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GIANT FOOD STORES, INC,.
PlniIII itr
v,
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, I'ENNSYL VANIA
CIVIL ACTION . LAW
NO, 98. .J / (J ?
CROWN AMERICAN
PROPERTIES, L.P,
Defendant
: JURY TRIAL DEMANDED
COMPLAINT
GIANT FOOD STORES~~C, v, CROWN AMERICAN PROPERTIES, L,P~
I, Plaintitl: Giant Food Stores, Inc, ("Giant"), is a Delaware Corpor'tion with a
registered Pennsylvania address of Route II and Shady Lane, Carlisle, Pennsylvania 17013,
2, Defendant, Crown American Properties, L,P" tldlbla Carlisle Plaza Mall ("Crown
American Properties") is a Delaware Limited Partnership with a registered Pennsylvania address of
Pasquerilla Plaza, Johnstown, Pennsylvania 15907.
3. Defendant, Crown American Properties, is the owner of the Carlisle Plaza Mall located
at York Road and East High Street, Carlisle, Pennsylvania 17013 (the "Carlisle Plaza Mall"),
4. The Carlisle Plaza Mall was previously owned and operated by Crown American
Corporation, a Pennsylvania corporation with a registered office of Pasqucrilla Plaza, Johnstown,
Pennsylvania 15907 ("Crown American Corporation"),
5. On or about March 5, 1974, Giant and Crown American Corporation entered into a
lease with a twenty five (25) year term tor certain retail space at the Carlisle Plaza Mall (the "Lease")
(A copy oftne Lease between the parties is attached hcrcto as Exhibit "A" and is incorporatcd herein
by refcrence),
6. Crown American Corporation was dissolved on or about August 17, 1993,
7, Defendant, Crown American Propetiies, assumcd Crown American Corporation's
obligations under the Lease bctween Giant and Crown AmcriclIn Corporation (Crown Amcrican
Corporation and Crown Amcrican Propcrtics are hercinafter collectivcly reterrcd to as "Crown
Amcrican,"),
"
'.
.
COUNT I
llREACH OF CONTRACT HlR INDEMNIFICATION
Q.lANIJ~QQJllHQlmS~lt-tCS,C~QWNAMJ:'RIC/'.NJ~.!t~m~I(\:l!ls..~
8, The alleglllions ofl'lIn\graphs I Ihrollgh 7 ubove lire Incorporaled herein by reference,
9, The Lease bel ween Gianlllnd Crown Amerkan was for retail Splice in the Carlisle
Plllza Mall in which Giant operuted II grocery store,
10, Pursuant to the Leuse, Gillnt shared Ihe parking lot in front onts premises with Crown
American's other lenanls (~e~ Lease at ~ VI, C, p. (2),
II, The parking lot was a "common area" under the Lease bel ween Giani and Crown
American (Lease at ~ VI, C, p, 12),
12, On or about March 2, \993, Susan Nesbdla was sexually assaulted and raped in the
parking lot in fronl of Giant's premises
13, Ms, Nesbella subsequenlly liled suil a!,\ainsl Crown American and GianI.
14, The civil aclion tiled by Ms, Nesbella againsl Crown American and Giant was
grounded upon alleged detlciencies in the parkin!! lot security,
15, The parking lot in which Ms Nesbella was assaulted and raped was a "common area"
pursuant to the Lease belween Giant and Crown American (Lease al ~ V\, C, p, 12),
16, The Lease between Giant and Crown American provided in pertinent part that: "(1)1
shall be Lessor's duly 10 properly regulale Ihe use and operation of all the common areas so as to
serve uniformly the besl interesl of all the tenants In the Shopping Center, ' , ' Lessor shall be
responsible for the operatin\,!, li.ghting, repairing, stripll]g._c\eanillll, -91', removing llnow from.
controllinll. tra!lic and insul'il\\1 al!aillst public liabililY 011 the COl\1I1\01l al'eRS ill the Shoppil\ll:
Cel\ter, (Lease at ~ VI, C, P 13) (emphasis added)
17, The Lease between Giani and Crown American provided in peliinent part that:
"Le~sor cQYml1ts and agrees to and hereby docs indemnity and hold Iwmle~s the_Jenant of a\1
liability with r~spect to all iniuries l\ndl.QLAl\D1a~Il,,L\Q$t!i.9J1UQd!ourop-er1)' in or upon said
QomJJlon areas both while peing cOJlli\Iuc~d and during the IeI'm ophis Lease. (Lease at ~ VI, 0,
pp, 14-15) (emphasis added)
18, Crown American was solely responsible for Ihe provision ofsecul'ily in the "common
areas" pursuanl to the express lerms of the Lease, (Lease al ~ V\, C, p. 13),
19, Crown American expressly agreed to indemnify and hold harmless Giant for allY loss
ey.\\\\)\\ "
"
.
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"
INDI!X 01' l,!lASE
Oetl/ern
ClllJ\?I N>IURICAN COOI'OMTWN
AN\l
GIANI' 1'000 STOIWS, IN!:,
!leac!!!!8
Parties
Lot ting and Tenn
Demised PrcOIlso.
Shoplliur, Con to r
Accoss
Rental
Title
Possession
New Building
Inspection
Connon A roas
Pub.lic Liability and Indemificatioll
Remodeling and Altorntions
Repairs and Replnre,",mts
T""os
Utilities and Iloat
Insurance
Destnlction
Assignment and Sublotting
Signs
Reroval of Trade Fixtures
Condemna t ion
Forfeiture for D~f.ults
Options to Extend Tenn
Restrictions Upon Loosing
Merchants Association
Notices
Obligations of Successors and Assigns
Copy of [e.se
Short Fenn of Lease
Captions and Tenns
Fonner Lunso
Oankruptcy
~~tu.l Firo Oamage Itoleaso
Lessor's Right to Cure
f,brtgaguo RequlrOlllent.s
Confession of JlIllgment and Ejectment
D~~th vf i\ P.1rtncr
l',j;p...n:;1.;.,n
ForcQ t.(oicurc
Exhibit "A"
Page
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LI;,\~1i ,llilUDII:NT
CI10h'N ,IM,RIC,IN CI1RI'OI:,'.TIUN ' IOIMI'I' mOil ~T()Rr.5, INC,
IIAU~ thls ~ day of ~L, 19].1, II)' an~ hOll<ooll 1:IlUI\:~
1~IEItICAN t:OI~POR:ITIO,~, horclll",'ter reforro,1 to II< "1.I:SS0rt", (I corl'orutloll
organized ulld exl.tlllg ullder tho la". of the COIor"ol1l,.alth of Penllsyl-
vania, l\'!tOSe principal office ls 131 ~llll";ct Street, .JohnstO\o/I\. rcnns)'l.
vallla, I'nrl)' of tho flr.t part, and GIANT 1'000 STORES, IIIC" a rellll.yl-
I'ania corporation, trad,ing under tho fin" namo and style of CARLISI,I;
FOOD ~~IRKET, with pl."c of husilless at nt, II and Shady I."nc, In tho
!lorough of Cnrlislo, Cllmbcrlulld Count)', r'ennsyl\'anill, hercinufter
referred to as ttTl::.l,\,'f1'II, party of tho secont! purt.
