HomeMy WebLinkAbout01-06374
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IN THE COURT OF CO:MMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
SUPERCUTS, INC.,
Plaintiff,
v.
CNIL ACTION - LAW
KATHY A. ZEIGLER,
NO. 01- lj;37'!
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Defendant.
NOTICE OF DEFENDANT'S RIGHTS
To: Kathy A. Zeigler
A judgment for possession of real property has been entered against you and in favor of the
plaintiff without prior notice and hearing based on a confession of judgment contained in a
promissory note or other document allegedly executed by you. The sheriff may remove you from
the property at any time after thirty (30) days after the date on which this notice is served on you.
You may have legal rights to defeat the judgment or to prevent your being removed from the
property. ANY PETITION SEEKING RELIEF FROM THE JUDGMENT MUST BE FILED
WITHIN THIRTY (30) DAYS AFTER THE DATE ON WIllCH THIS NOTICE IS SERVED ON
YOU OR YOU MAY LOSE YOUR RIGHTS.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO
NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE
OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP:
Cumberland County Lawyer Referral Service
Cumberland County Courthouse
Carlisle 17013
(717) 240-6200
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USTED DEBE LLEV AR ESTE DOCUMENTO A SU ABOGADO
IMMEDIATAMENTE. S1 USTED NO TmNE UN ABOGADO 0 NO PUEDE
P AGARLE A UNO, LLAME 0 VA Y A A LA SIGUIENTE OFICINA PARA
A VERIGUAR DONDE PUEDE ENCONTRAR AS1STENCIA LEGAL.
Cumberland County Lawyer Referral Service
Cumberland County Courthouse
Carlisle 17013
(717) 240-6200
RHOADS & SINON LLP
By:
Kenneth L. Joel, Esqui
Stephanie E. DiVittore, squire
One South Market Squ
P.O. Box 1146
Harrisburg, PA 17108-1146
(717) 233-5731
Dated: November 7,2001
Attorneys for Supercuts, Inc.
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
SUPERCUTS, INC.,
Plaintiff,
v.
CNIL ACTION - LAW
KATHY A. ZEIGLER,
NO. tJl ~ IP 371/
i;J
Defendant.
CONFESSION OF JUDGMENT IN EJECTMENT FOR POSSESSION OFl REAL ESTATE
Pursuant to the authority contained in the warrant of attorney, the original or a copy of
which is attached to the Complaint filed in this action, I appear for the Defendant and confess
judgment in ejectment in favor of the plaintiff and against the defendant for possession of the real
property described as follows: a store premises, part of Store Number 186, erected as part of a
shopping center presently known as the West Shore Plaza, located at 1200 West Market Street,
Lemoyne, Cumberland County, Pennsylvania.
RHOADS & SINON LLP
By:
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Ke eth L. Joel, EsquIT
Stephanie E. DiVittore, Esquire
One South Market Square
P.O. Box 1146
Harrisburg, PA 17108-1146
(717) 233-5731
Dated: November 7, 2001
Attorneys for Supercuts, Inc.
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
SUPERCUTS, INC.,
Plaintiff,
v.
CIVIL ACTION - LAW
KATHY A. ZEIGLER,
NO.
Defendant.
COMPLAINT IN CONFESSION OF JUDGMENT IN
EJECTMENT FOR POSSESSION OF REAL ESTATE
NOW COMES, Plaintiff, Supercuts, Inc., by its attorneys, Rhoads and Sinon LLP, and files
the within Complaint in Confession of Judgment in Ejec1ment for Possession of Real Estate, stating
as follows:
I. The Plaintiff, Supercuts, Inc. ("Plaintiff' or "Supercuts"), is a corporation
organized and existing under the laws of Delaware having its principal place of business located
at 7201 Metro Boulevard, Minneapolis, Minnesota 55439.
2. Defendant Kathy A. Zeigler ("Defendant" or "Zeigler") is an adult individual
whose last known address is R.R. I - Box 460, Elliottsburg, Pennsylvania 17024.
3. At the time of the events relevant to this Complaint, Supercuts was the
Sublandlord of a premises, a store premises, part of Store Number 186, erected as part of a
shopping center presently known as the West Shore Plaza, located at 1200 West Market Street,
Lemoyne, Cumberland County, Pennsylvania.
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4. Supercuts, as Sublandlord, entered into a sublease dated June 1, 1999 (the
"Sublease") with Zeigler for the store premises at the West Shore Plaza. A true and correct copy
of the Sublease is attached hereto as Exhibit "A" and incorporated herein by reference.
5. The premises, owned by Smith Land & hnprovement Corporation, was originally
leased, under all agreement dated April 15, 1997 (the "Master Lease"), to Head Hunters Salons,
Inc. A copy of the Master Lease is attached hereto as Exhibit "B" and incorporated herein by
reference.
6. On February 18, 1998, Head Hunters Salons, Inc., assigned, transferred and
conveyed all of its right, title and interest in such premises under the Master Lease to Supercuts,
rendering Supercuts the tenant under the Master Lease. A copy of the Assignment is attached
hereto as Exhibit "c" and incorporated herein by reference.
7. Pursuant to express authority in the Master Lease, and written consent from the
owner of the property, Smith Land & hnprovement Corporation, Supercuts entered into the
Sublease with Zeigler.
8. The Sublease incorporates the Master Lease, as Paragraph 5 of the Sublease
specifies that an terms and conditions of the Master Lease are incorporated into this Sublease as
if fully set forth herein. (Exhibit A, '\[5).
9. Further, Paragraph 6 of the Sublease specifies that Zeigler was to assume all
tenant obligations under the Master Lease, stating: "Subtenant shall assume, perform and be
responsible for Sublandlord's obligations as Tenant under the Master Lease provisions
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incorporated herein by Paragraph 5 hereof to the extent that said provisions are applicable to the
premises subleased hereunder." (Exhibit A, ~6).
10. Paragraph 7(A) of the Sublease then confers all rights of the property owner under
the Master Lease to Supercuts, stating "Sublandlord shall have, with respect to Subtenant, all the
rights of Landlord under said Master Lease provisions. . .." (Exhibit A, ~7(A)).
11. An Event of Default has occurred under the terms of the Master Lease and
Sublease as Zeigler has failed, neglected or refused after twenty (20) days written notice "to keep
and maintain all portions of the Premises in good order and repair, and in a neat, safe, clean and
orderly condition. . . The foregoing sentence shall obligate Tenant to repair, maintain and
replace, without limitation. . . plumbing, electrical, sprinkler, heating, ventilation and air
conditioning systems, . . . mechanical systems. . . within the Premises. . . ." (Exhibit B -- Master
Lease, Article IX, ~9.01).
12. Specifically, Zeigler has failed, neglected or refused after twenty (20) days
written notice to perform the repair or replacement of the heating, ventilation and air
conditioning system at the premises and/or failed to reimburse Master Landlord's invoice for
repair and replacement of such system. (Exhibit B -- Master Lease, Article IX, ~9.0 1).
13. A second Event of Default has occurred under the terms of the Master Lease and
Sublease as Zeigler has failed to "continuously, actively and diligently operate or cause the
permitted business to be operated in good faith and in an efficient, businesslike and respectable
manner. . . and employing Tenant's best continual efforts and abilities to the end that the
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maximum Gross Sales which can reasonably be produced from the Premises shall be produced."
(Exhibit B -- Master Lease, Article V, ~5.01(d)).
14. Further, a Deliberate Event of Default has occurred under the terms of the Master
Lease and Sublease as Zeigler has abandoned the premises. (See Exhibit B -- Master Lease,
Article XIX, ~19.02(c)) (specifying a Deliberate Event of Default occurs "[i]f Tenant shall
abandon the Premises whether they are vacant or not, or if the Premises shall be permitted to
become vacant").
15. Supercuts has provided Zeigler with adequate notice of Zeigler's failure to
observe and perform the provisions and covenants of the Sublease and Master Lease as outlined
above. A true and correct copy of the Default Notice is attached hereto as Exhibit "D" and
incorporated herein by reference.
16. Despite adequate notice, and in violation of the Sublease and Master Lease,
Zeigler has failed to correct her failure to observe and perform the provisions and covenants of
the Sublease and Master Lease as outlined above. As a result, Zeigler is in default under the
terms of the Master Lease and Sublease and remains in default under the terms thereof.
17. The Master Lease, and the Sublease by incorporation, contain confession of
judgment and warrant of attorney provisions which empower any attorney of any court of record
to appear for and enter judgment in ejectment for possession against Zeigler in favor of
Supercuts for any Deliberate Event of Default or uncured Event of Default under the Master
Lease. (Exhibit B -- Master Lease, Article XIX, ~19.04)_
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18. Under the leases, Supercuts is also entitled to all costs, including a reasonable
attorneys' fee for the maintenance of this action. (Exhibit B -- Master Lease, Article XIX,
'19.04).
19. Supercuts has informed Zeigler of its intention to confess judgment for ejectment
against Zeigler. (See Exhibit D).
20. Supercuts is the holder of the Sublease, and the tenant of the Master Lease, and
judgment has not been entered on the Sublease or the Master Lease in this or any other
jurisdiction.
21. Judgment is not being entered by confession against a natural person m
connection with a residential lease.
WHEREFORE, Plaintiff demands the entry of a confessed judgment in ejectment against
Zeigler and in favor of Supercuts for possession of the Premises.
Respectfully Submitted
RHOADS & SINON LLP
By:
~~
Kenneth L. Joel, :&quire
Stephanie E. DiVittore, Esquire
One South Market Square
P.O. Box 1146
Harrisburg, PA 17108-1146
(717) 233-5731
Dated: November 7, 2001
Attorneys for Supercuts, Inc.
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VERIFICATION
Kristine M. Burkhardt, deposes and says, subject to the penalties of 18 Pa.C.S.A. ~4904
relating to unsworn falsification to authorities, that she is the Corporate Lease Negotiator of
Supercuts, Inc., that she makes this verification by its authority and that the facts set forth in the
foregoing Complaint for Confession of Judgment in Ejectment for Possession of Real Estate are
true and correct to the best of her knowledge, information and belief.
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Dated: ttl~ ~2 010(7/
-./rEltM~1r~ ~/<<cA-.
. stine M. Burkhard
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EXHIBIT "A"
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SUBLEASE
This Sublease is made on this / J'I day of . /1' I-'~ . 1999. between SUPERCUTS, INC.,
a Delaware corporation ("Sublandlord"), whos~/address is 7201 Metro Boulevard, Minneapolis,
Minnesota 55439-2103, and Kathy A, Zeigler, an individual ("Subtenant"), whose address is RR I - Box
460 - ElIiottsburg, P A 17024, who agrees as follows:
1. REClT ALS
This Sublease is made with reference to the following facts and objectives:
A. Smith Landlord & Improvement Corporation, whose address is clo High
Associates, LTD - SOlO Ritter Road - Suite 199 - PO Box 1367 - Mechanicsburg,PA 17055-1367,
("Master Landlord") and Sublandlord, as successor tenant. entered into a written lease dated April IS,
1997, as amended by the Assignment and Amendment of Lease dated February 18, 1998 ("Master Lease"),
covering premises containing approximately 900 square feet located at West Shore Plaza - Lemoyne
Pennsylvania, which premises are more panicularly described in the Master Lease. The Master Lease
is incorporated into and made a part hereof. and Subtenant acknowledges having carefully read the Master
Lease prior to execution of this Sublease,
B. Subtenant desires to sublet the said premises from Sublandlord on the provisions
contained in this Sublease.
2. PREMISES
Sub landlord hereby leases to Subtenant and Subtenant hereby leases from Sublandlord the
premises described in the Master Lease.
3. TERM
The term of this Sublease shall commence on the date of Master Landlord's consent herein,
and shall end one (I) minute before the expiration of the term of the Master Lease or any applicable
extension thereof.
4. RENT
Subtenant shall pay to Sublandlord, as rent and other tenant charges, without deduction,
setoff, prior notice, or demand, the same rent that Sub landlord is required to pay to Master Landlord
pursuant to the provisions of the Master Lease. Said rent shall be due and payable ten (10) days prior to
the date Sublandlord is required to pay same to Master Landlord pursuant to said Master Lease.
5. INCORPORATION BY REFERENCE
All terms and conditions of the Master Lease are incorporated into this Sublease as if fully
set forth herein.
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A. In the event of any conflict between provisions of said Master Lease and the terms and
conditions herein set forth. the provisions of this Sublease shall prevail and supersede.
6. ASSUMPTION OF TENANT OBLIGATIONS
Subtenant shall assume, perform and be responsible for Sublandlord's obligations as Tenant
under the Master Lease provisions incorporated herein by Paragraph 5 hereof to the extent that said
provisions are applicable to the premises subleased hereunder. Subtenant agrees to indemnify and hold
Sublandlord harmless on account of any and all claims of any kind made by Master Landlord under the
Master Lease or by any other person or party on account of any obligation of the Subtenant pursuant to
the Master Lease arising after the commencement of this Sublease. In the event Subtenant fails to keep
and perform each and every obligation of the Sub landlord under the Master Lease, then Sublandlord shall
have the right, at its sole option, to (i) perform such obligations. including the payment of rents and other
tenant charges, and all sums so expended shall be due and payable to Sublandlord on demand, or (ii)
terminate this Sublease. Any termination of this Sublease as provided for herein shall (a) not relieve the
Subtenant of any obligations incurred or arising under this Sublease prior to the date of such termination,
and (b) shall relieve Sublandlord of any future obligations to Subtenant under this Sublease.
In addition to the foregoing, Subtenant hereby reaffirms and agrees to adhere to the required
Shopping Center Hours of Operation as stated on Page 2 of Part I of the Master Lease. Further, Subtenant
hereby reaffirms and agrees to fully comply with Section 9.01 of the Master Lease by keeping the Premises
in a neat, safe, clean and orderly condition.
7. SUBLANDLORD OBLIGATIONS
Sublandlord does not assume the obligations of the Master Landlord under the provisions
of the Master Lease, but shall exercise reasonable diligence in attempting to cause Master Landlord to
perform its obligations under the Master Lease for the benefit of Subtenant. Sub landlord agrees that it shall
remain fully liable to the Master Landlord under the Master Lease, this Sublease notwithstanding. In
addition:.
A. Sublandlord shall have, with respect to Subtenant, all the rights of Landlord under
said Master Lease provisions;
B. Wherever, by said Master Lease provisions, notice is required to be given by
Landlord to Tenant, Sublandlord shall be required to give such notice to Subtenant; and
C. Any option to extend the term of the Master Lease contained in said provisions is
hereby granted by Sub landlord to Subtenant provided Subtenant is not in default under this Sublease, and
Subtenant gives Sublandlord written notice on a timely basis.
8. ALTERATIONS
Subtenant shall not make any alterations to the premises without Sub landlord 's prior written
consent. Any alterations made with the consent of Sublandlord shall remain on and be surrendered with
the premises on expiration or termination of the term of the this Sublease, except that Sublandlord can elect
subleuse -west shore plaza (zeigler)
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within thirty (30) days before expiration of the term of this Sublease, or within five (5) days after
termination of the term of this Sublease, to require Subtenant to remove any alterations that Subtenant has
made to the premises. If Sublandlord so elects, Subtenant at its cost, shall restore the premises to the
condition designated by Sub landlord in its election, before the last day of the term of this Sublease, or
within ten (10) days after notice of election is given, whichever is later.
If Subtenant makes any alterations to the premises as provided in this paragraph, the
alterations shall not be commenced until two (2) days after Subtenant has provided notice to Sub landlord
stating the date the installation of the alterations is to commence.
9. ASSIGNMENT: SUBLETTING
Subtenant shall not voluntarily assign or encumber its interest in this Sublease or in the
premises, or further sublease all or any part of the premises, or allow any other person or entity (except
Subtenant's authorized representatives) to occupy or use all or any part of the premises, without first
obtaining Sublandlord's and Master Landlord's consent. Any assignment, encumbrance, or further
sublease without Sublandlord's and Master Landlord's consent shall be voidable and, at Sublandlord's
election, shall constitute a default. No consent to any assignment, encumbrance, or further sublease shall
constitute a further waiver of the provisions of this paragraph.
10. SUBLANDLORD'S ENTRY ON PREMISES
Sublandlord and its authorized representatives shall have the right to enter the premises at
all reasonable times to determine whether Subtenant is complying with its obligations under this Sublease
and to perform any act which Sub landlord has the right or duty to perform under the terms of the Master
Lease or this Sublease.
11. TENANT'S PERFORMANCE UNDER MASTER LEASE intentionally deleted
;'~t RDj" time, "i.-itk prier "sties 18 SootBflaHt, SNslaHsleFa eaR el88t 18 FBftairB SHBtsHRHt 18
~erWHf1 its 8sligatienG ooaer tRia 8ubleasB airB~tly te t1astB.F LaluUeni, aRB. ~aBtel\aRt Bhall 88 Be Sf!
SyelaRdhn::g'g sleetieR. in -.vki,ek S":SHt SllBt8MHt BaaIl B€HUi 18 S1:islaadlefa fF8Rl time fa tiH1a seflieB sf all
Rstieea aRB etHer 8eHllBllRisatieRB it aRall B8ReI te aHa ree8i~:e {rem ~.laBter l.aHalafo.
12. COVENANT OF OUIET ENJOYMENT
Sub landlord represents that the Master Lease is in full force and effect and that there are no
defaults on SubLandlord's part under it as of the commencement of the term of this Sublease.
Subject to the Sublease terminating as provided in Paragraph 13, Sublandlord represents that
if Subtenant perfonns all the provisions in this Sublease to be performed by Subtenant, Subtenant shall have
and enjoy throughout the term of this Sublease the quiet and undisturbed possession of the premises.
13. MASTER LEASE
This Sublease is subject to all the provisions of the Master Lease, and Subtenant shall not
sublease -west shore plaza (zeigler)
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suffer any act or omission that will violate any of the provisions of the Master Lease. This Sublease shall
be construed in accordance with, and its validity and effect shall be governed by the laws of the
Commonwealth of Pennsylvania.
If the Master Lease tenninates, this Sublease shall tenninate and the parties shall be relieved
from all liabilities and obligations under this Sublease; except that if this Sublease tenninates as a result of
a default of one of the parties under this Sublease or the Master Lease, or both, the defaulting party shall
be liable to the non-defaulting party for all damage suffered by the non-defaulting party as a result of
tennination.
If Sublandlord is given the right under the Master Lease to tenninate the Master Lease (e.g.,
in case of destruction) Subtenant shall have the right, in its sole discretion, to detennine whether it wishes
to have the Master Lease tenninated. If Subtenant elects to have the Master Lease tenninated, Subtenant
shall tenninate this Sublease and Sublandlord shall tenninate the Master Lease.
14. CONSENT OF MASTER LANDLORD.
This Sublease shall be specifically contingent upon the consent of the Master Landlord as
provided in Section 11.1 of the Master Lease. In the event Master Landlord's consent to this Sublease is
not obtained, this Sublease shall be null and void and of no further force and effect.
IN WITNESS WHEREOF, the parties have executed this Sublease as of the date first above
written.
SUBLANDLORD:
SUBTENANT:
SUPERCUTS, INC.
A Delaware corporation
Kathy A. Zeigler, an individual
By:
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Bert'M. Gross
Senior Vice President
BY:/.~~ ::d2fJdv)
y A. Igl
sublease -west sbore plaza (zeigler)
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CONSENT OF MASTER LANDLORD
The undersigned, Smith Landlord & Improvement Corporation, referred to as Master Landlord
in the foregoing Sublease, hereby consents to the subletting of the premises pursuant to the foregoing
Sublease.
It is understood and agreed between the parties that consent by the Master Landlord is specifically
conditioned upon the requirement of Subtenant to install a functional fascia storefront sign at the Premises.
Said sign shall be installed within twenty-one (21) days following the date Master Landlord approves in
writing, Subtenant's storefront fascia sign specifications. Said storefront fascia sign specifications shall be
submitted to Master Landlord within ten (10) days of Master Landlord's execution of this document. In
the event Subtenant fails to submit its plans or install its storefront fascia sign within the required
timeframes. then Landlord's consent to this Sublease shall immediately upon Master Landlord's notice to
either Subtenant or Sublandlord be revoked and the Sublease shall be rendered null and void and of no
force or effect.
By said consent the Master Landlord shall not be constituted a party to the foregoing Sublease nor shall
Master Landlord's consent constitute a waiver of Master Landlord's right to approve any subsequent
assignment or subletting by the Sub landlord or the Subtenant.
SMITH LAND & IMPROVEMENT CORPORATION
By 7CE~7L
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sublease -west shore plaza (zeigler)
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EXHIBIT "B"
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PART 1
WEST SHORE PLAZA
LEASE AGREEMENT
THIS LEASE, made on the /~ay of ./-jfr, ) 1997, by HIGH
ASSOClA TES, L m., 4909 Louise Drive, Suite 209, Mechanicsbutg, P A 17055 (hereinafter called
"Agent"), Agent for SMITH LAND & IMPROVEMENT CORPORATION, 200 I State Road, Camp Hill,
PAl 700 1-8134 (hereinafter called "Landlord), and HEAD HUNTER SALONS, INC., a Delaware
Corporation, doing business as HEAD HUNTERS, with a notice address and an address for receipt of
invoices at 3705 Carlisle Pike, Camp Hill, PA 17011, (hereinafter called "Tenant").
WITNESSETH:
1. Leased Premises.
Landlord hereby leases to Tenant and Tenant hereby rents from Landlord the store premises (hereinafter
referred to as the "Premises") outlined in red on the plan attached as Exhibit "A" hereto as part of Store
Number 186 erected as part of a shopping center presently known as WEST SHORE PLAZA (hereinafter
referred to as the "Shopping Center" and presently compromising the area shown in Exhibit "A"), located
at 1200 West Market Street, Lemoyne, PA 17043. The Premises have been measured by Landlord and
are described by the following approximate dimensions which are measured from the outside building lines
of each wall of the Premises or, in the case of this walls separating the Premises from other stores in the
Shopping Center, from the center lines of such ;valls:
Front: 15 ft.
Depth: 60 ft.
Total Rentable Square Feet of Premises: 900 sq. ft.
Tenant has either measured and confIrmed the above dimensions or hereby waives any right to dispute said
dimensions in the future. Tenant also has the right to the non-exclusive use in common with others entitled
to use same of all automobile parking areas, driveways, corridors, foolWays, loading facilities and other
facilities as may be designated by Landlord from time to time as more fully set forth and subject to the
terms and conditions of this Lease and according to such reasonable rules and regulations for the use
thereof as may be prescribed from time to time by the Landlord in accordance with Section 5.04 of Part II
of the Lease.
2. Length ofTerm.
The original term of this Lease and Tenant's obligation to occupy the Premises in accordance with the
terms of the Lease shall commence on April I , 1997. The term of this Lease shall be for a period of ten
(10) years.
The Tenant's obligation to pay rent shall commence on Aprill, 1997.
