of the date pel.....ion 11 taken by the condemning author ity. ARTICLE XXVI FINANCING STATEMENT SECTION 2601. Subject to the provilo .t the end of Section 1401 (vii). Tenant .hall not ent.r Into, execute or deliv.r any financing .greement thlt cln be con.idered I. . priority to any l...e, mortgage or deed of tru.t upon the demised pre~ise. and, in the .vent Tenant does 10 execute or deliv.r such financing agreem.nt, .~ch action on the plrt of T.n.nt .h.ll b. con.id.r.d . br..ch of the t.rlll. and conditione of this L.... .ntitling Landlord to such rem.di.s " Ir. provid.d for herein. Tenant .gr.es th.t Landlord .hall hive In express contractual U.n (in Iddition to any st.tutory lien) for the performance of .11 of Tenant'. Obligations pursuant to thl, L.as., upon all of the fixtur.., ~Ichinery, .quipment, goodsr inventory and personllty which ar., or hereafter may be, ~lac.d in or upon the delllised premises. ARTICLE XXVII SURRENDER AND HOLOING OVER SECTION 2701. Tenant, upon expir.tion or t.rmlnation of thl. Lease, .ither by lapse of time or otherwise, .hall peaceably render to L.ndlord the premis.. in broolll-clea~ condition .nd in good rep.ir. In the ev.nt that Tenant shall fail to .urrender the' pr.mi.es upon demand, Landlordr In addition to all other remedi.. avail.bl. to It hereund.r, .hall hlv, the right to r.eeive, a. liquidat.d d.m.g.. for III the time T.nant .h.ll .0 retain possession of the premises or Iny plrt thereof, an amount .qu.l to twice the minimum and perc.ntag. r.nt .p.cifi.d in thl. L.a.., .. applied to .uch period. If T.n.nt r.mains In po.....ion of the premi.es with Landlord'. con.ent but without a n.w L..s. r.duced to writing and duly '.Icuted, Ten.nt .hall be ~eemed to be occupying the pre~ises ~s a tenant It will, .ubJ.ct to all the covenant., conditions and agreementa of this L...., except that the th.n current minimum annu.l rtnt .h.ll be increased by 50' dUE lng .uch per iod lIut if . lease is executed within thirty (30) days .uch penalty rent in ..ce.. of the rent agreed to in the 'new 1.... ahall b. rebated. . 21 . '.. ,.., ,.~ ," ARTICLI XXVIII NOTICES .ICTION 2101. Wh.r~v.r In thl. L.... It .h.ll b. requir.d or p~raitted that notlc. or d...nd b. giv.n or ..rved by .ith.r p.rty to thl. L.... to on. or the oth.r, .uch notic. or d.m.nd .h.ll not b. dee.ed to have been duly given or .erv.d unl... In vrtting .nd .ither p.r.on.lly deliv.r.d or iorward.d by C.rtifi.d M.il, Return R.ceipt R.qu..t~d, po.t.g. pr.p.id, .ddr....d .. follow't fO THE LANDLORD ATI Suit. 2634 1700 Mark.t Street 'hil.d.lphia, 'enn.y1v.ni. 19103 '1'0 THE TENANT ATt the .ddr... ..t forth in Article I above. Such .ddrt..e. .ay be changed fro. time t~ time by either p.rty by .erving notice. as .bov. provided. ARTICLE XXIX PERlORMANCE OF TENANT'S COVENANTS SECTION 2901. Tenant shall perform .11 agr.ements herein expre.sed on it. plrt to be performed, .nd will proaptly upon rec.ipt of writt.n notic. of non-performlnc.. thereo' comply with the r.quirement. of luch notice, and further, if T.nant .hall not comply with .uch notice to the satilf.ction of Landlord within forty-.ight (48) houri Ifter delivery thereof, (or if luch compliance cannot reasonably be completed within forty-eignt (48) hour., if Tenant Ihall not commence to comply within luch period and ther..fter proceed to caapletion with due diligence), Landlord .ay, .t itl option, do or c.use to b. done .ny or .11 of the thing. Ipecified in I.id notice, .nd in .0 doing Landlord .hall have the right to cau.e it. .gent., employees and contractors to enter upon the demised premises nd n IU h v t Ihall hav. no Uabil it to Tenant for any lOll or damage resulting n any way rom .uch .ct on and Tenant Ihall pay promptly upon demand Iny expense incurred by Landlord in taking luch .ction, any luch sum to be cullectible from Tenant .. .dditional rent hereunder. unless suc~ loss <:If ~ar.:ag'! Is caused by thp negligence of such parties. ARTICLE XXX EVENTS OF DEFAULT SECTION 3001. The occurrence of Iny of the fOllowing .h.ll constitute .n .vent of d~fault b.reunde~1 (i) Failure of Tenant to co..enc. bu. in... within the time period .p.cltied by Article III her.of, (Ii) Di.continuance by Ten.nt of the conduct of it. bu.in... in the d..i..d pr..i..., . 28 . .,,' .' ... f',~-' . . (Hi) The fll1ng of . petition by or agdnat Tenant for adjudication as a bankrupt or !n.olventr for it. reorganization or for the appointment of a receiver or trustee of Tenant'l property, an a.signment by T.nant for the benefit of creditors, or the taking of poslel.ion of the property of. Tenant by any governmental officer or agency pursuant to Itatutory euthority for the dilsolutioo 'or liquidation of Tenant, (iv) Failure of Tenant to pay when due any installment of rent hereunder or any other SUM herein required to be paid by Tenant, (v) Vacation or desertion of the demised premises or permitting the .ame to be empty and unoccupiedl (vi) Tenant's removal or attempt to remove, or manifesting an intention to remove Tenant's goods or property from or out of the demised premises otherwise than in the ordinary and usual course of business without having first paid and satisfied Landlord for all rent which may become due during the entire term of this Lea~el (vii) Tenant's failure to perform any other covenant or condition of this Lease within twenty (20) days after written notice and demand, unless the failure io of such a character as to require More than twenty (20) days to cure, in which event Tenant's failure to proceed diligently to cure such failure shall constitute an event of defaultl and (v ii i) Failure of Tenant to comply wi th Section 2701 hereof. ARTICLE XXXI RIGHTS OF LANDLORD UPON DEFAULT BY TENANT SECTION 3101. In the event of occurrence of an event of. default hereunder I (i) The whole rent for the balance of the ter.m of this Lease, as hereinafter computed, or any part thereof, at the option of the Landlord, shall immediately, without act or notice, become due and payable as if by the terms of this Lease the same were payable in advance, and (ii) Landlord may immediately proceed to distrain, collect or bring action for the whole rent or auch part thereof aa aforesaid, as being rent in arreara, or may enter judgment therefor in an aMicable action as herein elsewhere provided for in caae of rent in arrears, or may file a Proof of Claim in any bankruptcy or insolvency proceedings for .uch rent, or Landlord may institute any other proceedings, whether similar to the foregoing or not, to enforce payment thereof, SECTION 3102. Rent for each year for the balance of the term after the happening of any event of default for the purpose of computing the whole rent for the balance of the t.rm of this L.... under S.ction 3101 and 3105 hereof .h.ll b. computed .. .. 21 .. ~ . . '.qu'l to the y.arly Iy.r.,. if the .ini.WI and pero.nt.,e r.nt payablt bf Ttnant fur.uant to Articl. VI of thi. L.... for tht li.t thr.. (3) full.... y..r. i...di.t.ly Pl.o.din, ..id .ytnt of d.fault, p1u. (the fOllovin, h.rein r.ferr.d to .. -Added Charg..-) 'l'.,lant '. .hare of r.al ..tat. t...., due. to the M.roh.nt." A..oci.tion, in.ur.nce char,.. .nd oo.t. of op.r.tion of the 'hopping C.nt.r .nd ..int.nanc. of the ooamon .re.. .nd faoiliti.., p.y.bl. for the current applic.ble year. If the a~uht of Add.d Ch.rg.. for the current .pplic.blt y..r ar. not th.n .v.il.bl., th.n Ten.nt'. .hare of Added Charge. p.y.ble for the pr.cedin, ye.r ahall be u..d in the co.putation of .nnu.l rent. If 1... th.n three (3) full 1.... y..r. hIve pr.o.ded the occurr.nc. of ..id .y.nt of dtfault, theft the annu.l ayer.,e of aini.u. .nd p.rcent.g. rent.l ther.tofor. r.quired to b. paid by Tenant .h.ll b. ua.d in the co.put.tion of .nnua,\ rent. SBCTION 3103. eon.i.t.nat vith dUI proce.. of l.v A. lon, as the vhol. r.nt or any p.rt thereof .. o .aid ..ains unpaid, the Landlord .ay, at any tiae r.-enter and re-po.ses. the de.i..d pr.lis.. and any pirt thereot Ind atte.pt to relot .11 or .ny plrt of .uch de.i.ed premises for the account of Tenant tor .uch rent Ind upon .uch terms Ind to luch perlunl, fir.1 or corporatione and for .uch period or pe:iodl II Landlordr in it. loleldiscretion, Ih.ll deter.ine, including the teea be:/ond the 'terlinltion of thi. Lela., .nd Llndlord Ihall not be r.quir.d to accept Iny t.nant offered by Tenlnt or obl.ry. .ny inltruction ,iven by T.nlnt Ibout luch reletting, or do Iny .ct or e..rcile .ny c.re of diligence vith r.spect to .uch r.l.ttin, or to the .iti,ltion of da..,es. ror the purpoI' of luch relettin" L.ndlord .ay decorlte or .ak. repair., chlng.l, Ilterltionl or additionl ~n or to the demised pre.il.. to the extent deemed by Llndlord de.lrlbl. or conv.ni.nt, Ind the COlt of .uch d.corltion, r.plirl, changes, alterationl or additions .hlll be chlrged to and be paYlble by Tenan~ II additional rent h.reunder, as vell IS any relsonable brokerage Ind le,ll fe,s elpend.d by Landlord, Ind Iny IU.. collected by Landlord from Iny n.v t.nant obtained on account of the T.nlnt .hlll b. cr.dit.d .,.in.t the bll.nc. of th.r.nt due h.r.und.r a. .forellid. SECTION 3104. At Iny ti.e Ifter any event of default shall occur Ind rlm.in uncurld, Llndlord, It its option, IIY s.rv. notic. upon T.nlnt that this Lease and the then unelpirld tlrm her.of Ihall CIlse and ..pir. and be co.. absolut.ly void on the d.te .p.clfi.d in .uch notic., to b. not leiS than five (5) daYI Ifter the date of such notice, and thereupon, and at the expiration of the time limited in luch notice this L.... .nd the t.ra h.reof ,r.nted, al well .1 .11 of the ri,ht, title .nd int.r..t of the T.n.nt her.under, Ih.ll wholly c.... .nd ..pire Ind b'c~e void in the .ame .anner .nd with the .... fore. and effect (except II to Tenant'. liability) as if the date fixed in .uch notic. were the date herein splcified for .Ipiration of the t.r. of thi. L..s.. Th.reupon, T.nant Ih.ll i...diat.ly ~uit .nd .urr.nder to Landlord the d..lled pre.i..., includinv any and .11 building. .nd i~prov..entl th.r.on, and L.ndlord ' ..y .nt.r into .nd rlpoISI'. the d..is.d presi... by .u..ary proceedin,., d.tlin.r, ej.ct.ent or oth.rwil" .nd reaov. .11 occup.nt. th.r.of .nd, at Landlord'. option, any prop.rty thereon.wi UI".L b.l,,'I U.un {,V l,,(U"~.n~, 1'........4""61\ .., Aa.ag.. '~"...r. · )0 . . " . #41 q. l ;f~ Ot. ."t! .]" t. ~. '.10 11$ 1". I" 'l"t! ~ . ~"" OIJ" ~ ., t t~ I'g. 0.0 ~. 0., ... t~ . , A 0., ". t. .. ~' "'t. II. "i"l'''t.. ~. .'t! "61.11"." 0" 6. ..,. 0" .t! .. t.. "Jo.., t. .~ A "1t. ./. ~."I" "" 'f .,., ~i". .."..1. 'I'. ~., ~ .1. ".. 1'. ..~ ., ,""'"'' ~ ,,'" .:"- ." '.,'., .....".., .' ....., ~ " ...~., ...'. '. '. .. '. ..."~' ,..'." .'. ,,," ~ ~...." "'1""'.' . ~. t.. "" ......~ .. ..!.~.. ....0, · . '. '" .~ '.' '.. .' ..' '. "... .. '. . ~ ',,-I. ."... .'" '. ' ,..". '.... " '. '. '. 0.... ~ · ,.", '. '. '" .. 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" ' .~., 0 I ......',. ..' '. '. o' · ~""".." '. o. "'. .... 0.' . '.' .,.. ~ " Do' '0" :'''i~' 0, " ...' ~ . "" " " ' .,' 0,' 0,... '. ...0 "",,""" · 0, ,.0. .. '.' .../ ' . .. '0"" "1>. ".,'.' 'o" ,". '0 ~. ". .. ,~. .' . '. ,.,,~,"'."'O' ,,0."" , II '. ", '. "~', .,'lo" '. '. '. '",0, '. '. "~' '. '. '. I" '. ~ , '1', . .0.0. · '. ..,/..' ..... 0," ~. ," '0. 'I. ~.. 0,,".".' '. ,~ ." . . ,. ."1' .'t.o ,~~Q ~~ ~ ~ I' . #'/. "',," ~... (' t (I ~ 07'''''.' ,'0 '0/' . .... o. .," .. .,. 0.. " .." /l ~.( ... 10 0".. (I 6 " 0... "I'J. 'g ~ .... .. ~~,,, '", ..." " :.t... tl. 'J- 'J', I... c1" ".I' "61. , /'. """ ., 'Jt!1. · h " .,,, l., 'Jt. tl} o~ "0 . . (/ C'. "t! .~ 0,,'" t. .. :f/l ". It. "t. 0 0 . P #.."1'.. t ~ , t~ 0 ~1I ~. ." . ~'l' '.It. " "'0 ", ' , t ". 0" , , . , . " , . . December 14, 1863, the Act of April 3r 1830 and/or the Act of April 6, 1951, and agr"1 that in .ith.r or any .uch ca.. five '(5) day.' notice shall b. suffici.nt. Without li_itation of or by t~. for.qoing, the Tenant h.reby waive. any and all demands, notices of intention and notices of action or proc.edings which may be rtquired by law to b. giv.n or taken prior to any entry or re-entry by summary proceedinglr ejectment or otherwisl, by Landlord, except as hereinbefore expressly provided with re.pect to the five (5) days' notice and provided further that thi. shall not be construed as a waiv,r by Tenant of any noticel to which this Lease expressly provides Tenant is entitled. SECTION 3108. In the event of a termination of thil Lease, prior to the date of expiration herein originally fixed, whether by realon of service of a notice as provided her.in terminating thi. Lease or by reason of entry or r.-entry, summary proceedings, .jectment or other of law, Tenant her.by waives all right to recover or regain possession of the demised premises, to save forfeiture by payment of rent due or by ot~er performance of the conditions, terms or provisions hereof, if such termination occurred by reason of any failure in perfor~ance hereof, and without limitation of or by the' foregoing, Tenant waives a~l ri9ht to reinstate or redeem this Lease notwithstanding any pr~vislons of any statute, law or decision now or hereafter in force or effect, an~ Tenant wai~es all right to an~' second or further tr ial in sUllll1luy proceedings, ejectment or in any other action provided by any statute or decision now or hereafter in force or effect. SECTI"'N 310'3. The words "entry" and "re-entry" as use~ in this Lease shall not be deemed restricted to their technical l~al ~eanin9. SECTION 3110. either party aiter proper nut~ce In the event of a breach or threatened breach by either part)' ~'Re~t of any of the agreements, conditions, covenants or ter~s hereof i.qA'~C~ hall have the right of injunction to restrain the lame an the right to invoke any remedy allowed by law or in equity wh~ther or not other remedies, indemnity or bursements are herein provided. The rights and remedies given to Landlora in this Lease are distinct, separate and cumulative remedies, and that no one of them whether or not exercised by Landlord'lshal1 be deemed to be in exclusion of any of the others. and canant olt tenant SECTION 3111. If rent or any charges hereby r~served as rent, or liquidated damages, or any other sum payable hereunder, shall remain unpaid when the same ought to be paidr Tenant hereby empowers any prothonotary or attorney of any court of record to appear for Tenant In any and all actions which may be brought for rent, liquidated damages or othe~ charges or expenses agreed to be paid by Tenant hereunder and to 6ign for Tenant an agree~ent for entering into any competent court and anicable action or actionl for the recovery of Tent, liquidated damages or other charge. or expenselr and in .aid luits or in said . amicable action or actions to confesl judgment against Tenant for all or any part of the rent including, at Landlord's option, the rent for the entire unexpired bal.nce of the term .. 32 .. . 8 'of this L...., Qo.put.d ., afor...id, .nd any oth.r ch.r,." p.y..nt., COlt. .nd e.p.n... r...rv.d a. rlnt or .,rI14 to be p.id by thl Tln.nt, .. w.ll e. liquidated d'.',I', .nd for int.r..t and co.t. tog.th.r with .n .ttornlY'. co.-i.. ion of five (5') p.rc.nt th.r.of. Said .uthority .h.ll not bl ..hau.t.d by one I..rci.. th.r.of, but judgm.nt "y bl confel..d I' afor...id fro. ti.. to ti.. Ind I' of tin I' .ny of .aid rent or oth.r chlrg.. r...rv.d a. rent or liquidat.d dlmlge. .h.ll f.ll due or b. in Irr..r., .nd .uch powlr. m.y b. ex.rci.ed .. w.ll .ft.r the ..pir.tion of the orlgin.l t.rm or during .ny .at.n.lon or r.n.w.l of this L..... SECTION 3112. In the .v.nt th.t, .nd when, the Le..e .hall be determined by t.r., cov.nant, limitation or condition brok.n, .. .for..aid, tith.r durin, the originll term of this L...., or .ny .xt.n.ion th.reof, .nd al.o wh.n .nd .. .oon " the t.r. h.r.by ~re.t.d, or .ny ..t.n.ion ther.of .h.ll have expir.d, it .h.ll b. l.wful for .ny .ttorn.y .e .ttorn.y for Ten.nt to .ign .n .gr....nt for 'ht.rin~ in any co.p.tent Court an ..iclble .ction .nd judgment in .j.ct..nt, wlthov. .ny .t.y of execution or .ppe.l .g.in.t Ten.nt .nd all p.r.on. Claiming under T.n.nt for the recovlry by L.ndlord of po..ession of the herein demi.ed prlmi..., without any lIability on the part of the said .ttorn.y, for which thi. L.... .h.ll be . .ufficient warrant, wher.upon, if Landlord .0 dl~ir.' . writ of pOlsession with cl.u.e. for COlt. .ey i..u. forthwith without Iny prior writ or proc..ding. what.o.v.r. If fQr Iny r.a.on after .uch let ion ha. b.en commlnc.d the .am. .hlll be determined and the po.se.aion of the pr.mi... her.by demised remain in or be re.tored to Ten.nt, the Llndlord .hall have the right to any ,ub.equent def.ult or d.fault. to bring one or more further .micabl. .ction. in the m.nnlr Ind form ~ereinbefort .et forth, to recover po.....ion of .aid premise. fo~ such subsequent def.ult. No .uch det.rmin.tlon of this Le.se nor taking, nor recovering poR....ion of thl pr.mi.es .hall d.prive Landlord of any remedies or .ction .g .q.in.t Tenant for rent or for damage. due or to b.come dUI for the breach of .ny condition or coven.nt h.r.in cont.in.d, nor .hall the bringing of any .uch Iction for r.nt, or br.ach of covenant or condition nor the re.ort to any other r..edy h.r.in ~rovided for the recovery of rent or damag. for .uch bre.ch b. con.trued a. a waiver of the right to in.i.t upon the forf.itur. and to obtain po.session in the m.nner herein provid.d. SECTION 3113. In any ..icabl. action of .jectment or for rent in arre.r'r Llndlord .h.ll fir.t c.u.. to be filed in .uch .ction an .ffid.vit .ade by it or .omeone .cting for it setting forth the f.ct. n.c....ry to authoriae the .ntry of judgment, of whiQh facti .uch .ffid.vit .hall b. conclusive evidence, and if a true copy of thi. Le... be filed in .uch action, it .hall not be n.c....ry to fi~. the original a. . ~arrant of .ttorney, .ny fule of COUft cUltom or practice to the contrary notwith.tanding. "8rI~1 1114. by or in any court or Magi.trat. by vi attorn.y cont.ined in ,oth.rwis., and 'I a e an Ipp.al. c.rtiorarl, wert of .hall b. final, writ of error, . 33 . ~ fit . r.l..... to L.ndlord .nd to any .nd all .ttorney. who app..r for T.n.nt .11 .rror. in the .aid proc.edin · .xpr,,'ly waiv.. the b.ne,it. of law, now or ft.r forc., ex.mpting .ny goode on the d.mis.d .is.., or .l.ewher. fro. di.traint, l.vy or sal any l.gal proc..dings taken by the Landlord to .nforc. right. und.r this L..... T.nant'furth.r waiv., the ri 0 d.lay ex.cution on .ny r..l .stat. that .ay b. l.vied on to coll.ct any amount which m.y b.come due under the ms .nd conditions of this L...., .nd do.s her.by w.iv y right to have thft 81m. apprai.ed .nd authoria.s t rothonotary to .nt.r a Writ of Ex.cution or oth.r pr I upon T.nant's voluntary waiv.r, and furth.r .gr. hat the said re.l ..tate may be sold on a Writ of SECTION 3115. Landlord sh.ll have the right to apply any payments .'d' by Tenant to the s.tisfaction of .ny debt or obligation of Tenant to Landlord .ccording to L.ndlord's .01. di.cretion and r.g.rdless of the instructions of T.nant as to application of any such sum, whether sue.. instructions be endorsed upon Tenant's check or otherwite, unless otherwlse agreed by the parties in writing whlch makes sp.cific reference to this Section 3115. The acceptance by Landlord of . check or checks drawn by other than Tenlnt shall not in Iny wlY affect T.nant's liability hereunder, nor shall such acceptance be de.med an .pproval of any .ubletting or .ssignment of this Le.se by Ten.nt. ARTICLE XXXII CllSTOM AND USAGE SECTION 3201. Any l.w, usage or custom to the contrary notwlthstanding, Llndlord shall have the right .t all times to enforce the covenlnts .nd condition. of this Leise in strict accordance with the term. h.reof and notwithstanding .ny conduct or custom on the part of the Landlord in refr.ining from so doing at any time or times. The failure of Landlord at Iny time or times to enforce its right. under .Iid cov.n.nts and provlsions .trlctly in .ccordanc. with the slm. .hall not be construed as hiving created a custom in any way or mlnner contrary to speciflc terms, provisions Ind covenants of this Leas. or as hiving modified or waived the same. ARTICLE XXXI II SUCCESSORS AND ASSIGNS, AGENT SECTION 3301. All rights, obligation. and li.blliti.s h.r.in, given to, or imposed upon, the r..p.ctiv. parti.. h.r.to .h.ll .xt.nd to and bind the s.v.r.l .nd r.sp.ctiv. h.ir., .x.cutor., .d~ini.tr.tor., Iucc...or., .uble..... .nd ...i9n. of .aid ' partl.., .ubj.ct to the provi.ion. of S.ction 2401, provid.d, how.v.r, th.t the liability of L.ndlord her.under and .ny .ucc...or ln int.r..t .nd titl. to Landlord'. l....hold e.t.t. in .nd to the d..i..d pr.mia.. .h.ll be li.it.d to hi, or its int.r..t 1n the Shopping Center, .nd no other .s.et. of the . 34 . ", '" , Landlord oth.r th.n hi. or it.int.r,.t in the Shopping Clnt.r .hall be aff.cted by re.son of .ny li.bility which ..id Landlord or sucCe.lor in int.r'lt m.y h.ve under thi. Lea... If there .h.ll b. more th.n on. ten.nt, th.y .hll1 III be bound jointly and .evlrally by the terms, cov.nants, and agreements h.rein Ind the word "Ten.nt" .hall be deemed and taken to mean elch Ind every Plr.on or plrty mentioned a. a Tenlnt herein, be the lime on. or more, Ind if there chall b. mort than one T.nant, Iny notic. requir.d or permitted by the t.rm. of this L.... may be giv.n by or to anyone th.r.of and .hal1 h.ve the ..m. forc. .nd .ff.ct I~ It giv.n by or to all thereof. No rights, howev.r, Ihall inure to the benefit of any alsignee of T.nant unh.. the a..lgllm.nt to luoh III i9nll hili been approved by Landlord in writing .. Ifore..id. Kuvita Propertiu, Inc. it acting II Agent only In" ,h.llnot in any .v.nt b. h.ld li.ble to the Landlord or to Tenant for the fUlfillm.nt or non-fulfillment of any of the t.rm., coven.ntl or condition. of thi. Lea.e or for any action or proce,dingl th.t mlY be tlken by Landlord Igainst Tenant, or by Tenant aglinlt Llndlord Including, but not limited to, any luch action Irillng out of, In connection with or in any manner relating to, the p.rformanc. or non-performance by Agent or any Ict purlu.nt to Llndlord'l direction. Any waiver of Landlord's liability h.reunder, inClUding, but not limited to, any waiver of lubrog.tion rights, .hall Ipply with equal force and effect tel luch Ag.nt. ARTICLE XXXIV SCOPE AND INTERPRETATION OF THE AGREEMENT SECTION HOl. Thh L.... shall be considered to be the only agr..ment between the parties hereto pertaining to the demised premi..s. All negotiltions and oral agreements acceptable to both parti'l Ire included herein. The laws of the Commonwellth of P.nnr,'tvania shill govern the validity, interpretation, p.rforman~e and enforcement of this Lease. SECTION H02. In the event that Iny law, decision, rule or regulation of any governmental body having jurisdiction shill have the .ffect of limiting for any period of time the amount of rent or other charges plyable by Tenlnt to any amount less thin that otherwise provided pursuant to this Lease, the fOllowing amounts shill nevertheless be payable by Tenant: (a) throughout such period of limitation, Tenant shall remain lilble for the maximum amount of rent Ind other charges which Ire l.gllly payable (without reglrd to Iny limitation to the Imount ther.of expressed In this LeIse except that III amounts pay.ble by rea.on of this Section 3402 shall not in the aggregate exceed the total of III amounts which would otherwise b, plYlble by Tenant pursuant to the terms ot this Lease for the period of limitation), (b) It the termination of luch period of limitation, Tenant shill pay to Landlord or Agent, a. the clse may be, on demand but only to the extent legally collectible by Landlord or Agent, any amounts which would have b.en due from the Tenant during the period of limitation but which wero not paid because of such limiting law, decision, rule or regulation, Ind (c) for the remaining term of this L.a.. fOllowing the period of limitati~n, Tenant shall PlY to - 35 - '. \1;',' I:;XllIHIT ",-\" " LANDLORD hl'rt'h)' r"MNVPS lhl' n~hl, al any Ilm~ and flom limp to tim." 10 lIIter. or otherwise modify thl locallun, and:or diml'nslonl of all buildinll5, parking areas, service drives, entrillS. IKtla, malls, and CJther flll'tllli... shown on thts EKhibil "A", 10 place In th.! mall.. ('nUlla, corridors, and other common 1II"U of Ih., Shol'plnll Cl'nll'r, lands"lIpinK, deroratlw l\I.'ms, and ItructUll'S end areu lor relail sales .nd prunmtlunalll'llvltlel, IInd lu l'Onstrul'l, h'as.' , opl'ralP and mainlaln huildlnKI, sINeWr!'s, I/ld other radlll'el nullhllwn (In Ihil ~:xhihll ",,", rrovldl'd, however, that Landlord Ihall not vtol.le any fighla t'Kprollly rell'rved 10 Tt'nllllln thil Lt'lIIe, ' . ; c' .J '-=' '-~"~~- r :;.J.- ---..-.,. , . 'j ~ ~ 1 ~ I ill " !J ~ " , ~ .. -: \ -, _.,--- r I' I :1 , , ., 0;' ,,', -,-. .,.' ,d ~"... ~....,. 0 ----- " ,:r""'" _ _~ ~~-;:-:' '1" ~ ill1,'" ...1 \ rl " - Ii!l~\t~__:~ L-" gu,-' ,\ , ----.-.- - .... ~ rJI\ - U!-l' n, ,-,I _,,'--, I I tl ~I ~ ~ -- ..- 1 'Il -, .. -' - ..- - , , '- , , " . . c ., _ _ _, _,.J . _.......==.:1"1I ~ . '" , ' ,. Jr- , I D-- --- ~--j 1 , u ':;-'-1 1 "-- I ~, , ~..~... L__ .. 1.._ r \, \ \ \ " " , , . I , . I ~I ~ . i ~ I , t-- , T ..' :.---,. 1 ~ , , , ~ .-.--.-. - - - ,J- /) .' ./ (\..... \ ' , ".!) -. -' -. - , ..f' ':J ,..r- J __.- C '-........ I .~ ___-~1 . ..'7\, .... ..: ~ t. .-.._.... -',... T ' ...--;/ ,./ 8Lby NO, . F . A-t ....J " ., -j ---' '-, " ;/ ,-" 1\ ,~ I' .. I \ I I , 1 I I. Ii !!',:', II: ! j I' i ! It ii Hit ; ii', STORr No, '4 .. e . EXHIBIT .B. 1. LANDLORD'S KORK Except as otherwise provided in this Exhibit .8", Landlord, at its own cost and expense, has constructed or will construct the fol1owino, all of which are her.in collectively referred to a. "Land10rdT. work., A. Building of Which Demised premises Shall Form a Part. The building of which the demised premises forms a part (herein referred to as the .Building") shall be constructed (to the extent not now existing) in accordance with the fOllowing criterial 1. Structure. The structural frame including columns, beams, joist~ and roof will be, at Landlord's option, of steel, concrete and such other non-combustible Inaterial as may be specified by Landlord'. architect. 2. Roof. The roof will be of a bonded type construction insulated to provide a "U. factor of 0.09. 3. Exterior Walls. masonry, prefabricated panels matexials as may be specified The exterior walls will be of or such other material or by Landlord's architect. 4. Interior Faces. The exposed interior face of exterior walls will be of masonry, wallboard or such other material or materials as may be specified by Landlord's architect. B. Common Areas. Landlord shall construct inside and outside the Building certain Common Areas, limited to the followingl 1. Outside Common Areas. The Common Areas ouside the Building will include t~rd surface and striped parking lots, access roads, directional, parking and traffic signs, a storm ~Taina~e syqtpm, delivery areas, walks, light.ing, landscaping and planting and such other areas, facilities and buildings, as determined by Landlord, as are used in the maintenance and operation of the Shopping Center. 2. Inside Common Areas. The Common Area inside the Building will include an enclosed, heated and air-conditioned, lighted and sprinklered mall with courts, lighted and sprinklered service ftnd exit corridors, stairs or ramps and such other facilities, as determined by Landlord, as are used in the maintenance and operation of the Shopping Center. C. Work Within Tenant's Space. Landlord's Work with regard to the demised premises shall be limited to the following (to the extent not now existing): 1. Demising Walls. The demising walls or demising studs which saparate the demised premises from other tenant areas and Common Areas will extend from the finished floor to the underside of the ~oof deck. Unless required by applicable law to construct demising walls for fire corridors and emergency 8-1 " f"t .xlt. of unflnl.h.d .a.onry block, Landlord will furnl.h ..tal 'itud. on which T.nant .hall plac. d.al.lng wall. In acCordanc. with Articl. II, S.ctlon I. 2. Ploor.. Th. floor. within the d..l..d pr.mi... will be concr.t. with a trov.l.d fini.h in.tall.d .t .n .l.vation .el.ct.d by Landlord. T.n.nt .~.ll "Y ~'A'l... ._. .". 61 '1.1S '" .'\I.r. I.., II '1,.. .... t.. ....... Aa.t .ad ,r.~il.' a. r.l~~wr'.a'ft' f.r 'he lA.,.ll""ft I' 'hI 'l..r ~. If Tenant 'hall hive notlfi.d L.ndlord In writing at or b.for. the execution of thl. Le.ae and if at .uch time the concrete floor .lab ha. not been pour.d for the d..I..d pr.ml.e.r and provided and .0 long a. the d.lay in pouring .uch concrete floor .lab will not interf.re vith and/or del.y completion of Landlord'. Work or anr portion thereof, the .l.b vlll not be pour.d until the Tenant. contrlctor ha. complet.d T.nant'. underground utility work. Aft.r the concr.t. flooe .l.b i. poured, Landlord in no ev.nt .hlll be r..pon.ibl. tor any .ub..qu.nt und.rground work or r,.ovll .nd/or r.pl.clng of the concr.te floor .l.b. In the .vent Tenlnt d.... it n.c....ry to remove .nd/or r.pllce .uch floor .l.b, .uch vurk .h.ll be don. by Tenlnt .t T.nant'. own co.t .nd .xpen... 3. Door.. One hollow met.l ..rvice door with dimensions of 3'0" by 7'0" will be provided .t the location .hown In .nd In .ccordance vlth "Landlord'. De.ign Criteria" (a. defined In Article III of this Exhibit '8'). Tenant, at T.nant'. own co.t Ind expence, will provide Ind in.tlll .11 panic hardware, lock.et and cloler. No door will be provided by Landlord in Iny .tor. which has I depth of 50 f.et or Ie.. or .n Irel of 1,200 .qulre f.et or 1.... 