-
WIT U n ~ ! ! ! ~
That in consideration of tho mutual covenants. promises and
ur,reements horeln sot forth, the I.o.sor IIl1d the 1'onant horch)' do tOVO-
nant I prOlni $(.- nnd ar,rl?c {'!s fo11ch'S:
I. Lessor do(!s demiso, let anel lease to Tenant and Tenunt
takes t leases and rents from Lessor for a tcrlA of tHenty.f i ve (25)
yenrs to commence on the first day of the first "ulendar month follow-
illg 120 du)'s aftel' Lessor has i:lven Lessee llritten notice lhat It has
substalltially completed and, in fact, has suh~tantlally completed all
of Lessor's work in the delni~cd premises, as well as the pnrking areas,
access roads, entrances nnd,c:dtsJ all as shown on attathecJ Exhibit ",\11
(cOI"plotlon of Lesso)" s ,,'ork in the demised premises shall ,"can that
the tlemised premises ,hns been completed in acc.ordanrc with the plans
nntl ~pecific:ltions, a rccistercd Architect I\a~ given D Certificato of
Completion of Lessor's .<ork nnd " Certiflcnte of Occllpancy .<ill not bo
,.lilhhcld because of OilY deficicnC)' in I.ossorl~ \'Iork), or upon the day
"then Tenant opC'IlS rol' business, Hltichcvcr event f.hnl1 first occu\' ami
lu cnd Hl lIIitlniJ.:ilt 011 t.he la~t do\' of the IU!it euier.Jur month of said
t'crr:l plus any fractional pnrt or 1I calantllll' llIonlh pl~~cot.lin~ ~lIch tC1'm
t1urinr. '>lhjc.;h the cXl'ir~llion o[ ~,ald l~U',lu)'.periotl fa' TtnHllllls open!,,"
IH15 occurred, it beine unuerslood, halo/ever, thflt in ~'D.se the expirnticn
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(..$8,:;1II,(lUU,UO) tlullllr~, .UIJ \'1\..' 1't11'\:c.'IlL (I~.l "f l\1'1I1~!" salas, In 1',\CCS~ of
~S,e,IU,/llIn, /10,
Tho !'rOSS :';111\':\ made 1'1'0,1' the lcast'll I'rcmht's in HII~ purl nt'
., cnlcntlur month t!:at TC'nunt'~ ~;roI'C III 0j1('11 for husjlloss prior to the'llC'llin-
lIing oi tlie tI,'cnt)'" rl\'o pSI )'oilr torm shall bfl lidOI'd to ""d cOllsldered to he
-
u part tlf the crt1~S ~wles lII;1d~l III the [if!;t louse )'r:lr,
C. "or the I'Ul110SC of clIh:ulut lllJ.: t II(,..' contin~fnt rental Ilml
for thu purposo of th~ louse ~'uar stutCIlI,:1l1S of gr(l~S sales, ht'l'r.inaCter )>1"0-
vidal! ful', tho tellll "~ross ~;.lJl,~I' hun'h)' is dt:fil1cc.! Bud np,fl:cd ll) lIIr.an the
total of all retajJ arid/or 1:hol(.,~,,_1e sales, h'hcthcr ill l'llsh or on crC'uit, mndo
(o,xccptin!: therefrolll trade fixtures)
hy TCllI.mt of mcrclHlndlsc, co(,d~, amJ m.:Jt~l'I:ds/!'>old UI'OIl the lL'u:wd premises
includillu !-ialos rentals from liccn~ecs HI".I concessionniTcs on sai.d premisc!i, loss
doductions for c.Iiscmults, cre:dJ ts, refunds and cxch.11l!:cs to customers on IICCOlUlt
of lIlel'chamlisc, goous IInd mJtcdal~ !=:old, l'C'tllrflcd :.IIl<l/or bona fic.le adju!itl1lcnt!l.
HmployrCls I ctiscolJuts, COH5111nCI'$ I sales ta.\:es and/or other taxes collectible frl.'!ft
custort'!'Jrs and trm'!s!('~'s of mt;'p.:!l:lndi~w, flF1(lrtCl;, nnd JlI...trorinls b'!"t,,'('('tl f\theT ,toTe"
of Tcnllllt or stores of other porsons, partnerships or corpoTiltions, shnll not be
included as a part of such gross sales.
D, Tennnt agrees to furnish I.essor ,dthln sixty (60) days after
the end of eRch lease year, \\'1 th a statement of the cross sales nlade by Tenant
frOlQ the lea~cd prenliscs during the lease )'ear just ended accOInpunied by }lllyment
from Tenant to Lessor or its 11~Cllt of the contingent rcnti.ill, if any, for said
lCDseyc:lr due hore\ultlcr uJlon the hasis of the gross suJe!i llctcnnincd by such
stateffiCllt, Tenant n~l'ces to ~:cep at its principal office in Carlisle, I'CN1~yl-
vania, IIccurate buok!> of accowlt of the gross sales made in or.d (rain the leased
fol' the lease year Just oulled,
pl'omisc~/ alld I.esso!', at its OlIO cost, shall have the right to oxnmine finid
hooks through its duI)' authol'izc:ll ngents or nccQ\u\tnnts at Tenant's principal
office ldthin sixty (60) days IIftor I'eceipt of TOllunt'5 statement. Lessor
ngrccs tlot to (Ii \'u 1 r,l' tin)' ~aJr.~ figures or audit reports as fumishetlLJy or
ftecured from Tenant or from Tonrmt I S raconls nnd further agrees to kc('p tho ~wno
conthlcnt ia t.
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(~. I'cnnnt IlgI'C~!i to U;iU the luased prel~iscs COI' conducting
thereon and therein u retail business commonly de.lgnated a. a "Super-
market" and to .ell and ofr..r for .ale lhereln .uch line. of marchan-
,/
,II.. that ora generally sold from time to tlma In what an ,commonly
known a. "Supermarkets" nnd for no other purpose; excopt lhat In lhe are
"Puture Expan. ~ 10,000"
des I gnatAd a./UllllllJ:.xBxpa"HHx.yQw,.~~..k.lt~ on Exhib I t "A", as pro.
vlded for in Article XXXIII, Tenant will be permitted to enclo.e with
fencln~ and to operate an outdoor sales and storage area for yard and
"Future El<pan. . 10,000"
garden merchandl.e 011 all or part of the/~l!lIundx~a..t.ll\xxxllllJl"''''J:kn
area, A. to area '0 u.ed, Tenant agree. as follollS: (1) Before it.
enclosure 01" operation, such outdoor sales and storage area for yard and
garden merchandise PdSt have prior approval
the de.ign of the enclosure, flxturlng, and
of Lessor's architect for
if any,
signs for said area,/this
approval not to be unrea30nably IIlrhheld; (Z) Tenant agrees at all times
to keep .uch area In a clean, neat and orderly condition and Tenant's
failure to do so sholl be considered a default under thh "Lease, subject
exclusive
to notice provisions in this Lease, the/remedy for which shall be that
Tenant must remove the enclosure, fixtures, signs and merchandise and
cease to operate the outdoor sales and storage area;*(3) Tenant will
make a "collman area payment" fOT the enclosed area in the a.oun~ and
manner provided for in Article VI (e) (page 13); (4) Tenant .hall not
u.e any unenclosed area for the sale or .torage of any yard and garden
merchandl.e (~~cept within the demised premises),
VI. A, Lessor covenants and agrees with Tennnt that pro~ptly
after tho executloll and delivery of this Agreement, Lessor at its own
cost and expense and in accordance IIlth the final detailed plans and
specifications and working drawings therefore, which are to be prepared
by Lessor and approved by Tenant's architect before construction i.
c olnmen c e d lqnIo ~ .m ...... "l" ltlbaudarp:xmd:xsptlllti: Ua:nlccms man: mtPll...xilal<.ltGtlc
f.l<.xx.l<.tx.~l<xaR~xa"x.x.~xa.dxtRi~iaia~xh,x%kax,.xxia.* shall and
will commence and thereafter with due diligence complete before April I,
1~7S, subject to provisions of Article XXXIV; provided, hOlfOver. for
any reason not beyond April I, 1~76, the erection and construction upon
and OVer the IIhole of tessor's lot (described in Paragraph I hereof)
"but this relnedy
sales, stock allu
. 9 -
shall not he deemed to prevent Tenant from
office; rea as set forth in Article XXXIII
expanding it
here in,,,./
/.1/
..~..
"
"
nubjoct, however, to the d~,btn .11111 priv1'J.~gos htlrll.ln l\root"I' 1:0
',rOMnt and a'lno to the :,,'ir~lt!l and pr.ivilt1~O~ c\'unCc.ul 'In con~r:u\
to al11:,ooilnts h, tha Shopping C:cntc'c.
It ahall Lo Lassor.'o duty to properly ragulutn
------ the use nnd operat.ion of all the cowmon aroan co as t.o
nerve un.LCormly thlll ,lJe.1: inter8llt of all thn tanantn i!:l. the
Shopping Center. Lessor, at Leanor'n c.:ont nnd oxpanse, at 011
times duting' the torm of thin Lease, shall ko~p tho parking lClt!l
mnrked in npprood:lta lonas for convenieut parlting nnd said lottl
and all pedestrian Hallts in said Shopping Conter pto!,ur.1y li;;l1t'..,d
fot ovp.nin3 parldn:; and nhopping, claaned nnd frao of rubbbh
and/or othar dabrJ,s including snoW and sball roak,e ull n"ce.snary
repairs and reploul!IDent:J in ..nd upon said road, 10t3, lIalks cnd
othar co~n aroas 00 an to keep the snme in good sClviceaLlu
condition throughout said term. In the event that Lessot sh,,:!.l
fail., ref'use or ne.glect to fully perform auy of its 'obUg!lt::'ol'Z
uader the !:WG (2) l'r""odlng 3entonc"s when and all required th~r"-
by so to do, then '1o"-"nt =y, but nhall be under no ohligatio:1
tG, as agent fGr l,essot, undertake to carry out and/Gr 'to compl'3te
Lessor,'o said obligationo; it being agreed, hOlfever., that Teoant:',r.
uDdertaldng or non-undertaking thereof shall not release or 1:>.
lieva Lessor from its said obligations under this oubpatagrnph c.
or of liability for damage. for feiling to perfo~ the same.