3. Fixed Minimum Rent.
Over the course of the original lease term, Tenant shall pay to Landlorda minimum rent of $165,660.00,
which is the sum orthe "Fixed Minimum Rent" for each of the following periods during the original lease
term:
TIME PERlOD
April I. 19971c March 31. 1998
Aprill, 1998 to March 31. 1999
April I. 199910 March 31. 2000
April I. 2000 10 March 31, 2001
April I. 200110 March 31, 2002
MONTHLY AMOUNT
SI,200.00
S1.235.00
SI,275.00
$1,315.00
SI.355.00
ANNUAL AMOUNT
$14,400.00
$14,820.00
SI5,300.00
$15.780.00
$16,260.00
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TIME PERIOD
April I. 2002 tc March 31, 2003
April 1, 2003 to March 31, 2004
April I, 2004 to March 31,2005
April 1, 2005 tc March 31. 2006
April I, 2006 to March 31, 2007
MONTHL Y AMOUNT
$1.395.00
$1,440.00
$1,485.00
$1,530.00
$1,575.00
ANNUAL AMOUNT
$16,740.00
$17.280.00
$17,820.00
$18,360.00
$18.900.00
Each such installment shall be due and payable on or before the frrst day of each calendar month in the
original term of this Lease, in advance, to the attention of:
Cash Management Departtnent
High Industries, Inc.
P. O. Box 10008
1853 William Penn Way
Lancaster, PAl 7605-0008
or at such other place as may be designed by Landlord from time ro time, without any prior demand
therefor and without any deduction or setoff whatsoever, the fIrst installment to be paid on the
commencement date whether or not the commencement date is the fIrst day of a calendar month. In the
event that the commencement date of the term of this Lease shall be a day other than the fIrst day ofa
calendar month, Tenant's fIrst payment of Fixed Minimum Rent shall be prorated for the fractional month
between the commencement date and the frrst day of the fIrst full calendar month in the term hereof, on a
per diem basis (calculated on a thirty (30) day month).
4. Percentage Rent.
In addition to the Fixed Minimum Rent, Tenant, in accordance with Part II, Section 2.0 I of the Lease, shall
pay to Landlord, as additional rent hereunder (hereinafter referred to as "Percentage Rent"), and as part of
the consideration of the tenancy of the Pretllises, for each lease year in the original term of this Lease a sum
equal to six per.cent (6%) of that ponion of Gross Sales (as defmed in Section 2.02 of Part II the Lease)
during such lease year which is in excess of the applicable Percentage Rent Gross Sales Base. The
Percentage Rent Gross Sales Base for the following periods within each lease year shall be:
TIME PERIOD PERCENTAGE RENT GROSS SALES BASE
April I, 1997 tc March 31, 1998 6% $240,000.00
April I, 1998 to March 31.1999 6% $247,000.00
April 1. 199910 March 31, 2000 6% $255,000.00
April I. 2000 to March 31, 2001 6% $263.000.00
April I, 2001 to March 31, 2002 6% $271.000.00
April I. 2002 to March 31, 2003 6% $279.000.00
April I. 2003 to March 31, 2004 6% $288.000.00
April 1, 2004 to March 31, 2005 6% $297.000.00
April I. 2005 to March 31. 2006 6% $306,000.00
April 1, 2006 to March 31. 2007 6% $315.000.00
5, Use of Premises.
Subject to the provisions of Article V of Part II of the Lease, Tenant shall use the Premises solely for the
purpose of conducting the business ofa men's and women's hair cutting and styling salon, operation of
tanning booths and the incidental sale oftanning and skin lotions, hair care products such as shampoo,
conditioner, hair dryers, combs and brushes, and for no other use.
6. Shopping Center Hours of Operation.
The present hours of operation of the Shopping Center during which Tenant must have the Premises open
for business with the public (subject to adjusrment by Landlord as set forth in Section 5.01) are:
Monday through Friday 10:00 a.m. to 9:00 p.m.
Saturday 10:00 a.m. to 9:00 p.m.
Sunday Noon to 5:00 p.m.
See Addendum to Lease.
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7. Common Cost of Maintenance and Operation.
In accordance with and subject to the adjustments set forth in Section 7.03 of Part II of the Lease, for eacn
"Accounting Period" (as defmed in said Section) during the term of this Lease, Tenant shall pay Landlord
on account of Tenant's proportionate share of "Operating Costs" (as therein defmed), the annual amount
0[$1.36 multiplied by the number of square feet of floor area contained within the Premises.
8. Taxes.
In accordance with and subject to the adjustments set forth in Section 2.04 of Part II of the Lease, for each
"Tax. Year" (as defmed in said Section) during the term of this Lease, Tenant shall pay Landlord on
account of Tenant's share of any "taxes" as defmed in such Section), the annual amount of$.91
muliiplied by the number of square feet of floor area contained within the Premises.
9. Promotion.
In accordance with and subject to the adjustments set forth in Article XV of Part II of the Lease, for each
year during the term of this Lease, Tenant shall pay to Landlord the annual amount of $.50 multiplied by
the number of square feet of floor area contained within the Premises for the promotion activities.
10. Proportionate Insurance.
In accordance with and subject to the adjustment set forth in Section 7.04 of Part II of the Lease, for each
Accounting Period during the term of this Lease, Tenant shall pay Landlord on account of Tenant's share
of the cost of Landlord's policy of fife insurance with extended coverage insuring portions of the Shopping
Center, the amount of $.19 multiplied by the number of square feet of floor area contained within the
Premises.
11. Landlord's Modifications of Premises for Tenant:
Except to the extent outlined in Exhibit "B" hereto entitled "Landlord's Work in Premises," Tenant agrees
to accept the Premises in as-is condition from Landlord.
12. Remodeling.
IF! aeesFaaRse ":it<R tJ.18 ~r8"isiefl5 efSeetieFl 1.9:; sftAe Lease. reHeAt SHan remeEiel t!=is smire Prs&lises
ABt latar mill1 Tenant agrees to accept the Premises in an as-is condition from Landlord.
13. Security Deposit.
TeRaat. eef1tem]38raeeel::lsf:,' ',dtR 'ffie e:~eel:lti8R eftl=1is Leasa. Ras aep8sitea v:ith Lanal8ni tAe SHffi of
eRe Ta81:!SaRB T":e I hiRa..rsa DallBf's. (S 1.~99 ,99) reseiJ3! sf ":BieR is R8Fel3:: ael:ns'A'leEi;ea e:' LaRaIers,
'-,"aieR aefJssit is HS"?: the ]3F8fleFl::' sitAe L.aneilera aHa is t8 88 aale as sesHrit:y fef tHe faitl:rfl::ll13erfermaFlse
ey TaRant "sf all artRe teRfls, SS"8aants aHa eaaakisR5 sf ~i!J lease e:: saisl TaBaRt te Be lceJ3t aRB
perfsrmsa 8.liriR;: tAe teFfFl Rereaf, 5uejeet te .~.rtie]e XX sf PiWt H sEtRs ~ease. N~ne due. . ~.
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IN WITNESS WHEREOF, the parties hereto. intending to be legally bound hereby, have caused this Lease
to be duly executed the day and year fIrst above written.
HIGH ASSOCIATES, LTD. (Agent)
A..~ ~tlMj" ~ ,~ BY (' iLL>. ~
Attest:
SMITH LAND & IMPROVEMENT CORPORATION (Landlord)
n/v~--ey: ?E?bt~..ff
,;7 . / V President
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HEAD HUNTER SALONS, INC, d/b/a HEAD HUNTERS,
(Tenant)
, 'It- '.- .;P
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,,' / /-1~/ .
(f!( ...t .l.<~4/
'-" President
Attest:JJ./~J,.
BY:
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Article I
Article II
Article III
Article IV
Article V
Article VI
Article VII
Article VIII
ArticlidX' ,
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. Article X
Article XI
Article XII
Article XIII
Article XIV
Article XV
Article XVI
Article XVII
Article XVIII
Article XIX
Article xx:
Article XXI
Article XXII
~~ 1
CONTENTS OF PART II .
Term
Rent
Books of Account and Audit
Condition and Remodeling of the Premises:
Changes to Shopping Center
Conduct of Business
Grant of Concessions
Common Areas
Signs: Awnings; Canopies; Fixtures; Alterations
Maintenance and Repair; Surrender of Leased Premises
Indemnification; Subrogation
Insurance
Utilities
Estoppel Certificate; Subordination; Attomment
Assignment and Subletting
Promoting the Center
Destruction of Premises
Eminent Domain
Bankruptcy
Events of Default; Landlord's Remedies
Security Deposit
Environmental Considerations
Miscellaneous
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PART II
WEST SHORE PLAZA
LEASE AGREEMENT
ARTICLE I
TERM
SECTION l.ot. Confirmation of the Term
(a) At any time after the commencement date of the term of the Lease the parties shall execute
and deliver to each other, at the option of Landlord, either an instrument in recordable form or a letter
agreement prepared by Landlord, wherein Tenant shall:
(1) certify that the Lease is in full force and effect and (2) cenify the commencement and termination dates
of the original term of this Lease.
(b) This Lease and the tenancy hereby created shall terminate at the end of the term hereof without
the necessity of any notice from either Landlord or Tenant 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 the summary recovery of possession of Premises from a tenant holding over to
the same extent as if statutory notice had been given_
(c) The period commencing on the date hereof and terminating at midnight on the date
immediately prior to the commencement date is herein referred to as the "initial term," and the period from
the commencement date to the stated expiration date or earlier termination of this Lease is herein referred
to as the "original term." For the'purposes of this Lease the words "the term of this Lease" and ''term
hereof' shall be deemed to mean the initial term and the original term of this Lease, and all extensions,
sllch as by the exercising of options granted by Landlord, or any other renewals of the original term_
During the initial term, all of the terms, covenants and conditions hereof shall be in full force and effect,
but Tenant's monetary obligations hereunder shall be abated until the original term has commenced.
SECTION 1.02. Failure ofTenantto Open; Failure to Operate.
It is expressly understood and agreed that Landlotd does not consider the Fixed Minimum Rent in
it,elf a fair and adequate rental for the Premises and would not have entered into this Lease unless Tenant
had obligated itself to pay Percentage Rent which Landlord expects to supplement the Fixed Minimum
Rent to provide such fair and adequate rental return_ Therefore, (a) if Tenant fails to open for business at
the commencement date and/or (b) thereafter, if Tenant fails to continuously operate its business in
accordance with the terms of this Lease or vacates the Premises prior to the expiration of the term hereof,
Landlord will suffer damages in an amount which are not teadily ascertainable and thus in any such event
Landlord shall have the right, at its option, to collect as liquidated damages and not as a penalty, in addition
to all other charges which are due hereunder, one thirtieth (I/30th) of an amount equal to the monthly
installment of Fixed Minimwn Rent for each day which Tenant fails to so operate and, in addition,
Landlord shall have the right to treat any of the aforesaid events as a "Deliberate Event of Default"
pllrsuant to Section 19.02(b) hereof.
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ARTICLE II
RENT
SECTION 2.01. Percentage Rent
(a) The Percentage Rent shall be payable without prior demand and without any setoff or
deduction whatsoever at the times set forth hereinafter at the place then fIXed for the payment of Fixed
Minimum Rent.
(b) Not later than thirty (30) days after the expiration of the first "lease year" (hereinafter defined)
of the term hereof and, unless Landlord exercises its option as set forth in the next sentence Itereof, Tenant
shall pay to Landlord the Percentage Rent due for the lease year in question. In the event that Percentage
Rent shall be payable for any lease year in the term hereof, after the expiration of the frrstlease year
containing twelve (12) complete calendar months, Landlord, at Landlord's option to be exercised by
written notice to Tenant, may require Tenant to pay, as additional rent, together with each monthly
installment of Fixed Minimum Rent due hereunder commencing with the first such payment due
immediately after the receipt by Tenant of such notice an amount equal to one-twelfth (1I12th) of eighty
percent (80%) of the Percentage Rent payable for the immediately preceding lease year. Thereafter,
Tenant shall continue to pay such estimated payments of Percentage Rent together with each monthly
installment of Fixed MInimum Rent due for each calendar month in the terin hereof; provided, however,
that the amount of such estimated monthly payments of Percentage Rent may, at Landlord's option be .
adjusted at the expiration of each subsequent lease year afterreceipt by Landlord of Tenant's statement
referred to in Section 2.03(b) to an amount equal to one-twelfth (lIl2th) of eighty percent (80%) of the
Percentage Rent payable for the lease year immediately preceding such adjustment and commencing with
the payment of Fixed Minimum Rent due immediately after receipt by Tenant of notice of such adjusnnent,
Tenant shall continue to pay such adjusted amount until the oeXl adjustment. Although estimated
Percentage Rent shall be payable monthly as aforesaid, the fInal computation and payment shall be on an
annual basis. Within thirty (30) days after receipt of each notice from Landlord implementing the
foregoing adjustment, Tenant shall pay the Landlord an amount equal to the aforesaid monthly estimated
payment of Percentage Rent retroactive to the frrst day of the current lease year.
(c) Whenever used in the Lease the words "lease year" shall mean the twelve (12) full calendar
months of the term commencing with the January 1st immediately following the commencement date and
ending December 31st of such calendar year and each succeeding twelve (12) month period; provided,
however, that the frrstlease year shall commence on the commencement date and teooinate on the
immediately following thirty-first (31st) day of December in the teoo of this Lease and the last lease year
shall terminate on the last day of the teoo of this Lease. In the event that the fIrst or last lease year shall
consist of other than twelve (12) full calendar months, the Percentage Rent Gross Sales Base for such lease
year shall be deemed to be that portion of such Sales Base ohtained by multiplying the applicable
Percentage Rent Gross Sales Base set forth in Part 1 of the Lease by a fraction, the numerator of which shall
be the number of days contained in such lease year and the denominator of which shall be three hundred
sixty-fIve (365). In the event the amount of the Percentage Rent Gross Sales Base set forth herein subject
to adjustments during the term of this Lease, and the date on which such adjustment is to occur (hereinafter
referred to as the "Rental Adjustment Date") is other than the first day of a lease year, the Percentage Gross
Sales Base for the lease year in which the Rental Adjustment Date shall fall shall be the sum of: (I) the
lowest Percentage Rent Gross Sales Base set forth in Part I of the Lease multiplied by a fraction, the
numerator of which shall be the number of days in the period commencing on the frrst day of the lease year
in which the Rental Adjustment Date shall fall and ending on the day immediately prior to the Rental
Adjustment Date, aI)d the denominator of which shall be three hundred sixty-fIve (365); plus (2) the greater
Percentage Rent Gross Sales Base set forth in Part I of the Lease multiplied by a fraction, the numerator of
which shall be the number of days in the period commencing on the Rental Adjustment Date and ending on
the last day of the lease year in which the Rental Adjustment Date shall fall and the denominator of which
shall be three hundred sixty-fIve (365).
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(d) If, in each of at least two (2) of the first three full lease years in the term hereof, Tenant shall
not have been obligated to pay Percentage Rent in an amount equal to at least ten percent (10%) of the
annual Fixed Minimum Rent then payable hereunder, Landlord may terminate this Lease upon written
notice to Tenant given at any time within six (6) months after the receipt by Landlord of Tenant's annual
statement of Gross Sales for such third full lease year, (or, if earlier, the due date thereof) and this Lease
shall terminate and be null and void ninety (90) days after receipt of such notice, or Tenant shall enter into
an agreement with Landlord increasing the Fixed Minimum Rent for each year in the balance of the term of
this Lease to an amount equal to one hundred twenty-five percent (125%) of the amount of Fixed
Minimum Rent otherwise due hereunder. .
(e) Except as provided herein to the contrary, there shall be no abatement, apportionment or
suspension of the Percentage Rent payable hereunder. If pursuant to any other section of this Lease,
Tenant should be entitled to an abatement, apportionment or suspension of the Fixed Minimum Rent
payable hereunder, Tenant shall continue to pay to Landlord the Percentage Rent during the period in
which the Fixed Minimum Rent shall have been abated, apportioned or suspended; and during any and all
lease years in which there shall be one or more such periods, the Percentage Rent Gross Base shall be
reduced in the same proportion as the Fixed Minimum Rent shall have been abated, appropriated or
suspended. If during any lease year the Premises shall not be open for business on one or more days on
which Tenant is obligated to conduct business pursuant to this Lease and for which days Tenant shall not
be entitled to an abatement, apportionment or suspension of the Fixed Minimum Rent, the Percentage Rent
Gross Sales Base shall be deemed to be reduced to zero for such days. In the event that any reduction of
the Percentage Rent Gross Sales Base is applicable to one or more days during a lease year; the Percentage
Rent Gross Sales Base to be used in calculating the percentage Rent for such lease year shall be determined
by averaging on a daily basis (excluding from the calculation those days during which the majority of
stores in the Shopping Center shall not have been open for business) the Percentage Rent Gross Sales Base
applicable during such lease year.
SECTION 2.02. Gross Sales Defined.
(a) The words "Gross Sales" as used herein shall mean the gross amount of all revenue generated
by sales. rental, performance of services or otherwise by Tenant andlor any subtenant, licensee or
concessionaire in, at or from the Premises (including, but not limited to, catalogue sales made at or from
the Premises) whether for cash, credit or other consideration, with such other consideration being
determined at fair market value and fmancing charges on all Gross Sales (without reserve or deduction for
inability or failure to collect) including, but not limited to, such sales, rental and services (I) as a result of
transaction s originating in, at or from the Premises, whether delivery of perfnrmance is made from the
Premises or from some other place; (2) pursuant to mail, telephone, telegraph, closed TV circuit, and other
devices, automated or otherwise, whereby orders are received at the Premises or (3) which Tenant or any
subtenant, licensee or concessionaire in the normal course of its business would attribute to its operations at
the Premises. Gross Sales also include all deposits not refunded to purchasers. Each sale upon installment
or credit shall be treated as a sale for the full price in the month which such sale shall be made, irrespective
of the time when Tenant shall receive payment therefor.
(b) The following shall be deducted from Gross Sales if originally included therein, or excluded
therefrom, as the case may be, provided separate records as supplied supporting such deductions or
exclusions, namely: (I) any exchange of merchandise between stores of Tenant where such exchange is
made solely for the convenient operation of Ten ant's business and not for the purpose of consummating
sale made in, at or from the Premises, (2) returns to shippers or manufacturers. (3) cash or credit refunds to
customers on transactions otherwise included in Gross Sales, (4) sales of fIXtures, machinery and
equipment after use thereof in the conduct of Tenant's business in the Premises, (5) amounts collected and
paid out by Tenant for any sales tax imposed by and duly constituted governmental authority provided
such tax is both added to the selling price as a separate and distinct amount in addition to the regular price
of Ten ant's merchandise and paid tn the taxing authority by Tenant (but not by any vendor of Tenant), (6)
the amount of any discount on sales to employees, and (7) receipts from the permitted pay telephone and
vending machines referred to in Section 5.03(q). No value added tax, and no franchise or capital stock tax
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and no income, gross receipts or similar tax based upon income, profits or gross receipts as such shall be
deducted from Gross Sales.
SECTION 2.03. Percentage Rent Statements.
(a) Not later than the fifteenth (15'th) day after the end of each calendar month in the term bereof,
Tenant shall submit to Landlord an itemized and accurate written statement signed by Tenant, its duly
authorized officer or duly authorized representative reflecting the full amount of Gross Sales made durin a
. 0
the precedmg calendar month. If the commencement date hereof shall not be the first day of a calendar
month, the period between the commencement date and the flIst day of the flIst full calendar month in the
term and Tenant's Gross Sales during such period shall be added to the flIst calendar month for both the
purpose of the computation of Percentage Rent and the purpose ofreporring Gross Sales.
(b) Not later than the date set forth in Section 2.01(b) hereof, Tenant shall submit to Landlord a
complete written statement of Ten ant's Gross Sales for the preceding lease year in such reasonable detail as
requested by Landlord, accompanied by a statement signed and cenified by Tenant, its duly authorized
officer or representative, stating that the Gross Sales reponed by Tenant are in accord with the amount
thereof set forth on Tenant's regularly maintained books and records. Simultaneously with the delivery of
the statement referred to in the preceding sentence, Tenant shall pay to Landlord the full unpaid balance of
the Percentage Rent due and payable for such lease year, if any. In the event Tenant is making estimated
payments of Percentage Rent and Tenant is not then in default hereunder or otherwise indebted to
Landlord, any excess of estimated Percentage Rent that Tenant may have paid for such lease year over the
Percentage Rent actually due for such lease year shall be refunded to Tenant within thiny (30) days;
'provided, if such overpayment is for the last lease year, Landlord shall not be obligated to refund to Tenant
the amount of such overpayment until Tenant has fully performed all of its obligations under the Lease, is
not indebted to Landlord and has vacated the Premises in accordance with the provisions of this Lease. In
the event Tenant is indebted to Landlord for any reason whatsoever, Landlord may deduct such amount
owed from such overpayment.
(c) The acceptance by Landlord of payments of Percentage Rent or repons thereof shall be
without prejudice, and shall in no event constitute a waiver of Landlord's rights to claim a deficiency of
such Percentage Rent or to audit Tenant's books and records as set forth in Section 3.01 hereof.
(d) If Tenant shall fail to deliver such statemeot as required by Section 2.03(b), within the period
set forth therein and such failure shall continue for ten (10) days after the date of written notice pf such
failure from Landlord, Landlord shall have the right thereafter to employ an accountant to make such
examination of Tenant's books and records as may be necessary to cenify the amount of Tenant's Gross
Sales for said lease year, the cemfication so made shall be binding upon Tenant and Tenant shall promptly
pay to Landlord the cost of the examination, together with the full balance of Percentage Rent due and
payable for said lease year. In addition, Landlord may treat the failure to deliver such statement within ten
(10) days after the aforesaid notice as a Deliberate Event of Default.
SECTION 2.04. Taxes.
(a) For the purposes of this Section 2.04, the word "taxes" shall include all taxes attributable to
improvements now or hereafter made to the Shopping Center or any pan thereof or attributable to the
present or future installation in the Shopping .Center or any pan thereof of fixtures, machinery or
equipment, all real estate taxes, assessments, water and sewer and other governmental impositions and
charges of every kind and nature whatsoever, nonrecurring as well as recurring, special or extraordinary as
well as ordinary, foreseen, and unforeseen, and each and every installment thereof, which shall or may
during the term of this Lease be levied, assessed or imposed, or become due and payable or become liens
upon, or arise in connection with the use, occupancy or possession of, or any interest in, the Shopping
Center or any pan thereof. or any land, buildings or other improvements therein less all amounts paid to
Landlord or others by the occupants of any "excluded areas" (as defmed in Section 2.04(d) below). The
word "taxes" shall not include any charge, such as water meter charge and sewer rent based thereon, which
is measured by the consumption by the actual user of the item or service for which the charge is made.
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(b) For each "Tax Year" (as defined in Section 2.04(e) hereof) during the original term of this
Lease, Tenant shall pay to Landlord as additional rent (bereinafter called "Tax Rent"), the amollnt obtained
by multiplying the total of all taxes payable during such Tax Year less the amount of taxes received from
excluded areas by a fraction, the numerator of which shall be the square feet of floor area of the Premises
and the denominator of which shall be the total amount of square feet in the Shopping Center less excluded
areas. On account of Tax Rent, Tenant shall pay monthly, in advance, as additional rent, together with each
monthly installment of Fixed Minimum Rent, without demand or setoff, an amount equal to one-twelfth
(1112) of the annual amount payable on account of Tax Rent, as set forth in the paragraph of Part I of the
Lease entitled "Taxes," for each square foot of floor area contained within the Premises. Such amount may
be adjusted by Landlord at any time during the term hereof to an amount equal to one-twelfth (1/12) of the
Tax Rent payable by Tenant for the preceding Tax Year. If Tenant's payment on account of Tax Rent for
any Tax Year exceeds the actual amount due by Tenant as Tax Rent for such Tax Year and Tenant is not in
default hereunder or otherwise indebted to Landlord, Landlord shall apply such overpayment to Tenant's
account as a credit; provided, Tenant has fully performed all of its obligations under this Lease, is not
indebted to Landlord. In the event Tenant is indebted to Landlord for any reason whatsoever, Landlord
may deduct such amount owed from such overpayment.