4. Landlord'. Optlon.l Work. At it. option, Landlord may provide at Tenant'. cost Ind .xpen.e I n.utral vertical mate'rla~ I)etween tach .tore on the 111I11 .Ide of the demising p.rtltlon, and/or I horizontal neutrll .trlp .. .hown on L6ndlord'l Plan., above the .tor. front limiting the height th.nof. D. Utility Service. In De.I..d Pr..i.... 1. Utility Line.. Llndlord, it. Igents, ..ploy... and contrlctor., and any utility company vhich rurni.h.. utillti.. to the deml.ed preml.es and/or the Shopping C.nt.rr .hall have the right to run utility line., pipes, conduit. or duct work, where nece.s.ry or de.lrable, through ceiling .p.ce, column 'plce or oth.r Plrt. of the d..i..d pr.mi... Ind to r,pllrr alt.r, r.plac. or r.mov. the .am. In . .ann.r vhich do.. not unr.l.onably Int.rf.re vith T.nlnt'. u.. of the deml.ed pre~I.... 2. Electric Service. Electric vlll be aVlllable for the demi.ed pr.mi... .t Landlord'. bu. duct. .t a location d..ignat.d by Llndlord pur.uant to the procedur.. ..t forth in Landlordr. D..ign Crit.rll. Il.ctric ..rvic. char.ct.rl.tic. will be 277/480 volt., 3 pha.., 4 wlr., 60 h.rta. Landlord will provide between the demised premises and the closest ..rvlce corridor an empty conduit unl... the d..ia.d pr.mi.e. .but a ..rvic. corridor, in which ca.. T.nlnt .hall provld. the conduit. 'enant will provld. bua plug.'wltb fu..., the conduit and f..der b..tv..n the bu. duct Ind the d..i..d fr..l"', .nd ch.ck .tterlng within tb. d..i..d pre.l... Ind w 11 .at.nd conduit witbin the d..i..d pr..l... to T.nant'. dl.trlbutlon 'f.t... I-a ~ ,,., Tenant's distribution facilities within the demised premi... Ihall consist of III necessary switches, conductors, trlnsformers Ind controls in ~ddition to Tenant's normal lighting and power devices. The installation by Tenant of all electrical facilities shall conform to Landlord'. Design Criteria and to the National Electric Code, and meet the requirements of the Landlord's fire underwriter and local governmental authorities. All material and fixtures shall be new and carry UL labels. Any existing electrical facilitie. mUlt be changed to conform with the above requirements and Landlord's Design Criteria to enable electricity to be provided by Landlord. 3. Water Service. Landlord will provide a branch water line, with shutoff valve, of not less than 3/4 inch to a point in the demised premises designated by Landlord. Any increase in the size of water s-.rvice required by Tenant which necessitates a branch water line larger than such 3/4 inch line will be furnished, at Tenant's expense, upon written request of Tenant. Any existing water facilities must be changed to conform with Landlord's Design Criteria to enable water to be provided by Landlord. 4. Gas Service. Gas service will not be available. 5. Sanitary Sewer Service. Landlord will stub a plugged 4" sanitary outlet, at floor level at a location selected by the Landlord, to which Tenant will connect in accordance with Landlord's D-.sign Criteria, notwithstanding current facilities which may exist. 6. Sprinkler Main Service. Landlord will provide a sprinkler bulk main with capped outlets to the demised premises at a location determined by Landlord and sized to accommodate sprinkler coverage required by Factory Mutual. Landlord will deliver to Tenant a plan showing the bulk main and capped outlet in the demised premises and Tenant will install all piping and other sprinkler work, including feed main, cross main, branch line, riser nipples, drop sprinklers and heads to provide a complete sprinkler system in accordance with Landlord's Design Criteria and sprinkler working drawings, prtp~red by Tenant's contractor, and approved by PactQry Mvt~'l and all authorities having juriSdiction. 7. Heating and Air Conditioning System. Landlord will provide and install a medium pressure, constant temperature air supply main at a location designated by Landlord to sup~ly cooling and ventilation air for Tenant's premises and, at Tenant's expense, a medium pressure, variable air volume t.rminal complete with system powered thermostat for variable air volume terminal control. The installation of all ductwork, electric heating with controls, diffusers, return air registers and other mechanical apparatus related thereto required by Tenant's BVAC system shall be provided by Tenant, at its cost and expenser and all such work shall be designed and installed in accordance with Landlord's Design Criteria and Landlord's HVAC Plan, notwithstanding current f3Ciliti.s which may exist. 8. Telephone Service. Landlord will provide cent.ral telephone locations as designated by Landlord. Tenant will make its own arrangements with the telephone company for telephone lerviee and will inltall a conduit from Landlord's designated telephone location to the demised premisel a. may be required, notwithstanding current facilities which may exist. 8-3 . ~ II. TlNAN"S NOR. p-Subject to the provl.lon of the ..cond par'araph on pa.. l-l\A 'Motwith.t.ndin9 the pr..ent facilities in the de.i.ed pr.mi... .nd the pce..nt condition .nd .t.te of rep.ir of the demi.ed pr.mi.es, .11 work .ot forth in this Article II .nd .11 other work not .pecific.lly do.ignated .. L.ndlord'. Work by Articl. I which i. n.c....ry to compltte the demi.ed premi... in .ccord.nce with T.nant'. ,in.l Pl.ns .nd L.ndlord'. De.i9n Criteria and which i. n,c'lsary for the d.mi..d premi.e. to confor. thereto .nd to all curr.nt requirement. of .11 90vernmental .uthoritie. h.vin9 juri.diction (includin9, without liMit.tion, .mergency light., rtwiring, .1ar.. .nd .xtingui.her.) .nd to be ready to open for bu.ine.. with the public by the cOMm.ncem.nt dater in the manner ..t forth in the L...., .hall be don. by T.nant at T.nant'. own co.t .nd .t .xpense. All .uch work which i. not .p.cific.l1y de.iyn.t.d .. L.ndlord'. Nork i. h.r.in collectiv.ly referred to.. Ten.nt'. Work.. A. De.i..d premi..s. The store shall be designed and installed in accordance with Landlord's Design Crlteril, the requirements of Landlord'. fire underwriter and the current requirements of any 9ov.rnmental authority having juri.diction over the proj.ct. Tenant's store front .hall conform to the d.si9n crit.rl. as .stablished by Landlord'. architect .nd s.t forth in Landlord's D'llgn Criterla. Th. Itor. ,hall hav. a customer .ntranc. not to exceed 10'0' in helght. Tenant shall not lnstall it. finished ceiling above 11'0' in height. The d..ign, charact.r and material. of the store front and all aspects of the design and construction of the interior of the demised premis.s shall be lubject to the approval of the Landlord. All expos~' .etal fl.shing. doors, and trim are to be permanodic or ~uranodic finish or equ~l ln standard. Open grilll are to meet the sam. reouirements. A hard dry surface at the bottom 6' of the .tore front construction Shall be provided by Tenant. This material shall be non-absorbent (wood or other porous materials are not acc.ptable). Th. .ign background and finish i. .ubj.ct to Landlord's .pprov.1. Op.n grilll wid.r th.n 12' .re to be Motorized. In the .vent the demis.d pr.mi.e. h.v. . .ide wall .butting a mall entrance Of lide .all, Tenant shall tncorporate into the desiqn of such wall one or .or. of (.) entrance to the premises and (b) lee-through dilpl.y stor.front, and (c) Ihadow box .erchandis. displ.y. Tenant .ay not install a ..zzanine without Landlord'. .pproval. T.nant Ihal1 not .xc..d . floor load capability of 200 poundl p.r .quare foot. 9. Sales Ar... The floor .lab .hall be covered with floor fini.h materiall .pproved by L.ndlord. Carpeting .h.l1 be fl..e r..istant. Ceiling. .h.ll be con.tructed of 24. & 48' .cou.tic tile, one (1) hour tire rlted, on exposed .et.1 T b.r grid system or such other fire rated material al approved by Landlord. D..ilin9 wall. .hall .xtend to the under.ide of the roof deck .nd .b.ll be con.tructed of .heet rock in accord.nce with applic.ble .t.t. and loc.l lawl .nd ordinance. and the re9ul.tion. of L.nd10rd'. fire underwriter, but in no event 1,.. th.n S/8" Iheet rock t.ped .nd Ip.ck1ed. All ...onry Willi .nd p.rtition. .hall be furred out ,hett fock, of tht Ifore.lid thickne.., t.ped .nd ,plckled. tho'. p.rtition, '-4 e ~ dividing lalel aria from non-Ialll area which contain no ceiling Ihall bl carried to the underside of roof deck on both lidel. All concealed framing above ceilingl or lo~fltl Ihall be made of ste~l Ituds or other fire retardant material. in accordance with Landlord'. De.i9n Criteria. Certain .tore frontl or ;ide corridor frontl a. Dhown on Landlord', rloor and Structural plans may be designated by the applicable fire marlhal1 ~, carry firl extinguilher cabinetl recelled into their wall;. All "A" occupancy Tenantl (al d.fined by the Pennsylva~la Depart.ent of Labor and Indultry) mUlt provide partitions and ceilingl with two (2) hour fir. rating. C. Stock Room, Service and Other Non-Sales Areal. The concrete floor slab, if left exposedr mUlt be sealed wi~~ a sealant approved by Landlord" architect. If the ~oncrete :loor slab is covered, the provisions relating to floor fin:,h materiall for the sales area shall apply. Perimeter ~,lls shall be of either exposed masonry or drywall and taped. Rear walls shall be insulated in accordance with Landlord's Design Criteria. D. Toilet Rooms. The floors shall have non-porous floor oovering over the concrete floor slab. All walls and oeilings shall be of drywall, taped and Ipackled. E. Painting and Deoorating. Exposed walls shall have a minimum two coat finish and all wood paneling a minimum of one sealer coat. The walll and ceiling of the toilet room shall have two coat semi-glOSS enamel finish. The stock room and service areas may be left unfinished. r. Utility Work by Tenant. 1. Electrical. The installation by Tenant of all electrical facilities shall oonform to .andlord's Design Criteria (to the additional electrical information supplied by Landlord to Tenant ~s set forth in t:.e ~lectrical load data portion by Landlord's Design Criteria) and to the National Electric Code, and meet the requir~ments of the Landlord'S fire Underwriter and all other local, state or federal governmental authorities. All material and fixtures shall be new and carry UL labels. Any transformer necessary to reduce the voltage supplied to levels acceptable for Tenant shall be provided by Tenant at its expense. Circuits must include a time clock controlling lig" and store front illumination and leparlte circuits for night lighting Ind exit signl. Emergency lights shall be provided by Tenant. Tenant shall provide a buzzer call system at service door entrance or from a common corridor entrance, II required by Landlord. Tenant's work drawings (as referred to in Article III) shall indicate the circuits Showing connectionl to Ilar., televilionr BVAC or other special circuits. , 2. Plumbing. Tenant shall install underslab drain and soil lines to Landlord's soil line at the point of entry selected by Landlord. Requirements greater than that provided by Landlord must be shown on Tenant's working drawings and will be made It Tenant's expense. Tenant Ihall be responsible for the installation of a water meter to service water line 8-5 ~ " inltalled br Landlord at & point designated by Landlord. Tenant .hal provide a minimum of one close-coupled water closet, one lavatory, and one electric hot water heater. All of the aforesaid shall be in aocordance with Landlord's Design .Criteria. G. rire Protection. All tenant spaces must oarry the approved fire extinguishers required by governmental authoritie.. Tenant, at Tenant's own cost and expense, shall wrap all oolumns within the demised premises from the floor to the underside of the roof deck with one hour fire rated materials. Tenant shall install all sprinkler pipes, feed mains, oross mains, nipples, drop heads, etc. from the capped outlets on Landlord's bulk main. d. Mechanical Systems. Tenant shall design and, at its sole cost and expense, install a complete air-conditioning distribution system. In addition, Tenant maYr at its option, install an electric heating system. Such systems shall be designed and installed in accordance with Landlord's BVAC Plans and Landlord's Design Criteria, at the location therefor specified on Landlord's HVAC Plan. If Tenant is required to install a rooftop BVAC system, Tenant will reimburse L.,~d1ord for providing additional rooftop structural supports. Tenant shall provide an exhaust fan of adequate capacity for each toilet room and such other ventilating equipment as may be required. The design and location of exhaust systems shall De approved by Lahdlord prior to installation. I. Signs. All signs shall conform to the standards as set forth in Exhibit .C.. J. Roof penetratic ,. Tenant shall submit for approval of Landlord's architect i~ the working drawing phase, drawings showing all roof penetrations for special vents and equipment. All roof openings, reinforcing, curb work and flaShing and repairs to the roof required by Tenant's installations shall be performed by Landlord's contractor, at Tenant's expense. Tenant .hal1 pay all costs for the opening of the roof and for any speoia1 vents required by Tenant. It. Insurance. 1. All RiSk Insurance. In addition to, and not in lieu of the other policies of insurance required by this Lease, at all times during the periOd commencing with the start of construction of Tenant's Work and terminating on the date of the acceptance by Landlord of Tenant's Work as being completed in accordance with the provisions of this Exhibit .8. (such period is herein referred to as .Tenant's Construction Period"), Tenant, at its own cost and expense, shall maintain 8~6 " ~ , , in effect with a responsible insurance company approved by Landlord, a policy of "All Risk" Builder's Risk Insurance in the standard Pennsylvania form. Said insuronce shall cover the full replacement value of all work done or to be done and all . fixtures and ~quipment insta111ed or to be installed at the demised premises by Tenant, without co-insurance and without Iny deductible clause. 2. Workman's Compensation. At III times during Tenant's Construction Periodr Tenant's contractors and subcontrlctors shall mlintlin in effect Wor~mln's Compensltion lnsurlnce IS required by the llws of the stlte in which the Shopping Center is located. 3. Adjustment of Loss. Any loss occurring during Tenant'. Construction Period shill be adjusted with Llnd10rd Ind the proceed. shall be payable to Landlord, in trust, for the purpose of repair or reconstruction. Repair and/or reconstruotion of all or Iny portion of Tenant's Work damaged or destroyed by any casualty oocurring during Tenant's Conotruction Period shall be commenoed by Tenant as soon as possible after such oasualtYI provided that if all or any portion of Landlord'o Work is also damaged or destroyed by suoh oasua1ty, Llnd10rd shall notify Tenant when repairs or reoonstruction of Landlord's Work is substanthlly completed Ind, within fifteen (lS) day. Ifter reoeipt of such notioe Tenant ~ha11 diligently pursue such repair and/or construction to completion. 4. Insurance Provisions. All policies of insurance, exoept Workman's Compensation required to be clrried by the provisions of Section K.2, shall contain the following endorsements in substantially the following form: ""Notwithstanding anything to the contrary, it is 4greed that c,ulP HILL SHOPP nw CEl/TER ASSOCIATES, IS Landlord, KRAVITZ PROPERTIES, INC., as Landlord's Agent and Landlord's general contractor (name to be supplied to Tenant), are hereby added as additional insureds. It is understood and agreed that the insurance afford..' by this pOlicy or policies for more than one named insured shall not operate to increlse the companies' liability, but otherwise Aha11 not operate to limit or void the coverage of anyone named insured as respects claims against tne same named insured by any other named insured or the employees of such named insured. No cancellation or reduction of this pOlicy shall be effective unless written notioe is given by registered or certified mail, return receipt requested, to the- Landlord with a copy to Agent, stating when luch cance111tion or reduction in coverage shall be effective, (which, in no event shall be less than twenty (20) days thereafter)." True copies of each such po1ioy or certificates of insurance eVidencing the same and containing such endorDements shall be delivered to Landlord prior to the commencement of Tenant's Work and shall thereafter be replaced in the event of the expiration, lapse or cancellation of any such policy. L. Miscellaneous and General Requirements. 1. Governmental Regulations. All of Tenantls Work shall be done in accordance with the Tenant's Final P1ansr the ourrent requirements of all applicable laws, ordinances, regulations, codes and other requirements of governmental authorities, with the regulations of Landlord's fire underwriter and Landlord's Design Criteria. At any time ana 8-7 . ~ . . fro. tl.. to tl.. during the p.rfor.anc. of T.nant'. Work, tandlord, Agent, L.ndlord'. .rchlt.ct .nd/or Landlord'. g.ner.l contractor Il'y Iflt.r upon the d...h.d pUllh.. and in.p.ot; the work b.ing perfor..d by Ten.nt and take .u~h .t.p. " th.y .ay d..1I n.c....ry or d..ir.bl. to ...ur. the proper p.rfor..nce by T.nant of Ten.nt'. Nork and/or for the prot.ctlon of the Bullding .nd/or .ny pre..l... .djac.nt to the d..i..d pr...l.... In .ddition, T.n.nt'. Work Ih.ll b, perfor..d ln . thoroughly fir.t-Cl... .nd work...nllk. ..nn.r, .hall inoorporat, only n.w .at.rlal. and .hall be ln good and us.ble condition at the d.te of completion. .' 2. L.ndlord'. Con..nt. Int.rpret.d. Any .pprov.l or con.ent by Landlord or .ny or .11 of Ten.nt'. crlterla, .y.t'II', plln., or drlwlng. .h.ll nelth.r con.tltut. an ",ullptlon of respon.ibility by L.ndlord for .ny ..p.ct of .uch criteri., .y.t'.'r pl.n. or dr.wing. including, but not liMit.d to, th.ir .ccuracy or .fficl.ncy noc obllg.t. L.ndlord ln any ..nner with respect to Ten.nt'. Work .nd T.n.nt ah.ll be .olely re.pon.ible for any deficiency in .ny d..lgn or con.truction of .11 portion. of T.nant'. Work for which Tenant 1. r..pon.lble. 3. Per.ita and reu. Landlord .hlll obtain and p,y for all neceso.ry perllit. .nd .hall PlY III other fee. r.quir.d by public luthorities or utility complnies with r..pect to Tenlnt's Work, 'X'IP' bul1ding permit. for Tenant'. Work, pay the COlt of .uch perm .'y deduct ro. 'Tenant'. in en.nt .hall n lord'. optionr Landlord Allow.nc.- (.. d.fin.d in 4. Temporary Storlge Arels. No contractor or .ubcontractor participating in Tenant's Work lIay use any space within the Shopping Center for storage, handling Ind moving of lIaterills Ind equipment and/or for the locltion of . field office or facilitiel for the employees of .uch contractor and ,ubcontrlctor ~ith~~t obtaining Landlord'. prior written approval for elch auch use. If any contractor and/or subcontrlctor shall use any space in the Shopping Center for any or all of the Iforesaid enumerated purpo.es or any oth.r .illilar purpose without obtlining Landlord'. written .pprov.l therefor, Landlord .h.ll hive the right to t.rllinat. .uch u.. and rellov, .11 of .uch contractor'. or .ubcontr.ctor'. .aterial, equipment and other property fr~ .uch .pace, wit~out Landlord being li.ble to T.nant and/or to .uch contr.ctor or .ubcontr.ctor Ind the OOlt of such t.r.ination .nd/or r.mov.l .hall be paid by Tenant to Landlord or Landlord, at it. option, .ay deduct luch COlt fro. Tenant'. Allowanc.. 5. Te.porary Store rront.. Te.porary .nclolur. barricades and temporary lign. .hall b. con.tructed and finilhed by Tenlnt in accordanoe with Landlord'. D..lgn Crit.rla. I( T.nant'. .tor. will not b. open for bu.lne.. wlth the publlo by the date the Shopplng C.nter il flr.t .0 open.d and Tenant ha. not In. tilled I tempor.ry .tor. front e. required by Landlord, Landlord Ah.ll lnat..ll it .t a co.t. to Tenant of $50.00 I lineal foot. 6. Protection of Work. It .hall b. Tenant'. re.pon.lbl1lty to Clu.e .ach of Tenant.t. contractor. .nd lubcontractorl to ..1ntaln contlnuou. protection of .dj.cent property and 1.prove.ent. agaln.t. da.ag, by r.a.on Of t.he perfor.ancl of Tenant'. Work. Ilch contr.ct.or .nd B-1 . , . f1't . .ubcontr.ctor shall properly protect Tenant'. Work with lights, 9u~rd rails and barricades and Ihall secure all parts ~f Tenant'. Work against accident, storm .nd any other hazared. 7. Interference with others. Tenant's Work ShMll be coordinated with all work being performed or to be performed by Landlord and other occupant. of the Shopping Center to the end that Ten.nt'.Work will not interfere with or delay the completion of the suilding or any other construction within the Shopping Center, and each .uch contractor and lubcontractor shall comply with all procedures and regulations prescribed by Landlord or its agents (inclUding, but not limited to, Agent) for integration of Tenant'. Work with that to be performed in connection with the construction of the Shopping Center. 8. Contractors. To the end that there shall be no labor dispute which would interfere with the constructionr completion or operation of the Shopping Center, or any part thereof including, but not limited to, the demised premises, Tenant agrees to engage the services of only such contractors or subcontractors (for both Tenant's Work and any other work which Tenant does, whether or not such work is permitted or required pursuant to the Lease) as will work in harmony ana without causing any labot dispute with each other, with Landlord's contractors and subcontractoro and with the contractors and subcontractors of all others working in or upon the Shopping Center or any part thereof, and Tenant shall employ and shall require its contractors and subcontr,~tors to employ only such labor as will work in harmony and without causing any labor dispute with all other labor. then working in the Shopping Center or any part thereof including, but not limited to, the demised premises. Furthermore, only thOSll contractors and subcontractors as have been duly licensed by the authority having juriSdiction over the appropriate profession and which have been approved in writing by Landlora (which approval will not be unreasonably withheld) may perform any work (including, but not limited to, Tenant's Work) for Tenant in or upon the demised premises. 9. Financial Requirements. Landlord may rc ~ire Tenant, before entering on the demised premises to CO~Rence Tenant's Work, to give Landlord proof satisfactory to Landlord of Tenant's financial ability to conlplete and fully pay for Tenant's Work prior to the commencement date or, in lieu thereof, either to furnish to Landlord a bond in an amount satIsfactory to Landlord written by a surety company acceptable to Landlord guaranteeing the completion of Tenant's Work free of any liens, or to deposit in escrow with Landlord (without the obligation of Landlord to pay interest thereon) the estimated sum required to oomplete Tenant's Work. If such a deposit shall be made, upon the satisfactory completion of Tenant's Work in accordance with the provisions of this Exhibit "S" and the submission of proof that all bills in connection therewith have ,been paidr Landlord shall release such funds hom escrow. Landlord in its sole discretion r both as to the extent and amount, may release portions of such escrow deposit directly to Tenant or Tenant's contractors, subcontractors, materialmen and/or suppliers to pay bills as Tenant's Work progresses. 10. partioipating subcontractor Guarantees. Each contractor and subcontractor in Tenant's Work for which suoh oontractor or is responsible, shall guarantee or warrant in S-9 . " ,. )> o~ ..." o-~ ,~'; .. "'~ ","" .. "'0':1 , 0" )~::o-:' ~~o- :0--;;- .... ... .. ,~Ooo... )~ 0 ~ ~ .. - 0 ." ~\~~j rc:......~~ ,.......c;.~':I ~....~ . .. ... 0 00 ~~'% ~~ \\ ...~-..~" - ...'O."..~. ...,;;."-;000 , 'ayOo';'" ~ po....'" ...~ . _ ~.._ 9. '" -.."''' r- 0.. , .- .. ~& o ..~ ...... ...,., d .. ....~ ",'" ..-' . . ... "'~ 0""" c;....;.. .. "'-- .... d~'; ...~" c;.....~.. ...-. d1 c;.~~"'~~~~~~O~~~~O".- ':. ~~ c;.'; "'0';"''' ~~ ~ ~~ e;~"i.~ ~ ...01> . ~ 00. -. ~ ::0 ...,.::0 · ~ . . "," .. oo~ ",,0 ~ ..... 0 · ~ ",'" '" n ':0 0 ... 'iT r · 00 ~ .... .. 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':I..... 0 cs~ . ca. ..OoPcs';..... ..0.... ..~ .,.~,,~"'~ 00~'O- O~ ~~~ ~'O~o~~.....~~~ .._ .......'?,0.0..C'..-; ~c;.' oo..o~......."'''. ...~ ... 0 ~...... ... ~- o ... 0 . ... ... 00. ~... · n 0-;" .. ~ c;. _ ~ ':10 c::.00~ ...~... 0 n~~.~O '0 "Oo~~" ~ ...~,. c;....~~ ..... ... ,:",0- o 00':, ~ ...; ~""'."'; ~... ...- .." ..... ... . ~ :;; ~~ ~\ ~~ ~<1r~ ~~ \ % ...-. ....... ....00........,.0- ~........o ......... ~~ C>~j,~..~ ,p'"].'l-~..1 " 0 ...0 0" · - ~ ..,......~..o"'.... ~ ..- ....~"'...~..~ ..."#~-:~. ~ ~. . ~ ':1_ . ~ ~.D .~.pC'~_.,,''O ~~-~ ... .." '; ... 0 ~.o - ~ ~ 0" ",00~C'000...~0 0." "'o.~ -c; '; \ · 0 '3 o. ..l. ~ ~C;... ~ ()o~ ~..l \ ~ · 00 "'_ ~...~o"'~~"~ "'0 _"'c;...~....$':In~ ~ j(. ~ '" .. ~ Oo~ ........., ~ .. 000.. .-.'" ~"o ... c:...n~ ~~...~ ;p......~ .c . 0 ... .... c;. .. .. '" 00 <;.. '; ~'? ~ ~<1- ':, ...~;-;:~ ~ 0;, ~~"o ~l. c;. ';. %- "'00 ~o -". 0 ~. ~ .. ...':1 .p ~... . 00 ~~ 0" ~~ ~ ~,. ':I .~ ." ~'" 00'" ...... ~~ ..... .0 ..... n o. .... ~~ .... ~... ..0 ~.. ~ . .. , . =' ~ " , . ~ .'Includlng, but not Ihll1ttd to, the roof p.netr.tlon ch.rge, t electric charge, wit therefor I. .uch moval ch.rge .nd the ) day. .fter written de.and .ndlord, If payment I. not .ade within L.ndlord may off.et .11 .uch ~um. .g.ln.t then III, 'CONSTRUCTION PROCEDURES, A. Landlord'. De.lgn Criteria. Aft.r the .x.cutlon of the Le..., L.ndlord'. 'rchltect will deliver to T.n.nt one (1) .c.le dr.wlng of the floor pl.n of the deal.ed preml... (the L.ndlord'. ',loor Pl.n') Indle.tlny' Int.r .11., d..I.lng partition., g.n.r.l con.truet on, co1u;n-T.oc.tlon., VAV termln.l, ..nlt.ry outl.t, d....tle w.t.r loc.tlon .nd .prlnkler bulk ..In, .nd on. (1) copy of Landlord'. de.lgn crlt.rl. p.ckag. whiCh .h.ll include Landlord'. crlt.ri. for d..lgn of the d.ml..d pr.ml.e" pr.llmlnary pl.n'r RVAC plan. and crlterl., .l.ctrlc.l pl.n. .nd .uch oth.r plan., crlt.rl., drawing. .nd Information .. Lftndl~rd or L.ndlord'. Q:chlt.ct de... n.c....ry or .ppropriat., All of the Ite.. included within .uch dellgn criteria package are herein collectively referred to al 'Landlord'. Design Criteria', I. Tenant'. Preliminary Pl.n., Within twenty (20) days aft.r receipt by Ten.nt of the .bove, Tenant .ha11 submit for Landlord'. approv.l In s.pl. form, complete .tor. front design plans, . .Ign plan, . merchandising layout plan, Tenant'. estiNated h.ating/coollng load calculation., RVAC drawing., plumbing drawing. and .prlnkler drawings, all ,f which shall be In accordance with the criteria set forth In Landlord's Floor Plan and Landlord's De.1911 Criteria and .U of wllicll .rt COllectively referred to .. 'Tenant'. Preliminary Plans', C, L.ndlord'. R.view, 1, L.ndlord will r.vl.w .nd r.turn to T.n.nt T.n.nt'. Pr.llminary Pl.n. .Ith.r .ark.d .pprov.d, ..rk.d to .how the correction. required (in which .v.nt such marked-up Prell.lnary Plans sh.1l b. dee.ed approved, .. .arked up) or give Tenant written notice of disapproval of Tenant'. Preliminary Plan. together with the realon. ther.for, In the .vent L.ndlord gives Tenant notice of dlsapprov.l together with the rea.on. therefor, Tenant .hall hay. tw.nty (20) day. from the date of .uch notic. of disapproval by Landlord to .ubmit r.vi.ed T.nant'. Pr.llminary Plan. lubj.ct to lubl.quent .arkup. .nd/or di.approval. and oorr.ction. In the .annee ..t forth above, provldedr however, if Ten.nt'. Preliminary Plans do not .e.t Landlord'. approval aft.r the ..cond .ubml..lon, L.ndlord, .t It. option to be ...rciled by written notice to Ten.nt, .,y terminate this Le.se, which termination shall be effectlv. .. of the d.te let forth in .uch written notice, 2. Ten.nt'. .Itl..ted be.tini-cooling load .h.ll be lubject to L.ndlord'. .pprov.l .nd In tbe event L.ndlord Ihall dl..pprove tbe ...., T.n.nt .h.ll revll' tb. .... until .ucb .Itl..t.d h..tlng-coollng lo.d II .pprov.d by Landlord. Tenant .hlll not chlnge It I eltl..t.d be.tlng-cooling lo.d onCe th_ .... h.. be.n approved by Landlord. 1-11 c ~" . ...... SJ~ ,,0 ,f ~ ;;r , .;; ~..... ......~ ~ " ~ ... .... <J~ ,," ." oc" SJ 4' ~ .." ..... ...-c.. <J ~ . ... ....,. .D~ lJ -c..~...........~ .....q.(.c" ~" ~ 9........ " .. "" .........-c..'b ~~.~Q,~, ~~'b ~#~#~ ..~~~~~~~~~~ ~ ~,,~~~ }~~~~.~~~~~ ~~ ....~O;;r ".~.~~~~~~~~.'b ~ ". 0 -c..' ~, . .. ~ .',A: ..::) ~.. ~~~~~ ~~~~~~~~~~'b.}-c..~ ~~~~~ ~~~~~ .3~6~.~~ . · · · ~ ~'b . 'b ~o" ....''b ..... 'b ~,-c... :-.. ~~~~~ . -c..6~~#~~6~~~q~~3 ~ ~~~'b, ~ ~~~~~.~,~~~~~~~ ~& 'b .."-c..O ~ o. .....~ ,," ~ ~~"} o~ ~ ~o,.~ 6 ~ "e.. ~.~ ":i, .. ~ ~ · 6 ~ ..,. -c... 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'()~~ 'b ~"".o~c.""'':l) .....~ 0" ~ ..... ~. ~ ';:.." ".. o'f: . ;: 'b ;:.. ~~}.. ~o~ <) .... o~~. · ~ .::) -c.. .. 'b;;r .....;;r. .....c::'~..,.!' .i;- o~...o.". b 0.. .. -c...o .... ~ ~ ;;r.....~;; ~ 0- :::.....0 oc::' oc::' ~~ 0':'. .D"'~ t!...o.;- ~~;;r c.~~~~ ~~......c::' 6~. b o. ~~ .::,. ~-c.. ..........o~.... ~ .,ft;' .;:~~. ~'b.~.. ~.}~~~ .. ....~~'b ~"o.....o~ .......::)~ ... ~.. -c..o~ ...0 <J.,.!' ~ 0 ~~ ~~;;r~..9-c..o c::'....-c..o~ c..'t)..'b .....;0. b"~ ;o..::)~ .cf~~~ .:Cl'.~~(; . "'-c.. ~ .. ~~.~:::.Dc::' "'~-c... ~ ~ ~ "... ~ ..::,. ~ ~.....o~ 'b.~ ~.~. .0 . " "0 .00 ~ ~.::: ~ .::: ;: lJ ~ -c.. 'b c". 0 e. .~ · ..~o...".!: ~...~ . ~~".,...~. .....~~ ~o ~ -c.. ~ 'b -c.. .~. ... -c.. 'b _ J' 6~ o.......c::' .'~ ~...(; ~ o"~ ~ ~ ~~~::: -.o,c," ~;: ~ ~~. ~ t:'CJ'" ~.~ .o~ 6'b ~"o;:-~;;-"-c.. ~-c...-c..' (.A-.t> ~..~ "" :'! ~.- 0" ~ -c..~. ~ o~. ~...... · -.o~ f' If ~. q. , ," ~ -c.. ~~, ~ ......~ ~ .. .ct.. ~ 1II."~c::' !l. "", o .. .-<1''b ~ ~ -c.. . .....0 6.y .00<J-\ ~ .:- ~~. ~o;l' ~ ~ <<;..:\; ~ } ~....~~,r"~ q." .........~ ~ tf-e,c::' a ........ ~ '" ....0.. 'b -c.." ~ ..s ... ~. 't) ~~-c..... ,b' c::'o,... ~ . 0 ~ ~ & ~~.o.o"~;;r.~ . 0";: ~..., -c........o ,c, <J ~~~d'.~~ ~l>; ...... ..o;:o.y ~ ~ ..:)>.