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HomeMy WebLinkAbout99-03891a 1 OWC Johnson, Duffle, Stewart & Weidner By: David J. Lanza I.D. No. 57782 301 Market Street P. O. Box 109 Lemoyne, Pennsylvania 17043-0109 (717) 761-4540 LMRES REAL ESTATE ADVISERS, INC., t1a EASTERN RETAIL HOLDINGS, L.P., Plaintiff V. THOMAS H. WILLIAMS and DORCAS A. WILLIAMS, Defendants INFESSION OF JUDGMENT FOR MONEY DAMAGES CIVIL ACTION - LAW Pursuant to the authority contained in the Warrant of Attorney, a copy of which is attached to the Complaint filed in this action, I appear for the Defendants and confess judgment in favor of Plaintiff and against the Defendants as follows: Unpaid rent from December 1998 through January 2003 $106,000.00 5 percent (5%) late charge $ 5,300.00 Inter@st at the rate of 1.5% per month from December 1998 through June 1, 1999 $ 10,017.00 TOTAL $121,317.00 Respectfully submitted, JOHNSON, DUFFIE, STEWART & WEIDNER By: a? ("' David J. Lanza Attorney I.D. No. 55782 301 Market Street P.O. Box 109 Lemoyne, PA 17043-0109 :123066 Telephone (717) 761-4540 Attorneys for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA 6/'C/ 'X%389/ -CIVIL Johnson, Duffle, Stewart & Weidner By; David J. Lanza I.D. No. 57782 301 Market Street P. O. Box 109 Lemoyne, Pennsylvania 17043-0109 (717) 761-4540 LMRES REAL ESTATE ADVISERS, INC., t/a EASTERN RETAIL HOLDINGS, L.P., Plaintiff V. Attorneys for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO, v9- 2dh1 CIVIL THOMAS H. WILLIAMS and CIVIL ACTION - LAW DORCAS A. WILLIAMS, Defendants COMP HINT PURSUANT TO P- R C o 2grj(W FOR CONFESSION OF JUDGMENT FOR MONEY DAMAGES 1. The Plaintiff, LMRES REAL ESTATE ADVISERS, INC., t/a EASTERN RETAIL HOLDINGS, L.P., is a Delaware limited partnership with offices and a principal place of business at 1735 Market Street, Philadelphia, Pennsylvania 19103. 2. The Defendants, THOMAS H. WILLIAMS and DORCAS A. WILLIAMS, are adult individuals residing at 26 Bourbon Red Drive, Mechanicsburg, Pennsylvania 17055. 3. On or about November 4, 1992, Plaintiffs predecessor and Defendants entered into a Lease Agreement for the premises located at Silver Spring Commons, Store #B-7, Mechanicsburg, Cumberland County, Pennsylvania, a true and correct copy of which is attached hereto as Exhibit "A." True and correct copies of assignments by which Plaintiff became entitled to enforce the Lease are attached hereto as Exhibits "B" and "C." 4. -ease Amendment, a true and correct copy of which is attached hereto as Exhibit "D." On or about December 16, 1997, Plaintiffs Predecessor and Defendants entered into a 5. Said Lease Agreement (and the Amendment thereto) has not been assigned by the Plaintiff. 6. No judgment on the Lease Agreement has been entered in any jurisdiction. 7. The aforesaid Lease Amendment requires Defendant to pay rent unto Plaintiff in monthly installments as set forth in Paragraph 5 of Exhibit "D." 8. Defendants have failed to make the required monthly rental payments from and after December 1998. 9. As a result of Defendant's failure to make the monthly rental payments, the remaining monthly payments (through January 2003) have become immediately due and payable. 10. Pursuant to Paragraph 1.1(H) of the aforesaid Lease, Defendants are required to pay taxes, insurance, and common area maintenance charges in the amount of $360.00 per month. 11. Defendants have failed to pay any such charges from and after December 1998. 12. Pursuant to Paragraph 14.6 of the aforesaid Lease, Defendants are required to pay interest at the rate of one and one-half percent (1.5%) per month on any unpaid amount. 13. Pursuant to Paragraph 14.6 of the aforesaid Lease, Defendants are required to pay late charges in the amount of five percent (5%) of the unpaid rent. 13. There is justly due and owing to the Plaintiff from the Defendants on account of the aforesaid breach the sum of One Hundred Twenty-one Thousand Three Hundred Seventeen and 00/100 Dollars ($121,317.00) calculated as follows: 2 Unpaid rent from December 1998 through January 2003 5 percent (5%) late charge $10,000.00 Interest at the rate of 1.5% per month from December 1998 $ 5 5,300.00 through June 1, 1999 $ 10,017.00 TOTAL $121,317.00 14. Plaintiff has demanded the aforesaid sums from Defendant, but Defendant has neglected and refused and continues to neglect and refuse to pay the same or any part thereof. WHEREFORE, Plaintiff demands judgment against the Defendants for damages in the amount of One Hundred Twenty-one Thousand Three Hundred Seventeen and 00/100 Dollars ($121,317.00), plus costs and interest from June 1, 1999, and such other relief as this Court deems just and appropriate. Respectfully submitted, JOHNSON, DUFFIE, STEWART 8, WEIDNER By: Dowd J Lanza Attorney I.D. No. 55782 301 Market Street P.O. Box 109 Lemoyne, PA 17043-0109 Telephone (717) 761-4540 Attorneys for Plaintiff :123066 I, J ° ^ , S t a e d ( n,? r' do verify that the statements made in the foregoing Complaint are true and correct to the best of my knowledge, information and belief. I understand that false statements made herein are subject to the penalties of 18 Pa.C.S. §4904 relating to unsworn falsification to authorities. Dated: LMRES REAL ESTATE ADVISORS, INC., t1a EASTERN RETAIL HOLDINGS, L.P. l n By: i Exhibit A SILVER SPRING COMMONS SHOPPING CENTER STORE LEASE INDEX TO LEASE - To - 2s T n i I1 THOMAS H. WI LIAMS AND DORCn A OiIL T M ARTICLE ofi SECTION CAPTION 1. Section 1.1 1.2 1.3 1.4 1.5 1.6 II. Section 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 III. Section 3.1 3.2 3.3• 3.4 3.5 3.6 IV.• Section 4.1 4.2 4.3 V. Section 5.1 5.2 5.3 5.4 VI. Section 6.1 6.2 6.3 GRANT AND BASIC TERMS ..................... Basic Data ................................ Construction of Demised Premises.......... Demised Premises .......................... Acceptance of Demised Premises............ Term of Lease ............................. Option to Extend .......................... RENT...................................... Annual Minimum Rent ....................... Commencement of Rent and Other Charges.... Taxes .................................... Common Area Maintenance Charges........... Adjustment of Minimum Rent ................ Percentage Rent ........................... Gross Sales ............................... Record Keeping ............................ Audit ..................................... Late Charge* .............................. Definition of Additional Rent ............. USE OF DEMISED PREMISES ................... Tenant's Use .............................. continuous operation ...................... Radius of Operation ....................... Utilities ................................. Signs..................................... Sewer Discharge Limitation ................ COMMON AREAS .............................. Definition of Common Areas ................ Common Area Operating Costs ............... Control of Common Area....... ..... CONSTRUCTION AND ALTERATIONS .............. Landlord's Construction ................... Tenant's Alterations ...................... Builder's Risk..... :...................... Tenant's Discharge of Liens ............... MAINTENANCE AND REPAIRS ................... Landlord's obligations .................... Tenant's Obligations.. ............... Surrender of Demised Premises ............. GE 1 1 2 3 3 3 4 4 .4 5 5 7 7 7 B 9 10 3.0 10 11 11 12 12 12 13 14 14 14 14 15 15 15 15 16 17 17 17 17 19 VII. Section 7.1 7.2 7.3 7.4 .7.5 7.6 7.7 7.8 VIII. Section 8.1 8.2 8.3 8.4 8.5 IX. Section 9.1 X. Section 10.1 10.2 10.3 10.4 10.5 XI. Section 11.1 XII. Section 12.1 12.2 12.3 12.4 XIII. Section 13.1 13.2 ' XIV. Section 14.1 14.2 14.3 14.4 14.5 14.6 XV. Section 15.1 XVI. Section 16.1 16.2 16.3 XVII. INSURANCE AND INDEMNITY ................... Casualty Insurance ........................ Waiver of Subrogation..... ......... Increase in Fire Insurance Premiums....... Liability Insurance.. .......... Business Interruption Insurance........... Indemnification of Landlord ............... Plate Glass ............................... Landlord's Mortgagee ...................... SUBORDINATION, NOTICE, ESTOPPEL AND ATTORNMENT ............................. Subordination ............................. Notice to Landlord ........................ Estoppel Certificate ...................... Attornment ................................ Assignment of Rents ....................... ASSIGNMENT AND SUBLETTING ................ Consent Required .......................... WASTE, GOVERNMENTAL AND INSURANCE REQUIREMENTS AND HAZARDOUS SUBSTANCES.. Waste or Nuisance ......................... insurance Requirements .................... Hazardous Substances ...................... Government Permits ........................ Survival .................................. ADVERTISING AND PROMOTIONAL PROGRAM....... Advertising and Promotional Program....... DESTRUCTION ..... ...:...................... Total or Partial Destruction.........'..... Partial Destruction of Shopping Center.... Tenantfs Restoration ...................... Substantial Damage ........................ EMINENT DOMAIN ............................. Condemnation .......................... ..:. Restoration of Demised Premises........... DEFAULT OF TENANT ......................... Default ................................... Remedies .................................. Additional and Percentage Rent............ Guarantors ................................ Bankruptcy or Other Default ............... Failure to Pay, Interest .................. ACCESS BY LANDLORD ........................ Right of Entry... o ........................ TENANTIS PROPERTY ......................... Taxes on Leasehold... ........ .....Loss and Damage.... ....................... Notice by Tenant .......................... HOLDING OVERT SUCCESSORS .................. Holding over .............................. .19 19 20 20 20 21 21 21 21 22 22 22 23 23 24 24 24 26 26 26 26 28 28 28 28 29 29 30 31 31 31 31 31 32 32 33 36 36 36 38 38 38 39 39 39 39 39 39 q! ? VIII. Section XIX Section XX. Section 17.2 18.1 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 20.1 20.2 20.3 XXI Section 21.1 21.2 Successors and Assigns ................ :... QUIET ENJOYMENT ............................ Landlord's Covenant ....................... MISCELLANEOUS ............................. Waiver .................................... Accord and satisfaction ................... No Partnership ............................ Force Majaure ............................. Landlord's Liability ...................... Notices and Payments ...................... Financial Statements ...................... Guarantors ............................... Captions and Section Numbers .............. Definitions ............................... Partial Invalidity ........................ Recording ................................. Entire Agreement..... ...................... Survival .................................. Applicable Law ............................ Consents and Approvals .................... Authority ................................. When Lease Becomes Effective .............. Interpretation...... ...................... Brokers ................................... Landlord's Fees and Expenses .............. Other Agreements ...................•....... Shift Clause .............................. SECURITY AND RENT DEPOSITS ................ Amount of Security Deposit ................ Use and Return of Security Deposit........ Rent Deposit............. .................. TENANT COVENANTS EASEMENTS ............... Tenant Covenant ........................... Easements ................................. EXHIBITS: A. Demised Premises B & B-1. Landlord's Work C. Percentage Rent Statement D. Rules and Regulations E & E-1. Sign criteria F. Tenant's Work G. Lease Assignment Agreement 40 40 40 40 40 41 41 41 41 42 42 42 42 43 43 43 43 44 44 44 44 45 45 45 46 46 46 47 47 47 48 48 48 48 S • ?SlL 'RI A? Y??y ?I J Y -jr ? , INDENTURE OF LEASE THIS INDENTURE OF LEASE made as of the day of , 199_, by and between the landlord named in Section 1.1(0) (hereinafter referred to as the "Landlord"), and the tenant named in Section 1.l(A) below (hereinafter referred to as the ("Tenant"). W I T N E 8 8 E T H• ARTICLE I: GRANT AND BASIC TERMS 1.1 BASIC DATA: The following sets forth basic data hereinafter referred to in this Lease, and, where appropriate, constitute def- initions of the terms hereinafter listed. A. TENANT: Z Address: York, PA 17404 B.. TRADE NAME: Bike Line C. SHOPPING CENTER NAME: Silver Spring Commons D. DEMISED PREMISES: STORE#: B-7 WITH APPROX. 2,400 SQ. FT. E. ORIGINAL TERM LENGTH: Five f51 YRS F. OPTION(S) 8 LENGTH: one at 5-years G. MINIMUM RENT: YEAR(S) 1-_ @ $2,400.00 PER MO-, $28.800.00 ANNUALLY YEAR(S) 2-_ @ $2.200.00 PER MO., $26,400.00 ANNUALLY YEAR(S) 3-5+ @ $2,500.00 PER MO., $30,000,00 ANNUALLY * Year 5 shall be extended so that the initial term of this Lease shall expire on January 30, 1998. H. ESTIMATED FIRST YEAR PRORATA CHARGES AT COMMENCEMENT OF LEASE (SUB7ECT TO ADJUSTMENT OVER TER M OF THE LEASE): (i) Taxes: $200.00 per mo. $2,400.00 ann. (ii) Insurance: $ 40.00 Per mo. $ 480.00_ ann. (iii) Common Area: $ 21 0.00 per mo. $1,440.00 ann. CA 11 - 9&"00 Totals $360.00 per mo. $4,320.00 ann. ROM- o Y,Do Percentage of overall Taxes, Insurance and Common Area Maintenance Charges ("T.I.C.") payable by Tenant: ± I;. • To be determined in accordance with section 2.3 hereof. I. PERCENTAGE RENT: None. J. OPTION PERIOD RENT: Option Year 1, if said Option is exercised in accordance with Section 1.6 herein, shall begin February 1, 1998. /Mo. Annually OPTION YEAR 3 $2.600.00 $31.200.00 OPTION YEAR 2. $2.700:00 $32.400.00 OPTION YEAR 3 $2.800.00 $33.600.00 OPTION YEARS 4-5 $2.900.00 $34.800.00 PERCENTAGE RENT: None. K. SECURITY DEPOSIT: $2.400.00 (1 Month) L. lst MONTH RENT DEPOSIT: $2.760.00 (INCLUDES T.I.C.) M. USE CLAUSE: To be used for the sale at retail and service of bike_sf tness eomioment. and bike-related and for no other purpose. N. GUARANTOR(S): N/A 0. LANDLORD: Silver Spring Center Limited Partnership c/o ABS.Development Company 410 Asylum Street, Suite 215 Hartford, CT 06103 P. REALTOR: DONALD T. WARGO, WARGO PROPERTIES AND LINDA_ SUTTON HIME DAKOTA REALTY (COOPERATING BROKER) 1.2 CONSTRUCTION OF DEMISED PREMISES: Landlord agrees to deliver a substantially completed store space on or before six (6) months from the date of this Lease; provided, however that in the event Landlord's work is delayed or hindered by strike, casualty, fire, injunction, local governmental action, inability to secure 'materials, or restraint of law, unusual action of the elements, or any other cause beyond the control of Landlord, then said period shall be extended to the extent of such delays. Tenant. shall have the option of cancelling and terminating this Lease by giving written notice to Landlord should Landlord fail to complete Landlord's work within the allotted time frame, including extensions. If terminated, Tenant shall have no liability to Landlord and any Security Deposit held by Landlord from Tenant shall be refunded. Tenant's sole remedy, at law or in equity, for Landlord's failure to deliver a substantially completed store-space as set forth in this Section 1.2 shall be the termination of the Lease and Tenant hereby waives all claims for damages, including consequential and special damages, resulting from Landlord's .failure to.deliver the store space as aforesaid. -2- 1.3 DEMISED PREMISES: The Landlord hereby leases to the Tenant and the Tenant hereby leases from the Landlord, upon and subject to the terms and provisions of this Lease, the premises (hereinafter referred to as the "Demised Premises") described in Section 1..1(D) hereof, and as shown on Exhibit A, hereto annexed and made a 'part hereof, in the shopping center commonly referred to as Silver Spring Commons (the "Shopping Center") located in the Township of Silver Spring, County of Cumberland, Commonwealth of Pennsylvania and more accurately described on Exhibit A-1 attached hereto and made a part hereof. Excepting and reserving to the Landlord the roof and exterior walls of the building or buildings of which the Demised Premises are a part and further reserving to the Landlord the right to place in the Demised Premises (in such manner as to reduce to a minimum the interference with the Tenant's use of the Demised Premises) utility lines, pipes, and the like, to serve premises other than the Demised Premises, and to replace and maintain and repair such utility lines, pipes and the like in, over and upon the Demised Premises as may have been installed in said building. 1.4 ACCEPTANCE OF DEMISED PREMISES: It is Landlord's intention to complete the Shopping Center as planned. However, no rights or remedies shall accrue to Tenant from Landlord's failure to construct or lease any other parts of the Shopping Center or from changes in occupancy, actual or planned. Landlord reserves the right, without Tenant's consent to (a) change the number, .size, height (including additional stories) or location of'bulldings and common areas in the Shopping center; (b) change or modify ingress and egress routes; and (c) add additional land or buildings or both to the Shopping Center. Tenant agrees to accept the Demised Premises "as is", without warranty or representation of any kind, express or implied, on the part of Landlord, provided Landlord substantially completes the Demised Premises substantially in conformity with the terms and conditions set forth on Exhibit B attached hereto and made a part hereof ("Landlord's Work"). Landlord agrees that for Landlord's Work he will assign to Tenant Contractor's Warranty, namely one year on labor and material. 1.5 TERM OF LEASE: TO HAVE AND TO HOLD the Demised Premises unto the Tenant for the term specified in Section 1.1(E) hereof unless sooner terminated as provided herein, commencing on the Commencement Date as set forth in Section 2.2 hereof. If the Commencement Date is other than the first day of the month, the first year of the lease term shall be extended to include such partial month such that the first year of the lease term shall end on the last day of the month in which the first anniversary slate of the Commencement Date occurs. The parties hereto agree, upon demand made to the other, to execute a supplemental instrument expressing the Commencement Date of the term hereof when the Commencement Date has been determined. -3- 1 1.6 OPTION To EXTEND: Tenant shall have the option to extend the term of this Lease for an additional term of years as set forth in section 1.1 (r) under the same terms and conditions contained herein except that the Minimum Rent shall be as specified in Section 1.1(J).• The option to extend is conditioned upon Tenant during the original or then current term (1) paying monthly rental and other charges in a prompt and timely manner when due; (2) not being in default of any portion of the Lease (and there is no event or state of facts which, with the passage of time and/or the giving of notice, would constitute a default of any portion of the Lease) when exercising the option and at the expiration of the original or then current term and (3) Tenant giving Landlord written notice of Tenant's election to exercise the option term at least six (6) months prior to the end of the then current term. There shall be no further right to extend the term of this Lease. ARTICLE II: ENT 2.1 ANNUAL MINIMUM RENT: Tenant covenants and agrees to pay Minimum Rent in monthly installments on the first day of each month, in advance, throughout the lease term without notice, demand or offset to the Landlord at the address of Landlord as set forth in Section 1.1 (0) or at such place as the Landlord shall from time to time designate in writing. The first such payment is to be made on the Commencement Date, however, if the First Month Rent Deposit set forth in Section 1.1(L) hereof has been paid by Tenant to Landlord as provided in Section 20.03 hereof, then such amount as Tenant shall have deposited will be credited by Landlord against any amounts due hereunder for Minimum Rent upon the Commencement Date. Any fractional part of a month shall be prorated and payable in advance. Minimum Rent is based upon store location in the Shopping Center and a general measurement of square footage as computed below: (A) END STORE SPACES: SIDE TO SIDE: Outside exterior wall to mid point of the adjoining neighboring wall. FRONT TO REAR: From the front outside wall housing the glass store front to the rear outside wall or in the case where stores are back to back, to the inid-point of the rear wall. (B) INTERIOR STORE SPACES: SIDE TO SIDE: Interior mid-point of each side wall. -4- FRONT TO REAR: From the front outside wall housing the glass store front to the rear outside wall or in the case where stores are back to back, to the mid-point of the rear wall. Annual Minimum Rent during the original lease term is as set forth in Section 1.1 (G) and during any option term as set forth in Section 1.1 (J). Tenant's obligation to pay Minimum Rent is independent of all of the other covenants, conditions and obligations of either party to this Lease. 2.2 COMMENCEMENT OF RENT AND OTHER caA GES: The Commencement Date, which establishes the date from which the term of the Lease is measured and upon which Tenant is obligated to pay Minimum Rent, shall be the earlier of (a) thirty (30) days after Tenant obtains possession of the Demised Premises from Landlord; (b) thirty (30) days after Landlord notifies Tenant in writing that the space is substantially complete and Tenant may install fixtures and improvements; or (c) the date that the Tenant first opens for business in the Demised Premises. "Substantially complete'' as used herein means the work performed by Landlord as described in Exhibit "E" has been completed with the exception of minor items which can be completed without material interference with Tenant's installation of fixtures or improvements. Upon occurance of the Commencement Date, Landlord and Tenant shall execute a Supplemental Agreement setting forth 'the Commencement Date. ,Notwithstanding contra ry, Add t onalo R nit edshalli be to abated for ninet imp ant' but a not Commencement Date. Y (90) days after 2.3 TAMES: From and after the earlier of (a) thirty (30) days after the date that Tenant obtains possession of the Demised Premises from Landlord, (b) thirty (30) days after the date that Landlord notifies Tenant in writing that the space is substantially complete and Tenant may install his fixtures and improvements (the "Delivery of Possession"), or (c) Tenant opens for business in the Demised Premises, Tenant shall pay to Landlord as Additional Rent its proportionate share, expressed as a percentage as set forth in Section 1.1 (H), of Real Estate Taxes, -special taxes and assessments for the Shopping Center or any part thereof (as the same may be increased or diminished from time to time during the term of this Lease), excluding any taxes separately charged to or levied against Tenant (which Tenant shall pay 100%) or any other tenant (which Tenant shall not pay any proportion of). The "Delivery of Possession" as used herein shall be the earlier of (a) the date that Tenant obtains possession of the Demised Premises from Landlord, or (b) thirty (30) days after Landlord notifies Tenant in writing that the space is substantially complete and Tenant may install his fixtures and improvements. 