(c) Landlord shall have the right to bill Tenant for Tax Rent at any time after each receipt by
Landlord of a bill, assessment, levy, notice of imposition or other evidence of taxes due or payable all of
which are hereinafter collectively referred to as a "tax bill" (whether such bill is a fmal bilI, an estimate of
annual taxes or represents a tax bilI based upon a fmal or partial assessment or determination). Tenant
shall pay the balance of its Tax Rent within thirty (30) days of receipt from Landlord of a written statement
setting forth the taxes for which Landlord has received a tax bilI, Tenant's share of taxes, and Tenant's
payments theretofore made on account of such Tax Rent. All subsequent monthly payments on account of
Tax Rent made by Tenant during such Tax Year after receipt ofsuch bill and statement shall be applied by
Landlord toward payment on account of Tenant's obligation for Tax Rent for the next ensuing Tax Year
and shall not reduce Tenant's obligation to pay the balance due Landlord pursuant to such statement. In
making the computations as aforesaid, a tax bilI or photocopy thereof submitted by Landlord to Tenant
shall be conclusive evidence of the amount of the taxes included in the computation of the Tax Rent in
question; provided, however, Landlord shall have the right to bilI Tenant for Tenant's share of the Tax
Rent for the last Tax Year in the term bereofwhether or not Landlord shall theretofore have received a tax
bilI covering the period from the date of the tax bill which formed the basis of the most recent installment
on account of Tax Rent bilIed to Tenant to the expiration of the term hereof. If Landlord has not received a
tax bilI, Landlord shall estimate the amount of the last installment of Tax Rent on the basis of information
contained in the tax bill most recently received by Landlord. Tenant shall pay such adjusted amount upon
billing by Landlord.
(d) As used in this Lease "excluded areas" shall mean all basement space, all portions of the
Shopping Center shown on Exhibit "A" attached hereto which are highlighted by diagonal lines, the variety
store (currently referenced as Store 268 on Exhibit A) and the grocety store as may be expanded (currently
referenced as Store 100 on Exhibit A), and any portions of additions to the Shopping Center referred to in
Section 4.04(b) which Landlord hereafter designates as an excluded area.
(e) For the purpose of this Lease the words "Ta.'{ Year" shall mean the twelve (12) full calendar
months of the term commencing with the January 1st immediately following the commencement ending
December 31st of such calendar year and each succeeding twelve (12) month period thereafter; provided,
however, the first Tax Year shall commence on the commencement date and terminate on the immediately
succeeding December 31st. .
(f) If the original term hereof commences or terminates (other than by reason of Tenant's default)
on a day other than the frrst or last day, respectively, of a Tax Year, Tenant's Tax Rent for such Tax Year
shall be pro-rated.
(g) If, after Tenant makes the required annual payment of Tax Rent, Landlord receives a refund
of any portion of the taxes (provided Tenant is not then in default hereunder) Landlord wilI, within forty-
five (45) days after receipt of the refund, pay to Tenant a pro-rata net refund after deducting all costs and
expenses (including, but not limited to, attorneys' and appraisers' fees) expended or incurred in obtaining
such refund. Tenant shall not institute any proceedings with respect to the assessed valuation of the
Shopping Center or any part thereof for the purpose of securing a tax reduction.
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(h) If at any time during the term of this Lease, under the laws of anyone or more jurisdictions in
which the Shopping Center is located, a tax, imposition, charge, assessment, levy, excise or license fee is
levied on, imposed against or measured, computed or determined, in whole or in part, by: (1) rents payable
hereunder (Fixed Minimum, Percentage, Tax and/or addition) or (2) the value of any lien placed against the
Shopping Center or against the real property comprising the Shopping Center or any obligations secured
thereby, or if any other tax (except income tax), impositioo, charge, assessment, levy, excise or license fee
which is not referred to in Section 2.04(a), however described or denoted, shall be levied or imposed by
any such jurisdiction, to the extend that the cost of any of the foregoing shall be imposed, either directly or
indirectly, on Landlord, such tax, imposition, charge, assessment, levy, excise or license fee, shall be
deemed to constitute "taxes" for the purposes of this Section 2.04.
(I) In the event of any dispute as to the floor area in the Shopping Center or any ponion thereof
(other than the Premises which shall be determined by the provisions of Part I of the Lease), the
determination of Landlord shall be binding upon the parties.
SECTION 2.05. Additional Rent.
All sums of money or charges required to be paid by Tenant under this Lease, whether or not the
same are designated as "additional rent," shall for all purposes hereunder be deemed and shall be paid by
Tenant as rent. If such amounts or charges are not paid at the time provided in this Lease, they shall
nevenheless be collectible as rent with the next installment of Fixed Minimum Rent thereafter falling due
hereundertogether with a late charge of fifteen percent (15%) per annum from the due date thereof to the
date thereof to the date ofpayment, but not in excess of the highest rate allowed by law. In the event any
check tendered by Tenant to Landlord is not honored on initial presentation, Tenant shall pay Landlord the
greater of Twenty-Five Dollars ($25.00) or the amount Landlord's bank charges Landlord for processing
such returned check.
ARTICLE ill
BOOKS OF ACCOUNT AND AUDIT
SECTION 3.01. Tenant's Records.
(a) Tenant covenants and agrees the business records of Tenant and of any subtenant, licensee, or
conressionaire upon the Premises shall be maintained in accordance with generally accepted accounting
principles. Furthermore, Tenant shall keep at all times during the term hereof, at the Premises or at the
general office of Tenant, full, complete and accurate books of account and records in accordance with
accepted accounting practices with respect to all operations of the business to be conducted in or from the
Premises including, without limitations, the recording of Gross Sales and the receipt of all merchandise
into and the delivety of all merchandise from the Premises during the term hereof and shall retain such
books and records, copies of all tax repons submitted to the appropriate taxing authorities, as well as copies
of contracts, vouchers, checks, inventory records, dated cash register tapes and other documents and papers
in any way relating to the operation of such business (all of which are hereinafter collectively referred to as
"books and records"), for at lease three (3) years from the end of the lease year to which they are
applicable, or, if an audit is commenced or if a controversy should arise between the parties hereto
regarding the rent payable hereunder, until such audit or controversy is terminated even though such
retention period may be after the expiration of the term of, or earlier termination of, this Lease. Such
books and records shall be open at all reasonable times during the aforesaid retention period, after prior
written notice to Tenant, to the inspection of Landlord or its duly authorized representatives, who shall
have full and free access to such books and records, the right to audit such books and records and the right
to require of Tenant, its agents and employees, such information or explanation with respect to such books
and records as may be:necessary for a proper examination and/or audit thereof. Iffor any reason Tenant
does not fully comply with the above obligations on the date designated by Landlord for an inspection
and/or audit of Tenant's books and records, and Landlord agrees to reschedule such inspection and/or
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audit, Tenant shall reimburse Landlord, on demand, for Landlord's out-of-pocket expenses relating to such
rescheduling. .
(b) In the event Tenant violates the provisions of Section 3.0 I (a) and as a result of such
violation, Landlord, or ilS duly authorized representative, is unable to conduct a proper examination and/or
audit, the parties agree that Landlord shall have been deprived of an important right under this Lease and,
as a result thereof, will suffer damages in an amount which is not readily ascertainable and thus, in such
event, Landlord, in addition to and not in lieu of any other remedies which Landlord has under this Lease,
at law or in equity, shall have the right, at ilS option, to collect, as liquidated damages and not as a penalty,
an amount equal to twenty percent (20%) of the greater of (I) Percentage Rent reported for the period or
periods in question, or (2) the annual Fixed Minimum Rent payable for the period or periods in question.
SECTION 3.02. Audit.
If the examination and/or audit referred to in Section 3.01 shall disclose that Tenant has
understated its Gross Sales by $1,000.00 or more for any lease year during the period being examined,
Tenant shall pay to Landlord, upon demand, the cost of such examination and/or audit. Any deficiency in
Percentage Rent shall be payable in any event. In addition, Landlord may treat the existence of such
liability as a Deliberate Event of Default.
ARTICLE IV
CONDITION AND REMODELING OF THE PREMISES: CHANGES TO SHOPPING CENTER
SECTION 4.01. Condition of Premises.
(a) Tenant has had the opportunity to examine the Premises and hereby agrees to accept them in
the "as is" condition existing on the commencement date. Tenant further acknowledges that neither
Landlord nor Agent has made any representations as to the present or future condition of the Premises, the
presence or absence of hazardous materials (as defmed in Section 21.22) therein or what items the prior
occupant of such Premises is required to or may leave in the Premises. Landlord shall not be liable for any
inability to deliver possession of the Premises to Tenant by the commeocement date, except that any such
inability shall extend the commencement date by a period of time equal to the period between the
commencement date and the date Landlord delivers possession; provided, however, if Landlord has not
turned over possession by a date whicb is 120 days after the commencement date, Tenant may, at Tenant's
option, tenoinate this Lease provided that Tenant bas not caused the delay, and this Lease shall be null and
void and neither party shall have any liability hereunder to the other.
(b) Tenant acknowledges that it assumes all responsibility and expense for achieving compliance
with Americans with Disabilities Act of 1990, Pennsylvania Department of Labor and Industry Code
pertaining to Universal Accessibility Standards, Building Officials and Code Administrators (B.O.C.A.)
Accessibility Standards for Handicapped Persons or any future federal, state or local laws, ordinances,
building codes or standards that may become applicable to the Premises.
SECTION 4.02. Remodeling of the Premises.
(a) Tenant shall fully and completely remodel the Premises in accordance with the plans and
specifications referred to below, sucb work to be completed by the date specified in the Paragraph of Part I
of the Lease captioned "Remodeling." Not later than thirty (30) days after the date hereof, Tenant sball
deliver to Landlord detailed plans and specifications prepared by Tenant's licensed architect disclosing
Tenant's proposed remodeling of the Premises. Landlord shall review such plans and specifications and
advise Tenant of any changes required by Landlord; Tenant sball promptly revise such plans and
specifications to incorporate Landlord's required changes and submit the revised plans to Landlord within
twenty (20) days after being advised of Landlord's cbanges, if any. Tenant shall commence such
renovations within ten (10) days after J..andlord has approved Tenant's plans and specifications and has
turned over possession of the Premises. All such work shall be promptly commenced and thereafter
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continued with due diligence and be fully completed and the Premises opened for business in accordance
with the provisions hereof not later than the commencement date. Tenant shall perform no work in the
Premises until such plans and specifications have been approved by Landlord. Together with the initial
submission of plans and specifications for (i ) the remodeling required by this Lease and (ii) relating to any
other work in the'Premises which Tenant desires or is required to perform, Tenant shall pay Agent $300.00
to defray the cost of reviewing Tenant's plans and specifications.
(b) In the event that the Premises contain vinyl asbestos floor tile or any other typeof non-friable
asbestosconu;ining material (A.c.M.), tenant acknowledges and accepts all responsibility and expense for
repairing, maintaining, or encapsulating the A.C.M. in accordance with approved federal, state and local
protocols, practices and procedures for such repair, maintenance or encapsulation..
In the event that Tenant's renovations or repairs to the Premises cause or threaten to cause (in the
sole determination of the Landlord) the A.C.M. to become friable, Tenant acknowledges and accepts all
responsibility and expense for the removal and disposal of the A.C.M. in full compliance with all federal,
state and locally-approved protocols, practices and procedures for the removal and disposal of A.C.M.
Any such removal and disposal shall be accomplished by contractors licensed to do such removal and
disposal and such contractors shall carry insurance and performance bonds in amounts and with insurance
carriers acceptable to landlord.
Original copies of any and all documentation relating to the repair, maintenance, encapsulation,
removal, andlor disposal of A.C.M. shall, immediately become property of the Landlord. This
documentation shall include. but not be limited to, inspection reports, remediation contracts, maintenance
logs and reports, removal contracts, permits required by federal, state or local authorities having
jurisdiction over asbestos removal, transportation and chain of cust9dy documents, and disposal andl or
landfill acceptance records. Failure of Tenant to provide these documents shall constitute a Deliberate Act
of Default.
(c) All work required under this Section and all other alterations to the Premises performed by
Tenant pursuant to this Lease (including, without limitation, any work required by Article XXI) are
collectively referred to as "Tenant's Work." Any work to be completed by Landlord shall be referred to as
"Landlord's Work" and shall be referenced in Exhibit "B." All of Tenant's Work shall be completed at
Tenant's sole cost and expense. In performing Tenant's work, Tenant shall comply with the following
requirements:
1. In addition to, and not in lieu of the other policies of insurance required by this Lease,
at all times between the start and completion of Tenant's Work (such period is herein referred to as
"Tenant's ConstrUction Period"), Tenant, at its own cost and expense, shall maintain in effect with a
responsible insurance company, a policy of "All Risk" Builder's Risk Insurance in the standard form for
the State where the Shopping Center is located. Said insurance shall cover the full replacement value of all
work done and fixtures and equipment installed or to be installed at the Premises by Tenant.,
2. At all times during Tenant's Construction Period, Tenant's contractors and
subcontractors shall maintain in effect worker's compensation insurance as required by the laws of the
State in which the Shopping Center is located.
3. Repair andlor reconstruction of all or any portion of Tenant's work damaged or
destroyed by any casualty occurring during Tenant's Construction Period shall be commenced by Tenant
as so"n as possible after such casualty; provided that ifall or any portion of Landlord's Work is also
damaged or destroyed by such casualty, Landlord shall notity Tenant when repairs or reconstruction of
Landlord's work is substantially completed and, within fifteen (15) days after receipt of such notice,
Tenant shall diligently pursue such repair andlor reconstruction to completion.
4. Any approval or consent by Landlord of any or all of Tenant's criteria, systems, plans
specification or drawings shall neither constitute an assumption of responsibility by Landlord for any
aspect of such criteria, systems, plans specifications or drawings including, but not limited to, their
accuracy or efficiency or obligate Landlord in any manner with respect to Tenant's Work and Tenant shall
be solely responsible for any deficiency in design or construction of all ponions of Tenant's Work.
5. Tenant shall obtain and pay for all necessary permits and shall pay all other fees
required by public authorities or utility companies with respect to Tenant's Work.
6. Tenant shall maintain the Premises and the Common Areas (as defmed in Section
7.01) adjoining the same in a clean and orderly condition during construction. Tenant shall promptly
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remove all unused construction materials, equipment shipping containers, packaging, debris and waste
from the Shopping Center. Tenant shall contain all construction materials, equipment. fixtures,
merchandise, shipping containers and debris within the Premises. Public corridors, service corridors and
the exterior of the building shall be clear of Tenant's equipment., merchandise, refuse, and debris at all
times. The location of Tenant's dumpster for construction debris shall be subject to approval of Landlord
and/or Agent.
7. Only those contractors and subcontractors as have been duly licensed by the
municipality in which the Shopping Center is located and, if applicable, the authority having jurisdiction
over lbe appropriate profession, and which have been approved in writing by Landlord may perform any
portion of Tenant's Work for Tenant in or upon the Premises.
8. At any time and from time to time during the performance of Tenant's Work,
Landlord. Agent, Landlord's architect and/or Landlord's construction consultant may enter upon the
Premises and inspect the work being performed by Tenant and take such steps as they may deem necessary
to desirable to assure the proper performance by Tenant of Tenant's Work and/or for the protection of the
building and/or any other premises adjacent to the Premises. In addition, Tenant's Work shall be
performed in a thoroughly first-class and workmanlike manner, shall incorporate only new materials and
shall be in good and usable condition at the date of completion.
9. 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 the operation of the Shopping Center or interfere with or delay the completion of any other
constnlction within the Shopping Center, and each such contractor and subcontractor shall comply with all
procedures and regulations prescribed by Landlord or Agent for integration of Tenant's Work with that to
be performed in connection with any construction in the Shopping Center and in'connection with the
operation of the Shopping Center.
10. Neither Tenant nor its contractors or subcontractors may use any space within the
Shopping Center (except the Premises) for storage, handling and moving of materials and equipment, and
if Tenant or such contractors and/or subcontractor shall use any space in the Shopping Center (except the
Premises) for any oftheaforesaid purposes without obtaining Landlord's prior wrillen approval therefore,
Landlord shall have the right to terminate such use or remove all of Tenant's and such contractor's or
subcontractor's material, equipment and other property from such space without Landlord being liable to
Tenant and/or such contractors or subcootractors; and the cost of such termination and/or removal shall be
paid by Tenant to Landlord. It shall be Tenant's responsibility to cause each contractor and subcontractor
to maintain continuous protection of adjacent property and improvements against damage by reason of
Tenant's Work, including at Landlord's request, the installation of lights, guard rails, barricades and
temporary store fronts of a design approved by Landlord, or at Landlord's option, Tenant shall reimburse
Landlord, on demand, for the cost incurred in Landlord's installation of such items.
II. Tenant shall promptly pay all contractors and materialmen so as to minimize the
possibility of a lien or claim of lien being med with respect to the Premises or the Shopping Center, and
should any such lien be made or med, Tenant shall cause the same to be discharged by bond or otherwise
within ten (10) days after wrillen request by Landlord. If Tenant shall fail to cause such lien or claim of
lien to be bonded against or to be discharged within the period aforesaid, then, in addition to any other
right or remedy which Landlord may have under this Lease, at law or in equity, Landlord may, but shall
not be obligated to, discharge the same either by paying the amount claimed to be due or by procuring the
discharge of such lien or claim of lien by deposit or by 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 or claim of lien by the lienor with interest, costs and expenses. Any amount so paid by
Landlord and all costs and expenses incurred by Landlord in connection therewith or in connection with
insuring the title to the Shopping Center or any interest herein free of such lien or claim of lien, together
with a late charge thereon at the rate set forth in Section 2.05, from the respective dates of Landlord's
making of the payment and incurring of the cost and expense, shall constitute additional rent payable by
Tenant under this Lease and shall be paid by Tenant to Landlord on demand.
(d) Within ten (10) days after initially opening the Premises for business with the public, Tenant
shall supply to Landlord the following: .
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1. An executed and acknowledged release of mechanic's liens with respect to the
Premises executed by Tenant's general contractor and by every subcontractor and supplier of labor andior
materials engaged in Tenant's Work.
2. Properly issued certificates evidencing acceptance or approval of the Premises by
appropriate governmental authorities, including the underwriter's approval of Tenant's sprinkler
installation and electrical system.
3. A set of"as:built" plans and specifications for Tenant's Work prepared and sealed by
Tenant's architect, together with names and addresses of Tenant's electrical, plumbing, and other
contractors. .
(e) Nothing in this Lease shall be construed as in any way constituting a consent or request by
Landlord, expressed or implied, by interference or otherwise, to any contractor, subcontractor, laborer, or
materialman for the performance of any labor or the furnishing of any materials for any specific or general
improvement, alteration, or repair of or to the Premises or to any buildings or improvements thereon, or to
any part thereof. Notwithstanding anything in this Lease, or in any other writing signed by Landlord to the
contrary, neither this Lease nor any other writing signed by Landlord shall be construed as evidencing,
indicating, or causing an appearance that any erection, construction, alteration or repair to be done, or
caused to be done, by Tenant is or was in fact for the immediate use and benefit of Landlord.
SECTION 4.03. Parking Facilities.
Tenant and its employees shall park their cars only in those portions of the parking area
designated for that purpose by Landlord. Tenant shall furnish Landlord with automobile license numbers
assigned to Tenant's car or cars and cars of its employees within five (5) days ofa request therefor and
shall thereafter notify Landlord of any changes within five (5) days after such changes occur. In the event
that Tenant or its employees park their cars in area other than such designated parking areas, then Landlord
after giving notice to Tenant of such violation ~hall have the right to charge Tenant Ten Dollars ($10.00)
per day per car parked in any areas other than those designated.
SECTION 4.04. Roof, Walls, Changes and Additions to Shopping Center.
(a) Landlord hereby reserves the exclusive right at any time and from time to time to use all or
any part of the roof, exterior walls and air space above the fmished ceiling of the Premises for any purpose;
to erect scaffolds, protective barriers or other aids to construction on, around and about the exterior of the
Premises, provided that access to the Premises shall not be substantially denied. Landlord also reserves the
right after written notice to Tenant to enter the Premises (except that in the event of an emergency, no
notice shall be required), at any time and from time to time to make such repairs, additions or alterations as
it may deem necessary or desirable to the Premises, to the building in which the Premises is contained, or
the Shopping Center in general; to shore the foundations andior walls thereof andior to install, maintain,
use, repair, inspect and replace foundations, columns, pipes, ducts, conduits and wires leading through or
located adjacent to the Premises and serving other parts of the Shopping Center. Landlord shall use
reasonable efforts to install such pipes, ducts, conduits or wires in the space above Tenant's fmished ceiling
(or if Tenant does not have fmished ceiling), in the space above the height where, in Landlord's opinion, a
fmished ceiling would otherwise exist, or another location which does not materially interfere with
Tenant's use of the Premises. Landlord's rights hereunder may be exercised by Landlord's designee.
Tenant shall not remove or tamper with any such pipes or other apparatus installed by Landlord.
(b) Landlord hereby reserves the right at any time to make alterations or additions to, and to build
additional stories on, and to build adjoining any buildings in the Shopping Center, including the building in
which the Premises are contained and to construct other buildings or improvements in the Shopping Center
and Tenant shall have not interest of any kind whatsoever in the said additions or additional stories or
adjoining buildings. Landlord also reserves the right to reduce or enlarge the area of the Shopping Center
by excluding portions of the ground therefrom or adding additional ground thereto from time to time and,
whether or not so reduced or enlarged. to construct double-deck elevated or subterranean parking facilities.
(c) If any excavation shall be made or authorized to be made upon land adjacent to the Premises,
Tenant shall afford to the person causing or authorized to cause such excavation license to enter upon the
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Premises 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.
(d) Landlord reserves the righi to install kiosks, fountains, benches. seating arrangements,
promotional activities, seasonal displays, temporary stores, amusement devices and other amenities in
certain portions of the Common Areas selected by Landlord from time to time, all of which shall be done ill
Landlord's sole cost and expense and without any approval and consent of Ten ant. Landlord also reserves
the right to enclose any open sections of the Shopping Center.
(e) Tenant acknowledges that Landlord's implementation ofits rights set forth in Section 4.04
may interfere with access to or visibility of the Premises or the availability of certain parking areas and
Common Areas and Tenant agrees that the exercise of any such rights shall not constitute any grounds for
an abatement of any rent hereunder to be deemed an eviction or disturbance of Tenant's use and possession
of the Premises nor shall the same render Landlord liable in any manner to Tenant for any inconvenience,
disturbance, loss of business or any other occurrence arising from the exercise of any such rights.
SECTION 4.05 Right to Relocate.
(a) The purpose of the plan hereto annexed as Exhibit "A" is solely to show the approximate
location of the Premises and the present layout of the Shopping Center, but Landlord does not warrant or
represent to Tenant that the Shopping Center will continue to be improved as shown thereon. Landlord
hereby reserves the right at any time and from time to time to make changes or revisions in such plan and
the Shopping Center, including but not limited to, additions to, subtractions from, and/or relocations or
rearrangements of, the buildings, parking areas, and other Common Areas shown on such plan.
(b) Notwithstanding anything to the contrary contained in this Lease, in connection with any
expansion, enlargement or rearrangement of the Shopping Center or any aspect thereof, Landlord shall
have the right on one or more occasions to require that Tenant relocate from the Premises to a location
designated by Landlord ("Relocated Premises") which shall contain approximately the same number of
square feet as currently contained within the Premises, such relocation to be implemented in accordance
with the terms and conditions set forth below. Landlord shall advise Tenant in writing as to the location of
the Relocated Premises and the date by which Landlord will require that Tenant complete such relocation.