Lessot agrees that the failure of the Tenant to
exetcise any of its rights and privileges hereunder upon any auah
breach or. default: I>y r~c"sor shall not be consider.ed a l,aiver of
nny of the Tenant's rights end privi.leRes a I: any subsequent t10e
during the continuation of this Lease nor preclude the Tenant
from the exercise of nuch rights llnd privileges ..""ruing upon any
subsequent breach or default. Lesser, upoa demand'from tlm.. to,
time,shell reimburse Tenant fot the total ,cost to Tenant of
petformiDg Lessor'o said obligations, "hich reimbursement Lessor
hereby agrees to make. Any SUlA due Tenant shall bear int"",est. at
the rate of si,x (61.) percent por annum r,od Tenant may reilDburse
itself for such sum and intArest, eith, ,: in whole or in part,
from tbe renta than due and/or thereaftar to become due and pay-
able under this Lease.
"
,
II,
,I,
Lessor s'hull be responsible for the oporating, lillht-
ing, ropnil'ing, stripiolt. c.lcaning...._..--~.._.~ of, remOVing 51\0\"-
'rom, coat rolling traffic "ad insuriag agaiast public liability on
the conlnlOIl ilrCR~ in the Shopping Center. Por thissorvlcc, 'renant
agrees to pay in advance to Lessor the su~ of 10' for the first '
three leaso years, lS~ thercafterr!'iuid sum horcin rorofrod to as
"Cammon ArC'u Paymcnt", oneh year rtor each square foot of floor
sllaco cOlltnilled in tile del~ised proll,ises lJRynblc in O(IUI\l install-
munt~ 011 tllo first duy of overy culondar montll Juring tl\e term D11,1
a pro..rata sum for tho partial month. if any, at tho commencement
of the torm,
- 13 .
rr/
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(,11c../or df.\~I;L::\..'i to ~~"J:.;"mJ c':'IU/CUo J-J'.:-~.Jrt,y 111 or UP(IH lJ..ll"t c,:.: ,;',.:11.
l.,,'-:'~.U botJI \:id.1J t.l.:.,a"; cc,I1Q~r'l~c:\::..1 :.nd (lut'1",~ t;~..J t,'J:"l1 nl" ~~.L,
L.l:n J. I.\~:,,:.:,\t. L;~1;:.11 ,i.'i\.:.;,~nlf'1 :."d ~.ol\i :,r.1~',~.l(j$.l J.,.:J.J;"'llr U.l' .::,'Ll
h:.:J;;'llt.y lilt." r,",:;~~~ c:.~ ~.o :':':11 in,1ur~' or tl:.:.;:,:::~~ to r.:;rcI3Ttu (.II"' ~~'~.o-
p..j,'~.,. lr.u.t'ull~f in or \<''In it.a :"''Jt.::.l1 at",.u prolr.io..u .at uny t.!I::U
~'..~ :~:Ij: t:loj t::r,'.1 l'I~'~"~...I:'\ ~.';\ic:' :"',1I,::'"Y n:o (.:~\:H:.:~.l io) not .:ltt'l:"lt.u'~'-:;\J:.-.l
~~... '1 _~,t.,..."".Ij , ~~ \:u ,', ,':ul':;ul t. ot L"riuo:" U~'llior tm~. (\1"
tail ~roV1ti:lcn'lI OJ." z:li... 1.,~ti.t,;oJ or to t~.. :Lc.~tI, C::11.~.:.ion4 l)r 1":::,.1:1-
r:'"4Q of t:ha Louoo1', i',~:J ':':,~~onto or in"l1toJ'.llh Lt):co:o ~n~d 'l\,m..;,r.u
further'" 11:')'('':,., '00 c=.~.:.~, 11\.:b110 l:l:',bil,tr ir.nuranco"uhic.'1 \1111
tt.i:,H~u!l.tl)ly ')l"o\:,C;Q't, ~!~J othlDr :\r~.::inut ;~ 1 Ul.:aimD ,",hte~l n::y 1J..:r 111:.:10
l'.::.,in;jt Q1t:~Jr .~;:tJ ';.:i';::~';': or L:;..;a,~r tor l:uch in,jul"iu:J r.......tl/ur d;;'.:-
'",:....~ fa\" ';;'.ic:, c~ch 1":.;' tUJ \"'cU.4r-vi\::.1hlu 1a :~eQcr~.::.nc:l \d~h tho:. II':~:'J
Fr.:.el'..ld1n!~ 1::0 o.-:ntoJ.:"ic,':n :,n~ corit...:u 01" thQ c',:J'I"t1t1cilt':>>!I of uucn
.'I::l.l.l',"~\OQ in cJ..'.a.'.,)""t. :..~._.ll La cu;pl1"4 by u=:ah to t.rau oC~c;",.
LClSsor ~nd Tenant further covonont and agroe but,not as
M condh!on precodent that each will cooperate ill giving to the othor
',:ritten notice of any such Injury or t1lUl\11ge or claill or notice of clailll
theroon us soon n9 any slIdl matter comos to Lessor's or to tosser's agent's
or Tenant's nttonUon, 01' MY of thelll. Lossol' nnd TenMt each agree to
rendor to the other and/or to Hs insurnnce c~ITier In that behalf such
cooperation and assistance as may reasonably be within the power of oach
to l'ondar \ .
VII. ^~ "n)' ti..n~ or t1t'''o durinr. the tom or thlV Lou:Jo
".it~ tn. prior \fJ"tt..:.n c:.n.ent ot- LOIDo... l'fhlch con!.l!':lnt ;'1111 r:oc.
bo unrouon,>bly \litl.hold or dol.:lyod, the "unant shall havs a"d
I,cn'uby 1B f,l;1von by t........, L-aoe:.or thll ri,.:ht .tlcl pr1v:i.l~~ft. At 'ronant'o
0\1" "Olt emi. o:c;>anl:..:J, to r~:lkD Guch .:It.'Mlctur.o.l and/or r,on"'Gtruc..
t"r:~ ohnnt,(oa and G.l t0r~t1onD in .-::.nd to m.y ti.ud cl.1 improvfur,onta
\lilich ~1'. rlo~" or hor~:1ft3r crect~d upon LcuDor'a l:.n:l in tho :ihop-
p~:::; Conter t::1:\ lO.lno::;,;~ t'J TOIl.:\nt. .HI Ul0 Tt.nnnt, 1n 1tl DOle api..
nion. 0::11 dcol~ b:lot t.o prol'orlY ndapt :laid isnprovauont.s toO 'l.'!)n'm~"',,'
0\'1" UC<UJ end purpo:JI3G, 1no udin~. but not in IiIny mc.nnor limitinl;
tho i:on:araJ.. ..l(~ht.s And pr1vlla,r,oa hor.1n I~rantod Tonunt, the r1r)11.;
and privil(l,~o to roOlo\'o. l'rom tll.0 to timo, "holly or in port,
4ay aM U1 eutaido or extor10r w.311a or ecoid S"'l'rove.,onto '0 no
to ~ntiro1y oonnnet en~ join tho room or Cloor apaee thoro in wi~\
, tho roo" or noor eplloo in an, adjoininr, or G,djacnnt builclin!; or
buildSna8 n~~ or hor.~ttor orQot~d uhich Tanant now hila or hero-
, at~"r Ill~' hAY. tbD rir,bt to uuo or to oenup)'.
, All worl: porroTUod by Tonant or in it. behalr undor
, thS. parar.raph VII. o~A1l co..p1y "i th tho 1a..tul roquirallonto or
, nay lIuSld1nc Ooclo ~p:>l1cab1. thoroto, and be dona in II I,:ood ond
Iferk",.nliko 1\:onnor >Ii t!.out injury or dllll',"-\lCl to tba ndj01nirtll
ntructur.. an~ 1n the ~von~ Toncn~ ~hall romoyo ~ny ouch outaido
or 0::tol'10r 1"<111s tho \lark: l:I;all' b<J dooo .0 th3t tho r""ainin,~
" norUona at tho inll>I'ov"nunta .,/111 b~ nd~quatoly llupportod. 'ila
\'cn.n~ ngrcoo to and ~,urob)' dooa inoo",n11"y ""d :;OYO tha Loasor
hnr.,looo tram lln:! Ol101".t all d:ur,a!:os uuUol"od by Laaoor tor in.
j\ll"loU to paraollD or l;:.opor~y which raoul~ l'roll: TOMnt'.
portom"-llco 01' Ilny work uncler tho provialan. or tlUo
I: pnr4t;T'aph.