71. J Notwithstanding anything to the contrary contained in Section 1.1(H) hereof, "Tenant's proportionate share" is a fraction, the numerator of which is the gross leasable area of the Demised Premises and the denominator of which is the gross leasable area of the Shopping Center as of the first day of each applicable tax year during the term hereof, provided that if the taxes for the Shopping Center are increased materially because of assessment of Tenant's improvements at a higher rate than other tenants, Tenant agrees to pay any such excess taxes as Additional Rent. Tenant shall pay such Additional Rent applicable to Real Estate Taxes on a monthly basis, along with the monthly Minimum Rent. Initially, such monthly payments shall be as set forth in Section 1.1(H). Tenant's proportionate share of Real Estate Taxes shall thereafter be estimated by Landlord on an annual basis for each calendar year ending on December 31. Should the actual costs of Real Estate Taxes be less than each tenant paid, the amount overpaid by the Tenant will be credited towards such costs for the first month of the next year or if the Tenant is terminating, a refund shall be made provided no other charges are outstanding by Tenant. If Real Estate Taxes are more than Landlord's estimate, Tenant shall pay such excess within thirty (30) days of receiving..a detailed statement from Landlord. In the event Tenant does not make said payment monthly, or reimburse Landlord at the end of any calendar year in the event of a deficiency, as aforesaid, Tenant shall be in default of this Lease. Landlord, at Landlord's option, may obtain separate taxable status for the Demised Premises, and in such event, Tenant shall pay 100% of such taxes as Additional Rent. Additionally, with respect to taxes: (A) RIGHT TO CONTEST ASSESSMENTS: Landlord may contest any and all Real Estate Taxes. The cost of any such contest shall be paid as Additional Rent in the same proportionate share as the Real Estate Taxes are paid and any refund or recovery shall be shared in the same proportionate manner. Tenant shall have no right to contest assessments without the prior written consent of Landlord. I (H) REAL ESTATE TAE: Real Estate Tax means: (i) any fee, license fee, license tax, business license fee, commercial rental tax levy, charge assessment, penalty or tax imposed by any taxing or judicial authority against the Shopping Center or land upon which the Shopping Center is located; (ii) any tax imposed upon the Shopping Center by any state, county or local governmental authority including without limitation all school district taxes; (iii) any tax on the Landlord's right to receive, or the receipt of, rent or income from the Shopping Center or against Landlord's business of leasing the Shopping Center (However, provision (iii) is not applicable to any of Landlord's income tax) ; (iv) any tax or charge for fire protection, streets, side- -6- 1 walks, road maintenance, refuse or other services provided to the Shopping center by any government agency; (v) any tax imposed upon this transaction, or based.upon a reassessment of the Shopping Center due to a change in ownership or transfer of all or part of Landlord's interest in the Shopping Center; and (vi) any charge or fee replacing, in whole or in part, any tax previously included within the definition of Real Estate Tax. 2.4 COMMON AREA MAINTENANCE CHARGES: Commencing upon the Delivery of Possession and thereafter on the first of each month Tenant will pay Landlord, along with the monthly Minimum Rent payment, as Additional Rent, one-twelfth (1/12) of Tenant's proportionate share of the annual common area operating costs, as hereinafter defined. Initially, such monthly payment shall be as set forth in Section 1.1(H) . However, if Tenant's use of the Demised Premises is directly responsible for a material increase in the Shopping Center charges for common area operating costs, Tenant shall be solely responsible for such excess cost. The common area operating costs shall thereafter be estimated by Landlord on an annual basis for each calendar year ending on December 31. Should the actual common area operating cost be less than each tenant paid, the amount overpaid by the Tenant will be credited towards common area operating costs for the first month of the next year or if the Tenant is terminating, a refund shall be made provided no other charges are outstanding by Tenant. If common area-operating costs are more than Landlord's estimate, Tenant shall pay such excess within thirty (30) days of receiving a detailed statement from Landlord. Failure to pay shall be a default under this Lease. 2.5 AwusTMENT OF MINIMUM RENT: Intentionally Omitted. 2.6 PERCENTAGE RENT: Intentionally Omitted. 2.7 GROSS SALES: As defined in this Lease, "Gross Sales" shall mean the aggregate of all gross receipts of Tenant, subtenants or sublessees, concessionaires or licensees and any business conducted on or at the Demised Premises or through outside sales agents, regardless of whether such receipts be evidenced by check, credit, charge account, exchange or otherwise without reserve or deduction for inability or failure to collect (but nothing contained in this Section 2.7 shall be construed as granting Tenant the right to assign or sublet the Demised Premises or to utilize the Demised Premises for any use not otherwise allowable under other provisions of this Lease). Gross Sales shall include those amounts received from any transaction, including, but'not limited to, the amounts received from the sale or rental of goods, wares, merchandise and shelf and/or floor space, gift certificates and for services and repairs performed on or from the Demised Premises, together with the amount of all orders taken or received at the Demised Premises, whether such orders be filled therefrom or elsewhere as well as all -7 receipts which Tenant in the normal and customary course of its operations would credit or attribute to its business on the Demised Premises, and shall include sales made by or from vending devices in the Demised Premises (but nothing contained herein shall give Tenant the right to install mechanical or vending machines in the Demised Premises). Gross Sales shall also include, but not be limited to, all deposits not refunded to purchasers and all sales to employees or agents of Tenant. Gross Sales shall not include (or if included shall be deducted therefrom) cash or credit refunds upon gross receipts where the merchandise sold or some part of it is returned by the purchaser to the Tenant; and the amount of any sales, use, or gross receipts tax imposed by any Federal, state, municipal or other governmental authority directly on sales and collected from customers, provided that the amount thereof is billed separately to the customer and is required to be paid by Tenant to such Govern- mental authority. The sales price of merchandise returned by customers for exchange shall be included in Gross Sales. No franchise or capital stock tax and no inheritance, income, occupation, or similar tax or license-fee based upon income, sales or profits, as such, shall be deducted from Gross Sales. Tenant agrees to report Gross Sales to Landlord on an annual basis for the first two years of the Lease only. 2.8 RECORD BEEPING: .Intentionally omitted. 2.9 AUDIT: Intentionally omitted. 2.10 LATE CEARGE: If Tenant fails to pay any Additional Rent or Minimum Rent when due, Tenant shall pay to Landlord a "Late Charge" of five cents ($0.05) for each dollar so overdue to defray the cost of collection and administration. 2.11 DEFINITION OF ADDITIONAL RENT: Without limiting any other provision of this Lease, it is expressly understood and agreed that all Percentage Rent, the Tenant's proportionate share of Taxes, Common Area Maintenance charges and all other charges which the Tenant is required to pay hereunder, including, without limitation, the Promotional-Charge, together with all interest and penalties that may accrue thereon, shall be deemed to be Additional (but not Minimum) Rent, and in the event of non-payment thereof by the Tenant, the Landlord shall have all of the rights and remedies with respect thereto as would accrue to the Landlord for non-payment of Minimum Rent. Tenant's obligation to pay Additional Rent is independent of all of the other covenants, conditions and obligations of either party to this Lease. -8- m ARTICLE III: USE OF DEMISED PREMISES 3.1 TEN-74 IISE; Tenant shall use the Demised Premises solely for the purposes.set forth in Section 1.1 (M) and fo no other business or purpose without prior consent from Landlorrd. (A) No auction, fire or bankruptcy sales may be conducted within the Demised Premises without.the previous consent of the Landlord. (B) The Tenant shall not use the malls or sidewalks adjacent to the Demised Premises or the recessed vestibules, if any, of the Demised Premises for business purposes (including, without limitation, the distribution of handbills or advertising of any type) without the previous consent of the Landlord. (C) The Tenant shall keep the display windows of the Demised Premises clean and shall keep the same electrically lighted during such periods of time as the Shopping Center shall be open and, in addition, during such other periods of time as shall be determined by the Landlord, provided windows throughout a major portion of the Shopping Center are kept lighted during such additional periods, and for this purpose shall install and maintain a mechanical time-clock. (D) The Tenant shall at all times keep the Demised Premises fully and adequately stocked and fixtured. The Tenant shall devote the maximum possible floor area of the Demised Premises to selling space (consistent with the • permitted uses hereunder) , and shall not use any portion of the Demised Premises for storage or other services, except as is consistent with its operations in the Demised Premises. (E) The Tenant shall at all times fully and adequately heat and/or air-condition (as the circumstances require) the Demised Premises. (F) The Tenant agrees that it and its employees and others connected with the Tenant's operations at the Demised Premises will abide by all reasonable rules and regulations from time to time established by 'the Landlord by written notice to the Tenant with respect to such Shopping Center, a current copy of which are attached hereto as Exhibit D, but which are subject to change at Landlord's discretion. 