Within thirty (30) days after receipt by Tenant of Landlord's notice, Tenant shall advise Landlord in
writing whether Tenant agrees to relocate to the Relocated Premises in accordance with the provisions
hereof. In the event Tenant fails to notify Landlord that Tenant will relocate within the aforesaid
timeframe, or fails to notify Landlord of its decision with respect to such relocation, then at any time
thereafter Landlord may cancel this Lease upon fifteen (15) days' prior written notice to Tenant, in which
event this Lease will expire on such date as though the date set forth in the letter of cancellation was fixed
as the expiration date hereof, and Landlord shall have no liability to Tenant as a result of such cancellation.
( If Tenant agrees to so relocate, after notice from Landlord to do so, Landlord will contribute to the cost of
Tenant's relocation in an amount equal to Tenant's documented cost of preparing the original Premises for
occupancy, times a fraction wherein the denominator is the number of months in the original term and the
numerator is the number of months including fractional months that would remain in the original term after
l the Tenant's last day of occupancy in the original Premises. Prior to performing such work, Tenant shall
submit to Landlord for approval the plans referred to in Section 4.02 disclosing all of Tenant's Work to be
performed in the Relocated Premises and no such work shall commence until such plans have been
approved by Landlord. In any event, not later than the date specified for the completion of such move, and
whether or not Tenant shall have commenced business in the Relocated Premises, Tenant shall vacate the
Premises demised hereby and peaceably surrender possession thereof to Landlord in accordance with the
provisions hereof. Commencing as of the last day by which such relocation must be accomplished, or if
sooner, the day Tenant commences business in the Relocated Premises, all of Ten ant's right, title and
interest in and to the Premises originally demised hereby shall cease and terminate and from and after such
date the Relocated Premises shall be deemed demised hereunder in lieu of the Premises originally demised
hereby. At the request of Landlord, the parties shall enter into an ~endment to this Lease which shall
confirm the area and size of the Relocated Premises. The Fixed Minimum Rent and Percentage Rent Gross
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Sales Base shall automatically be amended to bear the same relationship to the Fixed Minimum Rent and
Percentage Rent Gross Sales Base presently set forth in the Lease as the existing area of the Premises bears
to the area of the Relocated Premises.
SECTION 4.06. Financing.
(a) Within ten (10) days of receipt of a requisition from Landlord, Tenant agrees to forward to
Landlord a CUlTent fmancial statement of Tenant and/or if applicable, Tenant's guarantor or surety, in form
satisfactory to Landlord, certified by an independent certified public accountant.
(b) Landlord reserves the right to sell, lease or sever the ownership of or title to the various
sections of the Shopping Center and/or to place separate mortgages on said sections. Tenant shall execute
from time to time such insnuments reasonable required by Landlord and its mortgagee to effectuate the
provisions of this Section 4.06(b).
SECTION 4.07. Excuse of Performance.
Notwithstanding anything in this Lease to the contrary, if Tenant shall be delayed or hindered in
or prevented from performance of any act required hereunder by reason of any strike, lock-out, labor
dispute, civil commotion, warlike operation, invasion, rebellion, hostilities, military or usurped power,
sabotage, governmental regulation or controls, failure of power, inability to obtain any material or service,
Act of God or other reasons of a like nature not related to the fault of Tenant, then performance of such act
by Tenant shall be excused for the period of such delay; provided, however, the foregoing shall not excuse
Tenant from the prompt payment of Fixed Minimum Rent, Percentage Rent, Tax Rent, additional rent or
any other payments required by the terms of this Lease or delay the date on which Tenant's obligation to
commence such payments shall begin. Notwithstanding anything in this Lease to the contrary, Landlord
shall not be deemed in default with respect to the performance of any of the t~rms, covenants and
conditions of this Lease if Landlord's failure to perform such terms, covenants and conditions is due to any
strike, lockout, labor dispute, civil commotion, war-like operation, invasion, rebellion, hostilities, military
or usurped power, sabotage, governmental regulations or controls, failure of power, inability to obtain any
material, service or fmancing, Act of God, flre or other casualty or other cause, whether similar or
dissimilar to those enumerated in this Section, which is beyond the reasonable control of Landlord.
ARTICLE V
CONDUCT OF BUSINESS
SECTION 5.01. Use of Premises.
(a) Except as otherwise specifically provided herein, commencing on the commencement date
and thereafter for the balance of the term of this Lease, Tenant shall continuously occupy and use the
Premises solely for conducting the b~siness specified in Part I of the Lease as the Permitted Use, and will
not use or permit or suffer the use of the Premises for any other business or purpose. In addition, Tenant
agrees that Tenant shall not operate or cause or permit to be operated any catalogue, mail or telephone
order sales in or from the Premises except the incidental sale of merchandise which Tenant is permitted to
sell over the counter to customers in the Premises pursuant to the Permitted Use set forth in Part I of the
Lease, nor shall Tenant divert elsewhere any business which would ordinarily be transacted by Tenant at,
in or from the Premises. The authorization of the use of the Premises for the business purposes set forth in
p.:n: I of the Lease does not constitute a representation or warranty by Landlord that any particular use of
the Premises is now or will continue to be permitted under applicable laws or regulations.
(b) Tenant shall not permit, allow or cause any of the following to be conducted in the Premises:
any public or private auction, or any sale which would indicate to the public that Tenant is bankrupt, is
going out of business, or has lost its lease. Tenant shall not use or permit any use of the Premises, except
in a manner consistent with the general high standards of merchandising in the Shopping Center, nor shall
Tenant's advertising indicate or imply that Tenant is operating its business in a manner which is not
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consistent with the general high standards of merchandising in the Shopping Center. Nothing comained in
this Section ;.OI(b) shall affect or is intended to affect Tenant's pricing policies.
(c) Notwithstanding anything contained herein to the contrary, including the provisions of the
paragraph of Part 1 of the Lease captioned "Use of Premises," Tenant is specifically prohibited from selling
or distributing tobacco "papers," pipes of the type and nature commonly associated with the smoking if
marijuana (e.g. "water pipes"), "roach clips," cocaine "spoons" and all other types of smoker's novelty
items, materials or paraphernalia which are, or may reasonably be construed to be, intended for use in
connection with narcotics or other unlawful substances.
(d) Because the adequacy of the rental hereunder is dependent upon Tenant's Gross Sales
whether or not Percentage Rent is payable hereunder, Tenant agrees that commencing with the
co~encement date and thereafter throughout the term of this Lease, Tenant will continuously, actively
and 'diligently operate or cause the permitted business to be operated in good faith and in an efficiem,
businesslike and respectable manner, maintaining in the Premises a full staff of employees and a full stock
of seasonable merchandise of the quality, kind, type and breadth which Tenant usually sells, and
employing Tenant's best continual efforts and abilities to the end that the maximum Gross Sales which can
reasonably be produced from the Premises shall be produced.
(e) Throughout the term of this Lease, Tenant shall cause its store to remain open each day of the
week during the hours set forth in the paragraph of Part I of the Lease captioned "Shopping Center Hours
of Operation." Tenant agrees that the hours during which Tenant is obligated to operate may be changed
by Landlord from time to time provided that Landlord will not act in a discriminatory manner.
(f) Tenant shall operate and/or advertise the business operated at or from the Premises only under
the name set forth in the ftrst page of Part I of the Lease, unless and until the use of another name is
permitted in writing, by Landlord.
SECTION 5.02. Storage.
Tenant shall warehouse, store and/or stock in the Premises only such goods, wares and
merchandise as Tenant is permitted and intends to offer for sale at retail in, at or from the Premises. This
shall not preclude occasional transfers of merchandise to other stores of Ten anI, if any, not located within
the Shopping Center.
SECTION 5.03. Rules and RegulatiDn~.
Tenant covenants and agrees that Tenant at its own cost and expense:
(a) Will keep all exterior and interior store front surfaces clean and will maintain the rest of the
Premises and all corridors and loading areas immediately adjoining the Premises in a clean and orderly
condition and free of insects, rodents, vermin and other pests;
(b) Will not permit accumulations of any refuse, but will remove the same and keep such refuse in
odor-proof, rat-proof containers within the interior of the Premises shielded from the view of the general
public until removed and will not burn any refuse whatsoever but will cause all such refuse to be removed
by such person or companies, including Landlord, as may be designated in writing by Landlord and will
pay all charges therefor, which shall in all events be competitive within the same geographical area for
similar services performed by a reputable person or company; provided, however, that Landlord may
decline to designate any such person or company in which event all such refuse shall be removed by such
person or company as Tenant, subject to Landlord's written approval, shall select;
(c) Will replace promptly with glass of a like kind and quality and any plate glass or window
alass of the Premises which may become cracked or broken;
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(d) Will not, without the Landlord's prior written consent, place or maintain any vendmg
machines. merchandise or other articles in any vestibule or entry of the Premises or on the exterior
sidewalks of the Shopping Center;
(e) Will not use or permit the use of any apparatus for sound reproduction or transmission, or any
musical instrument, in such manner that the sound so reproduced, transmitted or produced shall be audible
beyond the confmes of the Premises, aIld will not use any other advertising medium, including without
limitation flashing lights, or search lights which may be heard or experienced outside the Premises;
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(I) Will keep all mechanical apparatus free of vibration and noise which mav be transmitted
beyond the confmes of the Premises; -
(g) Will not cause or permit objectionable odors to emanate or be dispelled from the Premises;
(h). Will not solicit business, distribute handbills or other advertising matter or hold
demonstrations in the parking areas or other Common Areas in the Shopping Center;
(i) Will not permit the parking of delivery vehicles so as to interfere with the use of any driveway,
walk, parking area, or other Common Areas in the Shopping Center;
G) Will comply with all laws, rules, regulations, guidelines, orders and ordinances of applicable
federal, state and local governmental authorities, commissions, boards and agencies with respect to this
Lease, the use of the Premises, the removal of asbestos or any other hazardous material from the Premises,
or any work to be performed in the Premises by Tenant and Tenant shall secure and keep in force all
permit>, licenses and approvals required for Tenant's use of the Premises. In addition, Tenant shall also
comply with all recommendations of the Association of Fire Underwriters, Factory Mutual Insurance
Companies, the Insurance Services organization, or other similar body establishing standards for fire
insurance ratings with respect to the use or occupancy of the Premises by Tenant and will participate in
periodic fire brigade instruction and drills at the request of Landlord and will supply, maintain, repair and
replace for the Premises any fIre extinguishers or other fIre prevention equipment and safety equipment
(including installation of approved hoods and ducts if cooking activity is conducted on the Premises)
required by the aforementioned rules, regulations and Association or other body in order to obtain .
insurance at the lowest available premium rate throughout the term of this Lease;
(k) Will not receive or ship articles of any kind except through the facilities provided for that
purpose. by Landlord; will attempt to direct any delivery of goods, supplies, merchandise, or fixtures to or
from the Premises to be made through the rear entry of Premises; and in no event will permit a delivery
vehicle to be parked in the fire lane or parking facilities of the Shopping Center during the hours of
operation stated in Part I of this Lease;
(I) Will light the show windows of the Premises and exterior signs each day of the year to the
extent which shall be required by Landlord;
(m) Will keep all outside areas immediately adjoining the Premises including, but not limited to,
sidewalks and loading docks free from ice and snow and Tenant hereby agrees that Tenant is solely liable
for any accidents occurring on said outside areas due or alleged to be due to any accumulation of ice and
snow;
(n) Will refer to the name of the Shopping Center in all advertising done to promote sales at its
store or stores in the geographical area in which the Shopping Center is located;
(0) Will not use the plumbing facilities for any other purpose than that for which they are
constructed and will not permit any foreign substance of any kind to be thrown therein and the expense of
repairing any breakage, stoppage, seepage or damage, whether occurring on or off the Premises, resulting
from a violation of this provision by Tenant or Tenant's employees, agents or invitees shall be borne by
Tenant All grease trapS and other plumbing traps shall be kept clean and operable by Tenant at Tenant's
own cost and expense. Tenant shall keep the floor of the Premises and all penetrations thereof properly
sealed and caulked so that water or other substances in use in the Premises shall not leak from the Premises
to any Common Area or adjoining premises or premises located below the Premises;
(p) Will not permit any shopping carts in the Common Areas even if taken there by customers;
(q) Will not place or cause or permit to be placed within the Premises, pay telephones, vending
machines (except those for the exclusive use of Ten ant's employees) or amusement devices of any kind
without the prior written consent of Landlord;
(r) Landlord reserves the right from time to time to adopt and promulgate reasonable rules and
regulations applicable to the Premises and the Shopping Center and to amend and supplement such rules
and reaulations. Notice of such rules and regulations and of any amendment and supplements thereto shall
be O'iv:n to Tenant and Tenant agrees thereupon to comply with and observe all such rules and regulations,
pro~ided that, to the extent practicable, the same shall be applied uniformly to substantially all retail
tenants of the Shopping Center, except for grocery and depamnent stores;
(s) Landlord's rights and remedies in the event Tenant shall fail to comply with and observe such
rules and regulations shall be the same as though such rules and regulations were set forth in Section 5.03
of this Lease.
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SECTION 5.04. Competition.
Tenant acknowledges that Landlord's obtaining a fair and equitable rental is dependent upon
Tenant's concentrating all of its business efforts within the geographical area in which the Shopping Center
is located upon Tenant's business at the Premises so as to maximize Tenant's Gross Sales, and Tenant
further acknowledges that any activity by Tenant within such geographical area in operating or
participating in the operating of a similar or competing business must necessarily have an adverse effect on
the volume of Gross Sales by Tenant atthe 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's 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 owns, operates, is employed in, directs or serves any other place of business, the
same, or similar to, or competitive with, Tenant's business as set forth herein, within a radius of three (3)
miles from the Shopping Center, which distance shall be measured in a straight line without reference to
road mileage, then Landlord may either (a) cancel this Lease upon thirty (30) days prior written notice to
Tenant, (b) include the Gross Sales of any such other place of business in the Gross Sales made from the
Premises to determine the Percentage Rent due under this Lease, as fully as though such Gross Sales had
actually been made from the Premises, or (c) increase the annual amount of Fixed Minimum Rent payable
thereafter, and each component thereof if the Fixed Minimum Rent is otherwise subject to increase, by an
amount equal to the highest Percentage Rent payable by Tenant in any calendar year prior to the opening of
such other business. In the event Landlord so elects, all of the provisions of Articles II and III hereof shall
be applicable to the Gross Sales of, and all the books and records pertaining to, such competing store.
ARTICLE VI
GRANT OF CONCESSIONS
SECTION 6.01. Condition to Grant.
The provision against subletting elsewhere contained in this Lease shall be applicable so as to
prohibit Tenant from granting concessions without the consent of Landlord for the operation of one or
more departments of the business of Tenant, and any grant of concessions consented to by Landlord shall
be subject to the conditions that (a) each such concession which may be granted by Tenant shall be subject
to all the terms and provisions of this Lease; (b) the Gross Sales from the operation of each such
concession shall be deemed to be part of the Gross Sales of Tenant for the purpose of determining the
Percentage Rent payable to Landlord; (c) all of the provisions hereunder applying to the business of Tenant
including, but not limited to, the provisions of Articles II and III shall apply to each such concession; (d)
unless otherwise approved in writing by Landlord, such department or departments shall be operated only
as part of the business operation generally conducted by Tenant on the Premises and under the advertised
name of Ten ant; and (e) at least seventy-five percent (75) of the sales floor area of the Premises shall at all
times be operated directly by Tenant.
ARTICLE VII
COMMON AREAS
SECTION 7.01. Definition; Control.
All areas, space, facilities, equipment. and signs, to the extent made available by Landlord for the
common and joint use and benefit of Landlord, Tenant and other tenants and occupants of the Shopping
Center, and the respective employees, agents, subtenants, concessionaires, licensees, customers and other
invitees, are collectively referred to herein as "Common Areas." If and to the extent made available by
Landlord, Common Areas shall include, but not be limited to, the sidewalks, parking areas, accesS roads
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and drives, driveways, parking decks, bridges, landscaped areas, truck serviceways, tunnels, loading docks,
open enclosed pedestrian walkways, corridors and malls, courts, stairs. ramps, elevators, escalators,
comfort and fIrst aid stations, public washrooms, community hall or auditoriwn parcel pick-up stations.
utility lines and utility rooms. All Common Areas in or about the Shopping Center shall be subject to the
exclusive control of Landlord. Landlord shall operate, manage, equip, police, light, surface, and maintain
the Common Areas in such manner as Landlord, in its sole discretion, may, from time to time determine.
Landlord hereby expressly reserves the right from time to time to construct, maintain and operate lighting
and other facilities, equipment and signs on all of the Common Areas; to police and maintain security for
the Common Areas; to use and allow others to use the Common Areas for any purpose; to 'change the size,
area, level, location and arrangement of the Common Areas; to build multi-story andlor subterranean
parking facilities; to regulate parking by tenants and other occupants of the Shopping Center and the
respective employees, agents, subtenants, concessionaires and licensees; to enforce parking charges (by
operation ofmeters, or otherwise) with appropriate provisions for parking ticket validation for tenants; to
close temporarily all or any portion of the Common Areas for the purpose of making repairs, changes or
alterations thereto or performing necessary maintenance in connection with any emergency, in connection
with closings resulting from adverse weather conditions or for any other purpose whatsoever, whether such
purpose is similar or dissimilar to the foregoing; to discourage non-customer parking; to establish, mOdifY
and enforce reasonable rules and regulations with respect to the Common Areas and the use to be made
thereof. For the term of this Lease, Tenant is hereby given the license in common with all others to whom
Landlord has or may hereafter grant rights to use, the Common Areas as they may from time to time exist;
provided however, that if such license shall at any time be revoked, in whole or in part, or the size, area,
level, location or arrangement of such Common Areas or the type of facilities at any time forming a part
thereof be changed, altered, rearranged or diminished, Landlord shall not be subject to any liability
therefor, nor shall Tenant be entitled to any compensation or diminution or abatement of rent therefor, nor
shall such alteration, rearrangement, revocation, change or diminution or such Common Areas be deemed a
constructive or actual eviction or otherwise be grounds for terminating or modifYing this Lease. In order to
establish that the Shopping Center or any portion thereof is and will continue to remain private property
and to prevent a dedication thereof of the accrual of any rights to any person or to the public thereon,
Landlord hereby reserves the unrestricted right, in Landlord's sole discretion, to close all or any portion of
the Common Areas to such extent as, in the opinion of the Landlord's counsel, may be legally sufficient to
prevent such dedication thereof or accrual of any rights to any person or the public thereon; provided,
however, Landlord reserves the right at any time and from time to time to dedicate to public use part or all
of the ring roads, access roads, drives and utility lines, together with all easements required to effectuate
such dedications, as it may see fIt.
SECTION 7.02. Expenses.
Landlord (subject to reimbursement as set forth in Section 7.03) will at its expense operate and
maintain the Common Areas and the Shopping Center. For the purposes of this Lease, "Operating Costs"
shall be those costs deemed by Landlord to be reasonable and appropriate including, but not limited to, all
costs and e"penses, whether expended or incUlTed, of operating, repairing, maiI1taining, replacing, lighting,
cleaning, and painting such Common Areas and the Shopping Center and insuring the same with such
policies and companies and in such limits as selected by Landlord. Insurance includes but is not
necessarily limited to, fIre insurance with extended coverage, liability insurance covering personal injury,
deaths and property damage with a personal injury endorsement covering false arrest. detention or
imprisonment, malicious prosecution, libel and slander, and wrongful entry or eviction, worker's
compensation insurance, plate glass insurance, contractual liability insurance and fIdelity bonds but
excluding the insurance referred to in Section 7.04 hereof. Expenses also include removing snow, ice
rubbish and debris; inspecting, policing, providing security and regulating traffic; rental of sweepers,
trucks, and other equipment; repairing andlor replacing of paving, roofs, curbs, walkways, landscaping,
drainage, in-site water lines, sanitary sewer lines, storm water lines, canopies, skylights, fountains,
electricallirles and other equipment serving the property on which the Shopping Center or any part thereof
is constructed; uniforms and replacement of uniforms; the rental of music programs, services and
loudspeaker systems including the furnishing of electricity therefor; all costs incUlTed by Landlord in
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compliance with any environmental or other similar laws, rules, regulations, guidelines or orders, including
the cost of temoving hazardous materials from the Shopping Center; and Landlord's property management
fees and expenses, including the gross compensation and fringe benefits of on-site personnel required to
supervise and accomplish the foregoing.. In the event of any dispute as to whether an item represents an
expense or a capital item, Landlord's accounting practices shall be determinative and binding on the
parties.
SECTION 7.03. Reimbursement of Landlord.
(a) For each "Accounting Period" (as defmed in Section 7.03(f)) during the original term of this
Lease, Tenant shall pay to Landlord as additional rent, as Tenant's share of the Operating Costs, a sum
equal to the product obtained by multiplying (I) the total Operating Costs for such Accounting Period less
all contributions thereto actually made by occupants of any excluded areas by (2) a fraction, the numerator
ofwhich shall be the square feet of floor area of the Premises, and the denominator of which shall be the
total amount of square feet of rentable floor area in the Shopping Center less excluded areas.
(b) On the first day of each calendar month during that portion of the term hereoffalling within
the first Accounring Period during the original term hereof Tenant shall pay to Landlord, in advance,
without demand and without any setoff or deduction, as an estimated payment on account of Tenant' s
share of the Operating Costs an amount equal to one-twelfth (1/12th) of the sum obtained by multiplying
the square feet of floor area of the Premises by the minimum annual charge per square foot set forth in the
paragraph of the of Lease captioned "Common Cost of Maintenance and Operation." If the
commencement date hereof shall not be the first day of a calendar month, Tenant's payment of its
proportionate share of Operating Costs for the fractional month between the commencement date and the
frrst day of the frrst full calendar month in the term shall be prorated on a per diem basis (calculated on a
thirty (30) day month) and shall be paid together with the frrst payment of Fixed Minimum Rent.
(c) After the frrst Accounting Period, Tenant shall continue to pay such estimated amount of
Tenant's proportionate share of Operating Costs on the first day of each month in advance without demand
Md without any setoff or deduction, but the aforesaid estimated amount of Tenant's share of Operating
Costs may be adjusted and revised by Landlord after the end of each Accounting Period during the term
hereof on the basis of the actual Operating Costs for the immediately preceding Accounting Period. Upon
Landlord furnishing to Tenant a statement setting forth such revised estimated Operating Costs, Tenant
shall pay to Landlord such revised estimated share in equal monthly installments, each such installment to
be a sum equal to one twelfth (1/12th) of such revised estimated Operating Costs, in advance on the frrst
day of each calendar month thereafter until the next succeeding revision in such estimate.
(d) Following the end of each Accounting Period, Landlord shall furnish to Tenant a written
statement.in reasonable detail covering the Accounting Period just expired and showing the total Operating
Costs for such Accounting Period, the amount of Tenant's share thereof and payments made by Tenant
with respect thereto. All subsequent monthly payments on account of Tenant's share of Operating Costs
made by Tenant during such Accounting Period after reception of such statement shall be applied by
Landlord as payment on account of Tenant's obligation for its share of Operating Costs for the next
ensuing Accounting Period and shall not reduce Tenant's obligation to pay the balance due (if any) to
Landlord pursuant to such statement. Tenant has thirty (30) days to appeal Landlord's statement of
Operating Costs, after which said statement shall be deemed accepted by Tenant.