~ ~~~"'iJ ~' ~..::) , \ ~ " .peelfleation. or any working ,drawing. within the required time periods or fall. to or delays In sUbmitting or supplying information or in giving authorizations or In performing or oompleting Tenant's Work or in any manner delays or interferes with thft performance of Landlord's Work, Landlord, in addition ,to any other right or remedy it may have under this Lease, at law or in equity, may pursue anyone or more of the following remedie.. ' 1. Landlord may givI Tenant at least ten (101 day.' written notice that if a specified failure, omi..ion "r delay is not cured by the date theftin statedr thh Leue shall be deemed cancelled and terminated. If luch notioe .hall be complied with, thiB Lease ahall, on the date Itated in luch notice, be cancelled and terminated without prejudice to Landlord's other rights and remedies hereunder, and 2. After written notice of itl intention to do so, Landlord may, at Tenant's cost and expense including, without limitation, expense for such overtime as Landlord may deem nece~sary, proceed with the completion of any such Preliminary Plans and/or working drawings and/or Tenant'l Work, as the ca., may be, and such performance by Landlord Ihall have the same effect hereunder as if the desired planl, specifications, information, approval, authoriz~tion, work or other action by Tenant had been done (but not paid for) as herein required, and 3. Landlord may require Tenant to pay to Landlord, as additional rent hereunder, the cost to Landlord of completing the demised premises in accordance with the terms of this Lease over and above what would have been such cost had there been no such failure, omission or delaYI and 4. In exercising any or all of the foregoing remedies set forth in Section G.l, 1, 3 and 4 of this Article III, Landlord shall be entitled to retain and hav, recourse to any hond or escrow deposit provided by Tenant. If any Tenant submission is rejected because of failure of Tenant to reasonably conform to Landlord's Design Criteria, Tenant shall pay upon demand the costs of additional reviews by Landlord's arohitectl and engineers. H. Completion of Tenant's Work. Tenant shall complete Tenant's Work al quickly as possible, but in no event later than the rental oommeneement date. I. Oooupanoy Permit. Tenant shall secure an occupanoy permit from that authority which has jurisdiction over the premisea in sufficient ti.e to permit Tenant to open the premi.e. at the rental commencement date. J. Completion Date. See Leaae Seotion 302, K. Liens. B~U' . ' ... \'{,',' " . Prior to commencing any of Tenant.s Work, Tenant shall file or cause its contr.Actor to file in the appropriate office a waiver of mechanic's lien binding upon such contractor and all subcontractors and materialmen 'and shall thereafter pay all contractors and materialmen so as to minimize the possibility of a lien attaching to the demised premises or the Shopping Center in connection with Tenant's Work. If a mechanic's lien 'is file1 against the demised premises or the Shopping Center, in connection with Tenant's Work, Tenant agrees to bond against or discharge such lien within ten (10) days after written request by Landlord. If Tenant shall fail to cause such lien to be bonded against or discharged within the time aforesaid, then, in addition to any other right or remedy which Landlord may fiave under this Lease, at law or in equity, Landlord may (but shall not be obligated to) from and to the extent of any escrow deposit theretofore deposited by Tenant with Landlord and/or from any other source, discharge the same ~ither by paying the amount claimed to be due or by procuring the discharge of such lien by deposit or bonding proceedings, and, in any such event, Landlord shall be entitled, if Landlord so elects, to compel the prosecution of any action for the foreclosure of such lien by the lienor with interest, costs and expenses. In the event that Landlord elects to make any or all such payments from and to the extent of funds other Lt.an the aforesaid escrow deposit, Tenant shall reimburse Landlordr as additional rent, upon demand, to the extent of such sums and all CO&ts and expense incurred by Landlord in connection with the removal of any such lien together with interest thereon at the highest rate permitted by law, but in no event higher than ten percent (10\) per annum from the respective dates of Landlord making of the payment and incurring of the cost and expense. In addition, Landlord, at its option, may treat Tenant's failure to comply with the foregoing as an event of default. Notwithstanding anything in this lease to the contrary, Landlord will engage the services of an architect mutually approved by Tenant and Landlord to prepare design and construction plans for the construction of the store; Landlord will engage the service of a general contractor mutually approved by Tenant and Landlord to construct the store premises as per plans mutually approved by Tenant and Landlord including storefront. perimeter walls and partitions consiltl,ng of g.w.b. taped, spackled. and painted, toilet room consisting of fiKtures and exhaust fan. floor. floor covering (carpet in sales area and dreSSing rooms and VAT in stockroom and toilet room.) lay-in acoustical ceiling and/or gyp wallboard ceiling. ceiling lighting fixtures, complete heating and cooling equipment inc1udina thermostat controls. electric service to the premises and electric distribution. sprinkler system including mains, laterals. drops and heads, and telephone wiring ready for installation of telephone by tenant. Landlord will obtain all permits and pay all fees for same regarding construction and tenant's occupancy of the premises. Landlord's construction obligations shall not include lItorefront identification sign. decorative lighting chandelier and decorative accel.orie. which shall be the responsibility of the tenant. , 8-14 A " . , . ~ SIGN REGULATIONS AND SPECIFICATIONS EXHIBIT "C. The purpose of these regulations is to encourage and ,develop creative and diversified signing for Tenant store. in compliance with the following criteria which shall in any event be limited by the provisions of Section 1501 and Exhibit B of the Lease Agreement. a. Wording of the signs shall be limited to Tenant'. permitted store or trade name. Tenant's customary signature or logo, hallmarkr insignia, or other trade identification will be permitted only if in conformity with these sign regulations. b. Signs shall consist of individual letters. Signs of the flashing, blinking or animated type are not permitted. Box type signs, when built into and an integral part of the stote front design may be submitted for consideration. c. The size of all signs shall be limited and shall be in scale and harmony with the Shopping Center. The lettering on Tenant's sign shall not exceed the following limitationsl (i) Height - 16" for letters with the exception of the initial capital letters, if used, which may be 24", depth - I" minimum, 4" maxiumum. (ii) Area - No lettering shall be located within two (2) f&et of any adjacent store or corridor, nor shall any sign occupy more than seventy (70') percent of the store frontage on the mall. The location of the lettering within the permitted sign area shall be such as to present an orderly appearance of all of the signs of all the Tenants in the mall, taken as a composite or pancrama of signs. d. Printed signs on storefronts or show windows are prohibited with the exception of small-scale signs which are neatly lettered on the glass of the st~refront or logos on door handles. e. Subject to compliance with all applicable code requirements, public safety decals or art work on glass in minimum sizes may be used. f. Paper signs, stickers, banners or flags may not be used by Tenant. g. An exterior sign (one located on the outside of Tenant's real wall) shall be permitted only in the case of those tenants authorized by Landlord to have a direct rear customer entrance from 'the parking area, and shall be subject to Landlord's sole discretion as to design, size and location. h. No exposed raceways, ballast boxes or electrical transformers will be permitted. i. Si9n company names or stamps shall be concealed (applicable ordinancGs and codes permitting). j. No exposed sign illumination and no flood lighting of signs or storefronts shall be permitted. C~l ~ ~ k. No perm4n~nt. or temporary window 'signs fastened to the interior or exterior of the show windows shall be permitted except for siqnature or identification nigns lettered or affixed directly on the glass. 1. No mor.e than one store lign may be installed on each store frontage in which one or more customer entrances ar. located. If the lease~ premises is a -corner- store even though a customer entrance i8 not located on each frontage, two store signs may be installed one on each store frontage of the leas.d premis.s. m. All sign letters and sign boxes must be internally illuminated, with the exception of exposed decorative lighting which shall be in white only. Maximum brightness allowed for interior signs which front on the enclosed mall, if any, will be 100 foot lamberts taken at the letter face. n. No portion of any sign shall project more than 8- beyond the storefront. o. Signs and identifying marks shall be placed entirely within the boundariel of the demised premises with no part higher than the neutral curtain wall space above the store front (or neutral band above, if'any). p. Signs for kiosks, promotional displays or for shows will in every ins.ance require the written approval of the Landlord. q. Tenant shall comply with the requirements of all applicable codes, and/or local ordinances and obtain local government approval when required by code. All permits shall be obtained by the tenant's own sign contractor at Tenant's own cost and expense. r. All signs must be -Underwriters Approved-. s. No wood blocking or flammable construction material is to be usea ~n the attachment of any sign material above the store front. t. Interior projecting signs or graphic identification which front on the mall shall not be greater than 2'6- x 2'6-, interior illuminated cube modules which front on the mall shall not be greater than 2'6- x 2'6- x 2'6-. Tenant shall submit drawings for Tenant's signs and other methods of identification in accordance with the provisions of Exhibit -8-. Notwithstanding the fact that suct signs and other methods of identification are in compliance with the foregoing criteria, no such sign or other method of identification shall be installed by Tenant without Landlord's prior written approval of their sizl, type, location, quality and aesthetic properties. , ~~. . ~ . 'to& e' ~. .. \. . ~e ..... .t~'C\e .'C\ C'(\ 'to \.~ '0. \t O\. t. \. ~ ,. "l-\. '(\. .\. t 1\ f\\.~\.. .& _ .'(\e~. \0 \.0 "l..t 1\16 \.0 \.t J>'\"" c,,''o''.. . .' CO \~ · .:\.16 ." 0'''' \~ - ~, "" · ~ "l.\ , 'C\. "l.O ,~. e' .. ,. '(\e .... -0\ .0 \.. 'to ~ ,1". 16'" "l. . ~ \t' t " ", ,0 ",' 00.. ," .0.,. ,".0' '''',.,. ,., ~ 0,'':;'.'\J> , 0\"0 C~..o . '0' ".... " ,0 .CO . .... C...... .'\. 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COOLING LOAD TABULATION DATA - · M:.1.: TENANT NAMEI tOTAL LEASED AREAl SAMPLE STORE SPACE NO. I 00 2,500 AIR CONDITIONED AREAl 2,500 SF LOAD DESCRIPTION I CEILING 2,500 x (90. - 75.) X 0.08 · (~REA) .U. (CEILING) WALL 560 X 18T X J..1L · (AREA) .U. WALL PEOPLE 33 X 315 BTU/pERSON-SENS · (QUANTITY) 2,420 10,395 LIGHTING I FLUORESCENT LIGHTING ~40S X 3.41 X 1.20 . 26,210 W~ INCANDESCENT LIGHTS 1,050 x 3.41 . 3,580 (WATTS; POWER 1, 246 X 3.41 . 4,250 (WATTS) MISCELLANEOUS 3, llS X 3.41 . 10,62S (WATTS) MISCELLANEOUS EQUIPMENT - . !9TAL SPACE - SENSIBLE LOAD 60,480 TENANTS CALCULATED SUPPLY AIR QUANTITY (bAQ) TOTAL SENS LOAD. 60 4BO (1.0B) (T2-T1) 1.08 bS-S5) MAKE-UP AIR REQUIRED . 2,800 3,500 T1 . SUPPLY AIR TEMP. I T2 · RETURN AIR TEMP. T1 - T2 · 20.F D..4 -- CFM CFM ~. .. '., ,. -,...' ~ . . . EXHIBIT wE- ELECTRICITY COMPONENT The Electricity Component shall be the monthly sum equal tOI ll) the kilowatt-hour (KWH) charge, and (2) the oapital facilities ch~rge. . . . (a) ~he monthly KWH charge shall be calculated .s follows I Tenant's main fuse size in Amperes x 'M' x 0.831 (to convert to 1tW) x hours of operation per month x Landlord's kilowatt-hour cost. The mUltiplier 'M' is Landlord's judgment of the extent of utilization of full capacity and shall be equal to the followingl Fast Food Tenantl M · .5 l:1 it Down Restaurant Tenant 1M. .5 Pet Shop Tenantl All other Tenantsl M · .8 M · .7 . (b) The monthly capital facilities charge $hall be based upon the Tenant's main fuse size and shall be in accordance with the following schedule I Fast Food Tenantl $3. 75/Ampere (all electr ic) Fast Food Tenant I $S.SO/Ampere (gas cooking) Sit Down Restaurant Tenant I $4. SO/Ampere (all electric) Sit Down Restaurant Tenant I $4.00/Ampere (918 cooking) Pet Shop Tenantsl $4.00/Ampere All othe r Tenantsl 20 and 30 amps $S.SO/Ampere 40 and SO amps $4. SO/Ampere 60 amps and above $3.00/Ampere (c) The wLandlord's Kilowatt Hour Cost- for each month during the Lease Term shall be the sum derived by dividing into.Landlord's Electrical Cost for such month the number of kilowatt hours used by Landlord during such month as such hours are set forth on all bills to Landlord included in Landlord's Ilectrical Cost. (d) WLandlord'. Electrical Cost- shall be the total cost to Landlord for electrioity used in oonnection with the operation of the Shopping Center, including, without limitation, the cost for electricity oonsumed in the Landlord'. Property and all bUildings and improvements thereon and all co~aon areas, ino1uding the lighting, heating, ventilating and air-conditioning thereof. B-1 ,>. -~:. tr; " .,j \'.' .. ~,I \ c'i )' . ...( . I"" U. (1.)(, i' ~,'.' f" t,\; I U; , Co; i: I '.. ..~ l.l {):"; :(';' .J Cl U\ U ~ .. '6 \_." \.J'. ') t~ ~ ~ - i'J \r> ~ '-- ~ , ~ r ':::). ~ ~ ~ IfV', ~ \'.. ~ S'-.. N - i' 'l::i- '~ '~ ,:\:( . . " A ~ . 4. Allached hereto as Exhibit A is u truc und eorrcet copy of the original Leasc authorizing confcssion ofJudgmcnt us morc speellieally sct forth in Article XXXI, Section 3111, (page 32), 5, The Lcase was duly execut~d by Defcndant, who agrced 10 bc legally bound by the terms of said Lease, 6. Thc Lcase provides that Defendant shall pay monthly rcnl and Defcndant's pro rata sharc of inslll'anec, taxes and operating costs, as well as an annual pereentagc rent cqual to seven percent (7%) of gross reecipts, less the minimum annual rent paid for such pcriod, as well as all other eharges accruing undcr the Lcase 01' idcntilied as additionalrenl on thc Iirst day of each calendar month during thc tcrm of thc Lease, 7, Dcspitc rcpeated, numerous requcsts for rent, Dc fend ant has willfully failed to pay base renl, additional rent, latc paymcnt charges 01' any olher charges payable to Plaintiff undcr the Leasc for thc subject premises, 8, Defendant's failurc to pay rent as per the tcrms of the Lease constitutes a material breach of thc Lease. 9, The sum prcsently due and owing under the Lease is Ninety-Five Thousand Six Hundred Foul' Dollars and Forty-Foul' Cents ($95,604.44), 10, Judgment has not been entered in any jlll'isdietion on the allached inslrument. II. The attached instrument has not been assigned. 12, The Judgment is not being entered by confession against a natural pcrson in connection with a consumer credit transaction, 13, Defendants arc not subject to the protection ofthc provisions of the Solders and Sailors Civil RelicI' Act of 1940, liS amcnded, ,. . . ~ .' REV 070792 CAMP HILL SHOPPING MALL EXTENSION AGREEMENT AND AMENDMENT OF L~ ~IS EXT S ON AGREEM~T AND AMENDMENT OP' LEASE, made the ay of 19f.t. to be effective as of the 30th day of Sap ember 19 , by and between Kravitz Properties, Inc., 555 E. City Line Avenue, Bala cynwyd, Pa. 19004, agent for the CAMP HILL SHOPPING CENTER ASSOCIATES, a Pennsylvania partnership (hereinafter called "Landlord"), and Barry D. Leader, Individually & T/A Raintree Gallery (hereinafter called "Tenant") . WHEREAS, by Lease dated the 8th day of July, 1987 (hereinafter referrEld to liS the "Lease"), Landlord leased to Tenant the Tenant Building No. F, Store No.4, containing 1/078 square feet in the CAMP HILL SHOPPING MALL all as more particularly shown on Exhibit HA" to the lease for the term and upon the rentals and upon other terms and conditions more fully set forth in the Lease; and WHEREAS, the parties hereto desired to extend the terms of the Lease for an additional period of five (S) years, commencing 10-1-92 and terminating 9-30-97 upon the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the aforesaid, and of the sum of One ($1.00) Dollar, by each to the other in hand paid, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, covenant and agree with each other, as follows: 1. Commencing September 30/ 1992 the Section 20l(B) of the Lease entitled "Term" shall be amended to read as follows: "The term of this Lease shall be for a period of Five (5) years beginning on the 1st of Octo~ 'r, 1992 and ending on the 30th day of Sept~mber 1997 at midnight". 2. Commencing September 30, 1992 the Section 201 (D) of the Lease entitled "Minimum Annual Rent" shall be amended to read as follows: D. Minimum Annual Rent: Years Years Years One (1) Three (3) Four ( 4 ) through through through Two (2) Five (5) $15,092.00 $16,170.00 $17,248.00 3. In addition to the payment of rent, percentage rent/ pro- rata, utility and other added charges and additional charges due and payable under the terms of this agreement/ tenant further agrees to pay an additional sum of six Thousand and Five Hundred ($6,500.00) as payment in full for all outstanding arrears due and owing prior to July 1/ 1992; Tenant shall pay such arrears in Five (5) equal annual installments on the last day of each calendar year/ without demand or notice from Landlord, commencing on the 31st day of December 1992 and each year thereafter for the balance of the Term of this agreement and Tenant's failure to make such additional payments shall be considered a "Deliberate Event of Default" in accordance wit.h the Lease. . . to,. " " CAMP HILL SHOPPING CENTER INDEX LEASE AGREEMENT KRAVITZ PROPERTIES, INC., Agent for CAMP HILL SHOPPING CENTER ASSOCIATES, TO BARRY D. LEADER, INDIVIDUALLY AND TRADING AS RAINTREE GALLERY ARTICLE I ARTICLF. II ARTICLE III ~,RTICLE IV ARTICLE V .AR'I'ICL~ VI ARTICLE VII ARTICLE VIII ARTICLE IX ARTI CLE X ARTICLE XI ,ARTICLE XII ARTI CLE XIII ARTICLE XIV ARTICLE XV ARTICLE XVI ARTICLE XVII ARTICLE XVIII ARTICLE XIX ARTICLF. XX ARTICLE XXI ARTICLE XXII ARTI CLE XXI II ARTICLE XXIV ARTICLE XXV ARTICLE XXVI ARTICLE XXVII ARTICLE XXVIII ARTICLE XXIX ARTICLE XXX ARTICLE XXXI ' ARTICLE XXXII ARTICLE XXXIII ARTICLE XXXIV ARTI CLE XXXV PARTIES DEFINED TERMS POSSESSION USE TERM RENT COMMON USE AREAS AND FACILITIES I COSTS I INSURANCE MERCHANTS' ASSOCIATION PUBLIC UTILITIES TAXES REPAIRS TENANT'S RIGHT TO MAKE ALTERATIONS AFFIRMATIVE COVENANTS OF TENANT NEGATIVE COVENANTS OF TENANT SIGNS RIGHTS OF LANDLORD DAMAGE TO PREMISES INDEMNIFICATION AND PUBLIC LIABILI'rY INSURANCE WAIVER OF CLUMS TRADE FIXTURES ASSIGNING, MORTGAGING, SUBLETTING SUBORDINATION OFFSET STATEMENT TRANSFER BY LANDLORD CONDEMNATION FINANCING STATEMENT SURRENDER AND HOLDING OVER NOTICES PERFORMANCE OF TENANT'S COVENANTS EVENTS OF DEFAULT RIGHTS OF LANDLORD UPON DEFAULT BY TENANT CUSTOM AND USAGE SUCCESSORS AND ASSIGNSI AGENT SCOPE AND INTERPRETATION OF THE AGREEMENT CAPTIONS SIGNATURES SUPPLEMENT 1 - CONFIRMATION OF TERM EXHIBIT A - DEMISING PLAN EXHIBIT B - WORK BY PARTIES EXHIBIT C - SIGN SPECIFICATIONS EXHIBIT D - CONDITIONED AIR CHARGE RATE ADJUSTMENT SCHEDULE EXHIBIT E - ELECTRICITY COMPONENT " - ~ . . III LEASE AGREEMENT ARTICLE I PARTIES ~ ~ THIS LIilASE AGREEMENT, made this <3 - day of , 1981, by and between KRAVITZ PROPERTIES, INC., a Pe nBY vanie corporation (hereinafter referred to as WAgent-), as ag nt for CAMP RILL SHOPPING CENTER ASSOCIATES, a partnership (hereinafter referred to as -LandlordW) and Barry D. Leader, individually and trading aa Raintree Gallery' (hereinafter referred to as WTenantW), ",hose address is 122 W. High Street, Elizabethtown, PA 17022 and whose telephone number is (717) 367-2990 . WIT N E SSE T HI Landlord and Tenant covenant and agree as followsl ARTICLE II DEFINED TERMS SECTION 201. The fOllowing terms shall have the following meaningsl A. Premises and Shopping Centerl Landlord leases to Tenant and Tenant leases from Landlord, for the term and upon the terms and conditions set forth in this Lease, the store premises situate and known as Building Section No. F , Store No. 4 and being measured and described approximately by the outside building lines, as follows I Frontl 29 feet 0 inches (irregular) feet 0 inches (irregular) Depthl 54 Total Area 11,078 square feet located approximately as outlined upon Exhibit WA" attached hereto, the same being a proposed site plan of a Shopping Center (the wShopping CenterW) erected or to be erected upon the premises described thereon, together with the right to the nonellc1usive use, in common with others, of all such automobile parking areas; driveways, footways and other facilities designed for common use, as May be installed by Landlord as hereinafter provided, and of such other and further facilities as may be provided or designated from time to time by Landlord for common use, subject however to the terms and conditions of this Lease and to reasonable rules and regulations for the use thereof, as prescribed from time to time by Landlord. The purpose of the dimensions set forth above and the plan attached hereto as Exhibit w~w is to show the approximate size and location of the demised premises. All dimensions are approximate only. Landlord reserves the right to Change the size, layout and location of any buildings, improvements, or common areas and facilities shown on Exhibit WA" as well as reduce or expand the size of the Shopping Center. B. Term: The term of this Lease shall be for five ( 5 ) years as further provided in Article V below. - 1 - . , , .. .' C. Permitted US" The sale, at retail of handcrafted merchandise by American artists, primarily consisting of and/or craf~ed from, but not limited to the folloWing: baskets, pottery, rugs/fiber/clothing, wood, paper, glass, iron/bronze/brass . , leather, acrylic. and jewelry ahd n:ir no' tltnn purpose. D. Minimum Annual Rent! Years One (1) ta:,r9\1~b $ 12,936.00 Years two (2) tJ~ rQ"9h $ 15,092.00 Years three (3) \IH~1l91l $ 17,248.00 Years four (4) through five (~) $ 19,404.00 VI.IS \11(1'1311 V E. Annual Percentage Rentl A sum equal to seven percent ( 7 ,) of gross receipts, less the minimum annual rent paid for such period. F. Security Oepositl $1,437.34 G. Initial Annual Common Area Maintenance Charge: $ 2.156.00 H. Initial Annual Merchants' Association DueSI $ 539.00 I. Initial Annual Real Estate Tax Charge: $ 539.00 J. Initial Annual Insurance Charge: $1.078.00 K. Tenant Trade Name: Raintree Gallery L. Estimated Date of Delivery of Possession 1 August 25 , 1987. ARTICLE III POSSESSION Section 301. Landlord warrants that it iR the owner of a leasehold estate in and'to the tract of land shown on Exhibit "A" and agrees that it will develop upon said tract commercial buildings with parking area and improvements generally in accordance with said Planl and that, subject to any delays caused by strikes, weather conditions, governmental restrictions, scarcity of labor or materials, or for other reasons beyond its control, it will proceed with due diligence to complete said project. Landlord has erected and installed or will erect and install the improvements upon the demised premises substantially as set forth upon Exhibit "S" attached hereto. Tenant shall fully comply with all of the terms, covenants and conditions of said Exhibit "S", whether or not Tenant is currently in possession of the demised premises pursuant to an existing lease. "tlitaA )Q:J.. ~'RIA\ ahll1 ~.~. .hl .,'i.~, if e'R.~rY8tie~ e~llt~~ "..,,\lea'" pral'fr,l!O 1m A9t fl9J1pl.,.. ,,~. iRe. ..'e whieh ia et-f:r - 2 - . . . ~ a. it. 101e remedy (Landlord not to be liable other per.on, fir. or corporation for any 10s. resulting therefrom). of cancelling this Lease written notice thereof to Landlord within f en (is) days after c.id date, provided, that if sai lure to complete is caused by strike., weather conditi , governmental re.trictions, scarcity of labo materials or other cause beyond Landlord'. control d completion date shall be extended for a period al to the period of such delay. If, for any reasen wh eVer the Landlord does not commence . construction e demised premises by September 1, 1984, the Landlord 1 have the option without liability of cancelling this se by giving similar written notice to Tenant within . 'a'II Laft.l... .hall ft" ~e .~li,at.. ,. ,r.eee. construction of the demisea premises unless and until fi acceptable to Landlord is obtained. Should such finan be obtained on or before August 1, 1984, Landlord ma Tenant in writing, and cancel this Lease. If Land obtain financing or satiSfy the conditions of fi upon the basis of modifications of the terms., provisions of this Lease, Landlord shall have the right to Ancel this Lease if Tenant refuses to approve in writing an uch modifications within thirty (30) days after Landlord's quest therefor which request may not be made after delivery possession. Tenant .hal1 not unreasonably withhold its roval of the aforesaid modifications. Within ten (10) day. of receipt of a request therefor from Landlord, Tenant a es to forward to Landlord a financial statement of Tenant a lor, if applicable, Tenant's guarantor or surety, in form tisfactory to Landlord certified by an independent certified ublic accountant acceptable to Landlord. If the financi or credit rating of Tenant and/or, if applicable, 'renant:'l uarantor or surety 1. not acceptable for the purposes of tpe aforesaid financing, Landlord shall have the right to c cel this Lease if Tenant refuses to execute or supply uch additional assurances and/or guarantors or sureties as ndlord shall state as necessary for such acceptance wi in thirty (30) days after Landlord's request therefor wh request may not be made after delivery of possessio. If any such right to cancel is exercised, this Lease a 11 thereupon be null and void, each of the parties shall e released from any other or 'further liability, any sec ity deposit made hereunder shall be refunded to Tenant w out interest and neither party shall have any liability to and premises have been completed in accordance with approved plans Section 303. and specifications as previously agreed upon by Tenant and Landlord If Landlord is to perform any work in the demised premises pursuant to Exhibit "B", completion of the demised remises shall be certified to Tenant in writing by Landlord's nspect ng arc tect, and the delivery of such certificate of completion to Tenant shall constitute delivery of the demised premises hereunder. Tenant, its agents"ervants and contractors, prior to the delivery of possession of the demised premises, shall have the right to enter upon the demised premises, for the purpose of taking measurements therein, but tor no other purpose, provided, however,' that suoh entry shall, easonably~interfere with or obstruct the progress of the work beillg done by Landlord. - 3 - . .' due to any reaaon not tha fault of Tenant Jonabl} ieoUon 304. Upon rec.iving po~"'8ion of the demi.ed premi.es trom Landlold, Tenant .hall with due diligence proceed to in.tal1 suoh fixtures and equip~ent and to rerform .uch other work a. Ihell be required pur.uant to Bxhib t -a- or nece..ary or appropriate in order to pr.pare the demi.ed pr.mi... tor the opening ot bu.in.... In the event that Tenant does not open the demi.ed premi.e. for the oonduct of it. bu.ine.. on or before the Rental Commencement Date (as defined in Section 601 e ow , Landlord, in addition to all other remedi.. hereunder, sball hay. the option of (a) terminating this Lea.. by giving Tenant written notic. of .uch termination, whereupon this Lease .hal1 be terminated unle.s by the date of the giving of .aid written notice, Tenant .h.ll have opened the demi.ed premise. for the conduct of it. bu.ines., or (b) of cOllecting from Tenant not only the minimum rent h.rein provided, but a1.0 .dditional rent at the rate of ten (10') percent of the minimum ~onthly rental per day for each and every date from the Rental Commencement Date until the day Tenant commences to do bu.ines. in the demised premi.es. Tenant agrees not to commence any work upon any portion of the demised premises until Landlord has approved Tenant'. plans al.d specifications in writing ~nd Tenant has otherwise complied with the requirements set forth in Exhibit -a-. Any changes in said plans or specifications must be SimilarlY' approved by Landlord. which approval shall not be unreasonabl SECTION 30S. Withheld (lr delayed Unless otherwise sooner terminated pursuant to its terms, any existing lease pursuant to which Tenant is the tenant for space in the Shopping Center shall terminate on Rental Commencement Date (as defined in Article V below), with the same force and effect as if such date were set fortn therein as the expiration dat, of said lease. ARTICLE IV USE SECTION 401. Tenant shall continually use and occupy the demised premises solely for the Permitted Use under the name or style of Tenant's Trade Name and for no other purpose. Tenant acknowledges that Landlord's obtaining a fair and equitable rental is dependent upon Tenant's concentrating all of it. business efforts within the geographical area in which the Shopping Center is located upon Tenant's business at the demised premises so as to. maximize Tenant's Gross Sales, and Tenant further acknowledge. that any activity by Tenant within such geographical area in operating or participating in the operating of a .imllar or competing business mu.t necessarily have an adverse effect on the volume of Gross Sales by Tenant at the demised premises to the detriment of Landlord and will deprive Landlord of the fair rental to which the parties agreed. Accordingly, in the event that during the term of this Lease either Tenant or Tenant'. management, or any , person or entity controlled by Tenant or contrOlling Tenant, or controlled by the same person or entity or persons or entities who control Tenant, directly or indirectly own., operate., i. employed in, direct. or .erve. any other place ~f busine.., the lame, or .imilar to, or competitive With, Tenant's business a. - 4 - . . . . ' .et forth herein, within a radius of five (5) miles from the outside boundary of the Shopping Center, which distance shall be measured ~n a Itraight line without referenoe to toad mileage, then the Gross Sale. of any such other place of bUliness ehall be included in the Gross Salea made from the demised premilee to determine the Percentage Rent due under this Leale, as fully as though auch Groal Sales had actually been made from the demised premiles. In the event Landlord so elects, all of the provisionl of Article VI hereof shall be