3.2 CONTINUOUS OPERATION: Tenant shall continuously operate and keep open to the public the entire Demised Premises in good faith for the duration of the lease term from Monday through Friday during the hours of 10:00 AM to 6:00 PM and on Saturday from 10:00 a.m. to s:oo p.m. Tenant will carry a complete stock of merchandise, maintain an adequate staff including a qualified store manager headquartered at the Demised Premises to accommodate customers and at all times promote the business through advertising and display of merchandise so as to produce the maximum Gross Sales possible. Tenant may open at earlier hours or close at a later time and open on Sunday, providing such opening is not in violation of any local govern-mental ordinance or law. Tenant may also close on major nationally recognized religious holidays and for periodic inventory. It is important to the success of a Shopping Center that all tenants have uniform days and hours of operation. Tenant acknowledges that this obligation is a material and significant inducement to the Landlord to enter into this Lease and Tenant agrees to abide by the hours and days of opening specified herein or•be,in violation of this Lease. 3.3 RAD0 OF OPERATT^u: Tenant, or any other person, firm or corporation which controls or is controlled by Tenant, or any franchise or licensee of any of them, shall not open a competing or similar business, either directly or indirectly operating within a radius of five (5) miles from the Shopping Center, during the term of this Lease. This radius clause does not apply to businesses of Tenant currently open and in operation within said radius at the time this Lease is executed. 3.4 UTILITIES: Tenant agrees to pay for Tenant's use of all of its requirements for utilities, including but not limited to, electricity, gas, sewer, heat, water and all other utilities and taxes or charges for such utility services which are used by or attributable to Tenant's Demised Premises from the date of Delivery of Possession of the Demised Premises by Landlord to Tenant. Where Landlord furnishes one or more of the utility services, Tenant shall accept and use same, paying all reasonable charges therefor. Landlord's charges shall not exceed the rates charged by local utility companies to retail customers for the same or similar services. In no event will Landlord be liable for an interruption or failure in the supply of any such utilities or services supplied by Landlord because of repairs or improvements or for any cause beyond Landlord's control. 3.5 SIGNS: It is Landlord's desire to create a Shopping Center environment that is modern and upscale. Towards this end, Landlord has established a uniform tenant sign criteria, (see Exhibit "E"), that will compliment and enhance the look of the Shopping Center. Tenant will not, without first obtaining Landlord's consent, place on any exterior door, wall, window, roof or fascia of the Demised Premises, any sign, awning, canopy or advertisement or other such matter including decorations and light attractions. Approved signs and approved advertisements shall be installed at Tenant's expense and maintained at all times in a good condition. If Tenant -10- - -- i not meet Landlords sign nstalls any sign not previously approved by Landlord that does authority, w hout 'liability, to remove aandor store the sin he Tenant's sole expense and at Tenant's risk, if Tenant fails to voluntarily remove the sign within seven (7) days after receiving written notification from Landlord of the violation. Expenses incurred by Landlord for removing and storing Tenant's sign shall be immediately paid by Tenant as Additional. Rent. In addition, Landlord reserves the right at its expense to temporarily remove repairs, a restores, constructs or renovates the Demised Premisesoor other premises within the Shopping Center which adjoin the Demised Premises, upon giving Tenant seven (7) days advance written notification. Subject to attached sign criteria Landlord hereby approves Tenant's sign design (Exhibit E-1) and will also allow one neon sign in Tenant's window (see Exhibit E-2). 3.6 SEWER DTa"Rpi2 .1HLT ,,, h: Tenant shall be entitled to discharge sewage from the Demised Premises into the sanitary sewer system to be constructed by Landlord for the benefit of the Shopping Center within which the Demised Premises are located, but Tenant covenants and agrees that such discharge (whether by Tenant or any other person or entity possessing or using the Demised Premises) shall not exceed an average of 250 gallons per day (the Reserved Capacity"). The average number of gallons per day of sewage discharged from the Demised Premises for each calendar year will be based on the average daily flow during the three '(3) consecutive months in any calendar year with the highest volume of sewage flow from the Demised Premises. "Average daily flow" shall be determined from the water consumption of the Demised Premises as evidenced by meter readings taken from the water meter monitoring water service to the Demised Premises, but excluding any meter readings for water used in fire sprinkler systems, fire hydrants, and/or site landscaping irrigation provided that the aforesaid excluded uses are separately metered or submetered. one gallon of water consumption shall equal one gallon of sewage discharge. The discharge of sewage from the Demised Premises in excess of the Reserved Capacity shall constitute a default by Tenant hereunder. In the event of a default, Landlord shall have the right to pursue all remedies at law and/or in equity, including the right to obtain an-injunction enjoining Tenant from discharging sewage from the Demised Premises in excess of the Reserved Capacity. Tenant shall indemnify and hold Landlord harmless from any and all claims, liabilities and costs (including reasonable attorneys fees) made against or incurred by Landlord as a result, directly or indirectly, of the discharge of a quantity of sewage from the Demised Premises in excess of the Reserved Capacity. ARTICLE IV: COMMON AREAS 4.1 DEFINITION OF COMMON AREAS: Common areas are all areas, space, equipment, and special services provided by Landlord for common or joint use and benefit of the Tenant and other tenants of the shopping center, their customers, employees, agents and -11- _ :.1 % invitees. This includes without limitation: roofs, walls, parking areas, access roads, driveways, sidewalks, ramps, stairways, wash rooms, fountains, public phones, pylon and/or other common area signs, shelters, lighting fixtures and equipment, security facilities, and the cost of maintaining these areas for the benefit of the Shopping Center. 4.2 COMMON AREA OPERATING COST. include all costs and expenses of evCommon area operating costs incurred by the Landlord (including reasonkind ablenandaaure paid or reserves) in operating, managing, equipping PPr(if an e the extent provided by the Landlord), ligh ing9 repairing replacing and maintaining all parking facilities (including the repair and maintenance of any parking structure subsequently installed in the Shopping Center for the common use of customers and/or employees of the Shopping Center, but not including the original construction cost of said parking structure), utilities and utilities facilitieands facilities h such Shopping Center areas (including and off-site facilities, all taxes, assessments, costs and other expenses related thereto), and all other common areas of the Shopping Center (including, but without limitation, all landscaping and gardening), and the fees, costs or expenses, if any, required for the maintenance and preservation of any rights arising under any reciprocal easement agreement (REA) affecting the Shopping Centei, or to fulfill any obligations arising under. such -an. REA. Such costs and expenses shall likewise include (but shall not be limited to) water and sewer charges; utility system installation charges and assessments; costs of all roof and other maintenance, repairs and replacements performed by the Landlord; costs of the installation, operation, maintenance, repair and replacement of any energy management system; workers' compensation for employees working on the Shopping Center, public liability, rent interruption, fire insurance, extended coverage and all other perils coverage, plus all endorsements and other insurance coverages deemed reasonable and necessary by Landlord; wages, unemployment taxes, social security taxes for employees working on t he Shopping Center, and personal property taxes and assessments; fees for loudsp akrsqand anyiothersequand ipment suppl ing music to the common areas; reasonable depreciation of equipment used in the operation or maintenance of the common areas; and an administrative fee equal to the fifteen percent (15-1) of the total costs and expenses of operating, managing and maintaining the Shopping Center. 4.3 CONTROL•OF COMMON AREA: The common areas as defined in this Lease shall be under the exclusive control and management of the Landlord who shall have the exclusive right to establish, revoke, modify and enforce rules and regulations governing the common areas. Tenant shall make no use of the common Area except for non- exclusive parking in designated areas and for ingress and egress without the prior consent of Landlord. -12- 5.1 _LANDLORD'S CONSTRUCTION: The construction work required to be done on the Demised Premises by Landlord prior to the Delivery of Possession shall be as set forth in Exhibit "B". 5.2 TENANT'S ALTERATIONS: Tenant agrees, upon Delivery of Possession of the Demised Premises, that it will with due diligence proceed to obtain a building permit, if a building permit is required by Silver Spring Township for Tenant's Work, and undertake such construction and renovation work, install such stock, fixtures and equipment and to perform such other work as shall be necessary or appropriate in order to prepare tkie Demised Premises for the opening of business as soon thereafter as possible but in no event later than thirty (30) days after Delivery of Possession of the Demised Premises. In the event that Tenant does not open the Demised Premises for the conduct of its business within thirty (30) days after the Commencement Date, Landlord shall have, in addition to any and all remedies herein provided, the right to collect not only the Minimum Rent herein provided, but supplementary rent at the rate of one-fifteenth (1/15th) of the monthly Minimum Rent per day for each and every day that Tenant shall fail to commence to do business as herein provided. Further, in the event Tenant does not open the Demised Premises for the conduct of its business within sixty (60) days after the Commencement Date, as defined in 'Section 2.2,. Landlord shall have the right at any time thereafter to terminate this Lease by giving Tenant written notice of such termination, whereupon this Lease shall be terminated, except for Landlord's rights and remedies upon termination as herein provided. In addition, Tenant shall not, without Landlord's prior consent, either at the inception or later in the lease term, commence any alterations or modifications without first complying with Exhibit F attached hereto and without first providing Landlord a copy of Tenant's plans, and copies of any and all governmental permits, approvals and authorizations required in connection with such work. In matters concerning changes to the exEernal appearance of the Demised Premises or that would alter the design and/or the structural integrity of the Shopping,Center, or changes to the interior structural soundness of the Demised Premises, consent shall be at Landlord's sole discretion. Alterations and construction plans consented to by Landlord shall be completed at Tenant's sole expense and shall be performed in a good workmanlike manner in compliance with all governmental requirements, and with all of the terms of this Lease, at such times as to cause a minimum of interference with other construction -13- of Landlord Cente . T nant agrees ongoing, to indemnify and businesses hold s Landlord h armlessi ng against any loss, liability or damage resulting from such work. Tenant shall provide its own trash containers for construction debris and use side/service entrances where possible. I 53 BIIiLDERS Risx: Tenant shall also maintain builders "all ri sk", fire and comprehensive general liability, workman0s compallensaof Tena t es construti nl and alteration activities, naming ! Landlord and Landlord's mortgagees as additional insureds, in such i amounts and on such terms as are satisfactory to Landlord and customary for like construction. Prior to commencing any construction work, Tenant shall provide Landlord with copies of .certificate(s) reflecting such insurance coverage. 