(e) If Tenant's share of Operating Costs exceeds Tenant's payments with respect to any
Accounting Period, Tenant shall pay to Landlord the deficiency within thirty (30) days after the date of the
furnishing of the statement from Landlord. If Tenant's payments exceed Tenant's share of the Operating
Costs and Ten~t is not in default hereunder or otherwise indebted to Landlord, Landlord shall, at
Landlord's option, apply such excess to Tenant's account as a credit or refund such excess to Tenant within
thirty (30) days; provided, if such overpayment is for the last Accounting Period. Landlord shall not be
obligated to refund to Tenant the amount of such overpayment until Tenant has fully performed all of its
obligations under this Lease, is not indebted to Landlord and has vacated in accordance with the provisions
of this Lease.
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(f) For the purpose of this Lease. the words "Accountino Period" mean the period consistino of
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twelve (12) consecutive calendar months, commencing on a date determined by Landlord from time to
time and each succeeding twelve (12) calendar month period during the original term of this Lease.
(g) If the original term of this Lease commences or terminates (other than by reason of Ten ant's
default) during an Accounting Period, Tenant's obligation for Tenant's proportionate share of Operating
Costs for such Accounting Period shall be equitably pro-rated.
SECTION 7.04. Proportionate Insurance.
(a) For each Accounting Period or ponion thereof in the original term hereof, Tenant shall pay to
Landlord, as additional rent, as Tenant's share of the cost of Landlord's policy or policies off Ire insurance
with extended coverage insuring the Shopping Center other than such cost relating to the Common Areas, a
sum equal to the square feet of floor area of the Premises multiplied by the charge per square foot set fonh
in the paragraph of Pan I of the Lease captioned "Proponionate Insurance."
(b) Said sum shall be paid to Landlord on the first day of each calendar month in the original
term, in advance without demand and without setoff, in equal monthly instalhnents. If the original term of
this Lease commences or terminates (other than by reason of Tenant's default) on a date other than the fIrst
or last day, respectively, of an Accounting Period, Tenant's payment of such costs of insuring shall be
equitably pro-rated.
(c) Landlord may adjust the aforesaid amount at any time during an Accounting Period to reflect
Landlord's actual cost of such insurance per rentable square foot of the total Shopping Center area, and
upon receipt of such notice Tenant shall Commence payment of such increased sum and shall continue to
pay same until a subsequent adjustment is made hereunder.
(d) Although Tenant shall pay its share of the cost of insuring, as aforesaid, in addition to, and not
as a component of, its share of Operating Costs, for the. purpose of Articles VIII ad XIX and Sections
13..02,14.01 and 21.02 of this Lease, the words "Operating Costs" shall be deemed to include such share of
the cost of insuring.
ARTICLE VIII
SIGNS; AWNINGS; CANOPIES; FIXTURES; ALTERATIONS
SECTION 8.01. Signs, Awnings and Canopies.
(a) Tenant shall neither place nor maintain nor suffer to be placed or maintained on the exterior of
the Premises or on the glass of any window or door of the Premises which shall be visible from the exterior
thereof or within three (3) feet of any such glass (other than neatly lettered signs of reasonable size placed
on the floor of the display window identifying micles offered for sale and the price thereof) any sign,
awning, canopy, decoration, lettering, advertising matter or any other thing without in each instance fIrst
obtaining Landlord's written approval thereof; and Tenant further agrees to design and to maintain such
sign, decoration, lettering, advenising matter or other thing as may be approved in good condition and
repair at all times in compliance with the requirements of the "Sign Regulations" attached hereto, made
part hereof and marked Exhibit "C".
(b) Tenant shall not paint or decorate any part of the exterior of the Premises.
(c) Tenant shall install and maintain at all times, displays of seasonable merchandise in the show
windows of the Premises; and Tenant further agrees that all articles and the arrangement, style, color and
general appearance thereof, in the interior of the Premises which shall be visible fr~m the exterior thereof,
including, but not limited to, window displays, advertising matter, signs, merchandIse and store fixtures:
shall be maintained in the Premises so as to be in keeping with the character and standards of the Shoppmg
Center.
SECTION 8.02. Trade Fixtures.
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All trade fixtures, signs and other personalty hereafter installed by Tenant in the Premises shall be
neW or reconditioned and "like new," shall be and remain the property of Ten ant and shall be removed by
Tenant at the expiration or earlier tennination of this Lease provided that (a) Tenant shall not at such time
be in default under this Lease and (b) Tenant shall promptly restore the damage done to the Premises by the
installation and/or removal thereof. Should Tenant fail to so remove Tenant's trade fixtures and/or to so
restore the Premises, Landlord may do so, collecting, at Landlord's option, the cost and expense thereof, as
additional rent, upon demand. Any such trade fixtures which are not removed by Tenant at or prior to any
termination of this Lease including, but not limited to, a tennination by Landlord pursuant to this Lease,
shall unless Landlord gives Tenant notice to remove any or all of such trade fixtures, be and become the
property of Landlord (without any obligation by Landlord to pay compensation for such trade fixtures). In
the event Landlord gives Tenant such notice to remove any or all of such trade fixtures, Tenant shall
promptly remove such of the trade fixtures as may be specified by Landlord in such notice.
Notwithstanding anything herein contained to the contrary or any decision of any court to the contrary, the
term "trade fixtures" shall not include any air-conditioning, heating, lighting, electrical and plumbing
equipment installed by Tenant in the Premises, nor any wiring or other apparams related thereto.
SECTION 8.03. Alterations and Mandatory Refurbishment.
(a) Tenant may, without Landlord's consent, make alterations to the interior of the Premises
which do not alter, modify or in any other manner whatsoever affect the strucmral portions of the Premises
and/or the roof of the building of which the Premises shall fann a part and/or the exterior of the Premises
(including but not limited to the storefront) and/or the structural integrity of the building of which the
Premises shall fonn a part, and/or the plumbing, electrical, heating, ventilating, air-conditioning, or
mechanical systems and installations in the premises, provided that any such single alteration (or series of
series of such related alterations) does not involve a cost in excess of Five Thousand Dollars ($5,000.00).
Tenant agrees that it will not make any other alterations, improvements, additions or changes to the interior
or exterior of the Premises during the tenn of this Lease without in each instance obtaining Landlord's
prior written consent. Furthennore, Tenant will not, except for installalion offlXtures or other work
specified on Tenant's approved plans and specifications referred to in Section 4.02 hereoforto the extent
pennitted by the first sentence of this Section 8.03(a), cut or drill into or secure any fixture, apparatus or
equipment of any kind to any part of the Premises without in eac'lt instance frrst obtaining Landlord's
written consent. Together with each request for such consent. Tenant shall present to Landlord detailed
plans and specifications for such proposed alterations. improvements, additions or changes as required by
Section 4.02 hereof and Tenant shall comply with such section in performing such approved alterations.
(b) If the term is a period in excess of five (5) years, then as a material inducementto receiving a
term in excess offive (5) years, Tenant shall remodel, at its own expense, the interior of the Premises at
least every five (5) years, measured from the commencement date or from the commencement of the last
remodeling required by this Lease, whichever is later. Tenant shall submit to Landlord for approval. plans
and specifications for such work pursuant to Section 4.02 hereof. The remodeling required by this Section
shall restore the interior of the Premises to a like-new condition and shall incorporate Tenant's latest store
design coocept to the extent possible without making structural alterations. Such remodeling shall include,
without limitation, new floor and wall coverings, and whatever labor and materials are necessary to
generally refurbish the exterior storefront and the interior of the Premises to a like-new condition.
ARTICLE IX
MAINTENANCE AND REPAffi; SURRENDER OF LEASED PREMISES
SECTION 9.01. Repairs and Maintenance by Tenant.
(a) Tenant shall at all times at its own expense keep and maintain all portions of the Premises in
aood order and repair, and in a neat, safe, clean and orderly condition, including, but not limited to,
~easonable periodic painting and making all non-structural ordinary and extraordinary, foreseen and
unforeseen repairs and replacements to the Premises and its component systems. The foregoing sentence
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~hall obligate Tenant to repair, maintain and replace, without limitation, all entrances to the Premises, the
storefront, the glass in all doors and windows of the Premises, all interior portions of the Premises, all trade
fIXtures, signs and walls thereof, as well as plumbing, electrical, sprinkler, heating, ventilation and air
conditioning systems, escalators and elevators, if any, mechanical systems, and sewer lines within the
Premises or under the floor slab thereof, including free flow to the main sewer line, as well as all other
apparatus or equipment installed by Tenant outside the Premises. Tenant shall not overload the electrical
wiring serving the Premises, and will install at its own expense (but only after obtaining Landlord's written
approval), any additional electrical wiring which may be required in connection with the Premises. If
Landlord, Agent or affiliates thereof, elect to provide heating, ventilating and air-conditioning inspection,
adjustment, cleaning and repair services to Tenant, Tenant shall utilize such services and pay for the same
at rates which are competitive within the same geographic area for similar services performed by others; if
Landlord elects not to perform such services, the Tenant shall contract for such services with a qualified
service contractor approved by Landlord, and annually shall submit to Landlord a copy of the service
contract.
(b) Tenant will repair promptly at its own expense any damage (whether structural or non-
structural) to the Premises caused by any construction or alterations performed by Tenant or bringing into
the Premises any property for Tenant' s use, or by the installation or removal of such property, regardless of
fault or by whom such damage shall be caused, unless caused solely by the negligence of Landlord or its
servants or employees.
SECTION 9.02. Structural Repairs.
(a) Except as otherwise provided by 9.01(b), structural columns, structural portions of the floors
(excluding floor tile, carpet or other'floor coverings), the roof of the Shopping Center and exterior walls
thereof will be repaired by Landlord provided Tenant gives Landlord notice specifying the need for and
nature of such repairs; provided, however, if Landlord is required to make any repairs to such portions of
the Premises by reason, in whole or in part, of the negligent act or failure to act by Tenant or Tenant's
agent, servants, employees, contractors or subcontractors, or by reason of any unusual use of the Premises
by Tenant (whether or not such use is a permitted use hereunder), Landlord may collect the cost of such
repairs, as additional rent, upon demand. Forthe purpose of this Lease, any difference in floor level.
shifting of floor slab, or deviation in finished floor height resulting from the insertion or construction of an
expansion joint or strip in the floor slab shall not be deemed a structural defect requiring repair by
Landlord, but rather, a normal construction practice which shall be Tenant's responsibility to appropriately
plan for in its construction and use of the Premises. The provisions of this subsection shall not apply in the
case of any casualty or condemnation in which event the provisions of Articles XVI or XVII, as the case
may be, shall control.
(b) If, without Landlord's prior consent, Tenant performs any alterations, additions, .
improvements, changes, affixations of chattels or other work which affects the structural portions of the
Premises and/or the roof of the building ofwhich the Premises are a part and/or that portion of the exterior
of the Shopping Center which Landlord is obligated to repair pursuant to Section 9.02(a) or which affects
the structural integrity of the building of which the Premises shall form a part, such action by Tenant shall
release and discharge Landlord from such repair obligation and thereafter Tenant agrees to be solely
responsible for the maintenance, repair and replacement of any or all such structural portions, roof, exterior
and building which have been affected; provided, in the event Tenant shall default in the performance of
such responsibilities to the satisfaction of Landlord, in addition!o Landlord's other remedies under this
Lease, at law or in equity, Landlord may (but shall not be obligated to do so) cure such default at Tenant's
cost without any liability of Landlord, its agents, servants, employees, contractors or subcontractors for
damage to Tenant's merchandise, fIXtures or other property or to Tenant's business by reason thereof.
SECTION 9.03. Surrender of Premises.
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(a) At the expiration or earlier tennination of the tenn of this Lease, Tenant shall peaceably
surrender the Premises, broom clean, free of debris, in good order, condition and state of repair as required
hereby, ordinary wear and tear excepted. Tenant shall surrender all keys for the Premises to Landlord and
shall notify Landlord in writing of all combinations of locks, safes and vaults, if any, in the Premises.
Tenant shall comply with the provisions of Section 8.02 respecting the removal of its trade fixtures before
surrendering the Premises.
(b) All alterations, improvements, additions or changes made by Tenant and all air-conditioning,
heating, lighting, electrical and plumbing equipment installed by Tenant shall remain upon the Premises at
the expiration or earlier tennination of the tenn of this Lease and shall become the property of Landlord
immediately upon the installation thereof and shall remain the property of the Landlord without any
obligation of Landlord to pay compensation therefor.
ARTICLE X
INDEMNIFICATION; SUBROGATION
SECTION 10.01. Indemnification and Waiver of Claim.
(a) Tenant will defend and will indemnify Landlord and Agent and save them hannless from and
against any and all claims, actions, damages, liability and expenses (including, but not limited to,
reasonable attorneys' fees and disbursements) in connection with the loss of life, personal injury or damage
or business arising from, related to, or in connection with. the perfonnance of Tenant's Work, the
occupancy of the Premises or any part of Landlord's property or the Shopping Center or occasioned wholly
or in part by act or omission of Tenant, its contractors, subcontractors, subtenants, licensees, or
concessionaires, or its or their respective agents, servants or employees. Tenant shall not, however, be
liable for dainages or injury occasioned by the negligence or willful acts of Landlord, Agent or their
agents, employees, or servants, unless such damage or injury arises from perils against which Tenant is
required by this Lease to insure. Tenant shall also pay all costs, expenses and reasonable attorneys' fees
that may be expended or incurred by Landlord and/or Agent in successfully enforcing the .covenants and
agreements of this Lease.
(b) Unless and then solely to the extent such damage is caused by the negligent acts or omissions
of Landlord, Agent or their respective agents, servants, and employees, neither Landlord, Agent nor their
respective agents, servants, employees or contractors shall be liable for, and Tenant, in consideration of
Landlord's execution of this Lease, hereby releases all claims for loss of life, personal injury or damage to
property or business sustained by Tenant or any person claiming through Tenant resulting from any fire,
accident occurrence or condition in or upon the Shopping Center or any part thereof (including, without
limitation, the Premises and the building of which the same is a part), including, but not limited to, such
claims for loss of life, personal injury or dainage resulting from (I) any defect in or failure of plumbing,
heating or air conditioning equipment, electrical wiring or installation thereof, water pipes, stairs, railings
or walks; (2) any equipment or appurtenances being out of repair; (3) the bursting, leaking or running of
any tank, washstand, water closet, waste pipe, drain or any other pipe or tank in, upon or about the
Shopping Center; (4) the backing up of any sewer pipe; (5) the escape of steam or hot water; (6) water,
snow or ice being upon or coming through the roof or any other place upon or near the Premises or the
building of which the same is a part or otherwise; (7) the falling of any fixture, plaster, ceiling tile or
stucco; (8) broken glass; (9) any act or omission of other tenants or other occupants of the Shopping
Center; and (10) any act or omission of Landlord, Agent or their respective principals, agents, servants and
employees whether occurring on, prior to, or subsequent to the date of this Lease. The foregoing waiver
and release is intended by Landlord and Tenant to be absolute, unconditional and without exception and to
supersede any specific repair obligation imposed upon Landlord hereunder.
SECTION 10.02. Subrogation.
In the event the Premises or its contents are damaged or destroyed by fire or other insured
casualty, (a) Landlord, to the extent of the coverage of Landlord's policies offrre insurance with extended
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coverage endorsements, hereby waives its rights, if any, against Tenant with respect to such damage or
destruction, even if said fIre or other casualty shall have been caused, in whole or in part, by the
negligence of Tenant, its agents, servants or employees, and (b) Tenant, to the extent of the covera~e of
Tenant's policies offrre insurance with extended coverage, hereby waives its rights, if any against ~
Landlord with respect to such damage or destruction, even if said fIre or other casualty shall have been
caused, in whole or in part, by the negligence. of Landlord, its agents, servants, or employees; provided,
ho,,:,ever, suc~ waivers of subrogation shall only be effective with respect to loss or damage occurring
dunng such tIme as Landlord's or Tenant's policies offrre insurance with extended coverage endorsements
(as the case may be) shall contain a clause or endorsement providing in substance that the aforesaid waiver
of subrogation shall not prejudice the type and amount of coverage under such policies or the right of
Landlord or Tenant (as the case may be) to recover thereunder. If, at any time, Landlord's or Tenant's
insurance carrier refuses to write insurance which contains a consent to the foregoing waiver of
subrogation, Landlord or Tenant, as the case may be, shall notify the other party thereof in writing, and
upon the giving of such notice, the provisions of this Section shall be null and void as to any casualty
which occurs after such notice. If Landlord's or T enan!' s insurance carrier shall make a charge for the
incorporation of the aforesaid waiver of subrogation in its policies, then the party requesting the waiver
shall promptly pay such charge to the other party, upon demand. In the event the party requesting the
waiver fails to pay such charge upon demand, the other party shall be released of its obligation to supply
such waiver.
ARTICLE XI
INSURANCE
SECTION 11.01. Insurance.
(a) Tenant will keep in force in companies who are acceptable to Landlord and licensed to do
business in the state where the Shopping Center is located, at Tenant's expense, at all times during the tem
of this Lease and during such other times as Tenant occupies the Premises or any part thereof:
(I) Comprehensive general liability insurance with respect to the Premises, the
sidewalks, if any, abutting and adjoining the Premises, and the business operated by Tenant and any
subtenants, licensees and concessionaires of Tenant in or from the Premises with minimum limits of One
Million Dollars ($ 1,000,000.00) on account of bodily injuries to or death of one person, and Two Million
Dollars ($2,000,000.00) on account of bodily injuries to or death of more than one person as the result of
anyone accident or disaster, and property damage insurance with minimum limits of One Hundred
Thousand Dollars ($100,000.00). If the nature ofTenant's operation is such as to place any or all of its
employees under the coverage oflocal worker's compensation or similar statutes, Tenant shall also keep in
force, at its own expense, worker's compensation or similar insurance affording statutory coverage and
containing statutory limits. Such liability insurance shall, in addition, extend to any liability of Tenant
arising out of the indemnities provided in Section 10.01 hereof.
(2) Fire insurance, with standard broad fom extended coverage endorsement covering
(a) all of Tenan!'s stock in trade, trade fIxtures, furniture, furnishings, such equipment as is not affIxed to
the Premises, and (b) Tenant's interest in all of the improvements and bettements installed in the Premises
by Tenant, in each case to the extent of at least eighty percent (80%) of their collective insurable value,
without co-insurance.
(3) Such other types of insurance (excluding rent insurance in favor of Landlord) and
such additional amounts ofinsurance as, in Landlord's judgment, are necessitated by good business
practice. .
(b) Within ten (10) days of Landlord's request, Tenant will deposit with Landlord policies of
insurance required by the provisions of this Section 11.01, or certifIcates thereof, together with satisfactory
evidence of the payment of the required premium or premiums thereof. The insurance required hereby
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may be maintained by means of a policy or policies of blanket insurance so long as the provisions of this
Section are fully satisfied.
(c) If Tenant fails to provide Landlord with evidence of adequate insurance as described in
Section I l.0 I (a) and (b) above, then Landlord shall have the option to secure said insurance coveraee and
charge Tenant for the acmal cost of said insurance plus a handling chaig~ of twenty-five percent (25%) of
Landlord's cost of the premium.
SECTION 11.02. Insurance Provisions.
All policies of insurance required to be carried by Tenant shall provide that the policy shall not be
subject to cancellation, termination or change except after thirty (30) days prior written notice to Landlord
and the policy referred to in Section 1l.01 (a) (I) shall name Landlord as an additional insured.
SECTION 11.03. Effect on Insurance.
(a) Tenant will not do, omit from doing, suffer to be done, or keep or suffer to be kept anything
in, upon or about the Premises which will violate the provisions of Landlord's policies insuring against loss
or damage by fife or other hazards or which will adversely affect Landlord's fife or liability insurance
premium rating or which will prevent Landlord from procuring such policies from companies acceptable to
Landlord at normal rates. If Tenant's acts or omissions as above stated result the premium rate of fife or
other insurance on the Premises or other property of the Shopping Center to be increased, Tenant will pay
the amount of such increase as additional rent upon Landlord's demand. In addition, Landlord may, at its
option, rectify the condition existing on the Premises which caused or was a contributing cause of the
increased premium rate and may charge the cost of such action to Tenant as additional rent, payable on
demand. In determining whether increased premiums are the result of Tenant's use of the Premises, a
schedule, issued by the organization making the insurance rate on the Premises, showing the various
components of such rate, shall be conclusive evidence of the several items and charges which make up the
fife insurance rate on the Premises.
(b) If for any reason whatsoever Tenant fails to provide and keep in force any or all of the
insurance policies set forth in Section 11"0 I hereof, then in such event Tenant shall indemnify and hold
Landlord harmless against any loss which would have been covered by such insurance.
,
ARTICLE XII
UTILITIES
SECTION 12.01. Utilities.
(a) Tenant shall be solely responsible for and promptly pay all charges for heat, water, electricity,
sewer rents or charges, and any other utility used or consumed in the Premises or in providing heating and
air-conditioning to the Premises, including in each instance, all sales and other taxes applicable to the sale
or supply of such utilities, said responsibility commencing on the earlier of the commencement date or the
date Tenant first enters the Premises for any reason. Should Landlord elect or be required to supply or
make available any utility used or consumed at the Premises, Tenant agrees to purchase and pay for same
at reasonable costs reflecting the Tenant's use and consumption of the utility, as additional rent, every
month in the term hereof
(b) In the event that Tenant does not have a water meter installed in the Premises, Tenant will pay
to Landlord, as additional rent, every month during the term of this Lease the minimum charge for the size
of the water line installed in the Premises in accordance with the rates established from time to time by the
company or authority supplying water to the Premises.
(c) In the event the local authority, municipality, utility or other body collects for the water and/or
sewerage or sanitary service and/or consumption, as aforesaid, Tenant covenants and agrees to pay the
water and sewer rent charge and any other tax, rent, levy, connection fee or meter or other charge which
now or hereafter is assessed, imposed or may become a lien upon the Premises, or the realty of which they
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are a part, pursuant to law, order or regulation made or issued in connection. with the use, consumption,
maintenance or supply of water, or the water or sewerage connection or system.
(d) In no event shall Landlord be liable to Tenant in damages or otherwise for any interruption,
curtailment or suspension of any of the foregoing utility services in the event to of a default bv Tenant
under this LeaSe: or due to repairs, action of public authority, strikes, acts of God or public en~my, or any
other cause.
SECTION 12.02. Application for IJtilities.
Tenant shall make all appropriate applications to the local utility companies at such times as shall
be necessary to insure utilitie~ being available at the Premises no later than the commencement date and
pay all required deposits, connection fees and/or charges for meters within the applicable time period set by
the local utility company.
SECTION 12.03. Operation of Heating and Air-Conditioning.
Tenant must install, and operate heating and cooling equipment to maintain store temperatures at
such temperatures as will prevent the freezing or bursting ofpipes and the draining of heated and chilled
air from any existing or future enclosed sections of the Shopping Center.
SECTION 12.04. Utility Charge Defined.
All swns to be paid by Tenant in accordance with this Article XII are collectively herein referred
to as the "Utility Charge."
ARTICLE XlIl
ESTOPPEL CERTIFICATE; SUBORDINATION; ATTORNMENT
SECTION 13.01. Execution of Estoppel Certificate.