applicable to the Groas Sales of, and all the books and recorda pertaining to, luch oompeting store, provided, however, the foregoing geographic limitation shall not be applicable to any existing location of Tenant or any such other place of business which is operated in a regional shopping center directly or indirectly owned in whole or in part on the date hereof by Landlord or a principal of Landlord. SECTION 402. cOl1llllercially profitable Tenant sh~ll operate all of the demised premises during the antire term of this Lease with due dili ence ana efficiency a., as to produce the maximum gross rece1p s W 1C may be produced by such manner of operation, unless prevented from doing so by causes beyond Tenant's control. Subject to inability by reason of strikes or labor disputes or unavailability of goods or other reasons beyond Tenant's oontrol, Tenant shall carry at all times in the demised premises a stock of merchandise of such size, character and quality as shall be reasonably designed to produce the maximum return to Landlord and Tenant. Tenant shall conduct its business in the demised premises during the regular customary days and hours for such business in the Shopping Center ared and w~ll keep open for business from 9:30 A.M. until 9:30 P.M. every day (i~cluding, at Landlord's request, Sunday) and during the same day'. nights and hours as the majority of the chain stores and department store or stores in the Shopping Center. ARTICLE V TERM and s~bject to Tenant's acceptance of s~ch ,delivery of possession. SECTION 501. The term of this Lease shall commence on the date when Landlord shall deliver possession of the d mised remises to Tenant, as provided in Article III hereof, an s a en (unless soonet terminated as hereinafter provided) at Midnight on the date of the expiration of the full Term from the first day o~ the calendar month next succeeding the -Rental Commencement Date-, as defined in Article VI hereof, without the necessity of any notice from either party to the other to terminate the same, and Tenant hereby waives notice to vacate the premises and agrees that Landlord shall be entitled to the benefit of all provisions of law respecting summary recovery of possession from a tenant holding over to the same extent as if statutory notice had been given. Tenant's obligations with respect to accrued minimum, percentage or additional rent shall survive the expiration or earlier termination of this Lease. If requested by Landlord, Tenant hereto ~grees to execute, within thirty (30) days after the Rental Commencement Date, a supplement to this Lease, in the form attached hereto as Supplement 1, confir.ming the Commencement Date, the Rental Commencement Date and expiration date and stating that this Lease 11 in full force and effect. Entry 'lpon the demised - 5 - . . prt..l... by T.nant pr ior to the R.ntal COIlllD.ncI..tnt Oat. .hall be .ubject to all of the tlr.., cov.nant. and condition. of this L.a.. exc.pt for ainiMu" and perc.ntago r.nt, Tenant'. aharl of real ..tatl ta..s, co..on ar.. co.t., in.uranc. charge. and Merchant.' A..ociation due.. ARTICLE VI RENT stCTION 601. Tenant .hall pay to Landlord the .inillum _nnual rent In the .um. .et forth in Section 2010, payable in advance in .qual aonthly inltlll.ents on the fir.t day of .ach calend_r aonth during the t.r. hereof, without prior ae.ana th.refor, Such Mlnl.uN rent .hall cOnlence to accrue either (1) on the date when Tenant .hal1 open the de..i..d pre.i... for bu.inel., or (ii) on the date which is forty-five (45) day. after the Landlord has delivered po8sesliQn of laid premile. to the Tenant, whichever date il earlier, said date being herein .ometimes referred to al the "Rental Commencement Date,- The first full month's minimum rent and added chargts (as definf.d in Section 3102 below) Ihall be paid upon execution of this Lease. The next rental paYMent date hereunder shall be the first day of the fir.t calendar lonth following the Rental Commenc.lent Date and .hall include the pro-rated amount of r.nt and added charge. applicable to the period from the Rental Commencement Date to .uch rental payment date. SECTION 602. For each lease year or portion thereof during the term hereof, Tenant shall pay, in addition to minimum rent, percentage rent ~~ s~t forth in Section 201E. Anything herein to the contrary notwithstanding, there .hall be no abatement, apportionment or suspension of the percentage rent payable hereunder. SECTION 603. The firlt lelse year shall begin on the Rental Commencement Date and shall extend for one (1) full calendar year. Thereafter each lease year shall commence on the day following the expiration of the preceding lease year and shall end at the e~piration of twelve (12) calendar months thereafter. SECTION 604. ilfteen (15) Within 'eA (10) days after the end of each calendar month during the term of this Lease, Tenant shall .ubmit to Landlord an accurate, unaudited, written statement Signed by Tenant on its behalf by . duly authorized officer or representative, sho~in9 the full amount of Tenant's gross receipt. in the demised premise. during the preceding calendar aonth. With each quarterly .tatement, Tenant shall pay to Landlord the percentage rent, if any, accrued and payable with respect to the preceding quart,erly period. . SECTION 60S. Within forty-five (45) day. after the end of each l.ase year, cOllllDencing with the fir.t lease year, T.nant .hall - 6 - . .. submit to Landlord a complete statement certified by ~ 'iAdl,IA'IA' ell'ilil' public accountant acceptable to Landl~r.d and also certified hy Tenant or on its behalf by a duly authorized officer or representative, showing accurately and in SUQh detail a. reasonably required by Landlord the full amount of Tenant's gross receipts in the demised premises during the immediately preceding lease year. At the same time Tenant .hall pay to Landlord the full balance of percentage rent payable for said lease year, if any. Any exces~ of percentlge rentals that Tenant may have pa~d for such lease year ~hall be refunded promptly by Landlord to Tenant. SECTION 606. The term wgross receiptsW as used herein is hereby defined to mean gross receipts of Tenant and of all licensees, concessionaires and tenants of Tenant, from all business conducted upon or from the demised premises, whether such receipts be obtained at the demised premises ot elsewhere, and whether such business be conducted by Tenant or by any licensees, concessionaires or tenants of Tenant, and whether such receipts be evidenced by check, credit, charge account, exchange or otherwise, and shall include, but not be limited to, the amounts received from the sale of goods, wares and merchandise (including commissions on lottery sales, if any) and for services rendered, together with the amount of all orders taken, received or filled at the demised premises, whether such orders be filled from the demised premises or elsewhere. If anyone or more departments or other division~ of Tenant's business shall be sublet by Tenant or conducted by any person, firm or corporation other than Tenant, there shall be included in gross receipts for the purpose of fixing the percentage rent payable hereunder all the gross receipts of such departments or divisions, whether such receipts be obtained at the demised premises or elsewhere, in the same manner and with the same effect as if the business or sales of such departments and divisions of Tenant's business had been conducted by Tenant itself. Gross receipts shall not include sales or merchandise for which cash has been refunded, or allowances made on merchandise claimed to be 6efective or unsatisfactory, provided they shall have been previously included in gross receiptsl and there shall be deducted from gross receipts the sales price of merchandise returned by customers for exchange, provided that the sales price of the merchandise delivered to the customer in exchange shall be ncluded in gross rece pts. Gross receipts shall not include th. amount of any sales or use tax levied directly on sales and collected from customers and paid by Tenant, provided that specific recoro is made at the time of each sale of the amount of such sales or use tax and the amount thereof is separately charged to the customer. No franchise or capital stock tax and no income or similar tax based upon income or profits as such and no gross ~eceipts tax shall be deducted from gross receipts. SECTION 607. The business of Tenant and of any sub-lessee, licensee or concessionaire upon the demised premises shall be operated so that a duplicate sales slip, invoice or cash register receipt, serially numbered, shall be issued with each sale or transaction, whether for cash, credit or exchange or Tenant will use such other system for accurately reporting gross receipts as shall be approved by Landlord. Tenant shall keep at all times during the term hereof, at the demised premises or at the general office of the tenant, full complete and accurate - Gross receipt s shall not include uncollect ible d~bts on Tenant's retail sales. pro- ~~ded ,such uncollectible debts do not exceed one percent of Tenant's gross receipts an) lease year. Gross receipts shall not include custom carved signs personally carve~ by Barry Leader but shall include carvings of production signs sold at the ~amp Hill Shopping Mall store. - 7 - . book. of .ccount and records in accordance with accepted accounting practice. with respect to all operation. of the bu.in... to be conduct.d in or frOlthe d.~i.ed pr..i... including t~e r.cordin9 of 9ro.. r.ceipt. and the r.ceipt of all .erChandi.e into and the deliver1 of all .erchandi.e fro. the d.mi..d pr..i... during the t.r. hereof, and .hall r.ta~n . .uch book. and record., a. v.ll a. all contract., voucher., ch.ck., inv.ntor1 r.cord., and other docu.ent. and pap.r. in !ny vl1 relating to the operation of .uch bu.in..., for .t l...t two (3) 1.ar. fro. the .nd of the 1.... y.ar to which th'1 .r. .pplicabl., or, if an1 audit i. requir.d or a controv.r.y .hould Iri.. betwe.n the parti.. her.to r.garding the rent payabl. h.r.under, until such audit or controver.y I. t.r.inated. Such book. and r.cords .hall at all realonable time. during the ret.ntion period above referr.d to b. op.n to the inspection of Landlord or It. duly authoril.d repre.entatives, who .ha11 have full and free acce.. to the .ame and the right to require of Tenant, its agent. and employees, .uch information or .xplanation with re.pect to the .ame a. .ay b. nec....ry for a proper examination th.reof. SECTION 608. If it i. d.t.rmined that the actual gro.. r.c.ipt. for any period covered by the .tatement required pursullnl: to Section 60S of this Articl. VI Ihall exceed the amount thereof .hown in uld .tatement bYl:!h'" ~el"'" I~Mre, Tenant five perce .hall pay aU the expen.es incurred tiy La~eterlD1ii'rri9 (5%) the actual gross receipts for .aid period. SECTION 609. lEteen Tenant shall, without prior notice or demand and without any setoff or deduction whatsoever, pay all rental. and other charges and render III statement. herein pre.cribed It the office of Agent, 1700 M4rket Street, Philadelphil, Pennsylvania or to such other person or corporation, and at .uch other place, as shall be designated by Landlord in writing at least ten (10) day. prior to the next ensuing rental payment date. If Landlord shall pay any monie., ~r incur any expenses in correction of any violation of any cove. ant of Tenant herein set forth, the amounts .0 paid or incurred shall, at Landlord's option and on notice to Tenant, be considered additional rentals payable by Tenant with the first installment of rental thereafter to become due and payable, and may be collected or enforced I. by l~~ provided with respect to rental.. Tenant covenanta and agree. that all .ums to be paid under this Lea.e, (lSl-!f not Daid wl~hinj'lv. (I) day. after due, .hall bear int.rest on the unpaid portion thereof at the rate of felli' "I" un) ten (10%) percent per annum from the date when due but not in exce.. of the highest legal rates. In addition, if Tenant fails to pay any .u~ to be paid by Tenant hereunder, Landlord lIay impo.. a late charge.in the amount of ten (lOt) percent of the sum due. SECTION 610. Landlord acknowledges receipt from Tenant of the Security Deposit as .et forth in Section 201', to be held as collateral security for the payment of any r~ntal. and otner .ums of money payable by Tenant under this Lease, and for the faithful performance of all other covenant. and agreement. of Tenant hereunder; the amount of said deposit, without interest, to be repaid to Tenant after the termination of this Lease and any renewal thereof, provided Tenant .hal1 have made all .uch payment. and performed all such covenant. and agreements. Upon - 8 - . any default by Tenant hereunder, all or part of laid deposit may, at Landlord', sole option, be applied on account of such default, and thereafter Tenant shall promptly restore the resulting deficiency in said depoMit. Tenant hereby waives the benefit of any provision of law requiring such deposit to be held in escrow or in trust, and laid deposit shall be deemed to be the property of Landlord. Landlord may deliver the funds deposited hereunder by Tenant to any purchaser of Landlord's interest in the demised premises and thereupon, Landlord shall be discharged from any further liability with respect to such depo.1i t . __reasonable and non-discriminatory SECTION 701. All facilities furnished by LandlorQ in Snopping Center and designated for th" general use/ in common, of occupants of the Shopping Cen,er, including Tenant hereunder, their officers, agents, emp!uyees and cU6tomers/ including, but not limited to, parking areas/ streets, sidewalks, canopies, roadways, loading platforms, washrooms, shelters, ramps, landscaped areas and other similar facilities, shall at all times be subject to the exclusive control and management of Landlord, and Landlord shall have the right from time to time to change the area, level, location and arrangement of such parking areas and other facilities above referred tOI and to e a rules and regulations pertaining to and necessary for the proper operation and maintenance of the common facilities. Tenant hereunder and any othp.r sub-tenants and licensees shall com 1 with all rules and re~'lations made by Landlord perta n ng to t e operation and maintenance of said common areas and facilities, including, but not limited to, such reasonable requirements pertaining to sanitationl handling of trash and debrisl loading and unloading of trucks and other vehiclesl and safety and security against fires, theft, vandalism, personal injury and other hazards. The parking area shall be limited to parking for customers of Tenants of the Shopping Center and Tenant and its employees may not park in any portion of the parking area, except that portion thereof designated or which may hereafter be designated as WEmployees Parking Area.W Landlord [SUbject to reimbursement as set forth below] will operate and maintain or cause to be operated and maintained the' Common Areas and facilities of the Shopping Center. ARTICLE VII COMMON USE AREAS AND FACILITIESI COSTS I INSURANCE SECTION 702. For each year of the term hereof, Tenant shall pay to Landlord, as additional rent, Tenant's proportionl.te share of all costs of operation of the Shopping Center and maintenance of the common areas and facilities of the Shopping Center (including the enclosed mall) of which the demised premises are a part. As and for Tenant's proportionate share, Tenant shall pay to Landlord the initial annual common area maintenance charge as set forth in Section 201G (subject to adjustment as , set forth below), payable as additional rent in equal monthly installments at the same times as fixed minimum rent is payable hereunder, without demand and without any deduction or setoff whatsoever. If Tenant's proportionate share of the actual cost of operation of the Shopping Center and maintenance of the - 9 - .' common area. facilities for any fiscal yeftr of Landlord exceeds the common area maintenance charges actually paid by Tenant for such period, within ninety (90) day. after the end of Landlord'. ti8cal year, Landlord will deliver to Tenant a statement showing in reasonable detail Tenant'. proportionate share of such actual cost and, within twenty (20) day. after delivery of suoh statement, Tenant will pay such excess shown to be due by said .tatement, I' additional rent. Tenant's proportionate share of the actual costs of operation of the Shopping Center and maintenance of the common areas and facilities shall be in the same proportion to the total costs of such operations and maintenance as the total gross rentable area of the demised premises bears to the total gross number of rentable square feet of ground floor leaseable area contained within all mall stores (excluding Department Stores, the supermarket and ,stores not attached to the mall, collectively referred to as wSeparate StoresW). The statement submitted by Landlord shall be sufficient evidence of the actual costs of the aforesaid operation and maintenance. The aforesaid costs of i:>peration and maintenance shall include all expenditures incurred by or on behalf of Landlord in operating the Shopping Center and r,,_ 4.ntaining the common areas and facilities, inClUding, without limitation, the cost of cleaning, heating, ventilating and air-conditioning the enclosed malll the cost of all of Landlord's insurance relating to the Shopping Center and the common areas and facilities (inClUding, but not limited to, bodily injury, pUblic liability, property damage liability, automobile insurancft, sign insurance, and any other insurance carried by Landlord for the Shopping Center and the common areaS and facilities in limits reasonably selected by Landlord, but excluding insurance described in Section 703 below) I gardening and landscaping I assessments I repairs, repaving, replacements, preventive maintenance, repainting, including restriping c' parking lot and accesswaysl rental of signs and equipmentl lightingl sanitary controll removal of snow, trash, rubbish, garbage and other refuse I depreciation over a period not exceeding sixty (60) months of machinery, equipment and other assets used in the operation and maintenance of the Shopping Center1 repair and/or replacement of on-site water lines, sanitary sewer lines, storm water lines and electrical lines and equipment serving the propertY1 the cost of police, security and traffic control services I the cost of all personnel required to supervise, implement and accomplish all of the foregoingl and an administrative charge equal to fifteen (15') percent of said costs. Contributions towards such costs by Separate Stores shall be deducted. At anytime or times that Landlord determines that Tenant's share of actual costs will exceed the monthly installments then due from Tenant hereunder, Landlord may adjust the amount of the monthly installments thereafter due from Tenant on account of its proportionate share of the costs of operation of the Shopping Center and maintenance of the common areas and facilities by increasing such installments by an amount equal to one-twelfth (1/l2th) of the excess, if any, of Tenant's estimated share of such costs over the annual oommon area maintenance charge then due hereunder. SECTION 703. For each year of the term hereOf, Tenant shall pay to' Landlord, as additional rent, Tenant's proportionate share of all premium costs for fire and broad form all risks extended coverage insurance and rent insurance respecting all buildings - 10 - .. and improvements upon the Shopping Center. As and for Tonant'. proportionate !h.re, Tenant Ihal1 pay to Landlord the initial annual insurance charge a. set forth in Section 201J (SUbject to adjustment as set forth below) payable as additional rent in equal monthly installments at the same times as fixed ninimum rent is payable hereunder, without demand and without any deduotion or .etoff whatsoever. If Tenant's proportionate ahare of the aotual cost of such insuranoe for any insuranoe year of Landlord exceeds said annual insurance charge actually paid by Tenant for such period, within ninety (90) days after the end of Landlord's insurance year, Landlord will deliver to Tenant a atatement showing in reasonable det~il Tenant's proportionate share of such actual insurance costs and, within twenty (20) days after delivery of such statement, Tenant will pay such excess shown to be due by said statement, as addtional rent (subject to adjustment as set forth below). Tenant's proportionate share shall be the same as set forth in Section 702 with respect to common area maintenance charges. The first insurance year shall be the period covered by annual insurance premiums. Tha statement submitted by Landlord shall be sufficient evidence of the actual insurance costs. At anytime or times that Landlord determines that Tenant's share of actual costs will exceed the monthly installments then due from Tenant hereunder, Landlord may adjust the amount of the monthly installments thereafter due from Tenant on account of its proportionate share of the costs of insurance by increasing such installments by an amount equal to one-twelfth (1/12th) of the excess, if any, of Tenant's estimated share of such costs over the annual insurance charge then due hereunder. SECTION 704. Sums due pursuant to Section 702 ana Section 703 shall be appropriately adjusted for any partial years at the beginning or end of the term hereof. ARTICLE VIII MERCHANT'S ASSOCIATION SECTION 801. Tenant shall join and maintain membership in an Association authorized and recognized by Landlord and established by the Tenants in the Shopping Center. Tenant shall pay to ~he ~ssociation each lease year such reasonable assessments as may be fixed from time to time by the Association for creating and maintaining a fund to be used by the Association for general promotional, advertising and welfare purposes, inCluding any assessments or dues for advertising, publicity and general public relations, provided the cost to Tenant for the first year shall be as set forth in Section 2018. Tenant will comply with such bylaws,rru!es an regulations as may be adopted from time to time by said Association and take such action as shall from time to time be necessary to remain in good standing in the Association. Tenant agrees to use the name of the Shopping Center prominently in all of its advertising and promotional literature regarding the demised premises. reasonable ~nd non- discriminatory SECTION B02. Tenant. ~grees that the bylaws of the Atsociation shall providel (i) each member which is present at a neeting and not - 11 - . delinquent in any of its payments to the Association shall have one vote for each square foot of floor area in its demised premises, (ii) each delinquent member shall be liable to th, Association for its costs (including attorney's fees) incur rea in col1eoting suoh member's delinquent debts to the Association, (iii) Landlord shall have a number of votes equal to the lesser of twenty~five peroent (25') of the total of all votes in the Association including the votes of Landlord or the percentage whioh Landlord's contribution to the Association for the association year bears to the total amount of all dues payable to the Association for suc~ association year (iv) the Landlord, as agent for the Association, may, at its option, oollect all assessments due including delinquent assessments or designate another party to collect such assessments, (v) Landlord may, at its option, elect to provide the Association with the services of a promotion director and all staff deemed necessary by Landlord to effectively carry out the promotion and public relations Objectives of the Association and/or such reasonable space within the Shopping Center as may be necessary to carry out the functions of the promotion director and his or her staff and the Association shall reimburse Landlord for such, and (vi) Landlord may provide that the occupant of ar" department store and/or supermarket shall have a seat on the Board of Directors. Furthermore, no bylaw, rule or regulation of the Association shall conflict with the provisions of this Lease, and more particularly with any rules and regulations adopted by Landlord or in any respect aiminish the rights of Landlord hereunder. SIllQ'IQtt 80]. Association, as additional rent, the sum of t -five ($.25) cents per rentable square foot of tota leased by Ten,nt upon receipt of notice from Lan hat the demised premL.,s are ready for occupancy nt's share of the cost of the wGrand OpeningW of opping Center, said payment to be due even if Ten not open for business for the "Grand openingW so 10 is required to open for business hereunder " ull QPIlR1ft3.w ARTICLE IX PUBLIC UTILITIES SECTION 901. In addition to all rentals herein specified, Tenant shall be responsible for and shall pay for all utilities, used or consumed in or upon the demised premises, and all water charges, as and when the charges therefor shall become due and payable, commencing on the date Landlord notifies Tenant that the demised premises are ready for occupancy. Unless supplied by Landlord, Tenant shall promptly make all aporo~r tate appl~cations to the local utility companies and pay all requlred deposits, connection fees and charges for meters and service for all utilities. SEC'l'JON 902. In the event any utility or utility services are furnished to Tenant for which a lien could be filed ~gainst the demised premises or any portion thereof (such as water rent or sewage disposal), the Tenant shall at Landlord's request, pay - 12 - the cost th.r.of to Landlord a. and wh.n the charges therefor beco.e dUt and pIYlbl., oth.rwis., T.nant shall d.liver ori,lnal rec.ipted billa th'r.for to Landlord within thirty (10) dlYI aft.r the .a.. are due and paYlble without int.r.at or penllty. 