5.4 TE2tMIS DISCHARGE OF LIENS: Tenant shall promptly pa its contractor and materialmen for all work done upon the Demised. Premises. Nothing in this Lease shall be construed to authorize Tenant or others dealing with Tenant, to charge the rents of the Demised Premises or the interest of Landlord in the estate of the Demised Premises with a mechanic's lien or encumbrance of any kind, and under no circumstance shall Tenant be construed to be the agent, employee or representative of Landlord in completing Tenant's work. All such work shall be for the immediate use and benefit of Tenant and not Landlord. Tenant shall, upon request, provide Landlord lien waivers, and should any such lien be asserted or filed, Tenant shall immediately discharge of record (either by payment or by filing of the necessary bond, or otherwise) the same within ten (10) days. If Tenant fails to remove said lien within ten (10) days, Landlord may at its option, remove the lien by paying the claim, without investigating the validity thereof, and Tenant shall pay Landlord upon demand the amount paid by Landlord to remove the lien, including Landlord's costs and expenses. Tenant's failure to cause the lien to be released of record or to reimburse Landlord within five (5) days of Landlord's request for reimbursement shall be a default of Tenant's Lease. Landlord shall have the right, in its sole discretion, to require Tenant, or its contractor, to obtain a performance and payment bond in an amount and with a surety company satisfactory to Landlord. If the laws of the state provide for filing a statutory bond to eliminate attachment of mechanic's or materialmen's liens, Tenant shall require that its contractor (or Tenant shall itself) file 'a statutory bond prior to initiation of construction. ARTICLE VI: MAINTENANCE AND REPAIRS 6.1 LANDLORD'S OBLIGATIONS: Except as provided for in Article XII, Destruction, and Article XIII, Eminent Domain, Landlord shall keep and maintain the foundation and exterior walls, the cost of which shall be included in common area operating costs, except when such repairs were necessitated from Tenant's actions or that of its officers, agents, customers or employees. -14- A. Tenant shall be responsible at its own expense for keeping the Demised Premises neat and clean and in good order, condition and repair at all times from the date of Delivery of Possession of the Demised Premises, and continuously thereafter until the end of the term hereof, including, but without limitation, replacement and restoration as required of the following: I. The exterior and interior portion of all doors and door checks, door locks, emergency hardware openers, and door handles; 2. Windows, window molding, plate glass, store fronts, glass door panels, and showcases surrounding the Demised Premises, 3. All plumbing and sewage facilities within the Demised Premises, including free flow to the utility owned sewer line, including water meters; 4. Heating and air conditioning systems and equipment, sprinkler systems and electrical systems (after Landlord's Certificate of Occupancy has stated such systems are properly functioning) including electrical meters and wiring; 5. Floors and floor covering, walls and wall covering, ceiling tiles and ceiling lights (including bulbs and coverings); 6. Tenant fixtures and all installations made by Tenant; 7. Repairs to the Demised Premises due to illegal entry; and S. Maintain Tenant's sign(s) in good repair as required in Section 3.5. B. Tenant shall contract with a qualified service company for reasonable maintenance of the heating, ventilation and air conditioning equipment and furnish Landlord a copy of the contract within ten (10) days after opening and any subsequent contracts upon cancellation or expiration of the original contract. Landlord agrees to furnish Tenant with photocopies of any separately issued Contractor's Warranties applicable to the Demised Premises. . C. Cleanliness is important in Shopping Centers as it encourages repeat customers. Tenant shall therefore keep and maintain the Demised Premises in a clean, safe, sanitary and offensive-odor free condition and shall abide by all rules and -15- r regulations of governmental agencies and operate in compliance with all requirements of law, statute, ordinance, regulation, rule or other governmental authority affecting the Demised Premises and all appurtenances thereto. Tenant shall be responsible for trash storage and removal through rental of commercial dumpsters. Landlord will provide locations in the Shopping Center for placement of these dumpsters. D. If Tenant refuses or neglects to commence and to complete repairs, Landlord may, at Landlord's option, place Tenant in default of the Lease and make said repairs and Tenant shall pay the cost thereof plus any administrative charges, as Additional Rent upon demand. 6.3 SURRENDER OF DEMISED PREMISES: At the expiration of the tenancy, Tenant shall peaceably surrender the Demised Premises in the same condition as received by it on the "Delivery of Possession," reasonable wear and tear expected. All keys to the Demised Premises and lock combinations to any safes or vaults which may be in the Demised Premises shall also be turned over to Landlord at the same address used for rent payment. Any and all alterations, additions, improvements, and fixtures which may be made or installed by either the Landlord or the Tenant upon the Demised Premises and which in any manner are attached to the floors, walls or ceilings (including, without limitation, any linoleum or other floor covering of similar character which may be cemented or otherwise adhesively affixed to the floor, and any heating, ventilating and/or air-conditioning equipment) shall remain upon the Demised Premises, and at the termination of this lease shall be surrendered with the -Demised Premises as a part thereof without disturbance, molestation or injury. However, the usual trade fixtures and furniture which may be installed in the Demised Premises prior to or during the term hereof at the cost of the Tenant may be removed by the Tenant from the Demised Premises upon the termination of this Lease if, but only if, the Tenant is not then in default hereunder. Further, Landlord may require Tenant - to remove trade fixtures and any other alterations, installations or improvements during the last thirty (30) days of its tenancy by giving sixty (60) days written notice to Tenant. Tenant shall repair any and all damage caused to the Demised Premises resulting from or caused by removal of Tenant's fixtures and for any of Tenant's alterations, installations or improvements. Tenant's obligation to perform this covenant shall survive the expiration of this Lease. In no event shall the Tenant be entitled to any heating, ventilating or air-conditioning equipment. Any items remaining in the Demised Premises on the termination date shall be deemed abandoned and shall become the property of landlord and Landlord may dispose of same without liability. Any cost to remove fixtures or repair damage caused by Tenant's vacating shall be Tenant's expense and Landlord may use Tenant's Security Deposit to help defray such expenses but the Security Deposit shall not constitute satisfaction of the cost, should such cost exceed the amount of the Security Deposit. -16- 7.1 CASH LTY INBiRANCE continuousl The Tenant also agrees that it shall personal y keep its fixtures, merchandise, equipment and other property from time to time located in, on or about the Demised Premises, and all leasehold improvements to the Demised Premises insured by reputable, duly licensed insurance companies against loss or damage by fire with the usual.extended coverage endorsements in amounts at least equal to the full replacement cost thereof. During the term of this Lease, the proceeds from any such policy of insurance shall be used for the repair or replacement of the fixtures and equipment so insured. Prior to the Commencement Date, and no less often than annually thereafter, and at any other time upon the request of the Landlord, the Tenant shall furnish to the Landlord evidence of such continuous insurance coverage satisfactory to the Landlord. It is understood and agreed that the Tenant assumes all risk of damage to its own property arising from any cause whatsoever, including, without limitation, loss by theft or otherwise. 7•2 WXYVER of BUSROGAT;oN: Insofar as and to the extent that the following provision may be effective without invalidating or making it impossible to secure insurance coverage obtainable from responsible insurance companies doing business in the Commonwealth of Pennsylvania (even though extra premium may result therefrom), the Landlord and the Tenant mutually agree that with respect to any loss which is covered by insurance then being carried by them, respectively, the one carrying such insurance and suffering said loss releases the other of and from any and all claims with respect to such loss to the full extent, but only to the extent, of such insurance coverage; and they further mutually agree that their respective insurance companies shall have no right of subrogation against the other on account thereof. In the event that any additional premium is payable by either party as a result of this provision, the other party shall reimburse the party paying such premium the amount of such extra premium. The releases herein contained shall not apply to any loss or damage occasioned by the willful acts of either of the parties hereto. 