At any time, and from time to time, upon the written request of Landlord or any mortgagee,
Tenant, within twenty (20) days of the date of such written request, agrees to execute and deliver to
Landlord and/or such mortgagee, without charge and in a fonn satisfactory to Landlord and/or such
mortgagee, a written statement: (a) ratifying this Lease; (b) confirming the commencement and expiration
dates of the tenn of this Lease; (c) certifying that Tenant is in occupancy of the Premises, and that the
Lease is in full force and effect and has not been modified, assigned, supplemented or amended except by
such writings as shall be stated; (d) certifying that all conditions and agreements under this Lease to be
satisfied or performed by Landlord have been satisfied and perfonned except as shall be stated; (e)
certifying that Landlorel is not in default under the Lease and there are no defenses or offsets against the
enforcement of this Lease by Landlord, or stating the defaults and/or defenses claimed by Tenant; (t)
reciting the amount of advance rent, if any, paid by Tenant and the date to which such rent has been paid;
(g) reciting the amount of security deposited with Landlord, if any, and (h) any other infonnation which
Landlord or the mortgageee shall reasonably require.
SECTION 13.02. Failure to Execute Estoppel Certificate.
The failure of Tenant to execute, acknowledge and deliver to Landlord and/or any mortgagee a
statement in accordance with the provisions of Section 13.0 I above within the period set forth in section
13.01 shall constitute an acknowledgment by Tenant which may be relied upon by any person holding or
intending to acquire any interest whatsoever in the Premises or the Shopping Center that this Lease has not
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been assigned, amended, changed or modified, is in full force and effect and that the Fixed Minimum Rent
Tax Rent, Tenant's share of Operating Costs, Utility Charge, Percentage Rent and additional rent have '
been duly and fully paid not beyond the respective due dates immediately preceding the date of the request
for such statement and shall constitute as to any persons entitled to rely on such statements a waiver of any
defaults by Landlord or defenses or offsets against the enforcement of this Lease by Landlord which may
exist prior to the date of the written request, andlor Landlord, at its option, may treat such failure as a
Deliberate Event of Default.
SECTION 1.3.03. Subordination and Attornment.
Tenant agrees: (a) that, except as hereinafter provided, this Lease is, and all of Tenant's rights
hereunder are and shall always be, subject and suhordinate to any first mortgage, ground lease pursuant to
which Landlord has derived its interest in the Shopping Center, installment sales agreement or other
instrument of encumbrance heretofore or hereafter placed upon any or all of Landlord's Lessors or
Landlord's estate in the Shopping Center and all renewals, replacements, consolidations, amendments and
extensions thereof (collectively called "Mortgage") and to all advances made or to be made thereunder and
to the interest thereon; and (b) that in case Landlord's interest under the Mortgage shall terminate for any
reason and if the holder of any such Mortgage ("Mortgagee") or if the grantee of a deed in lieu of
foreclosure, or if the purchaser at any foreclosure sale or at any sale under a power of sale contained in any
Mortgage shall at its sole option so request, Tenant will attorn to and recognize such Mortgagee. grantee
or purchaser, as the case may be, as Landlord under this Lease for the balance then remaining of the tenn
of this Lease, subject to all terms of this Lease; and (c) that the aforesaid provisions sball be self operative
and no further instrument or document shall be necessary unless required by any such Mortgagee; grantee
or purchaser. Notwithstanding anything to the contrary set forth above, any Mortgagee may at any time
subordinate ilS Mortgage to this Lease, without Tenant's consent, by execution of a written document
subordinating such Mortgage to this Lease to the extent set forth therein, and thereupon this Lease shall be
deemed prior to such Mortgage to the extent set forth in such written document, without regard to their
respective dates of execution, delivery andlor recording and in that event, to the eldent set forth in such
written document, such Mortgageee shall have the same rights with respect to this Lease as though this
Lease had been executed and a memorandum thereof recorded prior to the execution, delivery and
recording of the Mortgage and as though this Lease had been assigned to such Mortgagee. Should
Landlord or an~ Mongagee, grantee or purchaser desire confirmation of either such subordination or such
attornment, as the case may be, Tenant upon written request, and from time to time, will execute and
deliver without charge and in fonn satisfactory to Landlord, the Mortgagee, grantee or purchaser all
instruments andlor documents in recordable form that may be requested to acknowledge such
subordination andlor agreement to attorn.
ARTICLE XIV
ASSIGNMENT AND SUBLETTING
SECTION 14.01. Assignment and Subletting.
(a) Tenant shall not voluntarily, involuntarily, or hy operation oflaw, assign, transfer, mortgage
or otherwise encumber (herein collectively referred to as an "assignment") this Lease or any interest of
Tenant herein, in whole or in part, nor sublet the whole or any part of the Premises, nor permit the Premises
or any part thereof to be used or occupied by others, without fIrst obtaining in each and every instance the
prior written consent of Landlord. Any consent by Landlord to an assignment or subletting or use of
occupancy by others shall be held to apply only to the specific transaction thereby authorized and shall not
constitute a waiver of necessity for such consent to any subsequent assignment or subletting or use by
occupancy by others, including, but not limited to a subsequent assignment or subletting by any tnlstee,
receiver or liquidator, nor shall the references anywhere in this Lease to subtenants, licensees and
concessionaires be constnled as a consent by Landlord to an assignment. Tenant shall pay to Landlord
monthly, as additional rent, the excess of the consideration received during such month of the sublease
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over the then current rental. Tenant shall pay to Agent the sum of Five Hundred Dollars ($500.00), in
advance, to defray Agent's administrative costs, overhead and counsel fees in connection with the
consideration, review or document preparation of any consent to assignment or subletting, such sum to be
paid at the time Tenant requests Landlord's execution of such document.
(b) If Tenant is a partnership and if at any time during the tenn of this Lease any person who at
the time of the execution of this Lease owns a general partner's interest ceases to own such general
partner's interest, such cessation of ownership shall constitute an assignment of this Lease for all purposes
of this Section.
(c) Any sublease or assignment by Tenant, or occupancy of Premises by a party other than
Tenant, without Landlord's express written approval, may be treated as a Deliberate Event of Default.
ARTICLE XV
PROMOTING THE CENTER
SECTION 15.01. Promotion Fund.
(a) Landlord has elected to provide or cause to be provided an ongoing program of promotional
events which, in Landlord's judgment, will serve to promote the Shopping Center and attract customers
thereto. Landlord has established a separate bank account into which Landlord shall deposit the
contributions referred to herein to be made by Tenant and other tenants, the aggregate of such funds on
hand from time to time being referred to herein as the "Promotion Fund." Tenant shall pay the Landlord,
as Tenant's contribution to the Promotion Fund, an annual charge ("Promotion Charge") in the amount
specified in the paragraph of Part I of the Lease captioned "Promotion," such amount to be increased on
January 1st of each year during the tenn hereof by six percent (6%) of the previous year's payment. The
Promotion Fund shall be used to pay all costs and expenses associated with the fonnation and carrying out
of an ongoing program for.the promotion of the Shopping Center, which program may include, special
events, shows, displays, signs, seasonal events, and other activities designed to attract customers to the
Shopping Center, including the purchase of electronic, print and other advertising. In connection with the
operation of the Promotion Fund, Landlord shall have the right to contract for or otherwise employ a
professional promotional consultant which, in Landlord's judgment, is necessary to administer the
Promotion Fund and such promotional activities to be implemented by Landlord, and consultant shall be
under the exclusive control and supervision of Landlord. The Promotion Fund may be used to defray the
cost of administration of such marketing activities including the salary or payments and reimbursements
due consultant, advertising, travel expenses, and other business expenses.
(b) If requested to do so by Landlord, Tenant shall submit to Landlord or Landlord's designee
advertising material to be used in connection with the Promotion Fund, such materials to be submitted in
such fonnat and at such times as shall be designated from time to time by Landlord or such designee.
Neither Landlord nor Landlord's designee shall have control over the contents of any such advertising
copy submitted by Tenant with regard to sales prices of merchandise or the cost of services offered, nor
shall either be responsible for the content of any advertising copy supplied by Tenant or prepared by
Landlord or Landlord's advertising agency, organization or personnel, including typographical errors.
Should Tenant fail to submit requested materials as specified herein on a timely basis, Landlord may, but
shall not be obligated to, insert an advertisement indicating Tenant's business or trade name and a
description of Ten anI's business or, in the alternative, not submit any advertising on behalf of Tenant for
the particular advertising campaign then being conducted. In the event Tenant fails to timely submit any
required advertising copy, Landlord may treat such failure as an Event of Default under this Lease.
SECTION 15.02. Merchants' Association.
In the event there presently exists either a merchants' association, promotion fund, or other similar
entity the purpose of which is to advertise the Shopping Center, Landlord agrees that unless Landlord shall
hereafter direct otherwise, the Tenant shall not be obligated to contribute any sums thereto. If Landlord
shall direct, in lieu of Tenant's payments to the Promotion Fund, Tenant shall commence paying an amount
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equal to the then current Promotion Charge to Landlord, as agent for such merchants' association and/or .
promotion fund. Tenant does hereby irrevocably assim to Landlord all of Tenant's votina riahts contained
a a a
in any by-law or other similar document forming or governing the administration of any such association
or other entity. Tenant further agrees that Landlord shall have the option at any time during the term
hereof to discontinue and dissolve such merchants' association and/9r other entity then in effect and to pay
over to the Promotion Fund in such percentages as Landlord shall determine, any sums remaining therein.
SECTION 15.03. Payment of Obligations to the Promotion Fund.
All sums required to be paid by Tenant pursuant to this Article XV shall be deemed "additional
rent," shall be payable with each monthly installment of Fixed Minimum Rent, without demand, deduction
or offset, shall be prorated for partial time periods during the term hereof and for the purposes of any other
articles of this Lease, shall be collectively referred to as the Promotion Charge.
ARTICLE XVI
DESTRUCTION OF PREMISES
SECTION 16.01. Total or Partial Destruction.
(a) If the Premises shall be damaged by fIre or other casualty covered by Landlord's policies of
fIre and broad form extended coverage insurance but are not thereby rendered untenantable in whole or in
part, subject to the limitations hereafter set forth, Landlord, at its own expense, shall cause such damage to
be repaired, and the rent shall not be abated. Ifby reason of such occurrence, the Premises shall be
rendered untenantable in whole or in part, subject to the limitations hereinafter set forth, Landlord, at its
own expense, shall cause the damage to be repaired and the Fixed Minimum Rent shall be abated
proportionately as to the portion of the Premises rendered untenantable. If the Landlord, at its option,
decides not to repair and restote the Premises, Landlord shall have the right, to be exercised by notice in
writing delivered to Tenant within sixty (60) days from and after the occurrence of such casualty, to cancel
and terminate this Lease. In no event shall Landlord be obligated to expend for any repairs or
reconstruction pursuant to this Section 16.0 I an amount in excess of the insurance proceeds recovered by it
and allocable to the damage to the Premises after deduction therefrom of Landlord's reasonable expenses
in obtaining such proceeds and any amounts required to be paid to Landlord's mortgagee. Nothing in this
section shall be construed to permit the abatement, in whole or in part, of the Percentage Rent, and the
calculation of Percentage Rent shall be governed solely by Section 2.0 1 (e) hereof.
(b) If the Landlord is required to repair or reconstruct the Premises pursuant to the provisions of
this SectioilI6.01, its obligation shall be limited to the construction of the structural demising walls
(without drywall) and roof of the Premises. Tenant shall submit to Landlord for Landlord's approval
detailed plans and specificatioRs for all other work not required to be done by Landlord and upon approval
of such ]:1lans and specifIcations and, within fIfteen (15) days after the Tenant has been notifIed that the
Landlord has completed its work on the Premises, Tenant shall re-enter the Premises and therein diligently
pursue td completion such work at Tenant's expense and immediately thereafter commence doing business
all in accordance with the provisions of this Lease. Landlord shall not be liable for delays occasioned by
adjusnnent of losses with insurance carriers or by any other cause, so long as Landlord shall proceed in
good faith.
(c) Notwithstanding anything set forth herein to the contrary, Tenant shall be responsible for all
repairs and replacements of damage and/or destruction of the Premises necessitated by burglary or
attempted burglary, or any other illegal or forcible entry into the Premises.
(d) Tenant covenants that it will give notice to Landlord of any accident or damage, whether such
damage is caused by insured or uninsured casualty, occurring, in, on or about the Premises within seventy-
two (72) hours after Tenant has knowledge of such accident or damage. If Tenant breaches its covenant set
forth in this Section 16.0 I (d), Landlord in addition to all other rights and remedies under this Lease, at law
or in equity shall, at its option, be relieved of any ofits obligations under Section 16.01.
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ARTICLE XVII
EMINENT DOMAIN
SECTION 17.01. Total Condemnation.
If the whole of the Premises shall be taken by any public or quasi-public authority under the
power of eminent domain, condemnation or expropriation or in the even to of a conveyance in lieu thereof,
then this Lease shall terminate as of the clate on which possession of the Premises is required to be
surrendered to the condemning authority, and Tenant shall have no claim against Landlord or the
condemning authority for the value of the unexpired term of this Lease.
SECTION 17.02. Partial Condemnation.
lfany part of the Premises shall be so taken or conveyed and ifsuch partial taking or conveyance
shall render the Premises unsuitable for the business of the Tenant, then the term of this Lease shall cease
and terminate as of the date.on which possession of the Premises is required to be surrendered to the
condemning authority and Tenant shall have no claim against Landlord or the condemning authority for the
value of any unexpired term of this Lease. In the event such partial taking or conveyance is not extensive
enough to render the Premises unsuitable for the business of Ten ant, this Lease shall continue in full force
and effect except that the Fixed Minimum Rent and the Percentage Rent Gross Sales Base shall each be
reduced in the same proportion that the floor area of the Premises so taken or conveyed bears to such floor
area immediately prior to such taking or conveyance such reduction co=encing as of the clate Tenant is
required to surrender possession of such portion. With respect to the days during which the Premises are
not open for business, the calculation of Percentage Rent shall be adjusted in accordance with Section
2.0 I (e) hereof. Landlord shall promptly restore the Premises, to the exte!1t of condemnation proceeds
available for such pwpose, as nearly as practicable to a condition comparable to their condition at the time
of such coodemnation, less the portion lost in the taking or conveyance, and Tenant shall promptly make
all necessary repairs, restoration and alterations of Ten ant's tixmres, equipment and furnishings and shall
promptly re-enter the Premises and co=ence doing business in accordance with the provisions of this
Lease. For purposes of determining the amount of funds available for restoration of the Premises from the
condemnation award, said amount will be calculated from that part of the award which remains after
payment of Landlord's reasonable expenses incurred in recovering same and after payment of any amounts
due to any mortgagee of Landlord, in such mannerto represent that portion of the remaining sum so
available (excluding any award or other compensation for land) which is equitably allocable to the
Premises.
SECTION 17.03. Partial Condemnation of Shopping Center.
If(a) more than one third (1/3) of the floor area of the buildings of which the Premises are a part
or more than one-third (1/3) of the leasable floor area of the Shopping Center or more than one-third (1/3)
of the Conunon Areas shall be so taken or conveyed or (b) if any part of the parking area of the Shopping
Center is so taken or conveyed, and as a result of such partial taking or conveyance the size, layout or
location of the remaining parking facilities will violate the requirements of the applicable zoning or similar
law (or any permitted variance or exception thereto), then in any or all such events notwithstanding the fact
that the Premises are not so takeo or conveyed, Landlord shall have the right and power, at its option to be
exercised by written notice to Tenant, to terminate this Lease effective either the clate title vests in the
condemning authority or the clate Landlord is required to deliver possession of the part so taken or
conveyed; provided, however, in the event of taking or conveyance described in clause (b) if Landlord
shall take immediate steps towards eliminating such violation, this Lease shall be unaffected and remain in
full force and effect. In any event, Tenant shall have no claim against Landlord or the condemning
authority for the value of any unexpired term of this Lease.
SECTION 17.04. Landlord's Damages.
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In the event of any condemnation or taking as hereinbefore provided, whether whole or partial,
the Tenant shall nOl be entitled to any part of the award as damages or otherwise for such condemnation
and Landlord and any mortgagee of Landlord are to receive the full amount of such award as their
respective interests may appear. Tenant hereby expressly waives any right or claim to any part therefor
and assigns to Landlord any such right or claim to which Tenant might become entitled.
SECTION 17.05. Tenant's Damages.
Although all damages in the event of any condemnation are to belong to the Landlord and any
mortgagee of Landlord as aforesaid, whether such damages are awarded as full compensation for
diminution in value of the leasehold or to the fee of the Premises, Tenant shall have the right to the extent
that same shall not diminish the Landlord's or such mortgagee's award to claim and recover from the
condemning authority, but not from Landlord or such mortgagee, such compensation as may be separately
awarded or recoverable by Tenant, under the applicable eminent domain code in effect where the Shopping
Center is located, in Tenant's own right for or on account of, and limited solely to, any cost to which
Tenant might be put in removing Tenant's merchandise, furniture, fIXtures and equipment.
ARTICLE xvm
BANKRUPTCY
SECTION 18.oI. Bankruptcy.
(a) If there shall be filed against Tenant or any guarantor or surety of this Lease or any of
Tenant's obligations under this Lease, in any court, pursuant to any statute either of the United States or of
any state, a petition in bankruptcy or insolvency or for reorganization or for the appointment of a receiver
or trustee of all or any portion of Ten ant's or such guarantor's or surety's property, and if, within thirty
(30) days thereof, Tenant or such guarantor or surety fails to secure a discharge thereof, or if Tenant or
such guarantor or surety shall voluntarily file any such petition or make an assignment for the benefit of
creditors or petition for or enter into such an arrangement, then this Lease, at the option of Landlord, may
be canceled or terminated, in which event neither Tenant nor any person claiming through or under Tenant
by virtue of any statute or of an order of any court shall be entitled to acquire or remain in possession of the
Premises, as the case may be, and Landlord shall have no further liability hereunder to Tenant or such
person, and Tenant or any such person shall forthwith quit and surrender the Premises. If this Lease shaU
be so canceled or terminated, Landlord, in addition to the other rights and remedies of Landlord under
Article XVIII hereof, or contained elsewhere in this Lease, or by virtue of any statote or rule oflaw, may
retain as liquidated damages any rent, security deposit and nay other money received by Landlord from
Tenant or others on behalf of Tenant.
(b) If this Lease is assigned to any person or entity pursuant to the provisions of the Bankruptcy
Code, 11 V.S.C. 88 101 et seq. (the "Bankruptcy Code"), fifty percent (50%) of any and aU monies or
other consideration payable or otherwise to be delivered in connection with such assignment shaU be paid
or delivered to Landlord, shaU be and remain the exclusive property of Landlord and shaU not constitute
property of Ten ant or of the estate of Ten ant, within the meaning oflbe Bankruptcy Code. Any monies or
other consideration constituting Landlord's property under the preceding sentence not paid or delivered to
Landlord shaU be held in trust for the benefit of Landlord and shall be promptly paid or delivered to
Landlord. .
(c) Any person or entity to which this Lease is assigned pursuant to the provisions of the
Bankruptcy Code shaU be deemed, without further act or deed, to have assumed all of the obligations
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arising under this Lease on or after the date of such assignment. Any such assignee shall, upon the request
of Landlord, forthwith execute and deliver to Landlord an instrument, in form and substance acceptable to
Landlord, confJ.rming such assumption.
(d) In addition to Landlord's right to approve or disapprove the proposed sublease or assignment,
as hereinbefore set forth, Landlord shall have the righ~ to be exercised by giving notice to Tenant within
thirty (30) days after receipt of Tenant's request to assign or sublet, to recapttlre the Premises, or portion
thereof described in the proposed sublease or assignment. If notice of such recapttlre is given, it shall serve
to cancel and terminate this Lease with respect to the proposed sublease or assignment space, or, if the
proposed sublease or assignment covers the entire Premises and term, it shall serve to cancel and terminate
the Lease, in either case as of the thirtieth (30th) day after the date of Landlord's norice and as fully and
completely as if that date had heen defmitely fIxed as the expiration of the term of this Lease. If this Lease
be canceled pursuant to the term hereof with respect to less than the entire Premises, the Fixed Minimum
Rent shall be adjusted on the basis of the proportion of the total area retained by Tenant to Tenant's total
area originally demised hereby, the Lease so amended shall continue thereafter in full force and effect. The
failure of Landlord to exercise its right of recapttlre shall not be construed in any manner to be an approval
of Tenant' s request to assign or sublet, such approval to be effective only if given in writing by Landlord to
Tenant.
ARTICLE XIX
EVENTS OF DEFAULT; LANDLORD'S REMEDIES
SECTION 19.01. Events of Default.
The following shall constitute Events of Default:
(a) If Tenant defaults in the payment of any sum of money (whether Fixed Minimum Rent,
Percentage Rent, Tax Rent, Tenant's proportionate share of Operating Costs, Promotion Charge, additional
rent or otherwise) when due and such default shall continue for ten (10) days after the date of written
notice from Landlord to Tenant.
(b) Except as to the acts, defaults. omissions and/or occurrences specifIed in subsections (a), (c)
and (d) of this Section 19.01 or those characterized, defmed, denoted, or identifIed in this Lease as
Deliberate Events of Default, if Tenant defaults in fulfIlling any of the other covenants of this Lease on
Tenant's part to be perfonned hereunder and such default shall continue for the period within which
performance is required to be made by specifIc provision of this Lease, or, if no such period is provided,
for twenty (20) days after the date of written notice from Landlord to Tenant specifying the nature of said
default, or, if the default so specifIed shall be of such a nattlre that the same cannot be reasonably cured or
remedied within said twenty (20) day period, if Tenant shall not in good faith have commenced the curing
or remedying of such default within such twenty (20) day period and shall not thereafter diligently proceed
therewith to completion.
(c) Ifany execution or attachment shall be issued against Tenant or any of Ten ant's property and
shall not be discharged or vacated within ten (10) days after the issuance thereof.
(d) Any event described in Section 18.01 or Section 19.02.
SECTION 19.02. Deliberate Events of Default.
(a) Notwithstanding anything to the contrary set forth in this Lease, if Tenant shall (I) fail timely
to make payment of Fixed Minimum Rent, Percentage Rent, Tax Rent, Tenant's proportionate share of
Operating Costs, the Promotion Charge or fail timely to deliver its monthly Gross Sales statements, in each
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case on the date such payment or statement is due hereunder without regard to any grace period and/or
written notice otherwise required from Landlord, and any such failure shall be repeated two (2) times in
any period of twelve (12) months; or (2) fail timely to perform any other covenant of this lease more than
three (3) times in any period of twelve (12) months, then notwithstanding that such failures shall have been
timely cured, any further similar failure within such twelve (12) month period shall be deemed to be a
Deliberate Event of default.
(b) Any default, act, omission or occurrence characterized, defmed, denoted, or identified
els.ewhere in this Lease as a Deliberate Event of Default shall also be a Deliberate Event of Default.
(c) If Tenant shall abandon the Premises whether they are vacant or not, or if the Premises shall
be permitted to become vacant.
(d) If Tenant shall remove, attempt to remove, or express or display any intention to remove any
of Tenant's goods or property of others from the Premises otherwise than in the ordinary and usually
course of business at any time (regardless of the day, or hour of the day or night, and regardless of whether
any sum of money payable under this Lease is then in arrears) without having paid and satisfied Landlord
for all sums of money which may become due during the entire term of this Lease (whether Fixed
Minimum Rent, Percentage Rent, Tax Rent, Tenant's proportionate share of Operating Costs, the
Promotion Charge, additional rent or otherwise). Any such removal shall be deemed conclusively to have
been made fraudulently or clandestinely with intent to prevent Landlord from distraining or realizing on
such goods or property.