'; . SUI-:II insurance at Illl ti.me~ to bo un flJIlDUnt of not less thnn S500,OOO
" for Injury To MY one porson, and not less than $1,OOO,OOll for injuries
I'er occurrence, WId not less than $250,000 {or property d:nll:Jge por
oc~'Urr.ncol I<hlch ,nay he carried in the {ornl of primary and
.:tco.. I IIbi Ii ty policies.
. IS .
~
}J1/
II
I
I
I
l
I
I
-,
/
"
~
/
LlJssor h...o~y tonstltutes and af'flolnts the Tenant as tes.
~ur's ,lgont to apply for .nd to securo, in Leu"r's name or other-
wise, but at Ton.nt's oxponso, such ~utldlna and/or other permits
""Ich from time to timo may be necosury or desirable in or for
any "ork to be performed hereunder, and Lessor further agrees to
assist Tenant in every "ay that may be llithin I..ssor's po"er to
seCure any and all such permits,
VIII. The responsl~lllt>' for repalrinc. replaclna and maintaln-
ina tho various parts of the improve"..t. on Lessor's lot and the
common area. aftor the proper construction and completion thereof
as bet"een the tessor and tho Tenant shall be in accordance with
their ..espective obligations as set forth In the following schedUle:
Party obligated to make and pay
for ropairs. replacements and
maintenance:
Exterior, roof, walls, sidewalks,
canopies. etc.
"'iindo"s
Interior painting
"Floor covering
Room finish
Repairs & replacements necessitated
by structural failure
Trade fixtures
Fire and other casualty
Floors
Parkina [,ot
"Plumbing
"Heating & ventilating
"Air condltlonlni
"Electric
Lessor
Tenant
Tenant
Tenant
Tenant
Lessor
Tenant
Lessor
Lessor
Lessor
Tenant
Tenant
Tenant
Tenant
"In respect of the above asterisk-marked it.ms, the Lessor
covenants and agr.es that It "ill be responsible and pay for the
repair or replacement thereof during the first lease year or during
that period of time coverod by the manufacturers' guarant.es for
such installed equipment, "hichever sholl be longoI' (with Lessor sup-
plying to Tenant copies of all manufacturers' guarantees applicable
to the referred to equipment), subject to the following provisions:
1. Lessor shall not be responsible for any repairs, replacements
or malntenante for any of the above asterisk-marked items, as well
as other areas of responsibility of Lessor above mentioned, if said
repairs are caused b)' the acts or negliaence Dr cantessness of Ten-
ant, its aKents or employees, Dr buslne.s invitees,
2. With respect to the heating and air coadltlonlna units, Tenant
shall su~mlt to Lessor annual proof of service contracts from a
reputable heating and air condltlonlna contractor. for so long .s
Lessor Is responsible as above outlined,
Any repairs Dr replacements by tessor as hereinbefore men-
tioned shall be at least the some quality as provided for in the
initial Installation.
The Lessor shall be responsible for rep.ir, replacement or
restor.tion of any part Dr portion of the Interior of the Demised
Preml.es IIhlch may be damaged by Ilater from the exterior, sprinkler
excepted, provided said damage 15 not ottrlbuta~le to any acts Dr
omissions of the Tenant, I ts agents or employees or bus Iness invitee..
- 16 .
i
"v
:';1, Ll\ .......::'11. i:.l:.t 'I.' :..thli:' "\' ~l\Ll',',l"., ,', ';". ,
:;%'(1(,:,;:,1 1.1 1,;1; ..j.~ ';,~..,';\" L.. t ~n, :1 :.~~.jl ",,) '..:..J,j,,", .,',,~;.I . :~;.jJl'
::~..l. :.,~ ';':1 ,',j', ; _, :'';;:a ',\i'l~Clr. rt.,'..' lilt,; ',.~ .,.... J:1"'(~\.. :"\.'10, \l~'
i't.;~L,'f':'.::::i -~.Ii.a.' 'I",;,,:' ....,.;..., I '':;1''\1 .&..~";':I:';: '~"~~'C ;..\ \,..:.lJ..\: ,(.0 L;;
plold ',:.~'a .:.t::., ,"'.\'::..: '.,..,~ r,~'I".fl oL i... ~~ l,~~.::.~. ..,.J I.lt.~"\",, . n:'
" """.". "'''' . 'f "" .' '1' III ["1 t'" ,.,.,:"-,-".,,,-, -P-- ,j",."....
IJ ,,"'......... .....,'J. .'.",' .,.:"'..'~ .. ,-.....1... .H~.'l;. ""'.~ .\... ..,,'~ H ......
t'h....~.';..',}. I.,~ ~H~~.,..::;J.JI ':"';"/l.~~ t.lld 'h,"~'-,:;':~ c,' \:11\."":',\J.:i t:~~l)'" Or'
"f~:;H~~~', ::otten ...".Ht.;;;.on....1 I ~J.l:.1n": (I,. lH:.~,L\.un:,':it
C. I:.. t:w k,:JtJCJl" f~~lu ~:) to d,l t'.h<ln '..~!'I:~llt Cill011
h'::\il.J th;J '.i~~ht :;1,( p."'1'/:I,l=.':u. :;t it:: lH'll o::i''-lIJ'J, to (:Olli.~.:..t :i.:'j
L.Js&~r-':J lh~l.,;. ;-;.nr:./r)r ill i~:J 011n r::::--';l L,1Y ;J;;;~:':~lcu'j v.lll:..lt.iNI Mt.~l,~~
I.'ur t....~:',;\..lon nurru;"I_..~ \;~d.CH 1.0 pl.nc.::tJ \:j,on 0:' 1.:~:J1":Jt;. '.;;,.;; l,~ntl
:..r.U/<'l' 1;10)1 th~ uu:i.l'~i.;I:::J \:1I1C;:1 Ll;L:.()r' 1.:'::f11 LI)'l!l~;'.l'a :.nd '.:,r:!..::....\lC~....;
0:1 ~.~~:o l(~.,a =,ur:':\':..~l~ 'l;," ti';..'J prtH'il::t,l.'.:; of :;'.ll':!"::'\~~ih .i.. 1 ..1. ;;..'01'..-
~:.:.~d, ~'.:; \[.;,11 u.': ....'i~t ~:;ti nil l'O'::l.'i':~:~CJ t......~;.::J; h'~'~lJ,ll?.Jr: ;:.n~'
uuch \':-.1t.:::t.ion, J:",":';;::: ~:.~:: j'l.iOr 1,1;"'11',,-: ::~IJ.t:::r:"I~;'l'i.l':"'iHl\ ;,I'~.-'.::, I);',';,.
b.:a:;:: y.::lr, ..,h::;r'J ,~::,I~,l...: \....:.- L.,:,:;,:,:,!.'~,,, 1/:._\U~\t..H'I~ i,J,:':C'lld :~..," \\n u:
t,hu J',..J. C!)t::l;'.~ l.:~~;CI..; ..!.v:1i.l~ t.h"r.:.:.;'\ ;:li':":.1 ,',)~(;v..;~: \:.11.... .~~,.l'.1....;JrJ
\'Dl\l~i;:lon Glld/Oi' :.::,:\:;' t..:::.;::; i'or :.1~~:; ll..:l1,OI Y;Il~I'; IIn:J th:, ;,',",',_
j,'Uihh'.t,,"C<.llllont (1.1,' .....\;,...(;~. t'el' 0." on ..:\it:":J\111t or '~'':'n1.:n~lrj. ~lr~:_,:.rtlC'I'.
r.to bOh.c:O'-.1 ot ....!liy ..\wa llll.:l'''~':':':';O in l,;..:.id tt~"'I'J (l\I"~"". r_~;. 'dr;;.:.
rc~uh"'~dby T.::nt.'n'~ t.;) r:.:ll:a t.uch CUfl',',;::;t ~!1...tl not :',;J .~ ~.z.!'~~ult
undc.:" t.h3 tonr.,t; lj~' '~:'1iU L~r;UJ. LO.h':Oi' 11~"a'::3 t(l L\)1",.;';YOd l'r.1mjH.!.y
to 'run:mt all no~:h''':ls (0\" t.!uplicG.~'-:; C?p1aH th:n.uol') I--;,\h'h \:.ttn,
1,)IiY or do arroct.. C;;\.I CI:J::.:.a:n:u '''lunw,,1r:n 01' thoJ ~,'.IIJ cH'.d/vr uf
:laid l'.u11dinr,o o~''',!~J I:':~;;"l~ lo".1~:.i ~.o'l"(on, ::0 t,i...:!t tt,.~ 'l'~nant I' .:.
h;yo th<J oppor't.'~~:li~y ':.~ '':''PpoOll unJ/or to COflt.(;,~t. t.hu ,,',a-,.').
x. Tonant agrees to pay, durillJ: tho lcusc ternl charges if 111'.\'
for the treatment of SU'>ll].~O: fr011 the lenseu 1,rcmisCf., nnd nl~o for nli untn: .
i:', clect!icit.y, ~f1T.inl:)tr nmnect!on. nod Icat~nc fuel used by it uml nny I
,a..her serVIces ru~'nh:u:u llLljJUIl the lense'" pi'cmlScf>..t::;)!~::IT~I, it.. v,..:
"sat and air Condl.!'~l1U1.r~-UJtlfl";;i vf mloql1ate cquip:nent furnished Rl1d ~ati,';"
fE'e'C"D'n-l)"""'tft~"J-o~Ranl'J ..nd D.!sO to remove ull c1ubrh made by Temm::
'JporI said prclI\lses uurUlC said lCI111.