7.3 ;NCREASB SN FIRE INSURANCE PREMIUMS: Tenant agrees not to keep, use, sell or offer for sale, in or upon the Demised Premises, any articles or goods which may be prohibited by the standard form of fire insurance policy or will otherwise increase the rate of fire or other insurance on the Demised Premises. Tenant agrees to pay upon demand any such increase in premium for any insurance which may be carried by Landlord on said Demised Premises, or the Shopping Center of which the same are a part, resulting from the use of the Demised Premises by Tenant, whether or not Landlord has consented to such use. -17- 6 " 7.4 LIABILITY INStmaun9. ---?. Tenant shall, during the entire term hereof, keep in full force and effect a policy of public liability and property damage insurance with respect to the Demised Premises bus and erated b Tenant and Tenantein the Demised Pr mises in which the permitted subtenants tlimits of coverage shall not be less than $1,000,000.0o per occurrence. The limits of coverage shall be increased from time to time upon Landlord's request, in accordance with shopping center management practices then prevailing in the area of the Shopping Center. The policy shall be in form approved by Landlord, shall name Landlord (and such other persons as are in privity of estate with the Landlord as may be set out in notice from time to time) and Tenant as the insureds, and shall contain a clause that the insurer will not cancel, materially modify or fail to renew the insurance without first giving Landlord thirty (30) days prior written notice. The insurance policy shall be written by an insurance company, authorized to do business in the Commonwealth of Pennsylvania and having a policyholders' rating of no less than "A" in the most current edition of Best's Insurance Reports. A copy of the policy or a certificate of insurance shall be delivered to Landlord. The policy shall insure Tenant's performance of the indemnity provisions of this Lease. 7.5 BUSINESS INTERRUPTION ESMU n.NCE: Landlord's sole discretion, maintain a Landlord may, in interruption insurance, the cost of which shalllbe of business area operating costs. Part of common 7.6 INDEMNIFICATION OF LANDLORD: indemnify, defend and save harmless Landlord,?tits will protect, servants, from and against any and all claims, actions, damages, suits, judgements, decrees, orders liability and expense (including all costs, expenses and liabilities incurred in or in connection with any such claim or proceeding, and attorney fees) in ion wi loss of life, bodily damagetto prop rty of whatever kind or ncharacter, hosoever caused, -ersonal arising from or out of any occurrence in, upon or about the Demised Premises, or in the occupancy or use by Tenant of the Demised Premises or any part thereof, or occasioned wholly or in part by any act or omission of Tenant, its agents, contractors, licensees, employees, servants, sublessees, or concessionaires, notwithstand- ing any possible negligence (whether sole, concurrent or otherwise) on the part of Landlord, its agents, contractors, employees or servants. 7.7 PLATE OL•aee: Tenant shall replace at its own expense any and all plate and other glass in and about the Demised Premises damaged or broken from any cause whatsoever. 7.a LANDLORD'S MORTGAGEE: wherever herein Tenant is required to add Landlord as an insured to any policy of insurance, to insure Landlord, or to provide a certificate or other proof of insurance or a notice to Landlord, Tenant must treat any mortgagee of Landlord that Landlord has notified Tenant of in a like manner. -18- o..? 8 0 m8.1 ortgag-PFUI'- M-TI _7 Landlord shall have the right to transfer, e, assign, pledge, sell and leas , encumber in whole or in part, the Demised apremisese therwise Center, this Lease and convey or oShoppi exist, and rents and all amounts rights of Landlord existing and nq g and to hereof; payable to it under the provisions such ri ht d nothing herein contained shall limit or restrict any 4 and the rights of the Tenant under this Lease shall be subject and subordinate to all instruments executed executed in connection with the exercise of any such ri Landlord, ,including and to be Demised Premises , but not limited to, any REA affecting of the mortgage, deed of ofd the Shopping Center and the lien of anthe y placed upon rust or security agreement now or Place the Demised Premises and the Shopping Center and tofall and e renewals, modifications, consolidations,participants, replacements xtensions thereof. Said subordination shall not require the consent of Tenant, but Tenant covenants and agrees, if requested, execute and deliver upon demand such furthers in event or subordinating this Lease to the lien of any such mortgage, trust, security agreement or sale instruments requested by the Land o and leaseback ashall d be mortgagee, holder of any security agreement, er rtgagee, proposed other party and Tenant hereby irrevocably appoints the Landlord as its attorney-in-fact to execute and deliver any such instrument for the name of the Tenant. Notwithstanding anything set out in this Lease to the contrary, in the event the holder of an or deed of trust elects to have this Lease superior to its mortgage or deed of trust any mortgage then notified by such encumbrance holderI,othis easeeshall be deem d priori fthe lien of said mortgage or deed of Ltrust, whether this Lease is adopted prior to or subsequent to the data nP a-z? of trust. 8•$ NOrill IC To ram - default in the The Landlord shall in no event be in performance of any of the Landlords obligations unl and unt perf°r!°e su h eoblig ti nsilwithin thirty shall have failed to additional time as is reasonably required t1o)corrys, any such default, after notice the Landlord the Tenant to the Landlord pror such specifying wherein th operly obligation. Landlord has failed to perform such holder Demised pr mi, i notifies the f a ant rtgage which includes the over the Landlord's rights under that such holder has taken assert any right to deduct the cost Lease, the Tenant shall not claim against the Landlord from rent thereaft rs or and payable, shall look solel y monetary y to the Landlord .for satisfaction ofsuch -19- •, 0 • AV claim. Nothing herein contained shall be deemed to create any rights in Tenant not specifically granted in this Lease or under applicable provisions of law. 8.3 ESTOPPEL C tim M-1 XCATE: Tenant agrees, at any time, and from time to time, upon not less than ten (10) days' prior notice by Landlord, to execute, acknowledge and deliver to Landlord, a state- ment in writing addressed to Landlord or other. party designated by Landlord certifying that this Lease is in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating the modifications); stating the actual commencement and expiration dates of the Lease; dat beenipaid;eth to the Demised ePremisesohave been g completed any, on have before the date of such certificate and that all conditions precedent to the Lease taking effect have been carried out or fulfilled; that Tenant has accepted possession; that the lease term has commenced; Tenant is occupying the Demised Premises and is open for business; and stating whether or not there exists any default by either party in the performance of any covenant, agreement, term, provision or condition contained in this Lease, and, if so, specifying each such default of which the signer may have knowledge and the claims or offsets, if any, claimed by the Tenant; it being intended that any such statement delivered pursuant hereto may be relied upon by Landlord or a purchaser of Landlord's interest and by ' any. mortgagee or prospect-ive mortgagee of any mortgage affecting the Demised Premises or the Shopping Center. 71f :Tenant does not deliver such statement to Land-lord within such ten (10) day period, Landlord, and any prospective purchaser or encumbrancer, may conclusively presume and rely upon the following facts: (i) that the terms and provisions of this Lease have not been changed except as otherwise represented by Landlord; (ii) that this Lease has not been cancelled or terminated except as otherwise represented by Landlord; (iii) that not more than one month's Minimum Rent or other charges have been paid in advance; and (iv) that Landlord is not then in default under this Lease. In such event, Tenant shall be estopped from denying the truth of such facts. Tenant shall also, on ten (10) days written notice, provide an agreement in favor of and'in the form customarily used by such encumbrance holder, by the terms of which Tenant will agree to -give prompt written notice to any such encumbrance holder in the event of any casualty damage to the Demised Premises or in the event of any default on the part of Landlord under this Lease, and will agree to allow such encumbrance holder a reasonable length of time after notice to cure or cause the curing of such default before exercising Tenant's right of self-help under this Lease, if any, or terminating or declaring a default under this Lease. 8.4 ATTORNMENT: At the option of the holder of any mortgage affecting the Demised Premises, Tenant agrees that no foreclosure of a mortgage affecting the Demised Premises, nor the institution of any suit, action, summary or other proceeding against the -20- w Landlord herein, or any successor Landlord, or any foreclosure proceeding brought by the holder of any such mortgage to recover possession of such property, shall by operation of law or otherwise result in cancellation or termination of this Lease or the obligations of the Tenant hereunder, and upon the request of the holder of any such mortgage, Tenant covenants and agrees to execute a n instrument in writing satisfactory to such party or parties or to the Tenant attornsetoosu hesuc successor mortgaged inpremises interestn.foreclosure whereby 8.5 AM.AKMZNT of "I=: With reference to any assi the Landlord of the Landlord's interest in this Lease, or theerents payable hereunder, conditional in nature or otherwise, which assignment is made to the holder of any mortgage on the Demised Premises, the Tenant agrees: (A) that the execution thereof by the Landlord, and the acceptance thereof by such holder, shall never be deemed an assumption by such holder of any of the obligations of the Landlord hereunder, unless such holder shall, by written notice sent to the Tenant, specifically other- wise elect; and (B) that, except as aforesaid, such holder shall be treated as having assumed the Landlord's obligations hereunder only upon foreclosure of such holder's mortgage and the taking of possession of. the Demised Premises by such holder. ARTICLE IS: A88I NT AND BUBLETTING 9.1 CCN1MM RpnnTaMD: Tenant shall not voluntarily or involun- tarily assign this Lease in whole or part, nor sublet (which term, without limitation, shall include the granting of concessions, licenses, and the like) all or any part of the Demised Premises without following the procedures detailed herein and obtaining the prior express consent of Landlord in each instance, which consent may be granted or withheld in Landlord's sole discretion. Notwithstanding anything contained in this Article IX, Tenant shall have the right to assign lease to Paoli Bike and Sports, Inc. subjec to a erns an cond ions o Exhibit V. n event the Tenant seeks the Landlord's consent pursuant to this section 9.1, the Tenant shall furnish the Landlord with a Confes-sion of Jud similar to those c nt ined in section i14.2 hereof,?executed by athe proposed assignee or sublessee, as the case may be, as well as such. information regarding the prospective assignee or sublessee as the Landlord may require, including without limitation information regarding financial ability and business experience relating to the uses permitted hereunder. The consent by Landlord to any assign- ment or subletting shall not constitute a waiver of the necessity for such consent in any subsequent assignment or subletting. The -21- (] .. n foregoing