81CTION 'OJ. (i) In the .v.nt Landlord shill elect or b. requir.d to furnish any utility servic.s to Tenlnt (other than .l.otrioity and Condition.d Air al d..crib.d below), T.nant h.r.by Igr..' to purchas. and pay for the slm. fro. Llndlord, provided Landlord .hall charg. therefor not acr. than the .a.. con.u..r rat. a. is charg.d by the public I.rvic. corporation or .unlcipll authority, as the case may be, supplying aimilar uSlg. and services to a retail cu.to.er in the general ar.a in which the de.ised preai.e. art lituated. ' (ii) Tenant agr.e. to purcha.e froa Landlord and pay for Conditioned Air to be u.ed by Tenant for heating and air conditioning the demised pr..ises, as additional r.nt, upon presentltion of bills therefor, at the rate- set forth in and subject to adjust..nts in accordance with La,~lord's Conditioned Air Charge Rate Adjustment Schedule attached hereto as Exhibit .D.w liv.rton Water Co.pany via at least four (4) aetered s .. at four (4) meter rooa locations. Elch domestic r meter will .ervice a grouping of mall stor.s. A capped valv. outlet will be provid.d for each Tenl f Tenant require. greater than a 3/40 water lervic andlord will furnish and install the required wat.r ng and DOdificltion, at Tenant'. .xp.n.e. At Landlord' ption, Tenant will install a water .et.r with remo aoer. Landlord will on!; require metering of llrg. use tenants such as beauty parlors, restaurants, .tc. mally, Imall retail Itores with only toilet rooms will supplied to obtain the average water cost per 91 Indlord will charge ..t.red Tenants for water us ed on the av.rage cost per gallon .ultipli .etered gallons conlumed. Landlord wil educt from the total water cost, the amount bill et.red Tenants and the balance of the water c all be apportioned on I grosl leasable area basis estate tax.s. In the .vent the local authority, muni ty, utility or other body collects for the sewera anitary lervice, Tenant covenantl and agrees to e sewer rent charge (both minimum and otherwis any other tax, r.nt, levy, oonnection fee or me other charge which now or hereafter is assess posed or may become a lien upon the premises, or realty of whioh they are a part, pursuant to law, or regulation made or issued in connection with the .1' eonfteetlon Sf aY.'6a. (v) Landlord a.y, after thirty (30) days' notic. to' Tenant, cease to furnilh anyone or aore of the utility ..rvices to the pre.ises, without any relponsibility to Tenant, except to connect Tenant's diltribution facilities ther.for with anoth.r lourc. for the utility lervice 10 dllcontinued. - 13 - (vi) It is intended that the cost of electricity be included in the ~inimum annual rent. Since the characterIstics of Tenant's electrioal equi~ment and fixtures are not known at the time of the execution of this lease, Landlord and Tenant are not able to a9ree upon the sum to be included in the minimum rent for electricity (laid sum being hereinafter calle~ the -Electricity ComponentW). for that reason, the Ininimum annual rent .et forth in this lease doe. not include the Eleotricity Component. At luch time as the Electricity Component shall be determined in accordance with Exhibit wEw of this lease, the minimum annual rent shall be adju6ted to include the Electricity Component. SECTION 904. Landlord shall not be liable to Tenant for any damages should the furnishing of any utilities by Landlord be interrupted, curtailed or required to be terminated because of necessary repairs or improvements or any cause beyond the reasonable control of Landlord. Any interruption, curtailment or cessation of utilities or service shall not relieve Tenant from the performance of any ~f Tenant's covenants, conditions and agreements under this Lease. ARTICLE X TAXES SECTION 1001. Tenant shall pay to Landlord each fiscal year or years of the taxing authorities during the term hereof (appropriately apportioned for any partial vear at the beginning or end of the term hereOf) on demand, as a~dltlonal rent, wTenant's share of real estate ~ay.esw, as hereinafter described, based upon the fiscal years uf the taxing authorities. SECTION 1002. Tenant's share of real estate taxes for any such fiscal year shall be an amount equal to the product obtained by multiplying the number of gross rentable square feet of ground floor area leased by Tenant by the wcurrent tax per square foot" in such fiscal year. The current tax per square foot shall be computed by dividing th~ amount of the total real estftte taxes and assessments levied on the Shopping Center by the total gross number of square feet of rentable ground floor area in the Shopping Center or portion thereof reflected in such assessment. SECTION 1003. Tenant ahall be responsible for and shall pay before delinquency all taxes assessed against any leasehold interest or personal property of any kind owned or placed in, upon or about the demised premises by the Tenant. SECTION 1004. If at any time during the term of this Lease the methods of taxation prevailing at the commencement of the term hereof shall be altered so that in lieu of or as supplement to - 14 - '. or a sub.titute for the whole or any part of the real estate taxes or a.sessment. now levied, ..ses.ed or imposed on the ShoppinllCenLer/there .hall be levied, auelled, or illlpo.ed (i) a tax, a.....ment, l.vy, imposition or charg., wholly or partially a. . capital levy or otherwise, on the rent. reoeived therefrom, or (ii) a tax, assessment, levy (including, but not limited to, any municipal, .tate or federal levy), imposition or oharlle mea.ured by or based in whole or in part upon the Shopping Center and imposed upon the Landlord, or (iii) a lioen.e f.e mea.ured by the rent payable under this L.ase, then all such taxe., a.sessment., levies, impositions and oharges, or the part thereof .0 measured or based, .hall be deemed to be includ.d in the general real estate taxes and assessments payable by the Tenant pursuant to Seotion 1001 above to the extent that such taxes, assessments, levies, impositions and charges would be payable if the Shopping Center were the only property of the Landlord subject thereto, and the Tenant shall pay and dischargt the same as herein provided in respect to the payment of general real estate taxes and assessments. Real estate taxes shall include all taxes attributable to improvements now or hereafter made to the Center or any part thereof or t'~ present or future installation of fixtures, machinery or equipment thereon or therein, all real estate taxes, assessments, water and sewer rents (not based on oonsumption) and other impositions and charges of every kind and nature whatsoever, nonrecurring as well as recurring, special or extraordinary, ordinary, foreseen and unforseen and all installments thereof levied, assessed or imposed or due and payable are liens upon or arising in connection with the use, occupanoy or possession of, or any interest in, the Center or any part thereof, or any land, building or other improvements therein. SECT I ON 1'0.05 As and for Tenant's proportionate share of real estate taxes, Tenant shall pay to Landlord the initial annual real estate tax charge as set forth in Section 2011, payable as additional rent in equal monthly installments at the same times as fixed minimum rent is payable hereunder, without demand and without any deduotion or setoff whatsoever. If Tenant's proportionate share of the actual real estate taxes and assessments for any fiscal year exceeds said real estate tax charge actually paid by Tenant for such period, Landlord will deliver to Tenant a statement showing in reasonable detail Tenant's proportionate share of such actual real estate taxes and assessments and, within twenty (20) days after delivery of such statement; Tenant will pay such excess shown to be Que by said statement as additional rent. The official tax bill and the statement submitted by Landlord shall be sufficient evidence of the actual real estate taxes and assessments. If at any time or times Landlord receives notice of an increase in the assessment or tax rate, Landlord may adjust the amount of the monthly installments thereafter due trom Tenant an account of its proportionate .hare of real estate taxes and assessments by increaSing such installments by an amount equal to one-twelfth (1/12th) of the excess, if any, of Tenant's estimated share of such real estate taxes and assessments over the real estate tax charge then due from Tenant hereunder. - 15 - provided, however, that Tenant shall be required to ~ake the aforesaid repair. , repllcsments only if (i) the item requiring re~llr or replacement i. not covered by . warranty aiven by landlord for landlord'. work or .uch warranty hat expired or (Ii) the repair or replac..ent i, not n,c",itated due to the n'alia.nt p.rformanc. or in'tallation of Landlord', vork. ARTICLE XI REPAIRS SECTION 1101. Landlord will keep the r~l and the exterior walls of the d.~i.ed pre.is.s, in proper repair, excepting any work done by Tenant, any glass, doors, door closer. or frames, and excepting any work done by Tenant and work required by reason of Tenant's negligence or .1suse of the demlsea pr~mi.e., provided that in each case Tenant shall hav. given Landlord prior written notice of the nece.sity of such repairs. Thv repair or replacement of work done by Tenant, glass, doors, door closer. and frames and damage caused by Tenant's negligence or misuse of the de~lsed premises ahlll be the responsibility of and shall be done by the Tenant. Tenant will also make all necessary repairs and replace.ents in order to keep the interior of the demised premises, ~e9.~~el wi~~ III ~ :' ~ p~ ~.:' ~:"':9 :1r~~ft~I.I^ftl~q aftA ^.h-l :e::s:i::l' iAG::lll~ieRI ,~..iiR, r.11 doors, door closers and '~~~~~~:nl frames, all plate glass and door and window gll11 fumes and limitation all fixtures, e ui ment and stock clean and in 004 order and proper repair. using materials and labor of kind and quality equal to the original work, and will surrender the demised premises at the expiration or earlier termination of this Lease in as good condition as when received, excepting only deterioration caused by ordinary wear and tear and damage by accidental fire or other casualty of the kind insured against in standard poliCies of fire insurance with extended coverage not caused by Tenant, ts agents, emp oyees an lnv ~es; Bunp' II ~...iAdlg"e pud'.., Landlord shall have ~e obligation to repair, replace, maintain, alter or modify the ""i". pUlllilu ;r u~. FH'" 'here,f, Ir afty plumbing, heating, electrical, air-conditioning or other mechanical installation " '.WiPllllftt therein 1ft' 'hi la~e shall ~e 'he respsnsieility sf 'he Teftaftt. Under no circumstances shall Landlord be obligated to repair, replace or maintain any plate glass or door or window glass, frames or door covers and Tenant shall at all times carry in a reputable company, full coverage insurance on all plate glass in the demised premises and shall cause prompt replacement if chipped, cracked or broken, .aid policy or a certificate thereof shall be deposited with Landlord and shall provide that it Ihall not be cancelled or modified for any reason without at lent twenty (20) days prior notice thereof to Landlord. Anything herein to the contrary ~otwithstanding, any work or alteration made by tenant to the roof, exterior walls or affecting the structural integrity of the building of which the demised premises are I part (even if with Landlord's consent) shall release and discharge the Landlord of and from any duty Landlord may have to keep and maintain the same in good ~rder and repairl and Tenant agrees to be solely responsible for and thereafter to repair and to .aintain the roof, extftrior walls and the structural integrity of the building to or on which Tenant has caused any work to be done or alteration made. No holes are to be cut through the roof without Landlord's prior written consent. In the event any holes are required to be cut in the roof, Tenant will engage Landlord'. roofing contractor or any. roofer approved by Landlord'. bonding company, to flash and patch such holes so .a to maintain the validity of Landlord'. roof bond and responsibility thereunder. ;~O~ld any o~ the above listed items be damaged as a result of Tenant's negligence I a r~su t of the negligence of any customer of tenant then tenant shall, at tenant s expense, repair and replace such damaged item. - Hi - " which consent shall not be unreasonably withheld provided such cost of l~provements do.. not .~c..d the amount of ani thousand ($1,000.) and luch 1.prov...ht. ar. consi.te with the d.sl,n Ita~dlrds ..t by the Ihoppin, clnt.r. AITICLE XII TENANT'S lIGHT TO MAl! ALTERATIONS SECTION 1201. T.nant .hall not .ake any alterations, improv.ments or additiqns to the de.i..d pr..ises during the term of this L.a.. or any .xt.nsion or r.newal ther.of without fir.t obtaining the writt.n cons~nt of Landlord. Tenant shall not cut or drill into, or secure any fixture, apparatu. or equipment of any kind to any part of the demised premis~. without first obtaining the wr ns n ndlord All alt rations im rovements and a tons aa e y Tenant a. aforesaid s a rema n upon e premis.s at the expiration or earlier termination of thi. Lease and shall become the property of Landlord, unless Landlord shall, prior to the expiration or termination of this Lease, have giv.n written notice to Tenant to remove the .a.., in which event Tenant shall remove .uch alteration., improvements and addition. and restore the premi.es to the same good order and condition in which it was at the commencement of this Lease. Should Tenant fail 10 to do, Landlord may do 10, collecting, at Landlord's option, the cost and expense theLJof from the Tenant as additional rent. with the exception of tenant's trade' fixtures SECTION 1202. Tenant shall at all times maintain fire insurance with broad for. all risks extended coverage endorsement insuring tne interest of Landlord, Agent and of Tenant in companie. acceptable to Landlord at all times and in an amount acceptable to Landlord at all times as adequate to cover the full costs of replacement of all such alterations, additions, improvements or changes in the event of fire or extended coverage loss. T.nant shall deliver to the Landlord certificates of such fire insurance coverage, and such policy shall contain a clause requiring the insurer to give tne Landlord twenty (20) days' prior notice of cancellation. Tenant shall deliver to Landlord new or renewal insurance certificates twenty (20) days prior to termination or cancellation of the prior policy. ARTICLE XIII AFFIRMATIVE COVENANTS OF TENANT SECTION 1301. Tenant thallI Ii) Comply with any and all current or future requirements of any of the co~stituted public authorities, and with the terms of any State or Federal statute or local ordinance or regulation applicable to Tenant or its use or occupancy of the demised premises, and save Landlord harmless from penalties, fines, costs, expenses or damages resulting from failure to do 801 (ii) Give to Landlord prompt vritten notice of any accident, fire or damage occuring on or to the demised premisesl (iii) Load and unload goods at .uch times in the areas and through such entrance a. may be designated for such purposes by Landlord. Such trailers or trucks shall not be permitte~ to re.ain parked, overnight, in any area of Shopping Center, _nether loaded or unloaded, - 17 - ~ . ~ o~o~ -.; o~. o~ ~.., ,~ """.;~. ............ 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" AITICLI XIV NEGATIVE COVENANTS or TENANT IBCTIOH 1401. Tenant .hall not do any of the fOllowing without the prior con.ent in writing of Landlordl (1) U.e or operate any machinery that, in Landlord'. opinion, i. harmful to the building or di.turbing to other tenant. in the building of which the demi.ed premi.el i. a part, nor .hall Tenant u.e any loud Ipeakers, televi.ions, phonograph., radiol or other devices in a .anner .0 as to ~e h.ard or seen outside of the d.mi..d premil'., nor di.play ..rchandi.. on the .xterior of the demis.d premi.e. eith.r for lal. or for promptional purpo.e., (ii) Do or suffer t~ be don., any act, matter or thing objectionable to the fir. insurance companies whereby the fir. insurance or any other insurance now in force or hereafter to be placed on the de~ised premises or any part thereof, or on the building of which the demised pre~ises may be a part, shall become void or luspended, or wher.by the same shall be rated as a more hazardous ri.k than at the date when Tenant receives po.se..ion hereunder. In ca.e of a breach of this covenant, in addition to all other remedies of Landlord hereunder, Tenant agree. to pay to Landlord al additional rent any and all increase or increases of pre~iums on insurance carried by Landlord on the de~ised pre~ises, the Shopping Center or any part thereof, caused in any way by the occupancy ot Tenant! (iii) Attach any awning, antenna or other projection to the roof ~r the outside walls of the de~ised premises or the building of which the demised premises are a part! (iv) Conduct any auction. fire, bankruptcy, or ..lling-out lale on or about the de~ised premises! (v) B. open for bUliness on any Sunday unless the Mall is opened and operated by Landlord! (vi) If Tenant is a corporation, merge with another entity or liquidate or dissolve! nor .hall control of said corporation change or be affected by the transfer of stock except by reason of death of a Shareholder! (vii) Execute or deliver any .ecurity interest in any trade fixtures or other property placed upon the demised premise. at any time! and (viii) Solicit husiness or distribute any handbills or other advertising ~atter in the common areas of the Shopping Center; Name. prov.ded. however, that Landlord hereby agrees, upon written request of Tenant. to subordinate Landlord's lien in Tenant's trade fixtures to perfected security interests of third parties therein; (il) Operate unaer any name other than Tenant'. Trade - 19 - at a time which will le.at inconvenience tenant or interrere with ita normal bu.ine.. operation. (.xcept in c.... of ..erl.ney) ARTICLI XV SIGNS SICTION 1501. Tenant shill not pllce, Ilter, exhibit, indcribe, plint..or affix any sign, awning, clnopy, advertisement, notice or other lettering on any part of the outside of the demised pre.ises or of the building of which the demised premises is Q part, or in.ide the demised premises if vilible from the out.ide, nor paint anf brick or stonework, cornice work, mill work or iron work, without fir.t obtaining Landlord'. written approval thereof, Ind Tenant further agrees to maintain such sign, awning, canopy, lettering, etc., a. may be approved in good condition Ind repair at all times, Ind repair III damage to the demis.d pre.ise. that is clused by the instlllltion, .Iintenance or removal of such .ign., lettering, etc. Tenant shill coaply with the sign specifications attached hereto as Exhibit "C" and made I part hereof. ARTICLE XVI RIGHTS OF LANDLORD SECTION 1601. Landlord reserves the following right. with respect to the demised premisell (i) At all reasonable ti.es, by itself or its duly authorized agents, e.ployees and contractors to go upon and inspect th~ de.ised premises and every part thereof, to enforce or carry o~~ the provisions of this Lease, at its option make repairs, alterations and additions to the demised prelaisu or the building of which tlle dendsed premisell are a pll'l:, tu perform any defaulted obligation Tenant or for any other purposesl , (ii) To display I "For Sale" sign at any tiae, and also after notice frOG either party of intention to terminate this Lease, or at any time within five (5) months prior to the expiration of this Lease, a "For Rent" sign, or both "For RentW and wFor Sale" signs, and all of said signs $hall be placed upon such part of the demised pre.ises as Landlord shall require, except on display windows or doors leading into the demised premlses. Prospect.ive purchasers or tenants authroized by Landlord may inspect the premises at reasonable hours at any tim., (iii) To install or place upon, or affix to, the roof and exterior walls of t~e demised premises equipment, signs, displaYl, antenna, and any other object or structure of any kind, provided the same shall not materially impair the structural inte9rity of the building or interfere with Tenant's occupancy I (iv) At any time and from tia. to time to make Ilterltions, or additions, to, Ind to build additional stories on, the building in which the pre.iles Ire contained, and to build adjoining the same. Landlord al.o reserves the right to construct other or add to other building. or improvements in the Shopping Center, and to permit others to do so to do so, from time to ti.e, - 20 - ,0 (v) To discontinue any and all facilities furnished and ser,ices ~.ndered by Landlord not expre..ly oonvenanted for herein, it being under.toed th~t they constitute no part of the oon.ideration for this Lease, (vi) At any ti.e and fro. ti.e to time to use all or any part of the roof and exterior walls of the de.i.ed pre.i.e. for any purposes, to erect scaffolds, protective barriers and oth.r aids to construction on, around and about the exterior of thede.l.ed pre.ls.s, provided that access to the demised premis.s shall not be completely denied, to enter the demi.ed premis.. to shore the foundations and/or walls thereof and/or to I~stall, maintain, us., repair, inspect and replace pipes, ducts, conduits and wires leading through the demised premises and serving other parts of the Shopping Center in locations which do not materially interfere with Tenant'. Use thereof. Tenant further agrees that La~dlord may make any use It desires of the side or rear walls of the demised premise., provided that there shall be no encroaohment upon the Interior of the demised premises! (vii) If an excavation shall be made or authorized to be mad. upon land adj.cent to the premises, Tenant shall afford to the person causing or authroized to cause such excavation license to enter upon the premiees for the purpose of doing such work as Landlord shall deem necessary to preserve the wall or the building of which the premises form a part from injury or damage and to support the same by proper foundations, without any claim for damages or Indemnification against Landlord or diminution or abatement of rent! (viii) Landlord shall not be liable in any such case for any inconvenience, disturbance, loss of business or any other annoyance arising from the exercise of any or all of the rights of Landlord in this Section 1601! lix) The purpose of the plan hereto annexed as Exhibit lAW is solely to show the approximate location of the demised premises. Landlord hereby reserves the right at any time and from time to time to make Changes or revisions in such pl~n, including, but not limited to, additions to, subtractions from, and/or relocations or rearrangements of, the buildin9s, parking areas, and other Common Areas shown on such plan! provided only that the size of the demised premises, and reasonable access thereto shall not be substantially impaired'l (x) Landlord reserves the right to sever the ownerShip of or title to the various sections of the Shopping Center and/or to place separate mortgages on said sections of the Shopping Center and/or to place separate mortgages on said sections, in which case the right of Tenant and other tenants in the Shopping Center will be preserved by a writt~n deClaration o~ agreement, to be executed by Landlord and duly recorded, creating mutual, reciprocal and interdependent rights to use the parking and other common areas and the utilities and faCilities needed for the full use and enjoyment of the demised premises by Tenant and other tenants or occupants in the Shopping Center without impairing any of the duties and obligations of Landlord to Tenant under this Lease. Tenant s~al~ exe?ute from time to time such instruments reasonably r.qulred oy Landlord and its mortgag~e to effectuate the prOVisions of the Section l601(x)! and (xl) If during the last month of the term of this Lease or any renewal or extension thereOf, Tenant shall have - 21 - and the POSitional relationship of the demised premises to the department. store will not be changed; no change will be made tn the size or shape of the demised premises ~fter completion of construction; " . re.oved III or sub.tantilll, all of T.nant', prop.rt, froll the dellhed pr..he., Landlord lIa)', pr ior to the e.pi u tion or ter.ination of the ter. of this Lea.e, without rel.a.ing Tenant froll any of Tenallt'. obligation. pursuant to thh L...., including, without lillttation, Tenant'. obligation. to repair and r..tore the demi.ed premi.e. and to pa, the full rent and other su.. due hereund.r, immediately enter upon the demi.ed pr.mi,e. and alter, r.novate and decorate the aam.. ARTICLE XVIJ DAMAGE TO PREMISES SEC'tION 1701. If the demi.e. premise. shall be damaged by fir. or oth.r in.ured ca.ualt" not due to Tenant's negligence, but are not ther.by rendered untenantable in whole or in part, Landlord .hall promptl, at it. own expen.e cau.e .uch damage to be repaired, and the ~inimum annual rent shall not be abated. If by rea.on of any .uch OCcurrence, the demi.ed premi.es .hall be rendered untenantable only in part, Landlord .hall promp.:y at its own expense cause the damage to be repaired, and the minimum rent meanwhile shall be abated proportionately as to the portion of the demised premises rendered untenantable. If the demised premises shall be rendered wholly untenantable by realon of luch OCcurrence, the Landlord .hall promptly at its own expense cause such damage to be repaired, and the minimum rent meanwhile .hall be abated in whole, provided, however, that Landlord 'hall have the right, to be exercised by notice in writing delivered to Tenant within lixty (60) days from and after .aid occurrence, to elect not to reconstruct the destroyed premises, and in such event this Lease and the tenancy hereby created shall cease as of the date of sai~ occurrence, the rent to be adjusted as of such date. Landlord'. obligations hereulldet shioll lit: limited t:. the building shell and work originally done by Landlord at Landlord's cost. Tenant shall properly insure the demised premises against loss or damage by fire or other ~asualty for store construction performed by Landlord on page 8-l4A, paragraph 2 contained herein. ARTICLE XVIII INDEMNIFICATION AND PUBLIC LIABILITY INSURANCE SECTION 180 . Unless caused by negligence of Landlord, its agents, employees, contractors and sub-contractors Ten~nt will indemnify Landlord and save it harmless from and against any and all claims, Ictions, damages, liability and expense in connection with 10ls of life, per.onal injury and/or damage to property occurring in or about, or arising from or out of, the demised premisel and adjacent lidewalks and loading platforas or area. or occalioned wholly or in art b an act or omission of Tenant, its agents, contractor., customer. or emp oyees-1 Tenant .hall keep in fOrce at its own expense public liability insurance in companies at all times acceptable to Landlord sufficient to COver such indemnification and naming as insured. Landlord, Agent and Tenant, (and, upon request, ,ny other party named by Landlord) and containing an expre.. waiver of any right of lubrogltion again.t Landlord and other named in.ured. designated b{ Landlord, with .inimull limit. of rive Hundred Thousand Dol arB ($500,000) on account of perlonal injuries to or death of one per.on, and One Million Dollarl ($1,000,000) on account of per.onal injuries to or death of .ore than one prOvided that such claim or 105. is not caused by the negligence of the Landlord.. - 22 - t.~'tlC\,t '1.\'1. 'f1,.\'lt~ Of C\JI.t~S { ~an4tot4 \tl "entl. e~?toye'I' t'l.Ce t (ot tn' I\e~~t~~t;a'hot" __.l ost"'''' "". ,,.,t..,,,,...' ." ,..'0'''' · - ", .., . . ..,...'. .... , ,.,.b' .,. ....'0'... ~ ",b" 10" .., ....~,.,.,... b' .o.".c,"" "'''.:.~: ,0 ....0. o' t.~~~~l ..."".. "o~,~" . ..b- 0 ..' 0" ,...,,,, ,MO" ai' '0' ,. o' ,... . ....."" \~':". ~'" ~~' r.,\~~~~ ,f.\~\' :;t~,~~..~~., I-::';':'~: .~..~" ~,.. t':' \~', :".'~~ ~....~; r,,' ~~. 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""" '0' ,0 ,b' d'" ..0 ..." .0' b' ...,' " ..,,0' o' ",'0" ., t ol/et" ttO~ anI .. o teC 1 t 6a\llaQ" \.t an'i' ~\\II' ot 1.011 0 . ,1\4 otnet \.te~1 tote{tOl\t sUI\ s."""" \GO" · ,.n.' ., .....' " '~. ,~-:.\~' ,M ,., ." ,.... II""'~~"." ..co..,"O"',~ ...".,,0' ....,... "." ~:...........~ .bO" be ,.':"...~~'~.~~.., o. ~ ~t0gett1 0 \. at\on ot ~nl.l \,eale 0 ot .at1.\,et tet. n a\.lalt.t, ana ,\.ve . ... .001.'" o' .' 01 ...... ,0 .... ., ,,,, ..",' ..\: ~..o,,,O\ Oft f.of.. ..,'0' o. \~.., ........~.:.\' .In I""....t.,"tt~.". "...01. ,~~~~ . ..0X"'" ~~uc' ""'.'0" ;;.~, 01 ....,.. .' .'\" ...,..0 r.'.a~~~~ ~,~\,~'\t~~,,,I":-:a~~ <';'':.~1'~~''\~ ~f,\~~~~ ~~t\,:.t to ........., 1".........' "'0' .. .' .' ....'~~..";.~ ~l\1O" ...~\~S~, ~~~,\I.\ \.nc\~lt~ \.:C~U:~ t'" ..... . . I..'..... ... '."" 0....' 0" t'" na~'u t\.at. tot S' \\.\.tl \t a99t~~at an~ tl.... sn099\nli cent. ~"''t'tCt.!. 'f,."(.. 't~t>!. y\"(..'tU~S _ 1') - . . . ..xt.nalon th.r.of, provid.d T.nant .hall not at .uch ti.e be In d.fault und.r .ny covenant or agr....nt contain.d in this L....' and provid.d furth_r, th.t in the .vent of .uch r.~oval T.nant .hall pro.ptly r.ator. the pr.mi.e. to th.ir origin.l ord.r .nd condition. Any .uch trade fixture. not removed at or prior to auch termination .h.ll be and become the property of L.ndlord. All i.provement. and fixtur.. in.t.ll.d by Tenant oth.r than trade filtur..~including but not li.ited to, .. ftg .qu pment, lLghtIng fixture., .ir-conditioning .quipment, ator. front, ceiling, wall tr.atment, floor covering, plumbing and .lectrical .y.tems and fixtures, whether or not in.talled by Tenant, .hall not be removable at or before the expiration or earlier termination of this Lea.e or at the expiration of any renewal or extension thereof, and shall beco.e the property of Landlord without any compensation therefor to Tenant. Itor.front .ign ,nd oth.r it.... ARTICLE XXI ASSIGNING, MORTGAGING, SUBLETTING SECTION 2101. Tenant shall not assign, mortgage, pledge or encumber t~is Lease, in whole or in part, or .ublet the whole or any part of the demised premises, or permit the use of the whole or any part of the demised premise. by any licensee or concessionaire, without first obtaining the written consent of Landlord. This prohibition shall be construed to include a prohibition against any assignment or subletting by oper4tion of law. In the event of any such assign.ent, subletting, licensing or granting or a concession, made with the written consent of the Landlord a' aforesaid, Tenan~ ~ill nevertheless remain liable for the perf~rmance of all the t:erms, conditions, and covenants of this Lease. Any pp.