XI. LU::lDOr,.:it J.\.lB~Or'U OL'J'll cost anJ e;:p6nna, trom tho)
dat(, oi" tho COMm..:-n.:omont n{ tho cr~Qtion and (:on;.~tt"uc1~1on of
Tunnl\t.' to ono utOl")I IJtoro bU11tJinflt upon Lal.luor':t .tot for 'i'onllnt't.i
pUl1l0:~i.tD to tho \:Inti of t.ho turm h"l':,.!l,)f, uhall }..;CI('.' th.::z oo.id bu11d-
1nr,. ur.d all at'.htn' jl.~l'rov':l;:znts nou (,r horsllftlll" IJIr"ct..ul l.pcn
LuuLonr".!J' lot 1ncll,;~:II': ;:11 1nstQllations thoroin fl'lldo hy LEtl:1sor tn.'
'1'l)n:1nt. oxclJvt1n,,,,: ~t{)ru f:b:tura$, ~ldcltuatal.:t inc.urod ;w::.1nQt lon:;
or dtall.:1p'Q by C1..o in ~t':'r.dc.l"J and flr,:.nc1~11y rO.1jJonal1Jlo 1n...
uur""\lC;O COi.',pD:11ec .11lJ in en tir.',ount 1:";11ch ahtll f":\pro;.;:;;J\L not. luuli
then o'lr,h'i:.Y (SO,;) p'..1z'coat o( tho Cull LJound v.Jlu.; of tlHI tht.tn J"....
J'l"!I\";'I',,,n'jiQ '\:.e. b~ il1l;\u'od inclu11ni''; .::.11 nlt(jl("Qtio;'19, :Hhllt1onn r..lIlt
r(!f,l:.t<:"j,IOJ:tts. C,.,a Jh;:ll p.7:V cll pr;:'r.Jum3 for ,:i\,Hm In.;,~l1'imct,). L.:.c\~
nutb r.;,Jli.:JY nh.:\ll )i:'VlJ iJ.tt.cche"a th.:rrt!.to as p~l..t '.:.horoot ..n Gnd(Jrl.;~'
t,l1nt. r:-rC'v1dil'l;: (,~:t(;rIJ~.,a CUV.:lT"O~l~ ~..;t.ln9t laDS <J!' duma;'.!'! by t/tnd-
t1t.on", hn11. "~~lfJ.;j,,;'1, rlot~ riot. aU.ontlin:,,; a ~t.rikil. d.v1l COP~:~'
Uon, c,.trcl"aCt., v..Jhiclu$ c1:1d amoka. 11~ no\* CO','fH';HI by ~.u"h Gn-
dora.;.;~..:.:nt.a; pro\'hh)ll, ~\~\I(JIl(Il", tr.nt. !~. <.ndort)()I,IU.ltu r"v'/idlnl~ n;r.1't
flxt,..l1~h:.d COV<lra;~lJ ttlmuld \;.IZJ ....nl.i.l.r~(Jd ut o1ny t1r..Q or t.h.1(,u hOl'''~.'~.,'
10
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~. to tho eroctlon and con.iructl~n of Tonant'. demised
pr.ali..., a. ahov. provided for, said neli bulldlllg or portions of
.aid hulldlll~ shall he ,uitahle tn Tonant's hu.llles. and to be of
not Ie.. than tho same number of stories and height and the same
cubl cle cont.nt n. the Improvements desti'oyed or substantially
destroyed; to be of similar tYl'o of construction; alld tohne simi-
lar In'tallations, except store fixtures, a. theretofor eXisting,
B, III tlm event tltat tlto Ron ,70n Oepartmollt Store (I ts
succe..ors or asslglls) Is do.troyed by fire or other co.ualty,
thon Lessor muot rebUild the same within a period of 18 months,
.ubject to force majeure, except during the lISt five years of the
80n-Ton Department Store LOISe, lihereln Lessor is not reqUired to
rebuild, '" other words, if the destruction to tlte 80n-Ton occurs
during the 21st to the 25th years, Lessor shall not be reqUired to
build the Bon-Ton and Tenant shall not be permitted to terminate
the Lea.. Agreement during this period of time, Purther, if more
thin 50 percent of the remalnlnl portion of tbe Cente'r and the Mall
is destroyed by fire orlg~bRrIGaIUa~'r, Lessor shall be required to
recon.truct 'the same,/w h ~He 8vrRe CaSsor does not rebUild the
BOil-Ton Department Store or the remainder of the Center, Tenant will
not be permitted to terminate Its Lease Alreement, but Tenant.'.
rental obligation will be percentage rental only, as outlined in
this lea.e agreement, until Les.or doe. elect to recon.truct the
portions so damaged,
C, The proceeds of any and all fire and/or other insur-
ance policie. (then In force pursuant to paragraph 11 hereOf),
received or receivable by either or hoth t.he Lessor and the Tenant,
shall be tru.t fund. to be used and shall be u.ed and applied for
and upon the cost of repair, restoration and/or reconstruction of
Imrrove"ents reqUired to be made by Lessor by the provisions of
sa d pal'agraphs ^ and 8 and any excess of said cost over s.ld pro-
ceeds shall be paid by the Lessor,
0, In the event the parties are unable to agree on the
amount by which rent shall be reduced as provided above, or as to
Ithether the demised premises have been rendered unusable in Tenant's
operation, the issue shall be submitted for binding arbitration, in
accordance Itith the arbitration clause of this Lease Agreement,
B, The above obligations of Lessor to rebuild or restore
any bUilding or bUildings will constitute a bUilding basically the
salle as existed immediately prior to the damage or destruction,
F," Lessor agrees to keep in effect on the demised premises
and on all other buildings and improvements erected On the shopping
center, fire insurance Itith the broadest form of extended coverage
endorsement in an .mount not less than 80 percent of the fUll, fair
Insurable value of the said bUildings and improvements,
Lessor hereby releases Tenant, its assignee, subtenants,
concessionaires and licensees, to the extent of its Insurance cover-
age, from any and all liability for any loss or damage caused by
fire or any of the extended co.erage casualties, even if such fire
or other casualty shall be brought about by the fault or negligence
of Tenant or any person claiming under It, provided, however, this
release shall be In force and effect only with respect to loss or
damage occurring during such time as Lessor's policies of fire and
extended coverage Insurance shall contain a clause to the effect
that this release shall not affect said policies or the right of
Lessor to recover thereunder, Lessor agrees that Its fire and
extended coverage Insurance policies wi II contain surh a clause
'0 long .s the same i. obtainable Without extra cost, or If extra
cost is chargeable therefor, so long as Tenant puys such extra cost,
. ZI -
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/!II/'
XIII, A. Ten"nt covenants "nd .uroes not to anlgn thls
Loaso or to sublot the wholo or any part of tho doml..d pro.lso.,
ar 10 permit any othor p.rsons to occupy ..m. I,tthollt the 'Hltten
conHnt of the I..uor first had, r.torence. els8',/hero herein to
..., ene." not\~1 thHandlng. 1 n the evenl th.t TIlnlnt nquut.
p.rmiulon to .Ither nulan this I....., or to slIblet tho wholo or
Iny plrt of tho domlsod promises, or this L..so t. doomod to bo
anign.d pursuant to !'."grAph 2 of this Articlo,"th.n l,ol5or may
ol.ct to do one of tho followln8' (a) cons.nt; (b) terminate this
LOIu lilthin t.hlrty (lO) day. after I'ecolpt of Tonant'. roquest to
uslgn or sublot, In which evontthls lea.o shall termlnato and ond
upon thirty (lO) days IIritton notice of I....or '. election to so
terminate. Any such assignment or .ubletting, evon with tho con-
.ont of Lessor, shall not rolieve Tenant from Illblllty for payment
of rent or other 5U.S hereIn provided or from the obligatIon to
koep and be bound by tho torms, conditions and covenant. of this
Lea.e. The acceptanco of rent from any other por.on .hall not bo
doomed to be a waiver of any of the provision. of this Loaso or to
be a consont to the assignment of this Loose or .ublettlng of the
demised premises,
B. I f Tenant is a corporation, then any trans for of this
tea.e from Tenant by merger, con.olldatlon or Ilquldatloo, Or any
chango In ollner.hip or power to vote of a majority of Its outstand.