(e) In the event ofa Deliberate Event of Default, Landlord, without giving Tenant any notice and
without affording Tenant an opportunity to cure the default (Tenant hereby specifically waiving any right
of tender), may exercise any or all of its rights under this Lease in addition to those it may have at law or in
equity.
SECTION 19.03. Landlord's Remedy of Termination and Possession
(a) Upon or after anyone or more Events of Default or Deliberate Event of Default which have
not been cured as set forth in Section 19.01 or Section 19.02 above, Landlord may, without notice,
terminate all services (including, but not limited to, the furnishing of utilities) and/or re-enter the Premises,
either by force or otherwise, and/or by summary proceedings or otherwise dispossess Tenant and the legal
representative of Tenant or other occupant of the Premises, and remove their effects and repossess and
enjoy the Premises, together with all alterations, additions and improvements, all without being liable to
prosecution or damages therefor. In the event of any entry or taking possession of the Premises as
aforesaid, the Landlord shall have the right, but not the obligation, to remove therefrom all or any part of
the personal property located therein and may place the same in storage at a public warehouse at the
expense and risk of the Tenant and/or owner or owners thereof.
(b) Tenant hereby expressly waives the service of notice by Landlord of intention to re-enter or to
institute legal proceedings to that end, and any and all rights of redemption granted by or under any present
or future laws in the event of Tenant being evicted or dispossessed as a result of any Event of Default or
Deliberate Event of Default as described in Section 19.01 or Section 19.02 above.
SECTION 19.04. Confession of Judgment for Possession
(a) If an Event of Default or a Deliberate Event of Default occurs and is not cured as set forth in
Section 19.01 or Section 19.02 above, or upon failure ofTenanttn vacate the Premises at the expiration of
the term of this Lease, Tenant hereby authorizes and empowers any Prothonotary or any attorney of any
court of record to appear for Tenant and to confess judgment against Tenant and in favor of Landlord in an
amicable action of ejectment for the Premises and to issue writs of possession thereon, with costs of suit
including attorneys fees to be paid by Tenant. Such authority shall not be exhausted by one exercise
thereof, but judgments in ejectment may be confessed from time to time as often as may be necessary for
Landlord to obtain possession of the Premises in accnrdance with the terms of this Lease.
SECTION 19.05. Landlord's Remedy of Money Damages
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(a) In the event of any Event of Default or Deliberate Event of Default which results in the
termination anellor dispossession by summary proceedings or otherwise as provided in Section 19.03 and
19,04 above, the Fixed Minimum Rent and all additional rent shall become due thereupon by Tenant to
Landlord and shall be paid up to the time of such re-entry, dispossession anellor expiration.
(b) In the Event of any Default or Deliberate Event of Default, if Landlord's elects to not
terminate the Lease, Tenant shall pay Landlord for each month of the balance of the term, as liquidated
damages for the failure of Tenant to observe and perform Tenant's covenants herein, the sum of: one
monthly instaliment of Fixed Minimum Rent; plus one-twelfth (1/12th) of the annual average Percentage
Rent payable hereunder for the three (3) lease years immediately preceding (or for the entire preceding
portion of the term of this Lease if less than three (3) lease years); plus the monthly portion of the payment
of Tax Rent; plus the monthly payment of Tenant's proportionate share of Operating Costs; plus the
Promotion Charge. The refusal or failure of Landlord to relet the Premises or any part of parts thereof shall
not release or affect Tenant's liability for damages.
(c) In the Event of any Default or Deliberate Event of Default, Landlord may collect liquidated
damages from Tenant as described in Section 19.05 (b) above and may also attempt to relet the Premises.
Landlord., at Landlord's option, may make such alterations, repairs, replacements and/or decorations in the
Premises as Landlord, in Landlord's sole judgment, considers 'advisable and necessary for the purpose of
reletting the Premises; and the making of such alterations anellor decorations shall not operate or be
construed to be a termination of this Lease as described in Section 19.03 above. Landlord shall in no event
be liable for failure to relet the Premises. In the event that Landlord elects to attempt to relet the Premises,
additional compensatory damages shall be added to the monthly liquidated damages described in Section
19.05 (b) above. The compensatory damages due by Tenant to Landlord shall be those costs Landlord
actUally incurs in connection with reletting, such as, but not necessarily limited to: advertising expenses;
brokerage commissions; attorneys' fees; costs ofputting and keeping the Premises in good order for
showing to prospective replacement tenants; and costs of preparing the Premises for reletting to a
prospective tenant. Compensatory damages may be invoiced by Landlord to Tenant at the convenience of
Landlord, and shall be payable by Tenant to Landlord within thirty (30) days thereafter.
(d) Any action brought to collect the amount of deficiency for any month shall not prejudice in
any the rights of Landlord to collect the deficiency for any subsequent month by a similar proceeding, or
the rights of Landlord to elect to collect liquidated damages calculated by the formula set forth in Section
19.05(b) hereof.
SECTION 19.06. Confession of Judgment for Money
(a) If an Event of Default or a Deliberate Event of Default occurs and is not cured as set forth in
Section 19.01 or Section 19.02 above, Tenant does hereby authorizes and empowers any Prothonotary or
any attorney of any court of record to appear for Tenant and confess judgment against Tenant in favor of
Landlord for any determined amount to which Landlord would be entitled as damages under the provisions
of Article XIX hereof, including attorneys' fees and costs for collection of the same. This authority shall
not be exhausted by one exercise thereof, but judgment may be confessed from time to time and as often as
there is an occurrence of any Event of Default or a Deliberate Event of Default and Tenant fails to cure as
provided in Section 19.01 and Section 19.02 above.
SECTION 19.07. Additional Remedies for Landlord
(A) Mention in this Lease of any particular remedy shall not preclude Landlord from any other
remedies under this Lease, or now or hereafter existing at law or in equity or by statue,
SECTION 19.08. Waivers.
Tenant expressly waives:
( a) The benefit of all laws, now or hereafter in force, exempting any goods on the Premises, or
elsewhere, from distraint, levy or sale in any legal proceedings taken by Landlord to enforce any rights
under this Lease.
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(b) The benefit of all laws existing now or hereafter enacted regarding any limitation as to the
goods upon which, or the time within which, distress is to be made after removal of goods of the Tenant or
others from the Premises, and further relieves Landlord of the obligation of proving or identifying the
goods distrainee!, it being the pUtpose and intent of this provision that all goods of Tenant, whether upon
the Premises or not, shall be liable to distress for rent at any time after Tenant's default under this Lease,
including particularly, but not limited to those goods removed from the Premises clandestinely and
fraudulently, as defmed above on this Lease.
(c) The right to delay execution on any real estate that may be levied upon to collect any amount
which may become due under the terms and conditions of this Lease and any right to have the same
appraised; and Tenant authorizes any Prothonorary or clerk to enter a writ of execution or other process
upon Tenant's volunrary waiver and further agrees that said real estate may be sold on a writ of execution
or other process.
(d) All rights relating to the Landlord-Tenant relationship under any law, ordinance or statue, to
the extent that they might limit Landlord's right to cause the distrained goods to be sold, Tenant now
specifically and knowingly authorizes Landlord to sell any goods distrained for rent at a public auction sale
to be held at any time at least seven (7) days after that distraint without appraisement and condemnation of
the goods, but upon five (5) days' notice to Tenant of the date, place and terms of sale, including
Landlord's right to purchase all or any of the property.
(e) If the Shopping Center is located in Pennsylvania, the right to three (3) months' notice and/or
fifteen (IS) or thirty (30) days' notice required under certain circumstances by the Landlord and Tenant
Act of 1951, hereby agreeing that seven (7) days' notice shall be sufficient in either or any such case.
ARTICLE XX
SECURITY DEPOSIT
SECTION 20.01. Security Deposit. .
(a) Landlord acknowledges receipt from Tenant of the sum set forth in Part I of the Lease to be
held as security for the payment of any rent and all other sums of money payable by Tenant under this
Lease and for the faithful performance of all covenants of Tenant hereunder. The amount of such security
deposit, without interest, shall be refunded to Tenant after termination of the term of this Lease, provided
Tenant shall have made all such payments and performed all such covenants. Upon any default by Tenant
hereunder, all or part of such security deposit may, at Landlord's sole option, be applied on account of such
default, and thereafter Tenant shall restore the resulting deficiency in such security deposit upon demand.
Tenant hereby waives the benefit of any provision oflaw requiring such security deposit to be held.in
escrow or in trust, and such security deposit shall be deemed to be the property of Landlord and may be
commingled with Landlord's other funds.
(b) Landlord may deliver the security deposit to any purchaser of Landlord's interest in the
Premises, in the event that such interest be sold, and thereupon Landlord shall be discharged from any
further liability with respect to such security deposit, and Tenant agrees to look solely to such purchaser for
the return of such security deposit.
ARTICLE XXI
ENVIRONMENTAL CONSIDERATIONS
SECTION 21.01. Definitions.
(a) For the purpose of this Article XXI of this Lease, the following defmitions shall apply:
I. "Environmental Release": The term Environmental Release shall mean the releasing,
spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching,
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disposing, abandoning, discarding or dumping of any Toxic Substance from, on, into or about the Premises
or the Shopping Center.
2. "Municipal Waste": The tenn Municipal Waste shall have the meaning set forth in
the Pennsylvania Solid Waste Management Act, 35 P.s. s6018.103.
3. "Remediation": Activities in connection with the clean-up of an Environmental
Release, including but not limited to sampling, analysis, excavation, removal, disposal and replacement of
soils, ground water and/or other materials, in accordance with the provisions of all applicable laws,
ordinances and regulations, now or hereafter enacted.
4. "Remediation Plan": The tenn Remediation Plan shall mean a written plan to effect
the Remediation of the Environmental Release which shall be prepared by an environmental engineer
acceptable to Landlord.
5. "Toxic Substance": The tenn Toxic Substance shall mean a "hazardous substance,"
"pollutant," or "contaminant," as such tenns are now or hereafter defmed in all applicable federal, state,
and local laws, ordinances or regulations now or hereafter enacted or amended, and any and all other tenns
which are or may be used in any or all applicable environmental laws now or hereafter enacted to define
prohibited or regulated substances.
(b) Tenant shall not use the Premises or any part thereof, or the Shopping Center, or any part
thereof, for the purpose of treating, producing, handling, transferring, processing, transporting, disposing,
using or storing a Toxic Substance.
(c) Tenant and its agents, employees, contractors, licensees and invitees shall not cause or pennit
to exist, as the result of intention or unintentional action or omission by one or more of them, an
Environmental Release.
(d) Notwithstanding the foregoing, Tenant may use nonnal amounts of cleaning materials and
office supplies in the ordinary course of Ten ant's business in reasonable quantities and provided the same
are used, stored and disposed of in compliance with all applicable laws, ordinances and regulations, as now
or hereafter enacted.
(e) Tenant shall dispose, remove and/or arrange for the disposal and/or removal of its Municipal
Waste by a licensed Municipal Waste transporter or Municipal Waste disposal company approved by
Landlord, and which shall be operated in accordance with applicable laws, ordinances and regulations.
Tenant and its agents, employees, contractors, licensees and invitees shall not place or pennit the
placement of any Toxic Substance in any waste receptacle located in the Premises or Shopping Center, or
the plumbing or sewer systems of the Premises or the Shopping Center.
(I) If an Environmental Release is caused by Tenant as stated in subparagraph 3 above:
1. Tenant shall promptly notify Landlord and any and all governmental agencies
required by law to be notified; and
2. Tenant shall promptly submit to Landlord the Remediation Plan for Landlord's
approval. The Remediation Plan shall disclose a schedule and detailed description of Remediation
activities which shall include infonnation as Landlord may request, including: (i) a plan for Remediation
which shall include all courses of action as may be necessary to obtain a certification from the
Commonwealth of Pennsylvania, Departtnent of Environmental Protection and the Federal Environmental
Protection Agency, and any other appropriate local agency, that the Premises and/or Shopping Center have
been remediated in accordance with all applicable laws, ordinances and regulations, and to the satisfaction
of these agencies; (il) reasonable safety measures; (ili) a plan to avoid interference with the operation of the
Shopping Center, or any part thereof, and the conduct of business therein, and; (iv) a plan to restore the
Premises and/or Shopping Center to the condition existing prior to the Environmental Release, including
the replacing of soils, landscaping, regrading, repaving and repairing the improvements. Tenant shall
modify the Remediation Plan as requested by Landlord.
3. Landlord may, in its sole discretion, (i) undertake all or part of the Remediation, at
Tenant's sole cost, or (il) require that Tenant take all steps necessary to promptly remediate all or part of
the Environmental Release, in accordance with the Remediation Plan, which shall be perfonned by
environmental professionals approved by Landlord. Tenant shall, upon the request of the Landlord,
deposit with Landlord 125% of the cost of perfonnance of the Remediation Plan, as reasonably estimated
by Landlord. Portions of the amount deposited with Landlord may, from time to time, be released by
Landlord to be applied to the cost of performance of the Remediation Plan.
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4. Upon receipt, Tenant shall immediately submit to Landlord true and complete copies
of any correspondence between Tenant and any regulatory agency, concerning matters arising out of or
relating to an Environmental Release. In addition, Tenant shall keep Landlord fully informed of its
progress in complying with its obligations under this Article XXI of this Lease.
5. Landlord shall have the opportuniry to panicipate with Tenant in negotiations with
any governmental authorities involved in the Remediation, leading to the obtaining by Tenant of a
certification from such governmental agency that Tenant has remediated the Environmental Release to the
satisfaction of such agency.
6. Tenant shall obtain a certification from the Commonwealth of Pennsylvania
Department of Environmental Protection and the Federal Environmental Protection Agency, and any
appropriate local agency, certifjring that Tenant has performed and satisfactorily completed the
Remediation in accordance with all applicable laws, ordinances and regulations, a copy of which shall be
promptly delivered to Landlord.
7. Tenant shall be responsible for the cost of repair orreplacement of any pan of the
Premises or the Shopping Center, and the fixtures, equipment, personalry, and installations thereon and
therein, necessitated by reason of the Remediation.
(g) Tenant shall comply with all applicable laws, ordinances and regulations of all governmental
authorities, as now or hereafter enacted, and shall be solely responsible for any necessary alterations or
renovations to the Premises, including but not limited to Remediation, structural renovations, or cessation
of activities necessary to comply with such laws, ordinances, and regulations.
(h) If any certification required in this Article XXI shall not be obtained prior to the expiration or
earliertermination of this Lease, then until such certification is obtained, Tenant shall be responsible for
and shall pay to Landlord an amount, for each day, equal to one-three hundred sixty-fifth of the aggregate
of the highest amount of Minimum Annual Rent and Additional Rent payable by Tenant in any Lease Year
during the five (5) year period immediately preceding, diminished by any rent or other revenues received
by Landlord by reason of the occupancy of the Premises during such period.
(i) Tenant represents and warrants that the plans and specifications to be submitted to anJor
heretofore submitted and approved by Landlord for the construction, decoration, improvement and/or
renovation of the Premises are in conformance with all applicable laws, ordinances and regulations of all
governmental authorities. Tenant shall, prior to commencement of construction, obtain all licenses,
permits and approvals necessary for construction of the Premises pursuant to the plans and specifications
approved by Landlord, and for the operation of the Premises as contemplated by this Lease, including all
land development requirements. All construction work performed by Tenant or its COl)tractors shall be in
accordance with applicable laws, ordinances and regulations of the governmental authorities having
jurisdiction thereof.
0) Except as otherwise allowed or provided herein, Tenant shall not use any Toxic Substance on
the Premises or the Shopping Center, other than those substances listed below, which shall be stored in
appropriate safety or protective containers and disposed of in the following amounts and frequencies in
accordance with all applicable laws, ordinances and regulations (If no listing is included hereunder, no
such use shall be permitted or allowed under any circumstances):
TOXIC SUBSTANCE USED STORAGE METHOD DISPOSAL METHOD
AMOUNT DISPOSED
PER MONTH
EPAlDER GENERATOR !.D. NUMBER
(if applicable)
Tenant shall give prior written notice to Landlord of any proposed changes in the above schedule, and
within thirty (30) clays after Landlord's receipt of such notice, Landlord may approve or reject such
proposed change, in its sole discretion. .,. .
(Ie) The covenants, representations and warranties provided herem shall survIve the exprral10n or
earliertermination of this Lease.
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(I) Tenant shall pay, defend, indemnify, and hold harmless Landlord from and against any and all
claims, losses, costs, damages and liabilities arising from or relating to Environmental Releases,
Remediation, or the failure of Tenant, or its agents, employees, contractors, licensees or invitees to comply
with the provisions of this Article XXI.
ARTICLE XXU
MISCELLANEOUS
SECTION 22.01. Access by Landlord.
Landlord may at all reasonable times during the term of this Lease enter in to inspect the Premises
and/or may show the Premises and building to others. At any time within ninety (90) days immediately
preceding the expiration of the term of this Lease, Landlord shall have the right to show the Premises and
all parts thereof to prospective tenants between the hours of 9:00 a.m. and 9:00 p.m. on any day except
Sunday and any legal or religious holiday on which Tenant shall not be open for business.
SECTION 22.02. Holding Over.
Shnuld Tenant hold over in possessinn of the Premises after the expiration of the term hereof
without the execution of a new lease agreement or extension or renewal agreement, Tenant, at the option of
Landlord, shall be deemed to be occupying the Premises from month to month, subject to such occupancy
being terminated by either party upon at least thirty (30) days' written notice, at one hundred fifty percent
(150% of the rental, including, but not limited to, Fixed Minimum Rent, Percentage Rent, Tax Rent,
Tenant's proportionate share of Opera ling Costs, the Promotion Charge, and additional rent provided for
herein, all calculated, from time to time, as though the term of this Lease had continued and otherwise
subject to all of the other terms, covenants and conditions of the Lease insofar as the same may be
applicable to a month to month tenancy.
SECTION 22.03 Successors.
All rights, obligations and liabilities herein given to or imposed upon, the respective parties hereto
shall extend to and bind the several respective heirs, executors, administrators, trustees, receivers, legal
representatives, successors and assigns of the said parties; and if there shall be more than one tenant, they
shall all be bound jointly and severally by the terms, covenants and agreements herein. No rights,
however, shall inure to the benefit of any assignee, legal representative, trustee, receiver, legatee or other
personal representative of Ten ant unless the assignment to such party has been approved by Landlord in
writing as provided in Section 14.01(a) hereof. Landlord shall have the unrestricted right to assign this
Lease and upon <lIlY such assignment, Landlord shall automatically be released from all liability hereunder
from and after the date if such assignment. All of Tenants obligations accruing during the term hereof
pursuant to Sections 2.03, 2.04, 3.01, 3.02, 4.02, 7.03, 7.04, 8.03, 10.01, and 22.22 shall survive the
expiration or earlier termination of the term of this Lease.
SECTION 22.04. Quiet Enjoyment.
So long as Tenant shall pay the rents herein provided within the respective times provided
therefor, and provided and so long as Tenant observes and performs all the covenants, terms and conditions
on Tenant's part to be observed and performed, Tenant shall peaceably and quietly hold and enjoy the
Premises for the term hereby demised without hindrance or interruption by Landlord or any other person or
persons lawfully claiming by, through or under Landlord, subject, nevertheless, to the terms and conditions
of this Lease. L<IIldlord's liability under this Section shall cease upon a conveyance by Landlord of the
Premises.
SECTION 22.05. Waiver.
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The waiver by Landlord of any breach of any term, covenants or condition herein contained shall
not be deemed to be a waiver or any subsequent breach of the same or a waiver of any other term, covenant
or condition herein contained. The subsequent acceptance by Landlord of rent due hereunder or any or all
other' monetary obligations of Tenant hereunder, whether or not denoted as rent hereunder, shall not be
deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease,
other than the failure of Tenant to make the panicular payment so accepted, regardless of Landlord's
knowledge of such preceding breach at the time of acceptance of such rent. No covenant, term or
condition of this Lease shall be deemed to have been waived by Landlord, unless such waiver be in writing
and executed by Landlord.
SECTION 22.06. Custom and Usage.
Any law, usage or custom to the contrary notwithstanding, Landlord shall have the right at all
times to enforce the covenants and conditions of this Lease in strict accordance with the terms hereof,
notwithstanding any conduct or customer on the part of the Landlord in refraining from so doing at any
time or times with respect to the Tenant hereunder or with respect to other tenants of the Shopping Center.
The failure of Landlord at any time or times to enforce its rights under said covenants and provisions
strictly in accordance with the same shall not be construed as having created a custom in any way or
manner contrary to the specific terms, provisions and covenants of this Lease or as having in any way or
manner modified the same.
SECTION 22.07. Accord and Satisfaction.
No payment by Tenant or receipt by Landlord ofa lesser amount than any payment of rent or
additional rent herein stipulated shall be deemed to be other than on account of the earliest stipulated rent
or additional rent then due and payable. Tenant is hereby advised that Landlord may instruct Tenant to
forward all sums due Landlord to a "lock box" account maintained by Landlord which will result in such
checks being automatically deposited to Landlord's account without review or inspection prior to the same
being deposited. Accordingly, Tenant agrees that Landlord shall not be bound by any endorsement or
statement or any check or any letter accompanying any check or any letter accompanying any check or
payment and no such endorsement, statement or letter shall be deemed an accord and satisfaction, whether
such check or letter is forwarded to landlord's "lock box" or directly to Landlord, Agent or elsewhere and
Landlord or Landlord's bank may accept such check or payment without prejudice to Landlord's right to
recover the balance of such rent or pursue any other remedy provided in this Lease, at law or in equity.
SECTION 22.08. Performance of Tenant's Covenants.
Tenant covenants and agrees that it will perform all agreements and observe all covenants herein
expressed on its part to be performed and observed and that it will promptly, upon receipt of written notice
specifying action required by this Lease, comply with such notice; and further, that if Tenant shall not
comply with any such notice to the satisfaction of Landlord prior to the date on which such non-
compliance would constitute an Event of Default, in addition to, and not in lieu of or in limitation of any
other remedy which Landlord may have pursuant to this Lease, at law or in equity, Landlord may, but shall
not be obligated to, enter the Premises and do the things specified in said notice. Landlord shall have no
liability to Tenant for any loss or damage resulting in any way from such action and Tenant agrees to pay
upon demand, as additional rent, any sums or costs incurred by Landlord in taking such action, plus
administrative costs of Landlord in a swn equal to twenty percent (20%) of such swns and/or costs.
Notwithstanding the foregoing, Landlord's performance of any or all of Tenant's covenants shall not
release Tenant from liability for non-performance.
SECTION 22.09. Entire Agreement.
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Parts I and II of the Lease Agreement, the Exhibits and Rider, ifany, set forth all the covenants,
promises, agreements, conditions, representations, promises, and understandings between Landlord and
Tenant concerning the Premises and there are no covenants, agreements, conditions representations,
promises or understandings, either oral or written, between them other than as herein set forth. All prior
communications,negotiations, arrangements, representations, agreements and understandings, whether
oral, written or both, between the parties hereto, and their representatives, are merged herein and
extinguished, this Lease superseding and canceling the same. Except as herein otherwise provided, no
subsequent alteration, amendment, change or addition to this Lease shall be binding upon Landlord or
Tenant unless reduced to writing and executed by the party against which such subsequent alteration,
amendment, change or modification is to be enforced. If any provision contained in any rider hereto is
inconsistent with any printed provisions of this Lease, the provision contained in such rider shall supersede
said printed provision. Tenant hereby acknowledges that: (a) this Lease contains no restrictive covenants
or exclusives in favor of Tenant; (b) this Lease shall not be deemed or interpreted to contain, by
implication or otherwise, any warranty, representation or agreement on the part of Landlord that any
grocery store, department store or regional or national chain store or any other merchant shall open for
business or occupy or continue to occupy any premises in or adjoining the Shopping Center during the
term of this Lease or any part thereof and Tenant hereby expressly waives all claim with respect thereto
and acknowledges that Tenant is not relying on any such warranty, representation or agreement by
Landlord either as a matter of inducement in entering into this Lease or as a condition of this Lease or as a
covenant by Landlord.