~mltted assignment or subletting .hall be by agreement in form and content acceptable to Landlord. If Tenant is a corporation, and if control thereof or of its parent changes at any time during the term hereof, Landlord, at its option, may, by giving .ixty (60) day. prior written notice to Tenant, declare .uch change a breach of this Lea.e. Landlord hereby consent. to the assignment of this Lease or the subletting of the demised premises to a wholly owned subsidiary of Tenant, .ubject to the provisions above respecting continued liability of Tenant and the form and substance of the agreement. If any assignment or subletting involves a c~ange of use, Landlord may condition its approval, inter !l!!, upon a revision of the percentage rent rate as may be appropriate for such different use. ARTICLE XXII SUBORDINATION SECTION 2201. Thi. Lease, upon request by Landlord, shall be automatically subj.ct and subordinate to any and all non-occupancy luses, .ortgagu or deed. of trust (collectively called -Mortgages-) now or hereinaft.r placed upon the Shopping Center, or any part thereof, and to all future modification., consolidations, replacement., exten.ion. and renewals of, and all amendment. and supplements to said Mortgage.. Notwithstanding .uch subordination, as afore.aid, this Le..e, - 24 - " except .s otherwi.e hereinafter provided, .hal1 not terminate ocbt dive.ted by foreclo.ure or other default proceeding. under said ~ortgages or obligations aecured thereby, and Tenant shall attorn to .nd recognize the Le.sor, Mortgagee, Trustee or the purchaler at the foreclosure eale in the event of such foreclosure or other default proceeding, as Tenant's Landlord for.the balance of the term of this Laale, subject to III of the term. and provision. hereof. Such Lessor, Mortgagee or the purchaaer at .aid foreolosure sale ehall not bel (iii) Liable for any act or omi.sion of Landlord, Subject to any offsets or defenses which Tenant might have against Landlord! Bound by any rent or additional rent which Tenant may have paid to t.ndlord for more than the current month! and (iv) Bound by any amendment or modification of this Lease made without its consent. (i) (ii) SECTION 2202. Notwithstanding the attornment agreements hereinabove set forth, the beneficiary of any such attornment agreements may elect to declare said attornment provisions to be null and void and of no force and effect. SECTION 2203. Tenant agrees to execute, acknowledge and deliver any and all documents required to effectuate the provisions of this Article XI' SECTION 2204. Tenant agrees to give any such Lessors, Mortgagees and/or trust deed holders by registered mail a copy of any notice of default served upon the Landlord, provided that prior to such notice, Tenant has been notified in writing (by way of Notice of Assignment of Rents and Leases, or otherwise) of the address of such Lessots, Mortgagees and/or trust deed holders. Tenant further agrees that if Landlord shall have failed to cure such default within the time provided for in this Lease, then such Lessors, Mortgagees and/or trust deed holders shall have an additional 60 days within which to cure such default or if such defauit cannot be cured within that time, then such additional time as may be necessary to cure such default (inClUding, but not limited to, commencement of foreclosure or default proceedings, if necessary, to effect such cure) in which event this Lease shall not be terminated while such remedies are being so diligently pursued. SECTION 2205. In the event that Landlord, any mortgagee or proposed mortgagee of the Shopping Center of which the demised premises are a part, or any governmental or quasl-governmental body contemplating the issuance of or having issued obligations with respect to the Shopping Center of which the demised premises are a part or any part thereof (the -Authority-), or any of their respective counsel, shall deem Tenant to be a .ptincipal user- (within the meaning of Section l03(b) (6) of the Internal Revenue Code of l'S4, a. amended (the -Code.)) of any facility N 2S - with respect to wh~ch the Authority shall authorize the issuance of or .ha11 have issued obligations intended to qualify cnder said Section 103 (b) (6) of the Code, Tenant shall provide, upon written request of Landlord from time to time (i) a atstement of capital expenditures made by Tenant and related persons (aB defined in Section 103 (b) (6) (C) of the Code) in the county or incorporated municipality in which the d~mised premiaes are located during the period beginning three (3) years before the date of issue of the Obligation of the Authority, and (ii) supplemental statements of capital expenditures during the periOd endi~g three (3) years after the date of such issue. Such statements of capital expenditures by Tenant shall be made in a manner complying with the regulations promulgated under Section 103 of the Code (which regulations currently require, inter alia, the listing of dates and amounts of each capital expenditurer-and shall also, where required by such regulations, be filed with or submitted to the Internal Revenue Service and/or the Authority. ARTICLE XXIII OFFSET STATEMENT SECTION 2301. Within ten (10) days /.Ifter request therefor by Landlord, or in the event that upon any sale, assignment, lease or hypothecation of the leased premises and/or the land thereunder by Landlord, an offset statement shall be required from Tenant, Tenant agrees to deliver in recordable form a . certificate to any proposed Mortgagee, Lessor or purchaser, or to to the Landlord, certifying (if such be the case) that this Lease is in full force and effect and there are no defenses or offsets thereto, or stating those claimed by Tenant. ARTICLE XXIV TRANSFER BY LANDLORD SECTION 2401. The term wLandlord" as used in this Lease means the Owner, only for the time being, of fee title or a leasehold estate in and to the demised premises. So long as all sums held in escrow by Landlord are paid over to any transferee of said premises'.or assignee of said leasehold estate, Landlord shall be and is hereby relieved of all covenants and obligations of Landlord hereunder after the date of transfer of said demised premises or assignment of said leasehold estate, as the case may be, and it shall be construed without further Agreement between the parties that the transferee has assumed and agreed to carry out any and all covenants and obligations of Landlord hereunder from the date of such transfer. ARTICLE XXV CONDEMNATION SECTION 2501. Tenant hereby waives as to Landlord and the condemning authority any aw~rd or damage or claim therefor for loss or - 26 - .. ,- -damlg. to 'J'enlnt IS the re.ult of the fltrCla. of the pow.r of ..in.nt dotain of .ny governmental body, whether such lo.s or dlmag. r.sults frOM condemnation of part or all of the deml.ed purd... or In~ portion of the parking ar.. or service .ntrances and .xlts. Should any power of .minent domain be .xercised after Tenant i. in posses. Ion, such exercise shall not void or h:plir this Aguemut unless the amount of the d.mi..d premls.. so taken is .uch I. to substantially impair the u..fulness of the demised premises for the purpose for which the same Ir. h.reby d.mlsed in which event .Ither party may cancel this Lease by notice to the other within sixty (60) days after po.seslion Is taken and the r.ntal h.rein provided .hall abate (proportionately or entirely, as the case may b.) as of the date poss...ion i. taken by the cond.mning authority. ARTICLE XXVI FIN~CING STATEMENT SECTION 2601. Subject to the proviao It the end of Section 1401 (vii), Tenant shall not ent.r into, execute or deliver any financing agreement that can be considered as a priority to any lease, mortgage or deed of trust upon the demised pre~ises and, in the event Tenant does 10 execute or deliver such financing agreement, such action on the part of Tenant shall be consider.d a breach of the terms and conditions of this Leas. entitling Landlord to such remedies as are provided for herein. Tenant agrees that Landlord shall have an express contractual lien (in addition to any statutory lien) for the performance of all of Tenant's obligations pursuant to this Lease, upon all of the fixture., machinery, .quipment, goods, inventory and personalty which are, or hereafter may be, ~laced in or upon the demised pr<lmistlS. ARTICLE XXVI I SURRENDER AND HOLDING OVER SECTION 2701. Tenant, upon expiration or termination of this Leise, either by lapse of time or otherwise, shall peaceably render to Landlord the premises in broom-clea~ condition and in good repair. In t~e event that Tenant shall fail to surrender the premises upon demand, Landlord, in addition to all other remedies availabl. to it hereunder, shall have the right to receive, as liquidated damage. for all the time Tenant shall so retain possession of the premises or any part thereOf, an amount equal to twice the minimum and percentage rent specified in this Lease, as applied to such period. If Tenant remains in possession of the premises with Landlord's consent but without a new Lease reduced to writing and duly executed, Tenant shall be deemed to be occupying th~ pre~ises as a tenant at will, subject to all the covenants, conditions and agreements of this Leas., except that the th.n curr.nt minimum annual rent shall be increased by 50' dur ing .uch per iod llut if a lease 1s executed within thirty (30) days such penalty rent in excess of the rene agreed to in the 'new lease shall be rebated. - 27 - \' . ARTICLE XXVUI NOTICKS SBCTION 2101. Wherever in this Lease it shall be required or per.itted that notice or demand be given or served by either party to this Lease to one or the other, such notice or demand shall not be deemed to have been duly given or served unless in writing and either personally delivered or ~orwarded by Certified Mail, Return Receipt Requested, postage prepaid, addressed as followsl TO THE LANDLORD ATI Suite 2634 1700 Market Street Philadelphia, Pennsylvania lti03 '1'0 TIlE TENANT ATl the address set forth in Article I above. Such addresses may be changed from time t~ time by either party by serving notices as above provided. ARTICLE XXIX PERFORMANCE OF TENANT'S COVENANTS SECTION 2901. Tenant shall perform all agreements herein expressed on its part to be performed, and will promptly upon receipt of written notice of non-performance, thereo' comply with the requirements of such notice, and further, if Tenant shall not comply with such notice to the satisfaction of Landlord within forty-eight (4B) hours after delivery thereof, (or if such compliance cannot reasonably be completed within forty-eignt (4B) hours, if Tenant shall not commence to comply within such period and thereafter proceed to completion with due diligence), Landlord may, at its option, do or cause to be done any or all of the things specified in said notice, and in 10 doing Landlord shall have the right to cause its agents, employees and contractors to enter upon the demised premises d in su v t shall have 110 Uability to Tenant for any lo.s or damage reSUlting n any way rom such action I and Tenant shall.pay promptly upon demand any expense incurred by Landlord in taking such action, any such sum to be collectible from Tenant as additional rent hereunder. unle$s I~C~ loss or da~at! Is caused by lhp neg\l~ence of such parties, ARTICLE XXX EVENTS OF DEFAULT SECTION 3001. The occurrence of any of the fOllowing shall constitute an event of default bereunderl (i) Failure of Tenant to commence business within the time period specified by Article III hereof! (ii) Discontinuance by Tenant of the conduct of its business in the demised pre.isel, - 28 - . . (iii) The filing of a petition by or against Tenant for adjudication as a bAnkrupt or insolvent, for its reorganization or for the appointment uf a receiver or trustee of Tenant's property! an assignment by Tenant for the benefit of creditors! or the taking of possession of the property of Tenant by any governmental officer or agency pursuant to statutory authority for the dissolution or liquidation of Tenant, (iv) Failure of Tenant to pay when due any installment of rent hereunder or any other sum herein required to be paid by Tenant! (v) Vacation or desertion of the demised premises or permitting the lame to be empty and unoccupied I (vi) Tenant's removal or attempt to remove, or manifesting an intention to remove Tenant's goods or property from or out of thc demised premises otherwise than in the ordinary and usual course of business without having first paid and satisfied Landlord for all cent which may become due during the entir~ term of this Leabe! (vii) Tenant's failure to perform any other covenant or condition of this Lease within twenty (20) days after written notice and demand, unless the failure is of such a character as to require more than twenty (20) days to cure, in which event Tenant's failure to proceed diligently to cure such failure shall constitute an event of default; and (viii) Failure of Tenant to comply with Section 2701 hereof. AR.TICLE XXXI RIGHTS OF LANDLORD UPON DEFAULT BY TENANT SECTION 3101. In the evcnt of occurrence of an event of default hereunder: (i) The whole rent for the balance of the term of this Lease, as hereinafter computed, or any part thereof, at the option of the Landlord, shall immediately, without act or notice, becom~ due and payable as if by the terms of this Lease the same were payable in advance! and (ii) Landlord may immediately proceed to distrain, collect or bring action for the whole rent or such part thereof as aforesaid, as being rent in arrears, or may enter judgment therefor in an amicable action al herein elsewhere provided for in case of rent in arrears, or may file a Proof of Claim in any bankruptcy or inSOlvency proceedings for such rent, or Landlord may institute any other proceedings, whether similar to the foregoing or not, to enforce payment th-.reof. SECTION 3102. Rent for each year for the balance of the term after the happening of any event of default for the purpose of computing the whole rent for the balance of the terN of this Lease. under Section 3101 and 3105 hereof shall be computed as - 29 - .' . . 'equal to the y.arly av.rage if the .ini.ua and p.rc.ntage rent payabl. bf T.nant pur.uant to Articl. VI of this L.a.. for the la.t thr.. (3) full l.a.. year. i...diately pr.c.ding .aid .v.nt of d.fault, plus (th. following h.rein ref.rred to al .AddedCharge..) T.nant'. .har. of r.al e.tate taxe., due. to the M.rchant,' A.lociation, in.uranc. charg.s and co.t. of operation of the Shopping Center and ..intenance of the common area. ~nd faciliti.., payabl_ for the current applicable year. If the amount of Add.d Charg.. for the curr.nt applicable year ar. not th.n available, then Tenant'. .hare of Added Charge. payabl. for the preceding year .hall b. uaed in the computation of annual r.nt. If le.. than three (3) full lea.. y.ar. hay. pr.c.ded the occurr.nce of .aid event of default, then the annual average of ainimum and percentage rental theretofore r.quired to be paid by T.nant shall b. us.d in the computation of annual Clnt. SECTION 3103. consiltenlt With due procesl of llw AI long al the whole rent or any part thereof .s aforesaid emain. unpaid, the Landlord may, at any time re-enter and re-po.se.. the de.is.d premi.e. and any part thereor and attempt to relet all or any part of .uch demised premises for the account of Tenant tor luch rent and upon such terms and to such personl, firm. or corporations and for such per iod or per iod5 as Landlord, in itl lole Idi sc re tion, Ihall determine, including the term beyond the 'termination of this Leas., and Landlord .hall not be required to acc~pt any tenant offered by Tenant or ob.erve any in.truction given by Tenant about such reletting, or do any act or exercise ant care of diligence with respect to such reletting or t~ the mitigation of damages. For the purpose of such reletting, Landlord .ay decorate or make repairs, changel, alterations or additions 'n or to the demised premises to the extent deemed by Landlord de.irable or convenient, and the cost of .uch decoration, repairs, changes, alterations or additions shall be charged to and be payable by Tenant as additional rent hereunder, as well as any reasonable brokerage and legal fees expended by Landlord, and any lums collected by Landlord from any n.w tenant obtained on account of the Tenant Ihall be cr.dited againlt tho balance of the rent due hereunder a. aforuaid. but comm- ercially reasonabl SECTION 3104. At any time after any event of default shall occur and remain uncur,d, Landlord, at it. option, may serve notice upon Tenant that this Lease and the then unexpired term hereof Shall c.ase and expire and become absolutely void on the date .pecified in such notice, to be not less than five (S) days after the date of such notice, and thereupon, and at the expiration of the time limited in .uch notice this Lease and the term hereof granted, .s well a. all of the right, title and interelt of the Tenant hereunder, .hall wholly cea.e and expire snd become void in the same manner and with the lame force and effect (except as to Tenant's liability) as if the date fixed in luch notice were the date herein specified for expiration of the ter. of this Lease. Thereupon, Tenant Jhall i....diat.ly quit and lurrende. to Landlord the demised premise., including any and all buildingl and improvementl th.r.on, and Landlord' may .nter into and repos.... the demi.ed pre.i.e. by .ummary proceedings, detainer, ejectment or otherwi.e, and remove all occupant. thereof and, at Landlord'. option, any property therton.wikha..l I>.!uv ll.Dl. ~u ludl",ug.nl;" )'I.\I.v'"'~t161. ~. .......ag... '1I....1'r - 30 . .' 'S.CTXON nos. In the event of hr.in.tion of thh Lea.e, at . Landlord'. option, Tenant ahal1 pay to Landlord all rental and other charge. payable hereunder due and unpaid to the date of t.rmination, ,.,e.h.. wl'k ll.~i.a\G' 'A.'t~S in aR ...y~t .,ual ,. ~"."~rUH IU'1 ...........1. I. 'h. lI.laRal If U.... "'" a,,' Aid.." el,.,,,.. required to be paid under this Lea.. from the date of .aid ter.ination to the end of the terN of this Le..., a. if the saIDe had not been terminated, 'he sa'" "1lI~ tv. t.l.. INH computed in the .a.e mann.r a. provided in Sec 02 hereof. Xn the event .ny judgment has be tered again.t Tenant for any amount in exce.. of th al amount required to be p.id by Tenant to Landlord he er, then the damage. a......CS under .aid jucSgment 1 be re-...e.sed .nd a credit 9ranted to the e.tent of d .xc..s. Th. partie. hereto ' acknowledge that the ages to which the Landlord i. entitled in the event of each of this Lease and termination by LandlorcS are easUy computed and are .ubject to _any vari.bl. tor.. The partie. hereto have agreed to the liquid d damages as herein provided in order to avoid ex ed litigation in the event of default by Tenant and SECTION 3l06'rand after notice thereof and failure of Tenant to cure such default _ within the time required hereunder. Upon the occurrence of any event of default I a. .foresaid, then Landlord or .ny person acting under Landlord consistent with due process of law: (i) May enter the premises and without further oemand, proceed by distress and sale of the goods there found to levy the rent, all other charges herein payable as rent, and all cost. and officers' commissions, including watch~en's wages, and further including the five (5') percent chargeable by the Act of Assembly to L'ndl~r~, shall te paid by the Tenant, and that, in such ease, all costs, officers' commissions and otner charges shall immediately attach and become a part of the claim of said Landlord for rent, and any tender of rent without said cost. made after the issue of a warrant of distress shall not be .ufficient to satisfy the claill of said Landlord. Tenant hereby expre..ly waiv,s the benefit of all laws now made or that IDay hereafter be made regarding any lillitation in Which distress is to be made after removal of goodS. Tenant waives in favor of Landlord all right. under the Act of Assembly of April 6, l'Sl, P.L.6' Art. V., Sec. 501, and all .upplements and amendment. thereto that have been or may hereafter be passed, and authorizes the sale of any goods distrained for rent at any time after five (S) days from said distraint without any appraisement and/or condemnation thereof, .nd/or (ii) May re-enter and repossess the demised premises btealcill' "111 luhd 'eeu, if II..IUIIY, all' lay "U II -"vlt foree as necessary to effect .uch entrance ~Otlt 6e1ng liable to any action or pro.ec~ion,for such entry or the manner thereof, nQl-shalr-tanolord be liable for the loss of any ik"'r-' '" <Ipo.r1 tile ,Ullilts .' wirh due process ot' law- SECTION 3107. If proceedings shall be commenced by Landlord to recover pos.e.sion under the Act. of A.8e~bly, .ither at the end of . term or upon the occurrenc~ of any event of default, Tenant expre..ly waives all rights to notice in exce.. of five (5) day. required by any Act of Assembly, including the Act of - 31 - December 14, lB63, the Act of April 3, 1830 and/or the Act of April 6, 1951, and agrees that in ei~her or any such case five '(5) days' notice shall be sufficient. Without limitation of or by the foregoing, the Tenant hereby waives any and all demands, notice. of intention and notices of action or proceedings which may be r.quired by law to be given or taken prior to any entry or re-entry by summary proceedings, ejectment or otherwise, by Landlord, except au hereinbefore expressly provided with respect to the five (5) days' notice and provided further that this shall not be construed as a waiver by Tenant of any notices to which this Lease expressly provides Tenant is entitled. SECTION 310B. In the event of a termination of this Lease, prior to the date of expiration herein originally fixed, whether by reason of service of a notice as provided herein terminating this Lease or by reason of entry or re-entry, summary proceedings, ejectment or other of law, Tenant hereby waives all right to recover or regain possession of the demised premises, to save forfeit~re by payment of rent due or by ot~er perfotmance of the conditions, ter~S or provisions hereof, if su~h ter~i~ation occ~rred by reason of any failyre in performa~ce hereof, and without limitation of or by the' foregoing, Tenant waives all right to reinstate or redeem this Lease notwithstanding any provislons of any statute, law or decision now or hereafter in force or effect, and Tenant waives all right to any second or f~rther trial in summary proceedings, ejectment or in any other action provided by any statute or decision now or hereafter in force or effect. SECTION 3109. The words "entry" and "re-entry" as use~ in this Lease shall not be deemed restricted to their technical legal ~eaning. SECTION 3110. either party after proper notice In the event of a breach or threatened breach by either party 1',..al'lt of any of the agreements, conditions, covenants or terms hereof l)R4'gt~ hall have the right of injunction to restrain the same and the right to invoke any remedy allowed by law or in equity whether or not other remedies, indemnity or rei bursements are herein provided. The rights and remedies given to Landlora in this Lease ar~ distinct, separate and cumulative remedies, and that no one of them whether or not exercised by Landlord'lshall be deemed to be in exclusion of any of the others. and tenant ,)r tenant SECTION 31ll. If rent or any charges hereby reserved as rent, or liquidated damages, or any other sum payable hereunder, shall remain unpaid when the same ought to be paid, Tenant hereby empowers any prothonotary or attorney of any court of record to appear for Tenant In any and all actions which may be brought for rent, liquidated damages or ot~er charges or ex?enses agreed to be paid by Tenant hereunder and to sign for Tenant an agreement for entering into any competent court and amicable action or action, for the recovery of ~ent, liquidated damages or other charges or expenses, and in said suits or in said . amicable action or actions to confess judgment against Tenant for all or any part of the rent including, at Landlord's option, the rent for the entire unexpired balance of the term - 32 - . of this L...., oo.putod as aforesaid, and any other chuges, paym.nts, costs and .x~enses r.serv.d as rent or agre.d to b. paid by the T.nant, as well a. liquidat.d da.ages, ahd for interest and costs tog.ther with an attorn.y's commission of five (5') percent th.reof. Said authority shall not be .xhausted by one exercise th.r.of, but jUdgment may b. confes..d a. aforesaid fro. tiae to time and as often as any of said t.nt or other charg.. reserv.d as r.nt or liquidated damages shall fall due or be in arrears, and such povors may bl exercised as well aft.r the expiration of the original term or during any extension or r.newal of this L.as.. SECTION 3112. In the ev.nt that, and when, the L.ase shall b. d.termined by ter., covenant, limitation or condition broken, as afor.said, either during the original t.r. of this Llase, or any extension ther.of, and also when and as loon a. the ter. hereby created, or any extension thereof shall have expired, it .hal1 be lawful for any attorney as attorn.y for Tenant to sign an agreement for entering in any competent Court an amicable action and judgment in ejectment, vithov. any stay of execution or appeal against Tenant and all persons claiming under T.nant for the recovery by Landlord of possession of the herein demised premises, without any liability on the part of the said attorney, for which this Lease shall be a sufficient warrant, whereupon, if Landlord so desires a writ of possession with clauses for costs may issue forthwith without any prior writ or proceedings whatsoev.r. If for any reason after such action has been commenced the same shall be determined and the possession of the premises hereby demised remain in or be restored to Tenant, the Landlord shall h~~e the right to any subsequent default or defaults t.o bring one or more further amicable actions in the manner and form 'ereinbefore set forth, to recover possession of said premises fo.: such subsequent default. No such determination of this Lease nor taking, nor recovering posseSSion of the premises shall deprive Landlord of any remedies or action ag a9ainst Tenant for rent or for damages due or to become due for the breach of any condition or covenant herein contained, nor shall the bringing of any such action for rent, or breach of covenant or condition nor the resort to any other remedy herein provided for the recov.ry of rent or damage for such breach be construed as a waiver of the right to insist upon the forfeiture and to obtain possession in the manner herein provided. SECTION 3113. In any amicable action of ejectment or for rent in arrears, Landlord shall first cause to be filed in such action an affidavit made by it or someone acting for it setting forth the facts necessary to authorize the entry of judgment, of which facts such affidavit shall be conclusiv. evidence, and if a true copy of this Lease be filed in such action, it shall not be nece~sary to f~le the original as a warrant of attorney, any rule of court custom or practice to the contrary notwithstanding. SIlIW I 9t1 lUt. by or in attorney and Tena any court or Magistrate by contained in t , a e an appeal, vi otherwis., cert1()uri, w.rs of shall b. final, writ of error, - 33 . r.l.a... to Landlord and to any and all attorney. who app.ar for Ten.~t all .rror. in the .aid proceedin . Tenant .apr..lly waive. the bene,its of law, now or fter in forc., exempting Iny ~oodc on the demi..d mis.., or .l..wh.r. from di.traint, l.vy or .al any legal proce.dings tak.n by the Landlord to .nforc. right. und.r this Le.... T.nant'further waive. the rl 0 d.lay execution on any real e.tate that may b. l.vi. on to collect any amount which may b.come due und.r the ms and condition. of this L.ase, and doe. hereby w.iv y right to have the s.me .ppr.i.ed and authoril's t rothonotary to .nt.r a Writ of Execution or other pr . upon Tenant'. voluntary waiver, .nd further agr. h.t the .aid real ..tat. may be .old on a Writ of SECTION 3US. Landlord sh.ll hay. the right to apply any paym.ntl made by T.nant to the satisfaction of .ny debt or obligation of T.nant to L.ndlord according to Landlord's sole di.cretion and regardless of the instructions of Ten.nt as to application of any such sum, whether sue" in.tructions be endorsed upon Tenant's check or otherwite, unless otherwise agreed by lhe parties in writing which makes specific reference to this Section 3115. The acceptance by Landlord of a check or checks drawn by other than Tenant shall not in any way affect T.nant's liability hereunder, nor shall such acceptance be deemed .n approval of ~ny sublett1ng or assignment of this Lease by Tenant. ARTICLE XXXII Cl1STOM AND USAGE I SECTION 3201. Any law, usage or custom to the contrary notwithstanding, Landlord shall have the right at all times to .nforce the covenants and conditions of this Lease in strict accordance with the terms hereof and notwithst.nding .ny conduct or custom on the part of the Landlord in r.fraining from so doing at any time or times. The failure of Landlord at any time or times to enforce its rights under said covenant. and provisions strictly in accordance with the same shall not be construed .s having created a custom in any way or manner contrary to specific t.rms, provisions and covenants of this Lease or as having modified or waived the same. ARTICLE XXXIII SUCCESSORS AND ASSIGNS! AGENT SECTION 3301. All rights, obligations and liabilities herein, given to, or imposed upon, the respective parties hereto shall ext.nd to and bind the several and re.pective ~eir., .xecutor., admini.trator., .ucce.sor., sublessees and assign. of said partie., .ubject to the prOvisions of Section 2401, provided, howev.r, that the liability of Landlord hereunder .nd sny succe.sor in interest .nd title to Landlord's le.sehold e.tate in and to the demi.ed premise. .h.ll ~ limited to his or its interut in the Shopping Center, and no other ....ta of the - 34 - Landlord other than his or its .interest in the Shopping Center shall be affected by reaaon of any liability which .1a1a LandlQrd or successor in interest may have under thia Lease. If there shall be more than one tenant, they shall all be bound jointlY and severMlly by the terms, covenants, and agreements herein and the word WTenantW shall be deemed and taken to mean each and every person or party mentioned as a Tenant herein, be the aame one or more, and if there ~hall be mort than one Tenant, any notice rtiquirea or permitted by the terms of this Lease may be given by or to anyone thereof and shall have the same force and effect as if given by or to all thereof. No rights, however, shall inure to the benefit of any assignee of Tenant unless the assignment to such assignee has been approved by Landlord 1n writing as aforesaid. Kravitz Properties, Inc. is acting as Agent only and shall not in any event be held liable to the Landlord or to Tenant for the fulfillment or non-fulfillment of any of. the terms, covenants or conditions of this Lease or for any action or proceedings that may be taken by Landlord against Tenant, or by Tenant against Landlord including, but not limited to, any luch action arising out of, in connection with or in any manner relating to, the performance or non-performance by Agent or any act pursuant to Landlord's direction. Any waiver of Landlord's liability hereunder, inCluding, but not limited to, any waiver of subrogation rights, shall apply with equal force and effect to such Agent. ARTICLE XXXIV SCOPE AND INTERPRETATION OF THE AGREEMENT SECTION 3401. This Lease shall be considered to be the only agreement between the parties hereto pertaining to the demised premises. All negotiations and oral agreements acceptable to both parties are included herein. The laws of the Commonwealth of Pennr.'lvania shall govern the vlllidity, interpretation, performan~e and enforcement of this Lease. SECTION 3402. In the event that any law, decision, rule or regulation of any governmental body having jurisdiction shall have the effect of limiting for any period of time the amount of rent or other charges payable by Tenant to any amount less than that otherwise provided pursuant to this Lease, the following amounts shall nevertheless be payable by Tenantl la) throughout such period of limitation, Tenant shall remain liable for the maximum amount of rent and other charges which are legally payable (without regard to any limitation to the amount thereof expressed in this Lease except that all amounts payable by reason of this Section 3402 shall not in the aggregate exceed the total of all amounts which would otherwise be payable by Tenant pursuant to the terms of this Lease for the period of limitation), lb) at the termination of such period of limitation, Tenant shall pay to Landlord or Agent, as the case may be, on demand but only to the extent legally collectible by Landlord or Agent, any amounts which would have been due from the Tenant during the period of limitation but which were not paid because of such limiting law, decision, rule or regulation, and lc) for the remaining term of this Lease following the perIod of limitation, Tenant shall pay to - 35- EXIIIBIT .. ,,\" LANDLORD hl'rfhy Il'SI'l'\'f~ Iht' n~hl, al any tim~ and hom lim~ 10 liml', to lIIt~r, or otherwile modlry thlt lorottonl lUld:or dlm~nsionl or all buildlnSl, parking arfU, s~l'\'lce drlVltl, entrlel. 1I1Ii"', malll. and oth~r ral'illlil'l shown on this Exhibit" A ", to placf in Ihe mall., ('nUN, corrldorl, and other common 11I'1'115 or Ihl' Shopping CenlN, landsl'aplng. de,'orativl' illlms, and structurl'S and areu ror r~tail sllles and prunlllttonal at'livlli~s, and to l'onstNl'I, h'ul', opl'ralP and mainlaln hulldlnMs, Slrul'lures, and other ral'illllps not Shl\\\'n on this t:xhlhlt "A", provldl'd, hO\\'I'v~r, that Landlord shall not vlolat~ lUly rights cllp,reSlI~' r~sel'\'~d to Ttnll1tln Ihil Ltost, . ,d ...I , ,-..-..... ~ " .--~ ...., ~ ' ~. , ',,-. " ~----:: ' !I ~ iffln, ~ ,... .." .' --,. \ ...