Ing voting stock shall not constitute an assignmont for tho purpose
of this Lease and shall not require the written consent of LOHor.
Further, an asslgnmont to a wholly.o"ned sub.ldlary or a corporation
that own. all of the .tock of the Tenanl shull also not require
the approval of Le.sor, provided Tenant remain. prImarily liable
for all of the terms and conditions of the Lea.e,
C. An assignment for the benefit of creditors .hall not
bo .fhctlve to tran.f.r any rights to assignoe IIlthout tho writ.
ten consollt of the LO$5or first having been obtained.
XIV. Upon rocelving Lessor's consont, Tonant .hall have
the right and privilego from time to timo to erect, maintain,
repal r, move, remOlle and r.place such signs on the build In; and
Improvements 011 Lessor's land and leased to Tenant as Tenant may
do em nocessary 01' convonlent in and about its use of said building
and Improvements. SaId consent .hall not bo unreasonably wlthlleld.
XV. All trade fixture., equlpmont and/or other property
of whatsoover kind which are provided by the Tenant or Ire attached
to, installed or stored in the leasod pr.mise. by and/or at the
oxpense of the Tenant, shall remain at all tlmo. tho property of
the Tonant, and the Les.or agroes that T.nant shall have tho right
at any time and from timo to time alld at tho end of the torlO of
this Lease or any extond.d term ther.of, to remove any and all of
Its aferesaid trade fixture., oquipment and/or oth.r property froIA
the lel!ed premlses. Tenant agrees to repair, at its own cost,
any dauge to the building causod by such romoval of fixtures,
eqolpment and/or oth.r proporty, L.ssor agrees not to mortgago or
oth.ndso encumb.r T.nant's said trade fixtur.s, equipment and/or
other property. L.ssor agrees that Tenant may mortgage Tenant'.
said trade fixtures, equipment, and/or other property. L.ssor
.ubordlnates Its 110n to the lien of a security Interest In Tenant'.
flxtur.s and equipment. .t~e~x.~aRXt"eXpersD..j~prDp~X
. 22 .
".11 undor the .ame t.rm. and conditions of thl. Lease Agreement,
yr;/
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XXVII, lC Ihe 'f"lIl1nl's Intclwt III th,' 1'1"'.'1'08 l""'II,.,\111I' thIN
i\prc,,*,nt ~ihill1 lw Huhll1mh'I' 1',\"'L:lItlOIl UI' :::l ilnlJ~I' lq~nl f"'lJ\."':l~ I HI: ii' 'I'\'UlIltt
sh311 hl' lliIlHl,Hc:llh'~llI hl'Ull~l'lIpr (II' jll~UI\\'''t, III' i r 1I :\'I.,'(,'h'I'1' nr tIWHI'C' 0.;111I11
bo oPJlltinl(,'~1 1'01' at~: hmlhllJh~ ur I'l'nl"~l'l", ;lIul Nlll'h ulll'ulntm"'lIt Ihall not I",
vac.t~d liit.hin olle hlllldl'cll t''''III)' (120) Jill'S, 01' H II l'Ol'pal"ltl' I'lOl'lllllllwl.OIl
of tho 'rlmant 01' all 1II'rnuJ!,'uK'llt h'ith llN rl'C'l11 tor~ ~h:t 11 be' 111'1'1 uv"lI h~' U l'OIlt't
ordor ,uklL'r tho I:rih'ral 1I:III)..n1ItlC)' Act, ur i f Tl~II:Ult !'\htlll ",a)..1:' \'nIUlltul'\' ll:.lllhm-
..ant COl'thu hcmut'lt of l'rt.IIHol'~ thon. in Ui1~' ot' ~ahl C\'entli, 'I'l'Il11l1t t1hi.,II,u'
de_d 10 hllvc ~rollched u 1I1111".'illl COWllllllt lit' Ihh tl'a.u Ulld I,l',"o,' '1U1~', lit its
optloll, l'e.clltcl' Iho preml.es IInd declll.'e Ihis l.ell"C IInd thc wnonc)' hcreh)'
created fC'rlftinntC'~', but lIotl'lithstalllllnl: sllch tcnntlUltion 'fcn:U1t ~hl111 n:uwili
liable for u11 nml or dltlftaAI.':1 to tho lCiHiCd premislJs which IIIUY hI.' clue prior to
such tonllloo t lon,
XXVllJ. I.e.-SS01' nnu 'l'onunt mutllllllr tl}1TeU that noither ono shall \.Ie
1 lib)., to thf: other COf any tu~s or dl1m~go 1 hut 111..1)' ho sustain!;'t! br either ona
of thaa or to tho property of cither 0110 01 theiR or to the hllSlIIUS!l('S oi ohhcr
one of th~ us it rc:.ult of fhr loss or dMulAe, ,...hC"thor or not f.lIch loss or
daNge shaU bo cuu.ed by or ~. duo t.o tho "c~J1genCl' of elthe.. of Ihe ,"Irtics
horeto or of their lc~pccrjvc officers, l.Hrl.,(.tOI'9, :q:r.nts. 5cn'llllts, t'llIJllo\'rl.'~i
or patrons. lll0 tCrnli Ifire loss ur dam:.!-:c" herein is intended to u\elln fho nnll
all other couses and risks \1C'lll.'l'all)' l:oVl.'rcu h)' "extended covorn~e." llilch of
.ald pUI'tle. waives the right of rocovery u~olnst tho othor party for any "uch
loss or d....ge that may occur during the orlglulIl teno of this Loose or on)' ex.
t"Mion Qr ronewal thereof.
XXIX. The Lessor sholl have tho right to curo dofoult" on bohalf of
the 'fenant during the t.enn of lhi, Lease, IInd shall havo the rieht to .dd Oil)'
costs Incurred by the I.es,or In (.Urlng such defaults, os addltlonol rental to
the rent resewcd heroin. In such event, such additional rent.l shall bo duo
and payable within ten (10) days of tel' nollce freln the l.assor 10 tho Tonant. thHt
such con. have heen Incurred in the removal of the defoults by the Tenant.
IiHL T.......,L ..:-0........ l.J.~.l iC L~~,~.~,'" I... tl.... riD! HaLtj..lgea fi..8f,J.tI:
the Carlisle Shopfllng (;enter, Tonont will ugrec with sllld first 'lor' t lut
it will not assign or cuncel the said lense or sublet the d' I","'he. or
any part thcreof without the soid Mort~agee's prl~ a1. Provided, however,
that Tenant shall have the riCht.. without /10 egl!O' s prior opproval, to grant
concession. or licenses to third par conduct departJllcnts In the demised
flr...ise., Provided furtl.e~h n ossiglUnent or assi~l1IIlents or 0 transfor or
transfer., of on h!te~ 0 partner or partners in the Partnership Carlisle
Food Market h of the portners to another partner or partners shall not
requl lartearoc's approvol only If tho assignor or assignors or tron.foror
. hd 1 ._.._in l.~~t\Bl1, 11-1.1.:. _.4v& L1.iJ ~~.......L, .
XXXI, A. None of tho remudies provided In this Section XXXI upou
default or breoch of covenant herein ~y Tunmlt. sholl be exerclsod h)' Lossol'
unless such defoult or brooch of covenant shull persht for ten (10) days And
not then until '-essor sholl h.\'o given Tenont thirty (30) day. prior "ritto"
notico'ot' such defoult or ~rellch of covenont, during which thirty (30) doy perloo
'fonont may curo nnd rcmedy such default or breoeh of covenant; provldud, hOl,ever,
thot If such defulIlt or breoch of covonant relato. to a matter other than tho
payment of a specified SUI. of manoy ond cannot reoson.bly be corrocted within
such thirty (30) do)' poriod, '-e..or shall not ex...clse Its remedies hOTClluKler
w\lo.. Teoant foils to use rellsonoble dlligencc In curing .uch default or breach
of covenant.