SECTION 22.10. No Partnership.
Landlord does not, in any way or for any purpose, become a partner of Ten ant in the conduct of
its business, or otherwise, or joint venture or a member of a joint enterprise with Tenant.. The provisions of
this Lease relating to the Percentage Rent payable hereunder are included solely for the purpose of
providing a method whereby adequate rent is to be measured and ascertained.
SECTION 22.11. Notices.
All payments of rent and any and all other monetary obligations of Tenant accruing hereunder,
whether or not denoted as rent, shall be paid to High Associates, Ltd., Agent for Smith Land&
Improvement Corporation, Attention Cash Management Department, High Industries, Inc., 1853 William
Penn Way, P.O. Box 10008, Lancaster, PA 17605-0008, until Tenant is notified otherwise in writing, and
all notices given to Landlord hereunder shall be in writing and forwarded to its agent, High Associates,
Ltd., Attention Regional Manager, at 4909 Louise Drive, Suite 209, Mechanicsburg, PA 17055, postage
prepaid, by registered or certified mail, return receipt requested or by expedited delivery service such as
Federal Express. All notices to Tenant shall be forwarded to it at the address set forth in Part I of the Lease
by postage prepaid, registered or certified mail, return receipt requested or by expedited delivery service
such as Federal Express or by delivery in person and in the event of a delivery in person, the affidavit of
the person making such delivery shall be conclusive proof of the delivery and of the date and time of such
delivery. All changes of notice address requested by Tenant shall only be valid and binding on Landlord if
executed by a duly authorized officer, partner or owner of Tenant and acknowledged in writing by an
officer of Landlord or Agent. All notices shall be deemed to have been given on the date when deposited
in the mail receptacles maintamed by the corporation which has been chartered by the United States
Government to operation and deliver the mail as aforesaid or, in the case of notices delivered by expedited
delivery service, when received or in the case of notices delivered in person the Tenant, when so delivered.
Notices by the Landlord may be given on its behalf by Agent or by any attorney for Landlord or Agent.
SECTION 22.12. Captions.
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The captions appearing in this Lease are inserted only as a matter of convenience and in no way
defme, limited, construe or describe the scope or intent of such sections or articles of this lease nor in any
way affect this Lease.
SECTION 22.13. Tenant Defined; Use of Pronoun.
The word ''Tenant'' shall be deemed and taken to mean each and every person or party mentioned
as a tenant herein, be the same one or more; and if there shall be more than one Tenant, any notice
required 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. The use of the neuter singular pronoun to refer to
Landlord or Tenant shall be deemed a proper reference even though Landlord or Tenant may be an
individual, a partnership, a corporation, or a group of two or more individuals or corporations. The
necessary grammatical changes required to make the provisions of this Lease apply in the plural number
where there is more than one Landlord or Tenant and to either corporations associations, partnerships or
individuals, males or females, shall in all instances be assumed as though in each case fully expressed.
SECTION 22.14. Negation of Personal Liability.
Notwithstanding anything contained herein to the contrary, Tenant agrees that Landlord shall have
no personal liability with respect to any of the provisions of this Lease and Tenant shall look solely to the
estate and property of Landlord in the land and buildings comprising the Shopping Center of which the
Premises forms a part for the satisfaction of Ten ant's remedies, including without limitation, the collection
of any judgment or the enforcement of any other judicial process requiring the payment or expenditure of
money by Landlord in the event of any default or breach by Landlord with respect to any of the terms and
provisions this Lease to be observed and/or performed by Landlord, subject, however, to the prior rights of
any holder of any Mortgage covering all or part of the Shopping Center, and no other assets of Landlord or
any principal of Landlord shall be subject to levy, execution or other judicial process for the satisfaction of
Tenant's claim and in the event Tenant obtains a judgment against Landlord, the judgment docket shall be
so noted. This Section shall inure to the benefits of Landlord's successors and assigns and their respective
principals.
SECTION 22.15. Liability of Agent.
High Associates, Ltd., in its capacity as Agent, is acting as Agent only and in such capacity 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. Any waiver of Landlord's liability hereunder, including
any waiver of subrogation rights, shall apply with equal force and effect of such Agent.
SECTION 22.16. Effect of Governmental Limitation on Rents and Other Charges.
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 oftime 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 by payable by Tenant: (a) throughout such period oflimitation, 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 22. I 6 shall not in the aggregate exceed the total of all amounts which would otherwise by
payable by Tenant pursuant to the terms of this Lease for the period oflimitation), (b) at the termination of
such period of limitation, Tenant shall pay to Landlord, on demand but only to the extent legally collectible
by Landlord, 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 (c) for the remaining
term of this Lease following the period of limitation, Tenant shall pay to Landlord all amounts due for such
39
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portion of the term of this Lease in accordance with the terms hereof calculated as thouah there had been
no intervening period of limitations. '"
SECTION 22,17. Partial Invalidity; Separate covenants.
If any term, covenants or condition of this Lease or the application thereof to any person or
circumstance shall be to any extent, be invalid or unenforceable, the remainder of this Lease or the
application of such term, covenant or condition to persons or circumstances other than those as to which it
is held invalid or unenforceable shall not be affected thereby and each term, covenant and condition of this
lease shall be valid and be enforced to the fullest extent permitted by law. Furthermore, each covenant,
agreement, obligation and other provision contained in this Lease is, and shall be deemed and construed as
a separate and independent covenant of the party bound by, undertaking or making the same, and not
dependent on any other provision of this Lease unless expressly so provided.
SECTION 22.18. Recording.
Tenant shall not record this Lease without the written consent of Landlord. If Landlord requests,
the parties shall execute and acknowledge a short form of Lease for recording purposes which shall be
recorded at Landlord's expense.
SECTION 22.19. Brokerage Commission.
Tenant represents and warrants to Landlord that Tenant has had no dealing, negotiations or
consultations with respect to the Premis;s, the Shopping Center or this transaction with any broker or
fmder except Agent and that with the exception of Agent no broker or fmder called the Premises or any
other spaces in the Shopping Center to Tenant's attention for lease. In the event that any other broker or
fmder other than Agent claims to have submitted the Premises or any other space in the Shopping Center to
Tenant, to have induced Tenant to lease the Premises or to have taken part in any dealings, negotiations or
consultations with respect to the Premises, the Shopping Center or this transaction, Tenant will be
responsible for and will defend, indemnify and save Landlord and Agent harmless from and against all
costs, fees (including without limitation attorney's fees) expenses, liabilities and claims incurred or
suffered by Landlord and/or Agent as a result thereof.
SECTION 22.20. Construction.
It-is the intent of the parties hereto that ifany term, covenant, condition or agreement of this Lease
is capable of two or more constructions, one or more of which would render the provision void, and the
other or other of which would render the provision valid, then the provision shall have the meaning or
meanings which would render it valid. Although the printed provisions of this Lease were drawn by
Landlord, this Lease shall not be construed for or against Landlord or Tenant but this Lease shall be
interpreted in accordance with the general tenor of the language in an effort to reach the intended result.
The Landlord and Tenant agree that time is of the essence with respect to the performance of the respective
obligations set forth in this Lease.
SECTION 22.21. Prior Lease.
(a) Tenant is presently occupying the Premises pursuant to a lease agreement with Landlord (the
aforesaid lease agreement and any amendment thereto being hereinafter referred to as the "Prior Lease").
(b) The parties hereto agree that the execution of this Lease shall be deemed to satisfy the
requirements with respect to notice of termination set forth anywhere in the Prior Lease, and therefore, it is
agreed that the Prior Lease shall terminate on the day prior to the commencement date of this Lease
without the necessity of any other or further notice from or to either party.
(c) Notwithstanding any rule oflaw, the decision of any court or any inference therefrom to the
contrary, in the event Tenant has failed to comply with any of its obligations under the Prior Lease, if such
40
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failure is continuing, Landlord may treat such failure as having occurred under this Lease, and in such
event, Landlord shall have the right, in addition to, and not in lieu of, any other remedy at law, in equity or
otherwise, to exercise any and all of Landlord's rights and remedies hereunder, including, but not limited
to, those set forth in Article XIX of this Lease.
(d) As an: inducement to Landlord to execute this Lease, Tenant hereby releases and forever
discharges Landlord from all marmer of action, causes of action, suits, covenants, agreements, promises,
damages, claims and demands whatsoever, in law or in equity, which Tenant has or may have against
Landlord arising oat of the Prior Lease.
SECTION 22.22. Submission of Lease to Tenant.
THE SUBMISSION BY LANDLORD TO TENANT OF THIS LEASE SHALL HAVE NO
BINDING FORCE OR EFFECT, SHALL NOT CONSTITUTE AN OPTION FOR THE LEASING OF
THE PREMISES, NOR CONFER ANY RlGHTS OR IMPOSE ANY OBLIGATIONS UPON EITHER
PARTY UNTIL THE EXECUTION THEREOF BY LANDLORD AND THE DELIVERY OF AN
EXECUTED ORlGINAL COPY THEREOF TO TENANT OR ITS REPRESENTATIVE.
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have caused this Lease
to be duly executed the day and year first above written.
IDGH ASSOCIATES, L TO. (Agent)
Attest: P>Uw1o.
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BY:
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Attest:
SMITH LAND & IMPROVEMENT CORPORATION (Landlord)
iY2/"....-{3y Z~ Q.kd.........LZ
II ' (J I Presid~/
HEAD HUNTE ALONS, fC' / fa HEAD HUNTERS, (Tenant)
/
Attest:c1wf/'-1~ BY:
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EXHIBIT "C-1"
Sign Criteria
A. General.
I. Tenant is required to identify Premises by a sign, which it shall furnish and install at its own
expense. Signs shall meet the Sign Criteria as outlined herein and shall be approved by local authorities,
which approval shall be obtained by Tenant at its expense. Any sign which does not conform or is
improperly manufactured and/or installed, shall be removed at Tenant's expense.
2. All signs shall be individually lettered and internally illuminated as outlined in this Exhibit.
Signs shall have Underwriter's Laboratories' label of approval on all parts and completed display.
B. Sign Criteria - Exterior.
1. The sign shall be located on the exterior facia, as determined by the Landlord.
2. Sign wordage shall be limited to the store name only, on a single line.
3. The use oflogos or insignia (which shall not exceed the average height of sign letters) may be
permitted, subject to Landlord's approval.
4. The maximum height of sign letters or components shall not exceed 36 inches. The length of
the sign shall not exceed 80 percent of the store front. The length of the sign shall be centered over the
store front.
5. Landlord shall provide wiring for one (1) 120-volt circuit only to building facia. Cost and
installation of additional circuits will be the responsibility of Tenant.
6. A detailed description of design standards is attached hereto as C-2.
C. Sign Approval.
1. No sign shall be erected until written specifications and drawings for said signs are approved in
writing by Landlord.
2. Tenant shall submit to Landlord three (3) sets of all sign drawings and specifications which
shall show the location of the sign on the buildings, the size, consttuction materials, colors, script,
attachment details, electrical load requirements, brightness, in-foot lamberts and name, address and phone
number of sign manufacturer/installer. .
3. Landlord shall return to shall return to Tenant one set of such sign plans within fifteen (15)
days, with suggested modifications or approval.
D. Indemnification by Tenant.
Tenant shall, at its own risk and expense, erect said sign and maintain sign in a good state of repair. Tenant
hereby agrees to indemnify Landlord against and save Landlord harmless from any loss, cost or damage
resultina from the erection, maintenance, existence or removal of said sign and further agrees to repair, at
"
its sole expense, any damage which may be caused by the erection, maintenance, existence or removal of
such sign. Upon vacating the Premises, Tenant agrees, at its sole expense to remove all signs and repair
any and all damage caused by such removal, within thirty (30) days of vacating Premises.
Date
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Tenan InitIals
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EXHIBIT "C-2"
Tenant acknowledges that Landlord is in the process of remodeling the Shopping Center and that new sign
design will be an integral part of that activity. The sign regulations are not available at the date of this
Lease.
Landlord agrees to permit Tenant's use of temporary signage, subject to Landlord's approval of the design,
until the remodeling project commences.
Tenant agrees to acquire new signage in conformity with Landlord's sign regulations to be developed in
connection with the remodeling of the Shopping Center, and to install said new signage with thirty days of
Landlord's completion of the remodeling work that must necessarily precede the installarion of new
signage.
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T enan'rS' Initials
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ADDEl\1)UM TO THE LEASE
Special Provisions
I. Landlord and Tenant agree that the minimum hours as outlined in the Lease be amended for this Tenant to the
following:
9:00 a.m. to 8:00 p.m. Monday through Friday
9:00 a.m. to 6:00 p.m. Saturday
Closed Sunday
2. Tenant agrees to replace the exterior sign on the Premises with a new exterior sign as per Landlord's criteria
for signage on the building. This sign to be replaced as soon as Landlord's exterior work on the canopy is
completed. Tenant must get Landlord's written approval before installing new sign.
3. Landlord is renovating the Shopping Center. Landlord will inStall a new store front at Landlord's expense.
Tenant will be responsible to fmish the interior as needed. The positioning of the new store front may increase
the store size slightly. Tenant and Landlord agree to amend the Lease to reflect the additional leased space at
Tenant's current square foot rental rate as soon as the renovation is completed.
IDGH ASSOCL.... TES, L TO: (Agent)
Attest: \-$1Lvk ~>!>~, BY: cR-a.;:'.~.
Attest:
SMITH LAND & IMPROVEMENT CORPORA nON (Landlord)
ryJ/~~(3y p (;4(4-"
I ~ President
HEAD HUNTER sjt&Js, INCh HEAD HUNTERS,
(Tenant) / . //
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ASSIGNMENT AND AMENDMENT OF LEASE AGREEMENT
THIS ASSIGNMENT AND AMENDMENT OF (hereinafter referred to as "Agreemenf'), made thi,
Iff'- day of Z;Z~"'4 ' 1998, by and between HEAD HUNTERS SALONS, INC" a
Delaware corporation, 3507 Market Street, Suite 302, Camp Hill, Pennsylvania 17011 (hereinafter
referred to as "Assignor"), SUPERCUTS, INC., a Delaware corporation, 7201 Metro Bouievard,
Minneapoli., Minnesota 55439, Altn: Legal Department (hereinafter referred to as "Assignee"), and
REGIS CORPORATION, a Minnesota corporation, 7201 Metro Boulevard, Minneapolis, Minnesota
55439 (hereinafter referred to as "Guarantor").
In consideration of the mutual covenants herein contained, each act to be performed hereunder,
and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as foHows:
1. Effective January 7, 1998 (hereinafter referred to as the "Effective Date"), Assignor
hereby assigns, transfers and conveys to Assignee all of its right, title and interest as Tenant in, to and
under that certain Lease Agreement dated April 15, 1997 (hereinafter referred to as the "Lease"),
executed by and between SMiTH LAND & iMPROVEMENT CORPORATION, Attn: Regional Manager,
5010 Ritter Road, Suite 119, Mechanicsburg, Pennsyivania 17055, as Landlord, and HEAD HUNTERS
SALONS, iNC., a Delaware corporation, 3507 Market Street. Suite 302, Camp Hill, Pennsylvania 17011,
as Tenant, providing for the letting of certain premises located in West Shore Plaza, being more
particularly described as follows;
A store unit containing a total area of approximately 900 square feet, and establishing an original
Lease Term terminating March 31, 2007 (hereinafter referred to as the "Premises").
2. As of the Effective Date, Assignee hereby accepts and assumes all of the obligations,
responsibilities and liabilities of Assignor under the Lease, and agrees to perform the Lease according to
its terms, covenants, and conditions.
3. Assignor agrees that it shall not be discharged from its obligations, responsibilities and
liabilities under the Lease and shall remain liable as Tenant to perform the Lease according to its terms,
and will continue to be liable thereon with the same force and effect as though no assignment has been
made,
4. Upon execution of this Agreement and Landlord's consent hereto, Assignee's Notice Address
shall be as set forth hereinabove; and Assignee's Billing Address shall be 7201 Metro Boulevard,
Minneapolis, Minnesota 55439, Attn.: Lease Payables.
5. Assignee agrees to conduct its business in the Premises under the trade name "Supercuts",
which Assignee represents it has the right to use,
Page 1
Supercuts
West Shore Plaza - Lemoyne, Pennsylvania
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6. Notwithstanding the terms and provisions of Section 5.04 (Competition) of the Lease to the
contrary, the radius restriction of three (3) miies shali hereby be reduced to two (2) miles and shali be
limited to Assignee's stores operating under the trade name as provided for hereinabove in Paragraph 5.
7. This Agreement shall be binding upon and shall inure to the benefit of the respective parties,
their successors and assigns.
IN WITNESS WHEREOF, the parties hereto have executed this ASSignment and Amendment of
Lease Agreement as of the date first above written.
ASSIGNOR: HEAD HUNTERS SALONS, INC.,
a Delaware corporati
~
ASSIGNEE: SUPERCUTS, INC.
a Delaware corporation
d/b/a Supercuts
BY~
Signa ure of: Bert M. Gross
Title: S~r Vice President
Date: T"'h/'Junl 12. /~t1
LANDLORD'S CONSENT
Smith Land & lmprovement Corporation, being the Landlord under the Lease described in the foregoing
Assignment and Amendment of Lease Agreement (hereinafter referred to as "Agreement"), hereby
consents to the -foregoing Agreement upon express condition, however, (i) that Head Hunters Salons,
Inc., a Delaware corporation, and Supercuts, Inc., a Delaware corporation, shali be liable, jointly and
severally, for the prompt payment of the rent and the performance of all the Tenant's obligations under
the Lease, and (Ii) that there shall be no further assignment without the prior written consent of the
Landlord.
Dated this ~ day of R:j;,,,,,,'1
, 199B.
LANDLORD: SMITH LAND & IMPROVEMENT CORPORATION
By ':;z'"'~d3<-.LL
Signature . Fe E :rvnl.......u.
Title: ~ ~,,~ 6&'W-&
Date: t<b""""'l I"', lIt91Q
RLS
F:headhuntlwestshor
1/8198
219198
Page 2
Supercuts
West Shore Plaza - Lemoyne, Pennsylvania
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GUARANTY
THIS GUARANTY is given this JJijdaYOf ).4.
a Minnesota corporation (hereinafter referred to as "Guarantor").
, 1998, by REGIS CORPORATION,
In consideration of, and as an inducement to, the consent to that certain Assignment and
Amendment of Lease Agreement attached hereto and of even date herewith (hereinafter referred to as
"Agreement") by Smith Land & Improvement Corporation (hereinafter referred to as "Landlord"), the
undersigned hereby (a) guarantees to the Landlord, and its successors and assigns, for the term of the
Agreement and thereafter as provided in the Agreement, that Supercuts, Inc., a Delaware corporation
(hereinafter referred to as "Assignee"), shall punctually pay and perform each and every undertaking,
agreement and covenant set forth in the Agreement; and (b) agrees to bound by, and tiable for the
breach of, each and every provision in the Agreement, both monetary obligations and obligations to take
or refrain from taking specific actions or t6 engage or refrain from engaging in specific activities.
The undersigned consents and agrees that (1) it shall render any payment or performance required
under the Agreement upon demand if Assignee fails or refuses punctually to do so; (2) it shall be liable
for the breach of, each and every provision of the Agreement and such liability shall not be contingent or
conditioned upon pursuit by Landlord of any remedie.s against Assignee or any other person; and (3)
such liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or
other indulgence which Landlord may from time to time grant to Assignee or to any other person,
induding without limitation the acceptance of any partial payment or performance, or the compromise or
release of any claims, none of which shall in any way modify or amend its guaranty, which shall be
continuing and irrevocable during the term of the Agreement. This Guaranty shall become effective as
of the date of execution of this Agreement.
Notwithstanding anything to the contrary contained in this Guaranty, it is acknowledged and agreed
by the Landlord that this Guaranty is only effective in the event the net worth of Supercuts, Inc. is less
than $2,000,000.00, said net worth to be determined in accordance with generally accepted accounting
principles.
IN WITNESS WHEREOF, the undersigned has hereunto affixed its signature on the same day and
year as the Agreement was executed.
GUARANTOR: REGIS CORPORATION,
a Minnesota corporat~ion
By: __
Signature of: CWRISl
Title: :i it EX~IVEVICEPRESlD!NT
Date: \~UAJ ~ /il,'/1ff
Page 3
Supercuts
West Shore Plaza - Lemoyne, Pennsylvania
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EXHIBIT "D"
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SUP'RCUTS
7201 METRO BOULEVARD -MINNEAPOLIS. MINNESOTA 55439 - (612) 947.7777 _ FAX (612) 947-7301
Kristine M. Burkhardt
Corporate Lease Neg"tiator
(952) 947.7211 - phone
(952) 947-7200 - fax
email: kristine.burkhardt@regiscorp.com
Via Certified Mail Service
July 19, 2001
KATHY ZEIGLER
Just For You Hair & Nails
R.R. 1 - Box 460
Elliottsburg, PA 17024
Dear Mrs. Zeigler:
RE: Just For You (#6783) I West Shore Plaza - Lemoyne, PA
Reference is made to that Sublease Agreement dated June 1, 1999, by and between
Supercuts, Inc. (Sublandlord) and Kathy A. Zeigler (Subtenant) for those Premises at the
above captioned Site. Under Paragraph 5 of said Sublease you are obligated to Nassume,
perform and be responsible for all Sublandlord's obligations as Tenant under the Master
Lease provisions..."
You are hereby notified that a default has occurred under the terms of the Sublease, as
well as the Master Lease dated April 15, 1997, to which you are expressly subject in
accordance with the Sublease, as you have (i) failed to perform the repair/replacement of
the HVAC unit as required in Section 9.02 of the Master Lease (ii) failed to pay Master
Landlord's invoice for repair/replacement of the HVAC unit as required under 19.01 of
the Master Lease, and (Hi) have failed to continuously occupy and use the Premises as
required under Section 5.01 of the Master Lease.
This default entitles the Sublandlord to institute confession of judgment proceedings in
ejectment and for the recovery of past due moneys, under the Sublease and Master Lease.
This letter serves as notice of Sublandlord's intent to declare all Fixed Minimum Rent
reserved for the full term of the Sublease remaining unpaid, due and payable at once.
You are hereby notified that if such default remains after fifteen (15) days, Sublandlord
will institute the confession of judgment proceedings described above.
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Page Two
This notice is sent to you without waiver of or prejudice to any rights, claims, remedies,
or defenses available under the Sublease or Master Lease, or at law and/or in equity, all of
which are expressly reserved.
Sincerely,
SUPERCUTS, INC.
c: Eric Bakken,
Lori Jackson
AdCom Realty (717-737-4245)
Paul Guidera
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4. Restricted Delivery? (Extra Fee)
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102595.()O.Mo0952
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~em 4 if Restricted Delivery is desired.
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1. Article Addressed to:
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4, Restricted Delivery? (Extra Fee) 0 Yes
PS Form 3811, July 1999
2. Articie Number (Copy from service /abeQ 7000 I (p;o 00 10
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