- .. !; -'~ "1 - - I~t~~{ ~~_::_~ l_-",gr;;~ .\, -, r- .... - ,---" -.- :-'rIii \.J!-ll -~' \' -1 Iii ... - -- - 1 --.----, ! I . . [ -, ~ ~ - --' I ,!) !. ,..,J:' .- -...., -- ~ . -"=-=-~ __ .J , --' " -, : % .. ..~ ;' - 1 , -:---~ : I .. ~ \ i~---I' , 1 ; . \-=._ . _ . ~ ,_J --<-- r :;...:..- ~--j '-- '-I ~ u 1--, c----.,., j ,..:. ~, L._ \Ttl ~ . . .! . '---~_.. " .: ~ .. .t '"': " '.. \..._ r ;'l! :.... "---. r' I' 1 J . I --./ -~;'{ \, \ \ \ L \ , , I . i ,I f- I jl ,~ T .., , r- ~,..__l- 1\ \ r -. ~, \" .!l ~ ,/ ... /) ~- ". -' ,. , ...r ,0' l r--- .. ":"\.-' - ;.~ -....:: .....-:--~.--. r ./' "..--:,;, -- 8Lby NO. 'F' SfORt: No '4 " A-l .' BXHIBIT wB- 1. LANDLORD'S WORK Except as otherwise provided in tnis Exhibit WB", Landlord, at its own COlt and expenRe, has constructed or will oonstruct the followinv, all of which are herein collectively referred to as wLandlord s Workwl A. Building of Which Demised Premises Shall Form a Part. The building of which the demised premises forms a part (herein referred to as the wBuilding") shall be construoted (to the extent not now existing) in accordance with the following criterial 1. Structure. The structural frame including columns, beams, joists and roof will be, at Landlord's option, of steel, concrete and such other non-combustible material as may be specified by Landlord's ar.chitect. 2. Roof. The roof will be of a bonded type construction insulated to provide a WU" f&ctor of 0.09. 3. Exterior Walls. The exterior walls will be of masonry, prefabricated panels or such other material or materials as may be specified by Landlord's architect. 4. Interior Faces. The exposed interior face of exterior walls will be of masonry, wallboard or such other material or materialS as may be specified by Landlord's ~rchitect. B. Common Areas. Landlord shall construct inside and outside the Building certain Common Areas, limited to the followingl 1. Outside Common Areas. The Common Areas ouside the Building will include ..rd surface and striped parking lots, access roads, direction~l, parking and traffic signs, a storm ~r~ina~e sy~tpm, delivery areas, walks, liqhting, landscaping and planting and such other areas, facilities and b~lldings, as determined by Landlord, as are used in the maintenance and operation of the Shopping Center. 2. Inside Common Areas. The Common Area inside the Building will include an enclosed, heated and air-conditioned, lighted and sprinklered mall with courts, lighted and sprinklered service and exit corridors, stairs or ramps and such other facilities, as determined by Landlord, as are used in the maintenance and operation of the Shopping Center. C. Work Within Tenant's Space. Landlord's Work with regard to the demised premises shall be limited to the following (to the extent not now existing) I 1. Demising Walls. The demising walls or demising studs which separate the demised premises from other tenant areas and Common Areas will extend from the finished floor to the underside of the roof deck. Unless required by applicable law to construct demiSing walls for fire corridors and emergency B-1 I, . I.it. of unfinished .asonry block, Landlord will furnilh metal 'ituds on which Tenant shall place demising walls In accordance with Artlole II, Section I. 2. ,loors. The floorl within the demised premilel will be ooncrete with a troweled finish Installed at an .levation selected by Landlord. Ttnant shall pay Llft.l... ,~. .~. af 'I.'! ,er .,yar. ..._.. .1... all. t~ .~A AaMt..A FC(~i.a. as rel.~~ree.ent ler ths anl'slll.aln If the Illlr ~. If Tenant Ihall have notified Landlord in writing at or before the execution of this Lease and if at such time th. concrete floor slab has not been poured for the demised premi~.s, and provided and so long as the delay in pouring such concrete floor slab will not Interfere with and/or delay completion of r.andlord's Work or any portion thereof, the slab will not be poured until the Tenant's contractor has completed Tenant's underground utility work. After the concrete floor alab i. poured, Landlord in no event Ihall be responsible for any subsequent undergroll~d work or removal and/or replacing of the concrete floor slab. In the event Tenant deems it necelsary to remove and/or replace such floor Ilab, such work shall be done by Tenant at Tenant's own cost and expense. 3. Doorl. One hollow metal service door with dimensions of 3'0" by 7'Ow will be provided at the location Ihown In and In accordance with wLandlord's Design Criteriaw (as defined in Article III of thil Exhibit "8W). Tenant, at Tenant'. own cost and expence, will provide and install all panic hardware, lockset and closer. No dOQr will be provided by Landlord in any .tore which has a depth of 50 fe~t or lesl or an area of 1,200 square feet or less. 4. Landlord's Optional Work. At its option, Landlord may provide at Tenant's cost and expense a neutral vertical mate~ia~ ~etween each store on the mall side of the demiSing partition. and/or a horizontal neutral strip as shown on L~~dlord's Plans, above the store front limiting the height thereof. D. Utility Services in Demised Premises. 1. Utility Lines. Landlord, its agents, employees and contractors, ana any utility company which furnishes utilities to the demised premise. and/or the Shopping Center, shall have the right to run utility lines, pipes, conduits or duct work, where necessary or desirable, through ceiling space, column Ipace or other parts of the demised premises and to repair, alter, replace or remove the same in a manner which does not unrealonably interfere with Tenant's use of the demised premises. 2. Electric Service. Electric will be available for the demised premises at Landlord's bus ductl at a location designated by Landlord pursuant to the procedurel set forth in Landlord'l Design Criteria. Electric service characteristics will be 277/4BO volts, 3 phase, 4 wire, 60 hertz. Landlord will provide between the demised premises and the closest service corridor an empty conduit unlel' the demised premises abut a service corridor, in which cas. Tenant Ihal1 provide the conduit. Tenant will provide bUI plugs' with fUles, the conduit and feeder between the bu. duct and the d..lsed premlsea, and check metering within the demised premisel and will extend conduit within the demised premise. to T.nant's diatributlon sYltem. 1-2 Tenant's distribution facilities within the demised premi.es shall consist of all necessary switches, conductors, transformers and controls i~ addition to Tenant's normal lighting and power devices. The installation by Tenant of all electrical facilities shall conform to Landlord'. Design Criteria and to the National Electric COde, and meet the requirements of the Landlord's fire underwriter and local governmental authorities. All material and,fixturts shall be new and carry UL labels. Any existing electrical facilities must be changed to conform with the above requirements and Landlord's Design Criteria to enable electricity to be provided by Landlnrd. 3. Water Service, Landlord will provide a branch water line, with shutoff valve, of not less than 3/4 inch to a point in the demised premises designated by Landlord. Any increase in the size of water s~rvice required by Tenant which necessitates a branch water line larger than such 3/4 inch line will be furniShed, at Tenant's expense, upon written request of Tenant. Any existing water facilities must be changed to conform with Landlord's Design Criteria to enable water to be provided by Landlord. 4. Gas Service. Gas service will not be available. S. Sanitary Sewer Service. Landlord will stub a plugged 4R sanitary outlet, at floor level at a location selected by the Landlord, to which Tenant will connect in accordance with Landlord's Design Criteria, notWithstanding current facilities which may exist. 6. Sprinkler Main Service. Landlord will provide a sprinkler bulk main with capped outlets to the demised premises at a location determined by Landlord and sized to accommodate sprinkler coverage required by Factory Mutual. Landlord will deliver to Tenant a plan showing the bulk main and capped outlet in the demised premises and Tenant will install all piping and other sprinkler work, including feed main, cross main, branch line, riser nipples, drop sprinklers and heads to provide a complete sprinkler system in accordance with Landlord's Design Criteria and sprinkler working drawings, pr~p~red by Tenant's contractor, and approved by Fact~ry M~t~~l and all authorities having jurisdiction. 7. Heating and Air Conditioning System. Landlord will provide and install a medium pressure, constant temperature air supply main at a location designated by Landlord to supply cooling and ventilation air for Tenant's premises and, at Tenant's expense, a medium pressure, variable air volume t~rminal complete with system powered thermostat for variable air volume terminal control. The installation of all ductwork, electric heating with contrOls, diffusers, r.eturn air registers and other mechanical apparatus related thereto required by Tenant'. BVAC system shall be provided by Tenant, at its cost and expense, and all such work shall be designed and installed in accordance with Landlord's Design Criteria and Landlord's HVAC Plan, notwithstanding curront facilities which may exist. B. Telephone Service. Landlord will provide central telephone locations as designated by Landlord. Tenant will make its own arrangements with the telephone company for telephone service and will install a conduit from Landlord's designated telephone location to the demised premises as may be r.quired, notwithstanding current faoilities which may exist. B-J . . . . .. 11. TlNANT'S "ORJ ....Subj.c't to the provle1on of the s.cond paregraph on peal 8"1 iA 'Notwithstanding the present facilities in the de.ised premises and the present condition and state of repair of the d.mised pr.mls.s, all work ctt forth in this Article II and .11 other work not specifically design.tad as Landlord's Work by Artic1. 1 which Is nece...ry to complete the demised premises in accordance with Tenant's Final Plans and Landlord's Design Criteria and which is necessary for the demised premises to confora thereto and to all current requirements of all governmental .uthoritles having jurisdiction (including, without llmit.tion, emergency lights, rewiring, alar.s and extinguishers) and to be r'ady to open for business with the public by the commencement date, in the manner set forth in the Lease, shall be done by Tenant at Tenant's own cost and at expense. All such work which i. not specifically desiwnated as Landlord's Work is herein collectively referred to as Tenant's Work-. A. Demised pr.mian. The stor. shall be designed and installed in accordance with Landlord's Design Criteria, the requirements of Landlord's fire underwriter and the current requirements of any governmental authority having jurisdiction over the project. Tenant's store front shall conform to the design criteria as established by Landlord's architect and set forth in Landlord's Design Criteria. The IItore shall have a customer entrance not to exceed 10'0' in height. Tenant shall not install its Hnish.cl ceiling above ll'Ow in height. The design, charllcter and materials of the stor. front and all aspects of the design and construction of the int.rior of the demised premis.s shall b. subject to the approval of the Landlord. All expos~' metal flashing, doors, and trim are to be permanodic or duranodic finish or equal In standard. Open grillS ar~ to meet the same r.ouirements. A hard dry surface at the bottom 6w of the store front construction shall be provided by Tenant. This material shall b. non-absorbent (wood or oth.r porous mater ills are not acceptable). The sign background and finish is subj.ct to Landlord's approval. Open grillS wider than 12' are to be motorized. In th. event the demised premises have. side wall abutting a mall entrance or side mall, Tenant shall incorporate into th. design of such wall one or more of (a) entrance to the pr.mises and (b) see-through display storefront, and (c) shadow box merchand~se display. Tenant may not install a mezzanine without Landlord's approval. Tenant shall not exceed a floor load capability of 200 pounds per square foot. 8. Sales Area. The floor .lab shall be covered with floor finish materials approved by Landlord, Carpeting shall be flam. resistant. Ceilings shall be constructed of 24- . 48- acoustic tile, one (1) hour tire rated, on .xposed metal T b.r grid system or such other fire rated material as approved by Landlord. Demising walls shall extend to the underside of the roof deck .nd shall be constructed of sheet rock in accordance with app1icabl. state and local laws and ordinance. Ind the r.gu1ations of Landlord'. fire underwriter, but in no event 1e.s than 5/'- sheet rock t.ped and spackled. All masonry willi .nd partitions shall be furred out .heet rook, of th$ afores.id thlckn.sl, taped Ind spackled. Those partitions 8-4 ,. .- dividing sale. area from non-.ale. area which contain no ceiling .hall be carried to the under. ide of roof deck on both .id... All concealed framing above ceilings or loffit. .hall be made of steel studs or other fire retardant matetials in accordance with Landlord'l Delign Criteria. C.rtain Itore , front. or side corridor front. a. .hown on Landlord'. Floor and Structural Plans may b. de.ignated by the applicabl. fire marlhall ~) carrr fir. extingui.her cabin.t. rec....d into th.ir walls. Ai wAw occupancy Tenant. (a. defined by the Penn.ylva~la Department of Labor and Indultry) mu.t provide p.rtitions and ceiling. with two (2) hour fir. rating. C. Stock Room, Service and Other Non-Sales Area.. The contrete floor slab, if left exposed, ~ust be s.al.d wi~~ a I..lant approved by Landlord's architect. If the concrete ::oor slab is covered, the provisions relating to floor fin:sh materials for the sales area shall apply. perimet.r ~Jlls shall be of either exposed masonry or drywall and taped. RelIr walls shall be insulated in accordance with Landlord's D.sign Criteria. D. Toilet Rooms. The floors shall have non-porous floor covering over the concr.t. floor slab. All walls and ceilings shall be of drywall, taped and spackled. E. Painting and Decorating. Exposed walls shall have a minimum two co~t finish and all wood paneling a minimum of one sealer coat. The walls and ceiling of the toilet room shall have two coat semi-gloss enamel finish. The stock room and service areas may be left unU n ished. F. Utility Work by Tenant. 1. Electrical. The installation by Tenant of all electrical facilities shill conform to .an610rd's Oesign Criteria (to the additional electrical information supplied by Landlord to Tellant .IS set forth in t:.e tllectrical load data portion by Landlord's Design Criteria) and to the National Electric Code, and meet the requirements of the Landlord's fire underwriter and all other local, state or federal governmental authorities. All material and fixtures shall be new and carry UL labels. Any transformer necessary to reduce the voltage suppll.d to levels acceptable for Tenant shall be provided by Tenant at its expense. Circuits must include a time clOCk contrOlling lign and store front illumination and separate circuits for night lighting and exit signs. Emergency lights shall be provided by Tenant. Tenant shall provide a buzzer call .ystem'at servioe door entrance or from a common corridor entrance, as required by Landlord. Tenant's work drawings (as r.ferred to in Article III) Ihall indicat. the circuits showing connections to alarm, televilion, BVAC or other .peoia1 circuit!. 2. Plumbing. Tenant shall install under slab drain and soil lines to Landlord's soil line at the point of entry selected by Landlord. Requirements greater than that provided by Landlord must be shown on Tenant'. working drawings and will b. made at Tenant's expense. Tenant shall be responsible for the installation of a water meter to service water line 8-5 installed by Landlord at a point designated by Landlord. Tenant shall provide a minimum of one close-coupled water closet, one lavatory, and one electric hot water heater. All of the aforesaid shall be in accordance with Landlord's Design .Criteria. G. Fire Pr~tection. All tenant spaces must carry tho approved fire extinguishers required by governmental authorities. Tenant, at Tenant's own cost and expense, shall wrap all Qolumns within the demised premises from the floor to the underside of the roof deck with one hour fire rated materials. Tenant shall install all sprinkler pipes, feed mains, cross mains, nipples, drop heads, etc. from the capped outl~ts on Landlord's bulk main. H. Mechanical Systems. Tenant shall design and, at its sole cost and expense, install a complete air-conditioning distribution system. In addition, Tenent may, at its option, instftll an electric heating system. Such systems shall be designed and installed in accordance with Landlord's avAC Plans and Landlord's Design Criteria, at the location therefor specified on Landlord's HVAC Plan. If Tenant is required to install a rooftop HVAC system, Tenant will reimburse L~~dlord for providing additional rooftop structural supports. Tenant shall provide an exhaust fan of adequate capacity for each toilet room and such other ventilating equipment as may be required. The design and location of exhaust systems shall be approved by Landlord prior to installation. I. Signs. All signs shall conform to the standards as set forth in Exhibit wC-. J. Roof Penetratic ,. Tenant shall sl,'bmit for approval of Landlord's architeot in the working drawing phase, drawings showing all roof penetrations for special vents and equipment. All roof openings, reinforoing, curb work and flashing and repairs to the roof required by Tenant's installations shall be performed by Landlord's contractor, at Tenant's expense. Tenant shall pay all costs for the opening of the roof and for any special vents required by Tenant. K. Insurance. 1., All Risk Insurance. In addition to, and not in lieu of the other policies of insurance required by this Lease, at all times during the periOd commencing with the start of construction of Tenant's Work and terminating on the date of the acceptance by Landlord of Tenant'. Work as being Qompleted in accordance with the provisions of this Exhibit -B- (suoh period is herein referred to as wTenant's Construction PeriodW), Tenant, at its own cost and expense, shall maintain B-6 in effect with a responsible insurance company approved by Landlord, a policy of WAll Riskw Builder's RiSk Insurance in the standard pennsylvonia torm. Said insurance shall cover the full replacement value of III work done or to be done and all , fixtijres and equipment installled or to be installed at the demised premises by Tenant, without co-insurance and without ~ny deductible.clause. 2. Workman's compensation. At all times during Tenant's Construction Period, Tenant's contractor. and subcontractors shall maintain in effect Workman's compensation Insurance as required by the laws of the state in which the Shopping Center is located. 3. Adjustment of Loss. Any loss occurring during Tenant's Construction Period shall be adjusted with Landlord and ,the proceeds shall be payable to Landlord, in trust, for the purpose of repair or reconstruction. Repair and/or reconstruction of all or any portion of Tenant'. Work damaged or destroyed by any casualty occurring during Tenant's Construction Period shall be commenced by Tenant as soon as possible after such casualty! provided that if all or any portion of Landlord's Work is also damaged or destroyed by such casualty, Landlord shall notify Tenant when repairs or reconstruction of Landlord's Work is substantially completed and, within fifteen (15) days after receipt of such notice Tenant ,~all diligently pursue such repair and/or construction to completion. 4. Insurance Provisions. All policies of insurance, except Workman's Compensation required to be carried by the provisions of Section K.2, shall contain the following endorsements in substantially the following form: W"Notwithstanding anything to the contrary, it is 4greed that C,\}!P HILL SHOPP I~G CE~TER ASSOCLUES. as Landlord, KRAVITZ PROPERTIES, INC., as Landlord's Agent and Landlord's general contractor (name to be supplied to Tenant), are hereby added as additional insureds. It is understood and agreed that the insurance afford,.' by this policy or policies for more than one named insured shall not operate to increase the companies' liability, but otherwise Rhall not operate to limit or void the coverage of anyone named insured as respects claims against the same named insured by any other named insured or the employees of such named insured. No cancellation or reduction of this policy shall be effective unless written notice is given by registered or certified mail, return receipt requested, to the' Landlord with a copy to Agent, stating when such cancellation or reduction in coverage shall be effective, (which, in no event shall be less than twenty (20) days thereafter).w True copies of each such policy or certificates of insurance evidencing the same and containing such endorsements shall be delivered to Landlord prior to the commencement of Tenant's Work and shall thereafter be replaced in the event of the expiration, lapse or cancellation of any such policy. L. Miscellaneous and General Requirements. 1. Governmental Regulations. All of Tenant's Work shall be done in accordance with the Tenant's Final Plans, the current requirements of all applicable laws, ordinances, regulations, codes and other requirements of governmental authorities, with the regulations of Landlord's fire underwriter and Landlord's Design Criteria. At any time and B-7 , ~ from ti.e to time during the p.rformlnc. of Tenant'. Work~ tlndlord, Agent, Llndlord'. arohit.ct and/or Landlord'. gen.ral contraotor may ent.r upon the d..i..d pr..i.e. and in.peot the work being perfor.ed by T.nlnt and tlke .uch .t.p. .. th.y ..y de.. neces.lry or d..irabl. to ...uro the proper performance by Tenant of Tenant's Work and/or for the protection of the Building and/or any pr..i.e. Idj.c.nt to the de.i.ed pr..i.... In Iddition, Tenant'. Work .hall be p.rform.d in I thoroughly fir.t-Clas. and workmanlike .ann.r, .hlll incorporlte only n.v materials and .hall b. in good and u.abl. condition It the date of completion. 2. Llndlord'. Constnt. Interpret.d. Any approval or con.ent by Landlord or any or III of T.nlnt'. criteria, system., plan., or drawings .hall n.ith.r oon.titutt an a..umption of respon.ibility by Landlord for any a.pect of such criteria, .y.t..., plans or drlwing. including, but not limited to, th.ir accur.cy or .ffici.ncy nor obligate Landlord in any manner with r.spect to T.nant'. Work and T.nant .hall be .olely re.pon.ible for Iny d.fici.ncy in Iny d..ig" or oonstruetion of III portions of Tenant'. Mork for which Tenant i. respon.ible. 3. P.r_it. and r.... L.ndlord .hlll obtain and pay for all necessary per_it. and shall pay all oth.r fee. required by public authorities or utility companies with respect to Tenant's Work, e.e.,_ that ~aft418.4 building permits for Tenant'. Mark, pay the co.t bf .uch ~r may deduct om -Tenant'. in enant .hall n lord's option, Landlord Allowance- (a. defined in 4. Temporary Storage Areas. No contractor or .ubcontractor participating in Tenant's Work may use any space within the Shopping Cent.r for .torage, handling and moving of materials and equipment and/or for the location of a field office or facilities for the employees of such contractor and ~~hcontractor ~ithD~t obt~lning Landlord's prior written approval for each such use. If any contractor and/or subcontractor shall use any space In the Shopping Center for any or all of the aforesaid enumerated purpo.e. or any other similar purpose without Obtaining Landlord's written approval therefor, Landlord .hall haye the right to terminlt~ .uch u.e And remove all of .uch oontractor'. or .ubcontractor'. material, equipment and other property from .uch space, without Landlord being liable to Tenant and/or to .uch contractor or subcontractor and the cost of .uch termination and/or removal .hall be paid by Tenant to Landlord or Landlord, at it. option, .ay deduct .uch oo.t from Tenant's Allowance. . 5. Temporary Store rronts. T.mporary enclo.ur. barricad.s and temporary .igns .hall b. con.tructed and finished by T.nant in Iccordlnce with Landlord'. Oesign Criteria. If Tenant'. .tore will not be open for busine.. with the publio by the date the Shopping Center i. fir.t .0 opened and Tenant his not inlt,lled , temporary store front a. required by Landlord, Landlord Ihall in.tall it at a cost to T.nant of .~O.OO a 11nlal foot. t. 'rot.otion of Work. It .hall be Tenant'. responlibility to cau.. eaoh of Tenantt. contractor. and .ubcontr.otor. to maintain oontinuou. protection of adjacent prop.rty and i.prove.ent. Igain.t dam.g. by rea.on of the perror..ncl of tenant'e Mork. lach contractor and I-a subcontractor shall properly protect Tenant,'s Work with lights, guard rails and barricades and shall secure all parts ~f Tenant's Work against accident, storm and any other hazared. 7. Interference with Others. Tenant's Work shall be coordinated with all work being performed or to be performed by Landlord and other occupants of the Shopping Center to the end that Tenant's Work will not interfere with or delay the completion of the Building or any other construction within the Shopping Center, and each such contractor and subcontractor shall comply with all procedures and regulations prescribed by Landlord or its agents (inCluding, but not limited to, Agent) for integration of Tenant's Work with that to be performed in connection with the construction of the Shopping Center. B. Contractors. To the end that there shall be no labor dispute which would interfere with the construction, completion or operation of the Shopping Center, or any part thereof including, but not limited to, the demised premises, Tenant agrees to engage the services of only such contractors or subcontractors (for both Tenant's Work and any other work which Tenant does, whether or not such work is permitted or required pursuant to the Lease) as will work in harmony and without causing any labor dispute with each other, with Landlord's contractors and subcontractors and with the contractors and subcontractors of all others working in or upon the Shopping Center or any part thereof, and Tenant shall employ and shall require its contractors and subcontr, ~tors to employ only such labor as will work in harmony and without causing any labor dispute with all other labor then working in the Shopping Center or any part thereof including, but not limited to, the demised premises. Furthermore, only those contractors and subcontractors as have been duly licensed by the authority having jurisdiction over the appropriate profession and which have been approved in writing by "andlord (which approval will not be unreasonably withheld) may perform any work (including, but not limited to, Tenant's Work) for Tenant in or upon the demised premises. 9. Financial Requirements. Landlord may rc 'uire Tenant, before entering on the demised premises to co~nence Tenant's Work, to give Landlord proof satisfactory to LandlOrd of Tenant's financial ability to complete and fully pay for Tenant's Work prior to the commencement date or, in lieu thereof, either to furnish to Landlord a bond in an amount satisfactory to Landlord written by a surety company acceptable to Landlord guaranteeing the completion of Tenant's Work free of any liens, or to deposit in escrow with Landlord (without the obligation of Landlord to pay interest thereon) the estimated sum required to complete Tenant's Work. If such a deposit shall be made, upon the satiSfactory completion of Tenant's Work in accordance with the provisions of this Exhiblt W8" and the' submission of proof that all bills in connection therewith have.been paid, Landlord shall release such funds from escrow. Landlord in its sole discretion, both as to the extent and amount, may release portions of such escrow deposit directly to Tenant or Tenant's contractors, subcontractors, materialmen and/or suppliers to pay bills as Tenant'. Work progresses. 10. participating subcontractor Guarantees. Each contractor and subcontractor in Tenant's Work for which such contractor or is responsible, shall guarantee or warrant in B-9 . 'wrlting, In the ..nnor h.uinlfhr lit forth, that .uch portion vill b. fr.. fro. .ny d.f.ct. in vork.anship Ind ..t.ri.l. for the p.riod of tl.. of on. 11) y.ar ,'t.r the d..l..d pr..i.e. first op.n. for bUlin... v th the public. All .uch gu.r.ntee. or w.rrantl.. (collectlv.ly r.ferred to .. .gu.r.nt....) sh.ll b. cont.in.d tn the contr.ct. .nd .ubcontr.ct. for the perform.noe of T.n.nt'. Work, .hall includ. the oblig.tion to r.palr'.nd repl.c. In I flr.t-olal. and workmanlike ..nn.r, .nd without .ny additlon.l ch.rg., .11 of Ten.nt'. Work don. or furnilh.d by the oontr.ctor or .ubcontractor, hi. ..ploY"1 or .g.nt., which .h.ll b. or beco.. d.f.ctlv. within .uch one (1) year p.rlod, .nd .h.ll b. wrltt.n .0 .1 to Inur. to the benefit of L.ndlord and T.n.nt a. th.lr re.p.ctiv. Int.r.at. lay appear an~ 10 as to b. directly .nforceable by ~ith.r Landlord or Tenant. All .uch guarant.es ah.ll a~.o Includ. the agreem.nt by the contractor or aubcontractor t~ pay all expen.e .nd , d...g.. Incid.nt to the r.loval, replacement or rep.lr of .ny oth.r p.rt of T.nlnt'. Work which _ay b. damag.d or dl.turb.d th.r.by. .ervlce. during construction Including .:ght and pow.r if available, b. obtain.d by T.nant at Tenant'. ex se, from the Landlord or, at Landlord'. option, ~gent 0 ndlord'. general oontractor at monthly COlt of ($.06 ents per square foot of floor area of the demls.d premi , oommencing with the .arll.r of the date Tenant is oblig to commence construction in accordanc. with ion 4.02 of this Lea.e or the dlte Ictual construction enc.s, and ending with the date a. established in t ea.e for the commencement of the Utility Charge for Te '. el.ctrlcity. Landlord shall provide a connect for temporary electric service at a cost to Tenant of .00. Tenant .ay use Landlord'. equipment and piping for .r utilities at a cost eq~. 