shall be construed to include a prohibition against any voluntary or involuntary assignment or subletting arising by operation of law. For the purposes of this Lease, the entering into of any management agreement or any agreement in the nature thereof transferring control of any substantial-percentage of the profits and losses from the business operations of the Tenant in the Demised Premises to a person or entity other than the Tenant, or otherwise having substantially the same effect, shall be treated for all purposes as an assignment of this Lease and shall be governed by the provisions of this section 9.1. In the event that Tenant receives a bona fide written offer from a third party for the sublease or assignment of the Demised Premises, Tenant shall forthwith notify Landlord in writing, attaching a copy of said offer, of Tenant's desire to sublet or assign this Lease upon terms of said offer, whereupon Landlord shall have thirty (30) days to accept or reject said assignment or sublease, or at Landlord's sole option, cancel and terminate this Lease, in which case Landlord may elect to enter into a direct lease with the proposed assignee or subtenant. The failure of Landlord to either accept or reject said assignment or sublease within the said thirty (30) days period shall be deemed a rejection of said assignment or sublease. If Tenant shall purport to assign this Lease, or sublet all or any portion of the Demised Premises, or permit any-person or persons other than Tenant to occupy the Demised Premises, Mandlord may collect rent from the person or persons then or thereafter occupying the Demised Premises and apply the net amount collected to the rent reserved herein, but no such collection shall be deemed a waiver of this Article IX, or the acceptance as tenant of any such purported assignee, subtenant or occupant, or a release of Tenant from the further performance by.Tenant of covenants on the part of Tenant herein contained. Notwithstanding any assignment or sublease, Tenant shall remain fully liable for the obligations of the Tenant hereunder, including, without limitation, the obligation to pay the rents and other amounts provided for under this Lease, and shall not be released from performing any of the terms, covenants or conditions hereof. If Tenant is a corporation or partnership, any sale,. transfer, pledge, leveraged buy out or other disposition of twenty-five percent (25%) or more of the corporate stock or the stock of any corporate guarantor of the Tenant specified in Section 1.1 (N) hereof, or the stock of the parent corporation of the Tenant, or twenty-five percent (25%) or more of partnership ownership (or any general partner interest in the case of a limited partnership) (whether such sales, transfer or other dispositions occur at one time or at intervals so that in the aggregate, over the term of this Lease, such transfers of stock or partnership interests shall have occurred), or any reorganization or -22- Landlord shall be entitled to, and Tenant shall remit to Landlord, any profit or consideration which may inure to Tenant as a result of any assignment or subletting to anyone other than Paoli Bike and Sports, Inc. If Tenant assigns or -sublets the'Demised Premises, the Minimum Rent shall thereafter be adjusted for the balance of the term of this Lease such that the Minimum Rent payable hereunder shall thereafter be equal to the sum of (i) the greater of (a) the annual Minimum Rent specified in Section 1.1 (G) or 1.1 (J) (whichever is applicable) of this Lease or (b) the annual Minimum Rent payable pursuant to such assignment or sublease, plus (ii) the highest of the amounts of the annual Percentage Rent payable hereunder for and with respect to any of the then last three (3) full lease .years. preceding the assignment or subletting. At Landlord's request, Tenant shall assign to Landlord the right to collect rent (including any Additional Rent) from any subtenant of Tenant and to apply such proceeds to Tenant's obligations under this Lease. Landlord shall have the right to sell, convey, transfer or assign all or part of its interest in the real property and the buildings of which the Demised Premises are a part or its interest in this Lease. All covenants and obligations of Landlord under this Lease shall cease upon the execution of such conveyance, transfer or assignment, but such covenants and obligations shall run with the land and shall be binding upon the subsequent owner or owners thereof or of this Lease. ARTICLE Z: 10.1 WASTE OR iaANMR: Tenant shall not commit or suffer to be committed any waste upon the Demised Premises or any nuisance, offensive odor or loud noise (including but without limitation, the use of loudspeakers) or other act or thing which may disturb the quiet enjoyment of any other tenant in the building in which the Demised Premises may be located or in the Shopping Center, or which may disturb the quiet enjoyment of occupants of adjoining proper- ties. 10.2. INBIIRANCE REOIIIREMENTB: Tenant shall, at.its sole cost and expense, comply with all of the requirements of any insurance carrier for the Shopping center, now in force or which may hereafter become applicable. 10.3 ' EAZARD)US SUBSTANCES: Tenant covenants and warrants that Tenant, Tenant's Work, as set forth in Exhibit F attached hereto and made a part hereof, and any alterations thereto and Tenant's use of Demised Premises and performance of its obligations hereunder will at all times comply with and conform to all present and future laws, statutes, ordinances, rules and regulations of any federal, state or local governmental, quasi-governmental .or -23 regulatory authorities (the "Laws"), including, but not limited to, environmental laws, rules and regulations which relate to the transportation, storage, placement, handling, treatment, discharge, generation, production or disposal (collectively "Treatment") of any liquid, solid or gaseous waste, petroleum product, waste hazardous m radioacti terialsv ofaste, poly-chlorinated biphenyls, asbestos, becomes regulated b y kind, and any substance which is or regulation y any Law, statute, ordinance, rule or collecti Tenant furt warrants that it wills not e"Waste ngage in or permit an her covenants and to engage in any Treatment of any Waste on or which aff ctstthe Demised Premises. Immediately upon receipt of any Notice (as hereinafter defined) from any person or entity, Tenant shall deliver to Landlord a true, correct and complete copy of any written Notice. "Notice" shall mean any note, notice, or report of any suit, proceeding, investigation, order, consent order, injunction, writ, award, or action related to or affecting or indicating the Treatment of any Waste in or affecting the Demised Premises. Tenant hereby agrees, in addition to and not in lieu of any other indemnities contained in this Lease or otherwise provided by law, that it will indemnify, defend, save and hold harmless the Landlord and Landlord's officers, directors, shareholders,. emploandyassigns (agents, collectively partners", and their Indemnified Parties" and heirs, to reimburse the Indemnified Parties with respect p successors o--d from, all damages, claims, judgments, penalties, fines, liabilities, loss, costs' and expense (including, without limitation, all attorney's fees and expenses, court costs, administrative costs, costs of appeals, consultant's and expert's fees and expenses, damages arising from any adverse impact on marketing of space or diminution in value of the Demised Premises or the Shopping Center and damages for the loss or restriction of use of rentable or usable S Parties hopping pCent r?,oincurred amenit asserted against Demised the Indemnified representati o nor or undertaking arising Tenant under ) thithe breach of s Section 10.3aor (b) arising out of the Treatment of any Waste by Tenant or any licensee, concessionaire, manager or other party occupying or u Premises. sing the Demised Premises, or in or affecting the Demised includes, butTissnotnlimited to, costs incurreddinbconneTenant also ction with any investigation by Landlord of site conditions from time to time or of any cleanup, remedial, removal, or restoration work required by any federal, state or local government agency or political subdivision because of any release of Waste or breach of this Section 10.3. Landlord is given the right, but not the obligation, to inspect and monitor the Demised Premises and Tenant's use of the Demised Premises in order to confirm Tenant's compliance with the -24- terms and the representations set forth in this section 10.3. Landlord may require that Tenant deliver to Landlord concurrent with Tenant's vacating the Demised Premises at Tenant's expense a certified statement by licensed engineers, in form and substa , nce satisfactory to Landlord, stating that Tenant, Tenant's Work and any alterations thereto and Tenant's use of the Demised Premises complied and conformed to all Laws which relate to the. Treatment of any Waste in or affecting the Demised Premises. The Tenant agrees to deliver upon request from Landlord estoppel certificates to Landlord expressly stipulating whether Tenant is engaged in or has engaged in the Treatment of any Waste in or affecting the Demised Premises, and whether the Tenant has caused any spill, contamination, discharge, leakage, release or escape of any Waste in or affecting the Demised Premises, whether sudden or gradual, accidental or anticipated, or of any other nature, at or affecting the Demised Premises and whether, to the best of Tenant's knowledge, such an occurrence has otherwise occurred at or affected the Demised Premises. 30.4 GOVE MRMO PERMITS: Tenant shall, in performing its ob- ligations hereunder and at its own expense, comply with all ap- plicable present and future laws, ordinances, rules, and regul- ations of all federal, state and local authorities from time to time applicable to the Demised Premises and the business conducted therein by Tenant, including, without limitation, obtaining and maintaining any and all permits, licenses, certificates or other authorizations now or hereafter necessary, lawful and proper in order to permit Tenant to use the Demised Premises for the purposes set forth in Section 1.1 (M) copies of all such permits, licenses, certificates and authorizations shall be delivered to Landlord on a timely basis. 