U, On every dofouit of "o)'ment of rent WId/or chllrges, or on any
nnd ever)' broach of covenant horcin hy Tenont, it sholl he 10ldu1 for nny lIttomey
:1~ utt.crn.:~,' for th;: T~nnnt to fil.: un uiirc{':m~nt fur ('nt~l'in~ in iHW '~ill...ot"nt
t.:IJUl't j:li :~::li::ablc :u.:tit:n nncl jll.l;mcnt in O.i~'CtJ;1~nt i.li!.,ill~t TJn~nt arid all 1H..'l"suns
daiJninlt ""d~1' Tonllnt fol' the ..""overy by ',,",or of po..e~~lol\ of the herein
cicomiSCtl pl'cmi~c~, 101' ,<,'hich thi=, l.:nsc ~lliI1J ho hlJ :iufhclcnt t.Arrnnt. \~'hol'('upon.
if I..09!WI" so t1osho~, u writ oC posses!Il.ioll lIIUY is~uc fortlnoJith. \'lithout ony prio1'
· CertlfleJ ~~,i1 . Return Ilecelpt Requosted
.n
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XXXI 11 , A, At IIny time within the first 10 years Df the lease
terll, Tenant shall have the rleht, frDIlI tllle to time, tD hIVe its
sales, stock and office are.. expanded Into the area marked "Puture
Expan. . 10,000", shOlm on attached "Exhibit A" by dottod Unes. In
the event Tenent wishes to have the i~prDvellent. required for such
expandDn constructed, it shall notify Landlord of said fact in
writinl, do.cribinl in leneral terms tho type of improvements which
Tenant dosires: (i) If Landlord notifies Tenant within thirty (30)
days after It has recolved plans and specifications for said improve-
ments from Tenant that it desires to construct said improvement., it
.hall have the rilht t~ do so; (II) If landlord notifies Tenant that
it doe. not wish to construct said imprDvement. or says nothine within
the afDrementioned thirty (30) dey period, then Tenant shall have the
rilht te subllit bids for such construction from eeneral contract.ors
acceptable to Lossor and Tonant, as provided for in tho orieinal
con.truction on Pale IDA,
B. If Landlord elocts tn construct said improvements, the cost of
such illprovement. by Landlord ohall be computed and such cost, tOlethel
with intere.t thereon, shall be amortized with interest OVer the then
re.aininl term of this Lease, which shall include any exercised
options, and shall be peld at the time minimuII rent is payable here-
under in monthly in.tallments by Tenant to Landlord, which shall be in
addition to the minimuII ront and the additional rent provided to be
paid by Tenant pur.uant to this Lease Alreement, and Tonant shall also
pay to Landlord annually thereaft.or as lonl a. this Lease cDntinue.
the entire increase in real estate taxes resultinl froll the .akina of
luch illprovellent. and the entire increase in premium. for additional
in.urance carried by Landlord by reason thereof: provided, however,
thet Tenant shall have the rilht to deduct froll additionai rent pro-
vided to be paid in thls Lease Agreement, based on net sales in excess
of the .lIount of net oalos made in the twelve months imaediatoly pre-
ceding the date on which the expanded gremhes opens for business,
hereindter called Pre-Bxpanslon na.. "ales, for any ha.. year arter
such i.provements have been completed, an amount UI' to, but not mou
than, the total of the annual interest and amortization end the annual
increase in taxes and insurance premiums paid by Tenant to Landlord
for such le"se year: provided, further, however, that at such time as
Tenant shall have fUlly paid to Landlord the cost of such iaprove-
ments end interest thereon through the amortization payments as afore.
said and such payments shall have ceased, Tenant shall not be entitled
to .ake any further deductions from additional rent based on net sales
in excess of Pre-expansion Base Sales for a lease year, except tbat
Tenant shall continue thereafter to have the right to deduct annually
froa additional rent based upon net sales in excess of Pre-expansion
Base Sales for a lease year, the amount of the annual increase in
tax.s and insurance premiums paid by Tenant for such lease year.
C. If Less01' shall have the construction completed by a general
contractor pursuant to Article XXXIII, A (ii), then Tenant shall pay
to Landlord annually thereafter the entire increase in real estate
taxes 1'esultina frol. the maldng of such improvements and the entire
increase in premium. for. the additional insurance carried by re8.on
thereof. the cost of such improvement. shall be computed and, togethe'
with interest thereon, shall br amortized over the then remainina terll
of this Lease which shall include any exercised options, and Tenant
shall have the right to deduct from additional rent provided to be pai,
by raratuph IV hereof, based on net sale. in excess of Pre-Bxpans ion
Ba.e Sa e. for any lease year after such improvements have been COIR-
pl.ted, and emount ug to, but not more than, the total of the annual
lncrea.e in taxes ana in.urance prem ums paid by Tenant to Landlord fo
.uch lease year: provided, howeverl that at such time as the full per-
iod of amortization of such co.t or the improvements and interest
thereon shall have expired, Tenant shall not be entitled to make any
further deductions from aduitional rent based on net sale. in excess
of Pre-Bxpansion Base Sales for a lease year, except that Tenant shall
continue thereafter to have the right to deduct annually thereafter
from additional rent based upon not sales in excess of Pro-Expansion
Bas. Sales for anI lease year, the annual incroase in taxes and insur-
anc. premiums paid by Tenant or such lease year.
- 29 -
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XX,\I\', 1"'1:1:1: .'1\,IEIlltr:,
In un)' \';u:(. \then' l'ilhcr pan)'
IUHcto is 1'C'lplln1d t.o du ;111)' uct, dolupi l.':mllct! h)' at rf.'~u!tlll.: from
Act cC (Iud, I;:lt', l'lviJ \:lJlIlIIotlull, t'iro ur Ut.hl'r cuslluLly. IlIU01' dir~
HcUltJlo's, :l.hortol:t'li ur 1.1hor, 1:I:ltl'I'1111li VI' Nlujl'llll'Jlt, ~OVCrlllnCJll
rcgul:ltJons, ('II' nlhor calues borand ~uch purty's rl'(I~onublu Control
shall lIot ho "ollntod In dutorllolnlnc the tl,"o durlnu ...'hl"h such "ark
shall ho "alloploted, "hothar Hoch tlmo bo ,Iaslcnntod hy a fixed ,Iuto,
a fixed tlmo or II" rOl1son:lbJo timolt, 1'elWllt agrees thut it ,.lill not
dela)' opcnin~ tho uClIlisctl pl'oll1is"'~ for bU~jnt'ss in tho!Oo instnnco,
whore minor itrlna of construction, furnisl,jog and/or murcl'andj~ing
rellaln inco'"plete,
[n UII)' case h'hc~'o '''ol'k is to be paid for out of
insurance proco~ds or co.,domnatioll oward~1 (Iue nllownllce sllul! he
made, both to the party required to porform such Nark and to the
party required to ,"al,a .IIch p.yment, for delays in tho collection of
such proceeds and D,,"'lI rds.
XXXV, AllUlTRATlON, Should any "\spute ariso respectillK
the intorpretation or application of this Lease, ar if Lossor and
Tonant cannot satisfactoriiy aKreo as to tho interpretation of any
articlo of thh I,ease, then the mat tor in dispute shall be referred
to orbltntlon, IHthin 10 days folloWing receipt of a request for
arbitration, each party shall choose an arbitrator and "ithin 3 days
thereaftor the two seloctod shall chooso a,third arbitrator, In the
evoat that the t"o arbitrators chosen cannot ngree up 011 the third
arbitrator, the American Arbitration Association shall be requosted
to supply an urbitrator and this roquost may lie mad. by oithor arbi-
trator, The arhltrati"n proceedings shall commenco and be comploted
as soon us possible, The decisiem of the majority af the arbitrutors
shall he final and conclusive upon the parties in the matter in dis.
put. and the arbitrators shall also havo tho pOl<er to oIotormine
allocation of cost of the procoeding upon the partios,
XXXVI, INIlIlr.mll!'~T TnNANl', ^,"" Ind"rrlllollt fnl' Tonant I'll
en tor into thiH I.case Acreemont, 1.C.!ssor covenants that it has l.~ntorccJ
into" V.lid und binding !S-year I.euse Acreelloont "Hh The Don-'!'on
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IN IVl1'l:"S.~ \llI/:PJ:nr, 1,,",01' hun ,'''"~rd Ihl. ,IIII'Vl'mullt Iu I", ""'CII\I'" 1111
Its h"h,1f h~' It.n "l'unill,',,, ,,"i1 IlK lIl'/ll to he hOI't'IUltll Ilffixed, IIlt"~te" II}' lU
SoCI'etnn'. IIlId 'I'ell/lllt ha. cIIII"e,1 Iltl~ .lo'\'OIll"ot to he "1~lIed 1>1I Its hehlllf b)'
Its 1"\'I;ll'n, thu "")' IIlltl )'ou\' fll':It IIbo,,<, "rltloll,
,Itteu I
CROhN AoIU:R I CAN COImUWI'lON
'llV ~ () ?;c;;
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AttOH:
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FIRST t~ENDHENT TO LEASE
(f:w
THIS FIIIST AMENDMENT TO LEASE 18 made thU;r day
of /YIlt It( ~ , U14 by and b.twe..n GIANT FOOD STORES, r,NC"
(h.r..inafter r.ferred to aa 'T.nant"' and CROWN AMERICAN
CORPORATION (her.inafter ref.rred to aa "L~aaor""
WITNESS ~'HAT.