1 to the cost of energy sumed! provided, however, Tenant shall clean and re e the .am. to its original proper ord~r and L~trating . 12. Dhelpllne. disoipline and good order contuctou. Tenant Ihall enforce strict among the employee. of Tenant's 13. Clesnup. Tenant .hall maintain the demt.ed premises In a clean and orderly condition during construction. Tenant shall promptly remove all unused construction materials, equip'ent ahipping containers, yackaging, debris and waste from the bUilding lite, and depo.it t in receptacle. provided by Landlord. Tenant .hall contain all construction materi.ls, equipm.nt, fi.tur.., merchlndi.e, .hipping container. and debrl. within the deml.ed preml.... Mall., court., arcade., public corridor., .ervic. oorridors, .ervice corridors and the exterior of the Building .h.ll be clear of Tenant'. equipment, .erehandla., refu.., and d.bri. .t all time.. Tra.h stor.ge within the demised pr.mi.e. .h.ll be confin.d to cover.d metal containers. , option, ~gent the Rum of ten cents ($.10) per floor area of the demi..d premi.es for noval from the Shopping Center by Landlord of and debris generat'd by Tenant or Tenant'. contr and .ubcontractors during T.nant'. Con.truc riod, if Landlord elects to .upply .uch ..rYlce. ord doe. not 10 .lect, the .... .hall b. the . ~~: !~tolil."t or Shu,... Te;",&".t .~";1l par LallUerd, ndUUIlI1l lIil,. III f,,- ...A ^.~_~ CIIUr.,_. ilia:!,!"'!:. P~lUD"Q$.. 1-10 " . fer ut\lctL '.nant 1. "bll~.t..d ",,,......L t.~ \.1.1. I",~J iI -r .. Including, but not 1111tted to, the roof penetration charge, t emoval charge and the electric charge, wit ) days after written demand therefor Is andlord. If payment 11 no~ made within such then Landlord eay offset All such sums against I II. 'CONSTRUCTION PROCEDURES. A. Landlord'a De8ign Criteria. After the execution of the Lease, Landlord's architect will deliver to Tenant one (1) scale drawing of the floor plan of. the: dealsed premises (the Landlord's 'Floor PlanW) indicating, inter alia, demising partitions, general construction, COlumn-Iocations, VAV terminal, sanitary outlet, deme.tic water location and sprinkler bulk ..In, and one (1) copy of Landlord'a design criteria package which shall include Landlord's oriteria for design of the demised premises, preliminary plans, RVAC plans and criteria, electrical plans and such other plana, criteria, drawings and information as Landlord or Landlord's a:chitect deems necessary or appropriate. All of the items included within auch design criteria package are herein collectively referred to as wLandlord's Design Criteria-. B. Tenant's Preliminary Plans. Within twenty (20) days after receipt by Tenant of the above, Tenant shall submit for Landlord's approv&l in sepia form, co~plete stOre front design plans, I sign plan, a .erchandlsing layout plan, Tenant's estimated heating/cooling load calculation., RVAC drawings, plumbing drawings and sprinkler drawings, al~ ,f which shall be in accordance with the criteria set forth in Landlord's Floor Plan and Landlord's Deslqll Criteria and aU of w:\icll are COllectively referred to as 'Tenant's Preliminary Plansw. C. Landlord's Review. 1. Landlord will review and return to Tenant Tenant's Preliminary Plans either marked approved, marked to show the corrections required (in which event such marked-up Preliminary Plans shall be deemed approved, as .arked up) or 9ive Tenant written notice of disapproval of Tenant's Preliminary Plans together with the reasons therefor. In the event Landlord gives Tenant'notice of disapproval together with the rea80ns ther.for, Tenant shall have twenty (20) days from the date of such notice of disapproval by Landlord to submit revised Tenant's Preliminary Plans subject to subsequent lllarkups and/or disapprovals and corrections in the .anner set forth above, provided, however , if Tenant's Prel1lllinary Plans do not meet Landlord's approval after the aecond submission, Landlord, at its option to be exercised by written notice to Tenant, aay terminate this Lease, which termination shall be effective as of the date set forth in such written notice. 2. Tenant's estilllated heatinQ-cooling load shall be subject to Landlord's approval and in the event Landlord shall diaapprove the sa.e, Tenant shall revi.e the same until such .stimated heating-cooling load ia approved by Landlord. Tenant shall not change ita estieated heating-cooling load once the .ame haa been approved by Landlord. 8-11 " 3. The information contained in Tenant'. electrical load daLa form shall be subject to Landl~rd's approval, and Tenant ,hall revise the same until the same il approved by Landlord. When Landlord hiS approved such information, Landlord .hall lupply to Tenant the additlonal information ,et forth in the electr ical load data por tion of Landlord's De.ign 'Criteria. Bued upon such additionAl information, Tenant Ihall prepare its electrical plans for the demised premises. After receipt by Tenant of the additional information set forth in the eleotrical load data portion of Landlord'. Design Criteria, Tenant may not thereafter modify its electrical load data unle.s Landlord has consented to such modification. Any costs assochted wi th such consented to mod i fications shall be borne by Tenant. 4. It is agreed that Tenant is responsible for satisfying Tenant's requirements for the demised premises. Landlord'. review is only to determine conformity with Landlord's Design Criteria and systems. Tenant is responsible for design and code compliance, construction and installation. D. Tenant's Working Drawings. Within si~ty (60) days from the date of reoeipt by Tenant of Landlord's Floor Plan and Landlord's Design Criteria, regardless of whether the Tenant's Preliminary Plans have been submitted, Tenant shall submit to the Landlord's architect for approv~: three (3) sets and a sepia of complete working construction drawings and specifications for Tenant's Work including architectural, plumbing, electrical, sprinkler, heating, ventilating and air-conditioning, and mechanical drawings for all Tenant's Work in accordance with Landlord's Floor Plan, Landlord's Design Criteria, Landlord's BVAC Plan electrical load data supplied Tenant by Landlord and approved Tenant's Preliminary Plan$, if any. Upon receipt of such working drawings Landlord shall have the same rights of approval, markup and disapproval and Tenant shall have the same obligations as to resubmission as are set forth with regard to Preliminary Plans. E. Tenant's Final Plans. The total of all approved Tenant's Preliminary Plans and approved Tc.nont's working drawings and specifications (whether such ap~roval be affirmative either initially or after resubmission bV Landlord's markup) are COllectively referred to herein as WTenant'g Final Plansw. F. Preparation of Tenant's Plans. All of Tenant's Preliminary Plans, spec if ications and working draw~ngs IIhallbe prepared by a registered architect or engineer normally engaged in the business of providing such services and employed by Tenant at its expense. If required by local or state code, these drawings shall bear the seal of an architect or engineer registered to practice in the ju~isdiction, in order to obtain required permits. Tenant shall not submit plans and specifications which have been prepared by contractors, Buboontraatots or suppliers, since such plans will not be accepted by Landlord. G. Failure to Make Submissions and Improper Submissions. If Tenant fails or omits to make timely submission or resubmissions to Landlord of Tenant's Preliminary Plans or any 9-12 specifications or any working .drawings within the required time periods or fails to or delays in submitting or supplying information or in giving authorizations or in performing or oompleting Tenant's Work or in any manner del&ys or interferes with the performance of Landlord's Work, Landlord, in addition ,to any other right or remedy it may have under this Lease, at law or in equity, may pursue anyone or more of the following remed in! 1. Landlord m.y give Ten.nt at least ten (10) d.ys' written notice that if a specified failure, omission or delay il not cured by the date therein atated, this Lease shall be deemed oancelled and terminated. If such notice shall be oomplied with, thiR Lease shall, on the date atated in such notice, be cancelled and termin.ted without prejUdice to Landlord's other rights and remedies hereunder! and 2. Afte, written notice of its intention to do so, Landlord may, at Ten.nt'. cost and expense including, without limitation, expense for such overtime as Landlord may deem necessary, proceed with the completion of .ny such Preliminary Plans and/or working drawings and/or Ten.nt's Work, as the case may be, and such performance by Landlord shall have the same effect hereunder as if the desired plans, specifications, information, approval, authorization, work or other Iction by Tenant had been done (but not paid for) as herein required, and 3. Landlord may require Tenant to pay to Landlord, as additional rent hereunder, the cost to Landlord of completing the demised premises in accordance with the terms of this Lease over and above what would have been such cost had there been no such failure, omission or delay, and 4. In exercising any or all of the foregoing remedies set forth in Section G.l, 1, 3 and 4 of this Article III, Landlord shall be entitled to retain and h.ve recourse to any hond or escrow deposit provided by Tenant. If any Tenant submission is rejected because of failure of Tenant to reasonably conform to Landlord's Design Criteria, Tenant shall pay upon demand the costs of additional reviews by Landlord's architects and engineers. H. Completion of Tenant's Work. Tenant shall complete Tenant's Work as quickly as possible, but in no event later than the rental commenoement date. I. Occupancy Permit. Tenant shall secure an occupancy permit from that authority which has jurisdiction over the premises in sufficient time to permit Tenant to open the premises at the rental oommencement. date. J. Completion Date. See Lease Section 302. It. Li,ns. B-1J. . . ' Prior to commencing any of T~nant's Work, Tenant shall file or cause its contractor to file in the appropriate office a waiver of mechanic's lien binding upon such contractor and all subcontractors and materialmen ~nd shall thereafter pay all contractors and materialmen so as to minimize the possibility Of a lien attaching to the demised premises or the Shopping Center in oonnection with Tenant's Work. If a mechanic's lien '~3 filed against the demised premises or the Shopping Center, in connection with Tenant's Work, Tenant agrees to bond against or discharge such lien within ten (10) days after written request by Landlord. If Tenant shall fail to cause such lien to be bonded against or discharged within the time aforesaid, then, in addition to any other right or remedy which Landlord may ~ave under this Lease, at law or in equity, Landlord may (but shall not be obligated to) from and to the extent of any escrow deposit theretofore deposited by Tenant with Landlord and/or from any other source, discharge the same either by paying the amount claimed to be due or by procuring the discharge of such lien by deposit or bonding proceedings, and, in any such event, Landlord shall be entitled, if Landlord so elects, to compel the prosecution of any action for the foreclosure of such lien by the lienor with interest, costs and expenses. In the event that Landlord elects to make any or all such payments from and to the extent of funds other L..an the aforesaid escrow deposit, Tenant shall reimburse Landlord, as additional rent, upon demand, to the extent of such sums and all costs and expense incurred by Landlord in connection with the removal of any such lien together with interest thereon at the highest rate permitted by law, but in no event higher than ten perc~nt (10\) per annum from the respective dates of Landlord making of the payment and incurring of the cost and expense. In addition, Landlord, at its option, may treat Tenant's failure to comply with the foregoing as an event of default. Notwithstanding anything in this lease to the contrary, Landlord ~ill engage the services of an architect mutually approved by Tenant and Landlord to prepare design and construction plans for the construction of the store; Landlord will engage the service of a general contractor mutually approved by Tenant and Landlord to construct the store premises as per plans mutually approved by Tenant and Landlord including storefront, perimeter walls and partitions consisting of g,w.b. taped, spackled, and painted, toilet room consisting of fixtures and exhaust fan, floor, floor covering (carpet in sales area and dreSSing rooms and VAT in stockroom and toilet room.) lay-in acoustical ceiling and/or gyp wallboard ceiling, ceiling lighting fixtures, complete heating and cooling equipment including thermostat controls, electric service to the premises and electric distribution, sprinkler system including mains. laterals, drops and heads, and telephone wiring ready for installation of telephone by tenant. Landlord will obtain all permits and pay all fees for same regarding construction and tenant's occupancy of the premises. Landlord's construction obligations shall not include storefront identification sign, decorative Hghting chandelier Ilnd decorative accessories which shall be the responsibility of the tenant. 8-14 A . SIGN REGULATIONS AND SPECIFICATIONS EXHIBIT wCw The purpose of these regulations is to encourage and develop oreative and diversified signing for Tenant atore. in 'compliance with the following criteria which .ha1l in any event be limited by the provisions of Section 1501 and Exhibit B of the Lease Agreement. a. Wording of the signs shall be limited to Tenant'. permitted store or trade name. Tenant's customary signature or logo, hallmark, insignia, or other trade identification will b. permitted only if in conformity with these sign regulations. b. Signs shall consist of individual letters. Signs of the flashing, blinking or animated type are not permitted. Box type signs, when built into and an integral part of the' stott front design may be submitted for consideration. c. The size of all signs shall be limited and shall be in scale and harmony with the Shopping Center. The lettering on Tenant's sign shall not exceed the following limitationsl (i) Height - 16w for letters with the exception of the initial capital letters, if used, which may be 24w/ depth - lW minimum, 4" maxiumum. (ii) Area - No lettering shall be located within two (2) f.et of any adjacent store or corridor, nor shall any sign occupy more than seventy (70') percent of the store frontage on the mall. The location of the lettering within the permitted sign area shall be such as to present an orderly appearance of all of the signs of all the Tenants in the mall, taken as a composite or pancrama of signs. d. Printed signs on storefronts or show windows are prohibited with the exception of small-scale signs which are neatly lettered on the glass of the st~refront or logos on door handles. e. Subject to compliance with all applicable code requirements, public safety decals or art work on glass in minimum sizes may be used. f. Paper signs, stickers, banners or flags may not be used by Tenant. g. An exterior sign (one located on the outside of Tenant's real wall) shall be permitted only in the case of those tenants authorized by Landlord to have a direct rear customer ent~ance from 'the parking area, and shall be subject to Landlord's sole discretion as to design, size and location. h. No exposed raceways, ballast boxes or electrical transformers will be permitted. i. Sign company names or stamps shall be concealed (applicable ~rdinances and codes permitting). j. No exposed sign illumination and no flood lighting of signs or storefronts shall be permitted. C-l . . k. No perman~nt or temporary window signs fastened to the interior or exterior of the show windows shall be permitted except for siqnature or identification signs lettered or affixed directly on the glass. 1. No more than one store sign may be installed on each store frontage in which one or more customer entrances are located. If the lease~ premises is a wcornerw store even though a customer entrance is not located on each frontage, twO store signs may be installed one on each store frontage of the leased premises. m. All sign letters and sign boxes must be internally illuminated, with the exception of exposed decorative lighting Which shall be in white only. Maximum brightness allowed for interior signs which front on the enclosed mall, if any, will be 100 foot lalllberts taken at the letter face. n. No portion of any sign shall project more than 8w beyond the storefront. o. Signs and identifying marks shall be placed entirely within the boundaries of the demised premises with no part higher than the neutral curtain wall space above the store front (or neutral band above, if'any). p. Signs for kiosks, promotional displays or for shows will in every ins~ance require the written approval of the Landlord. q. Tenant shall comply with the requirements of all applicable codes, and/or local ordinances and obtain local government approval when required by code. All permits shall be obtained by the tenant's own sign contractor at Tenant's own cost and expense. r. All signs must be wUnderwr i teu Approvedw. s. No wood blocking or flammable construction material Is to be useo In the attachment of any sign material above the store front. t. Interior projecting signs or graphic identification which front on the mall shall not be greater than 2'6w x 2'6w! interior illuminated cube modules which front on the mall shall not be greater than 2'6w x 2'6w x 2'6w. Tenant shall submit drawings for Tenant's signs and other methods of identltication in accordance with the proviSions of Exhibit wBw. Notwithstanding the fact that such signs and other methods of identification are in compliance with the foregoing criteria, no such sign or other method of identification shall be installed by Tenant without Landlord's prior Written approval of their size, type, location, quality and aesthetic properties. C-2 . EXHIBIT -Ow CONDITIONED AIR CHARGE RATE ADJUSTMENT SCHEDULE The fOllowing is the wConditioned Air Charge Rate Adjustment Schedulew referred to in Article XI of the Lease. Except al otherwise provided, all terms herein shall have the same meaning as in the Lea.e. The Tenant's annual wConditioned Air ChargeW shall be the Bum of the capital facilities charge, the electric energ~ usage charge, the maintenance charge, and the make-up air charge. (a) The cubic feet per minute (CFM) of conditioned air for the Tenant's demised premises shall be determined in accordance with procedures described in the Design Criteria referred to in Exhibit w8,w hereinafter called the wTenant CFH.w (b) The Tenant's annual capital facilities charge shall be equal to $1.00 per wTenant CFH" of conditioned air for the demised premises. (c) The Tenant's annual electric energy charge for conditioned air. (1) Included as part of Common Area charges, each Tenant will be allowed a maximum of one (1) CFM of conditioned air per sq. ft. of his demised preNises at no additional electric energy charge. (2) The annual electric energy charge for the wTenants CFMw shall be equal to 14 KWH per wTenant CFMw in excess of one (1) CFM per sq. ft. of Tenant's demised premises m~ltiplied by the Landlord's KWH cost. (3) The Landlord's KWH cost shall be the Landlord's total electric energy cost for the Shopping Center divided by the total KWH purchased. (d) The Tenant's annual maintenance charge for conditioned air. (1) The Tenant's annual conditioned air charge for maintenance shall be equal to wTenants CFM" multiplied by the Landlord's maintenance cost per CFM of conditioned air. (2) The Landlord's maintenance cost per CFM of conditioned air shall be the Landlord's total cost to maintain the Tenant air conditioning systems divided by the sum of all -Tenant CFM.- (e) The Tenant's annual make-up air charge. D-1 " ~ . COOLING LOAD TABULATION DATA - -M-lw TENANT NAMEl 'TOTAL LEASED AREAl SAMPLE STORE SPACE NO. I 00 2.S00 AIR CONDITIONED AREAl 2,SOO SF LOAD DESCRIPTION I L}.OO X (90. - 75-) X 0.08 · (mAf wU- (CEILING) S60 X !!I X 0.24 II (AREA) wtI- WALL ~EOPLE 33 x 315 BTU/PERSON-SENS · (QUANTITY) CEILING WALL 10,395 LIGHTINGl FLUORESCENT LIGHTING ~ x 3.41 x 1. 20 . 26,210 W T INCANDESCENT LIGHTS 1,OSO X 3.41 . 3,580 (WATTS) POWER 1,246 X 3.41 II 4,2S0 (WATTS) MISCELLANEOUS 3,llS X 3.41 .. 10,625 (WATTS) MISCELLANEOUS EQUIPMENT .. TOTAL SPACE - SENSIBLE LOAD 60,480 TENANTS CALCULATED SUPPLY AIR QUANTITY (bAQ) TOTAL SENS LOAD. 60,4BO (1.08) (T2-Tl) 1.08 (75-55) MAKE-UP AIR REQUIRED . 2,BOO 3,500 Tl . SUPPLY AIR TEMP.! T2 . RETURN AIR TEMP. Tl - T2 .. 20-F D-4 . CFM CFM ~ . . . ' I " ~ EXHIBIT WEW ELECTRICITY COMPONENT The Electricity Component shall be the monthly sum equal tOl 0,) the kilowatt-hour (KWH) charge, and (2) the capital facUitlee ch~rge. . . " (a) The monthly KWH char~e shall be calculated as follows! Tenant's main fuse size in Amperes x 'M' x 0.831 (to convert to !W) x hours of operation per month x Landlord'. kilowatt-hour cost. The multiplier 'M' is Landlord's judgment of the extent of utilization of full capacity and shall be equal to the following I Fast Food Tenantl M · .5 Sit Down Restaurant Tenantl M · .5 Pet Shop Tenants All other Tenants! M · .B M · .7 (b) The monthly capital facilities charge shall be based upon the Tenant's main fuse size and shall be in accordance with the following schedule! Fast Food Tenantl $3.75/Ampere (all electric) Fast Food Tenant I $S.SO/Ampere (gas cooking) Sit Down Restaurant Tenantl $4.S0/Ampere (all electric) Sit Down Restaurant Tenant I $4.00/Ampere (gas cooking) Pet Shop Tenantsl $4.00/Ampere All other Tenants I 20 and 30 amps $S.SO/Ampere 40 and SO amps $4. SO/Ampere 60 amps and above $3.00/Ampere (0) The -Landlord's Kilowatt Hour CostW for each month during the Lease Term shall be the sum derived by dividing into Landlord's Electrical Cost for such month the number of kilowatt hours used by Landlord during such month as such hours are set forth on all bills to Landlord included in Landlord's Electrical Cost. (d) wLandlord's Electrical CostW shall be the total cost t~ Landlord for electricity used in connection with the operation of the Shopping Center, including, without limitation, the cost for electricity consumed in the Landlord'o Property and all buildings and improvements thereon and all common areas, inCluding the lighting, heating, ventilating and air-conditioning thereof. . E-l / /...~ / , " '/ '. -;> ". c:;:-~ .~~; 'l /, " .~~ " ,......::: " /" " ,> , > ..~/'..-' -" /""',... ",. ,...., ~..;>.f;.... "',;<' ..-;/ >;- -' ~::;: /' '. '. " '" , .' '. " ~ /, '/: '-,,/ ~ " ~ " " '~f .'/ " ..... /- ,/.. " /, ". > /, '/ -' , , ':r '/ '-;. " / / -, " , , " :,;.- " ", , -, " / / , <- " " / / / " " / , , ''''. " ....:......-, < ~~ -- ':.;.- ;. , , .'/; /' , -.; ;/" .~- '" "/,... , / , ,'--:.:, -:; :. k. ~ ~~,~ .,'. \ '-.. .. .,'.', .... - /~. -:'. /:r ." / , , . .-..../ , <, .:. ,...~; /, i, , /' , " .' , r. /" ", ..... .: / '. .' -:, , , /' , . //~ 0/ " " /' ::.,-. / ; !~ /' " :,..-::~ <- 50NO~D~T~'~O~~'~1:S~PE~V~,~L~,~:~ . ~------------~_..- ,..... , -~-- [- -........-'-,-'---_~__.____m.....__...._:J: SHERIFF SERVICE PLEASE TYPE OR PRINT LEGIBLY. ~ ....__m!.~~~..S.!.~,E..CE~~!~ .nd~~~F~~AVIT OF RE!~RN _. DO NOT DETACtt ANY C9PIE8. _ () 1 PLAINTIFF/a I 2 COURI NUMflER 0 ._.~ OF 2 CA.M.e.. "II.!. RHOP..1'lNG...CENTEILASSOC......__ 3 DEFENDANT/SI _,__...91l.,.,2.059___ _._____ <1 TYPf or WfllT Of! COMPLAINT B~!lY D. .. F.T II!" ,__~~_..~__.... ,.,._____... _..___COMPJ.ALNT..__..___.._n___~'_____ 8~E ___:=~INO~V~DU~=lf=~N_~TC~::~::v:~,....____.___ ...______.......,_...___.__.,.._____j . 6 AODRUSS jSlreot or AJlO, Apar1M8n' No, CUv. 80m, Twp. Stalu and llf) Code) ""' AT 122 W. HIGH ST., reL1ZABETHTOWN PA 17022 ~ _.W'~'''_''_~ ...._~...__.,..~...._._.______~.._.___._..~___.~_ ....... 7 INDICATE UNUSUAL SE~VICE. LI DEPUTIZE [) OTHEfl ._._.:0 NOW:----., ... 19 ___ ,I, SHI!RIFF OF LANCASTER COUNTY~p',cd;-herebV de'putlze the Sherltl 01 ;J>o County to exeoute this Wrll and make return thereof aD cording ~ !-3 .---=--.:0 tr.l tr.l to law, This deputation being made at the request and risk 01 the plalnUtl. _ e, aPlCIAL INITIlUCTloNe OR OTHIR Il'lfOliMATION THAT WILL ASSIST IN IXPEDITING SERYICE, !HIERI~r Of LANCAg'fll COUNTY NOT! ONLY APPLlCAlLE ON WAIT OF EKICUTIOH: N,I. WAIVER OF WATCHMAN - Anv deputy sheril/lollYlng lIpon or allachin~ allV property under wllhlfl writ m.y l..vI lime wUhoul a walchman, in cLJ9lodvolwhomever Is found in possession, alter notlfving person ollovy or attaohment, without fiablUly on the par1 of luoh deputy or t~e tharilf to any pralnlllf herein 'or any 1099, dostruction CJr remo....al 01 any such property relor(l sherif!'s sale thereof .. IIGIIATURI 01 ATTORI4IY 0' olhor l!RIGINATOR Wi'ELEPHONE NUMBER ] 11 DATE CUMBERLAND CO .JU!ERIFF ,.flLAILV COSTS 232-8000 __ 7-23-98 fa, IIND NOTICI Of .IRYICE COPY TO NAME AND AODRESS IELOW, (fhll ".. mUlt b. complll.d " noilc, II 10 b. moll.d, , F STEPHEN~ON M~TTHES, ESO, AT 100 PINE ST.. HBG. PA 17108-1166 SPACE BELOW FOR USE OF SHERIFF ONLY - DO NOT WRITE BELOW THIS LINE 13.'.oknowl.dg. receipl 01 lhowrlll NAMEOf AUlhorllod LCSO Dop"~1 or Clo.. 1'i4:D'010 Rocolvod 15. E,plrohonIH.Oring dall orcomplaln'ASlndlcftlodoboYl. .....J.llDy MORRIS 295...3..2Q9 L1=27-98 8-21-98 16. 1 hereby OERTIFY and RETUAN lhatll5thave porsonally sorved, 0 have legal evldenoe 01 service 39 snOWI! in "Aema'ks", [] havo oll.ftculed as shown in ~Aem.rka~, Ih, wflt ot oompl.lnl dea&ibed on Ihe Individual, company, corpora lion, ole" althe address snown above at onlhe individual. company, cor- "orallon, elc,_ lithe addrosslmlerted bolow by handing a TRUE and ATTESTeD COPY therllo' . . 17,0 Iller,bV <lortifV ancl r,lurn a NOT FOUND because I am unable 10 locale Ihe individuill, company, corpo'allon, ele" named above, ISfle remarks below) 18. Naml and hll. 01 Individual s.,yod Ii' not shown abov.) (Rolationshlp to Dol,ndo"I;-- 'l19 LlNoSoM';' See Aernarn 8tkJw (No. 30) 20, Address 01 white served lcomplele only II dljjo'onllh!H~ shown above) (Slroot' or RFO, Apartment No, Clty,Boro, Twp 21- Dale of Service 22 Time Slale find Zip Code) Y-'1.51i' '1.' Ie; - mr 23. ATTIMPTI TP'''1M]!.1 <l'1,~ 24. Advanoe COlta - D'p,lnt. S.T.A. 29 COI'( Due 0" "IFUHD ~/~8 cl: .it 85' ~/6Jfl R 9.1..9.81 1 no ()()_ 3D REMARKS: -'H ~J, J Ii IOAN8WER. 31. AFFIRMED and Bubscrlb'Jd 10 bGlore me Ihls ~, -/1/)" A. .stillt/lL ~ Q 8' 8~pS~:rW,~~",~~ /.1 ~ 34dSyol W4-b. .~ """:.:.,..!!!,?'~......,.,.._.,7-.---- 37 .. ~'oIh,"OI"VI~~:'~4'l ';.....iA!.U~tAsn,rEoUNTY MY COMM SSI9N EXPIRES ,_._1. 38. I ACKNOWLEDGE RECEIPT OF THE IHIR'fF'e RE. TURN SIGNATURE I "---~-__~~_-Ti9-0_'" """YO. OF AUTHORIZ~O ISSUING AUTHORITY ANO TITLE . _--L..... 1, WHITE. ISlIulng Authority 2. PINK' . Marney. 3. CANARY" ShoriH'R Olflce 4, BLUE" ShtlliH's Offlco OF 2 SHERIFF'S OFFICE 60 N~ DUKE STREE::!_O. BOX a~480, LAl-ICAS~~R, PENNS~LV~IAH608'3480 . (717) 2~9,a200 ~__ _,~_.;&_ SHERIFI'SERVICE r--PLEASE TYPE OR PRINT LEGIBLY. Ii: PROCESS RECEIPT, o!"d AFFIDAV~T,~! R,E.!URN _ __L DO NO!. DE~CH_~~'(_ COPI1!8..!......~ iPLAINnFFISI EWURf NUMBER tl C~M~FF~iA~~ISISHO~!!_~~, C~N.TE..~__ASS()~_ - -- -- -----.... - 4" fYfij9(~f:-W~~~~ GOMf>fAliiT ,JL 6ARRY D. LEADER COMPLAINT -8~EE' NAME OF INDIVIDUAL. COMPANY, CORPOf1^ TION. ETC. TO lii'sEniii'rY-- -.- -- . ---, .. --,-... --....-, ... . ..,-, .- ...... . .. 6 ~:D~~; rs?:" o~ :F:,~~a~m;;N~, ~~ ~~oT~~Esla~~~d~~~~d.i-'--"h_"._'-"_.'-' -'---------..,.---~ AT 122 W HIGH ST. I E~IZ~BETH~:?W~,~_ PA 17022 .....___._~ 7. INDICATE UNUSUAL SERVICE,.. [] DEPUTI~E 11 OTHER _ _..___, ..Jll.., Now, 19 _ , I, SHERIFF OF LANCASTER COUNTY, PA" do hereby deputize the Sheriff of :0 .. County to execute this Writ and make return thereol 6ccordlng iI" to law, This deputation being made at the request and risk 01 the plaintiff. .- '''''''' on."""",ou",, ,_,_,_,~:- I. "ICtAL ,NITfIIUCTfONioft OT"!" 4NFO"MATION THAT WILL A8118T IN eXPEDITINQ SERVICE.: ------.:r ::0 t'l t'l HOTE ONLY APPLlCAIIU ON WAIT OF EXECUTION: N,I, WAIVER Of WATOHMAN - Any deputy ~hen'llevying upon or allaching My prOperlY under within wril may leave same wllhout a walchlTl8n, IncuSlodyol whom(lvor is found In pl.lssesslon, aller nolllyl"\) person ollevyor allachmenl, wilhoul liabilitv on lhe part 01 such deputy or the shflriff to any plalnlUl herein lor any loss. desHucllon or removal of My such propeny before sherifl's sale theroo! ., alQNATURE 01 AnORNEY 0' olho' ORIGINATOR ~~'(ll8~'bNUMo/'!l23_~f' OAfE-'-' Cl/~_""/j@ 6jqE~Y:oAAo NAME AND ADDRESS IELOW, (Thl' ".. mutt b. oomplttod If noUo. I. 10 b. m.llod). SPACE BELOW FOR USE OF SHERIFF ONLY - DO NOT WRITE BELOW THIS LINE NAME 01 Authorized LCSO DOpuly Of CIOIk ~4. Dale Ae celved 15 E"piration/Hearing dale 13. I acknowledge receipt ullhe writ I o,oomplalnla.lndloal.dabove. J MORRIS 295-3609 7-27-98 8-21-98 16. I herebvCIRTIFY and RETURN the1 ~ave personally served, 0 have legal evldellce of service as shown in "Remarks".LJ have Itl(ocuted as shown in "Aemarks", lhe writ or oomplaint descriSlid on lhe Individual, company, corporation. elc.. atlhe address shown above or on the Individual, company, cor. porallon. elc.. "I the address inserted below by handing a TRUE .nd AnESTED COPY theroof 17,01 hereby certlly and relurn a NOT FOUND booBuse I am unable 10 locale the Individual, company, corporation. (llc" named above. lSee remarks beloW) 18. Name aM title of Individual served (iI nol shown above) (RolationShlp 10 Defendant) ~ [JNoStirvIOl _-1._ Set Aemath Below (No. 30) 20. Addreu of whflr. served lcomplete only If dlflerenllhan shown above) ISlreOet or AFD, ApartrMnl No., City, Boro, Twp 21. Date 01 Service 22. Time Slatft and lip Code) s ']1- 78' Lr': /~ ~"":J ffi, 23 AnEMPTI Mil.. O.p.lnt, - 24. Advance Coats R2.1.987 * 30 REMARKS, S.TA, :H, AffIRMED and subscribed 10 belate me this .s-'f~ lL9L..- 34 da~ ~:(, 37 _ P,olhonola1vl MY COMMISSION EXPIRES .__. 38,1 AOKNOWLEDGE RECEIPT OF THE aHERlfF'S RE.TURN SIGNATURE I OF AUTHORIZEO ISSUING AUTf!ORITY ~ND TITLE '----------1: 39 Oatl f1tcti'lld 1. WHrre . Issuing AUlhorlly 2. PINK. Attornoy .1. CANAFlY 0 Shariff'a Olhce 4, aLUe . Shorlll'a OffIce