.. '
Leaaor and T~nant entered into a L..~e dated March
5, 1974 (her.inaft.r referred to o. "Lease"' for certain
pr.mi.... more particularly de.cribed therein (her..inafter
referred to a. "premiaes"'. and located, g.nerally, within the
Carli.l. Shopping plaza in the Borough of carlisI., County of
CUmberland, State of p.nnsylvania, and
Th. partie. hereto d.sire to am.nd the said Lea.e
in a manner and t.o the .xtent hereinafter set forth.
NOH, THEREFORE, in consideration of the mutual cov-
enant. herein, and with'the int.ntion to be l.gally bound here-
by, the under.igned agr.. as follows.
1, A n.w .ection F shall be added to Article V a.
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follow.,
During the first ten years of the term h.reof,
provided The Bon-Ton Department Store, Inc.
.hall be operating in its premisee in the
Shopping Center. Tenant agrees to keep the
lea sod premises open for business and to
operate as a food supermarket, After the end
of the said ten year period, or if The Bon-
Ton Department Store, Inc. shall not be operat-
ing during said ten year period, Tenant shall
h.vo the right to vacate the leased premises,
provided, however, that Tenant shall remain
liable for the payment of rent and all other
charges and obligations and shall continue to
b9 bound by the terms. conditions and covenant.
of this leasel and. provided further, in the
event Tenant shall leave vacant all of the leased
premises for a period in eKce.s of three month.,
eKcept for ca\l3es due to fire or other ca.ualty,
Lessor shall have the right at ita option to
terminate this leue. upon "ritten notice to
Tenant and tharoafter, neither party shall have
any further liability hereundec.
'.
shown on lItt<lched [xhiblt ",I" b)' Jotted lines, "hlch Exhibit "A"
is attar.het! to "l.ease", at its 01'1'0 cost and eXIJensD. In such event I
the miniMuM rent shall not be Incr.ased. but Tenant shall pay to
Lessor annualiy there.fter. <IS long .~ this Lea.. ,:,ontlnues. the
entll'e Incr.... in reai estate taxes resuitlng from the m.king of
said Improve.ents .nd the entire increase in premiums for additional
insur.nce carried by Lessor by reason thereof; provided. that T.nant
shall have the right to deduct from contingent rental provided for
in Article III hereof b.sed on gross uies In eXcess of 19.IZ7,OOO
for on, leese year after such Improvements have been completed. on ~
debt IlIlrvica
a cUMulative basis Dn amount up to, but not more than, tha/tDbOdc
Jluributable to tho co8t of cKpandins the prelli.... l~
~..__..........,........."""a_a. as "ell as the annu.l increase in I"
taxes and insurance premiums paid by Tenant to Lessor for such
lease year; provided, further. however, that at such thne a5 Tenant
has been reimbursed from said contingent rental over the base figure
of $9,IZ7.000. renant shall not be entitled to make any further
deductions from contingent rent in eXcess of the amount of the cost
of, said expansion, except that Tenant shall continue thereafter to
have the right to deduct annually from additional rent based upon
gross sales In excess of $9,IZ7,OOO. the amount of the annual
increase in taxes and Insurance premiums paid by Tenant for such
lease year, The permitted deduction from cantingont rental over
$9.IZ7.000 for reimbursement to Tenant for the cost of construction
of tl.. expanded premises shall be nlade annually on a cUllulative
basis, As to taxes and InsurBnce. this shall be mad. annually on
a non.clUIulative basis.
Z. Th. provision wherein "Tenant" is p.rmltted to deduct its.
expansion cost from contingent rent shall In no way affect or reduce.
the minimum rental obligations provided for In Artlcl~ III of Lease
Agreelllent.
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111'"11 the 113rtlo" hereto, thul\' I'e;peetlve .ueco~.or" lInu H.l~ns.
,I. li~ecpt;1S herein IiI"tllflull. the I.U""0 I'rovl~lulI. provldeu
tOI' In Loase ,\groolnollt Juted ~13rch >. l~7oI. us lIlIle/ldeJ :Iareh In,
197.1. shoi 1 romoln III [ull (oree :lIId u f [oct.
IN WITNES~ WHBREOF, tho partlo. horeto huvo .et their hartds
tlll'l :ie"l:i,
)JfIW- A r/'f~.d--'7
GIANT FOOl) STORB~. INC.
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!,TTUST:
CROWN AMERIC~N CORPORATION
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Ron Rusinak, Esquire
January 14, 1998
Page 2
Initially, It should be stressed that Crown American accepted and assumed all responsibility
for injuries and/or damages occurring in the "common areas" and agreed to indemnii)t Olant with
respect to all injuries and/or damages to persons and/or property in or upon said "common areas"
under the Lease. The "common areas" included the Carlisle Plaza Mall Parking LOt.I The Lease
provided in pertinent part:
It sha1I be Lessor's duty to properly regulate the use nnd operation of all the common
areas so as to serve uniformly the best interest of all the tenants in the Shopping
Center, , , , Lessor shall be responsible for the operating, lighting, repairing, striping,
cleaning of, removing snow from, controlling traffic and to.mring against public
liabili\)' on the common areas in the Shopping Center,l
Lessor covenants and agrees to and hereby doea indemnifY and I\Qlll.JJarmless thl'
Tenant of allliabllity with respect to all iniuries and/or d~ages to persons and/or
propel1V in or upon said common ar!il.u..\ll).th while l1eing constructed and d~ng tile
l~rm onhis Leasll,)
Ms, Nesbella was unfortunately allacked in the Parking Lot which was clearly a "common
area" under the Lease, The civil action filed by Ms, Nesbella against Crown American and Oiant was
grounded upon alleged deficiencies in the security being provided for the Parking Lot. Again, Crown
American was solely responsible for the provision of security for "common areas" such as the Parking
Lot under the Lease, In light of the foregoing Lease provisions, the responsibility for maintaining
adequate security for the Parking Lot was squarely on the shoulders of Crown American alone.
The general rule in Pennsylvania regarding indemnificat.ion for allomey's fees and costs is
"that an indemnitee may recover allorney's fees and costs incurred in defense of the liability
indemnified against from the indemnitor.". In other words, Oiant (as the "indemnitee") may recover
reasonable counsel fees and costs incurred during the course of its defense in which Crown American
(as the "indemnitor") stands as the primary defendant. The Pennsylvania Supreme Court has adopted
Restatement (Second) ofTorts ~ 914(2) in that regard which provides:
--
Lease Agreement (VI, C, p. 12).
1 Lease Agreement between Crown American Corp. and Giant Food Stores, Inc,
(See, VI, C, p, 13) (emphasis added).
)
Lease Agreement (VI, D, pp, 14-15) (emphasis added),
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Fleck v, /CDI Sylvan Pools, IIIC" 981 F,2d 107, 117 (3rd Circ 1992); A,C. Israel
Commodity Co, v, Americall-West Afri!:all Line, IIIC" 397 F,2d 170,172 (3rd Circ, 1968).
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JUN 1 8 1998 y..7
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
.
GIANT FOOD STORES, INC"
Civil Division
Plaintiff,
No, 98-2\06
v,
Defendant.
PRELIMINARY OBJECTION OF
DEFENDANT, CROWN AMERICAN
PROPERTIES, L.P., 1'0 DISMISS
COMPLAINT PURSUANT TO RULE
1028(0)(6)
CROWN AMERICAN PROPERTIES,
Filed on Behalf of: Defendant
Counsel of Record for this Party:
Stephen S, Zubrow
Pa, /.D, #43523
James S, Larrimer
Pa, 1.0, #62956
I
,
Marclls & Shapira LLP
Firm No, 145
One Oxford Centre, 35" Floor
Pittsburgh, P A 15219
(412) 471-3490
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
. . OIANTFOOD STORES, INC" ) CIVIL ACTION. LA W
)
Plaintiff, ) NO, 98.2106
)
v, ) PRELIMINARY OBJECTION OF
) DEFENDANT, CROWN
CROWN AMERlCAN PROPERTIES, ) AMERICAN PROPERTIES, L.P.,
L.P., ) TO DISMISS COMPLAINT
) PURSUANT TO RULE 1028(11)(6)
Delimdant, )
Defendant, Crown American Properties, L.P, ("Crown"), hereby preliminarily objects to
the complaint of plaintiff, Giant Food Stores.lnc, ("Giant"), For the reasons more fully set forth
in the brief in support of this preliminary objec~ion, the complaint should be dismissed pursuant
to Rule 1028(b)(6) of the Pennsylvania Rules of Civil Procedure 011 the grounds that the parties
to this action voluntarily agreed to arbitrate the dispute that is the subject of this litigation,
Respectfully submitted,
I
,
-...
Counsel for Crown American Properties,
L.P,