10.5 SoR: All of the terms, covenants, warranties and in- demnifications contained in this Section shall survive the term- ination of this Lease. ARTICLE XI: AD_vERTISING A*7D PROMOTIONAL PROG 11-1 ADVERT rwrvn »... .. establish an Advertisinvmvandry Promotional The Lannddlord may 'Pro referred to as the °Program") to furnish and maintain ad(hereafter vertising and sales promotions which will benefit the Shopping Center. The promotions director staff and any consultants hired by Landlord to direct and perform the activities of the Program shall be under the direction and supervision of Landlord. A representative of each business occupying the Shopping Center will review the advertising and other promotional activities provided by the Program. All monies received under this Section shall -be used solely for advertising, public relations, promotional services and administ- rative expenses relating to the promotion of the Shopping Center. During each lease year, Tenant shall pay to Landlord in monthly -25- C installments in advance, its share of the cost of the Program, an amount herein called the "Promotional charge", based on total square footage of the Demised Premises. For any fraction of a month at the commencement or expiration of the term, the monthly payment of the Tenant's Promotional Charge shall be prorated. T suitable advertising he Tenant agrees, upon request from the Landlord, to furnish An advertisements, circulars material for or promsuch otionsurneed not make specific reference to any one or more occupants of the Shopping Center, but may advertise the Shopping Center generally or specific portions therein or occupants of such portions. It is understood and agreed that if the Landlord shall elect, the Landlord may replace the Program with an association (the "Association") in order to carry out the activities formerly carried out by the Program. Upon the creation of such Association, the Tenant shall immediately join such Association and maintain membership therein. In addition thereto, the Tenant shall pay to the Association a sum equal to that which the Tenant would have paid to the Landlord for the Tenant's Promotional Charge if the Program had remained in existence. If the Landlord shall create asuch i depndent on entity, it replace ish understood or if the and agreed that, shall the Tenant shall fail to pay the dues and assessments to the Association or if the Tenant shall fail to pay the Promotional Charge to such an independent Program, as above provided, the Landlord shall have the same rights granted to the Landlord under this Lease for the non-payment of rent or other though such dues or assessments may be ?r tion or the Tenant's Promotional Chare may abee pato such yable to oanother entity. Although neither a Program nor an Association is currently planned, Landlord, at a future date reserves the right, but undertakes no obligation, to establish such a Program or Association should Tenant's sales or Shopping center business require such a promotional fund. ARTICLE ZII; DESTRUCTION 12.1 TOTAL OR Panmrar DESTRIICTiOM: be If the Demised Premises shall partially or totally destroyed by fire or other casualty insurable under full standard fire and extended risk insurance, as to become partially or totally untenantable, the same (unlessso Landlord shall elect not to rebuild as hereinafter provided) shall be repaired and restored by and at the cost of Landlord, to the extent originally constructed by Landlord (consistent, however, with zoning laws and building codes then in existence), and to substantially the condition in which such portion of the Demised Premises was in at the time of such damage. -26- If (i) more than one-third (1/3) of the building in which the Demised Premises are located shall be substantially destroyed or damaged (as that term is hereinafter defined) by fire or other casualty (whether or not the Demised Premises are damaged or destroyed), or (ii) any lender of Landlord does not permit use of insurance proceeds to repair and restore the building, or (iii) the unexpired portion of the term of this Lease shall be two (2) years or less at the date of the damage, then Landlord may elect not to repair or rebuild the Demised Premises, or so much thereof as was originally constructed by Landlord, by giving written notice within . sixty (60) days after such occurrence of its election to terminate this Lease; otherwise, Landlord shall proceed with such recon- struction with reasonable speed after such occurrence (but the Landlord shall not be responsible for any delay which may result from any cause beyond the Landlord's reasonable control), and this j Lease shall remain in full force and effect. Notwithstanding anything to the contrary contained herein, Landlord shall not be obligated to commence reconstruction or repairs until Landlord has received the proceeds of any applicable insurance claim and Landlord's obligation to restore and repair is limited to the proceeds of such insurance. In the event that Landlord shall exercise the right given heretofore to terminate, then this Lease and the terms hereof shall cease as of the date of such damage or destruction, and all rent or other charges payable by Tenant shall be prorated to the date of such damage or destruction. In the event that this -ease-is not canceled, then Minimum Rent only shall be abated or reduced proportionately during the period in which the Demised Premises are rendered wholly or partially untenantable to the extent such damage or destruction shall interfere with the operation of Tenant's business in the Demised Premises and to the extent that Landlord is paid the equivalent of such Minimum Rent by rent loss insurance proceeds. Such abatement or reduction shall continue for the period commencing with such destruction or damage and ending with Landlord's substantial completion of such work or repair or restoration as Landlord is obligated or elects to do, as the case may be, and as provided in this Article XII. Nothing in this Section shall be construed to abate or reduce Additional Rent. 12:2 PARTIAL DESTRUCTION OF SHOPPING CENTER: In the event that 50% or more of the Shopping Center shall be substantially damaged or destroyed by fire or other cause, notwithstanding that the Demised Premises may be unaffected by such fire or other cause, Landlord shall have the right, to be exercised by notice in writing delivered to Tenant within sixty (60) days after said occurrence, to cancel and terminate this Lease. Upon the giving of such notice to Tenant, the term of this Lease shall expire by lapse of time 30 days -after such notice is given, and Tenant shall vacate the Demised Premises and surrender the same to Landlord pursuant to the terms of this Lease. 12.3 TENANT'S RESTORATION: Unless this Lease is terminated as provided in Section 12.1 or Section 12.2 of this ARTICLE XII, if the Demised Premises shall be damaged or destroyed by fire or other -27- 01 casualty, then the Tenant shall: (i) repair and restore all portions of the Demised Premises not required to be restored by the Landlord pursuant to this ARTICLE XII to substantially the condition which such portions of the Demised Premises were in at the time of such casualty; (ii) equip the Demised Premises with trade fixtures and all personal property necessary or proper for the operation of the Tenant's business; and (iii) open for business in the Demised Premises as soon thereafter as possible. 12.4 SUBSTANTIAL DAMAGE: The term "substantially damaged or destroyed", as used in this ARTICLE XII, shall have reference to damage of such a character as cannot reasonably be expected to be repaired, or the premises restored, within sixty (60) days from the time that such repair or restoration work would be commenced. ARTICLE XIII: EMINENT DOMAIN 13.1 CONDEMNATION: In the event of any condemnation or conveyance in lieu thereof of the Demised Premises or the Shopping Center, or both, whether whole or partial, Landlord may terminate this Lease, and in any event, Tenant shall have no claim against landlord or the condemning authority for the value of the unexpired term, and Tenant shall not be entitled to any part of the compensation or*award, whether paid as compensation for diminution in value to the leasehold or to the fee of the Demised Premises, and Landlord shall receive the full amount thereof, Tenant hereby waiving any right to any part thereof and assigning to Landlord its interest therein; provided, however, to the extent the amount recoverable by Landlord, as hereinabove set forth, is not diminished thereby, Tenant shall have the right to claim and recover from the condemning authority (but not from Landlord) such compensation as may be separately awarded to Tenant in Tenant's own name and right on account of all damage to Tenant's business by reason of the condemnation, any cost which Tenant may incur in removing Tenant's property from the Demised Premises and any costs of relocating Tenant's business. Further, Tenant's rights to recover under this paragraph shall be subordinate to the rights of Landlord's first mortgagee. 13.2 RESTORATION OF DEMISED PREMISES: In the event that any part of•the Demised Premises shall be taken or condemned, and should this Lease not be terminated in accordance with the foregoing provision, the Landlord will, within a reasonable time after such taking or condemnation, restore the Demised Premises to an architectural unit as nearly like its condition prior to such taking as shall be practicable. The Minimum Rent or a fair and just proportion thereof, according to the nature and extent of the damage sustained, shall be suspended or abated until such restoration is substantially complete. -28- (A) failure of Tenant to make, within ten (10) days after the date when due, any payment of minimum Rent, Additional Rent or other monetary amount payable by Tenant hereunder or to timely discharge any other monetary obligation (it being understood that Tenant's obligation to pay any rental herein is an independent covenant and that Tenant will pay such rental without offset or deduction); (B) Tenant's failure to perform any other of the terms, conditions or covenants of this Lease to be observed or performed by Tenant, which failure continues for ten (10) business days after written notice thereof, provided, however that such right to written notice shall be limited to one (1) time during each calendar year of the term of this .Lease; (C) if Tenant shall become bankrupt or insolvent, or file or have filed against it any bankruptcy proceedings, or take or have taken against it in any court pursuant to any statute, either of the United States or of any state, a petition of bankruptcy or insolvency, or for reorganization or for the appointment of a receiver or trustee of all or a portion of Tenant's property, or if Tenant makes an assignment for the benefit of creditors, or petitions for or enters into such an arrangement; (D) if Tenant fails, after the term of this Lease commences, to be open for business to the public for more than one day when required by this Lease to be so open in any one lease year, or for more than an aggregate of any three (3) such days during the term hereof, or if the Tenant shall otherwise abandon or vacate the Demised Premises, or suffer this Lease to be taken under any writ of execution; (E) if Tenant shall default in the timely payment of Minimum Rent, Additional Rent, or other charge payable by Tenant hereunder or to timely discharge any other monetary obligation three times in any twelve month period, notwithstanding the fact that any such default shall have been cured; (F) the falsification by Tenant or any agent of Tenant of any report or statement required to be furnished to Landlord pursuant to the terms of this Lease; the falsification of any such document shall be deemed an incurable, material breach of this Lease and, at Landlord's option, constitute an immediate termination of Tenant's right to possession of the Demised Premises;. or -29- (G) at the option of Landlord, if Tenant or any affiliate of Tenant shall default with respect to any other lease or agreement between it and Landlord or any affiliate of Landlord. The notice and grace period provisions in subparagraphs (A) and (B) above shall have no application to the defaults referred to in subparagraphs (C), (D), (E), (F) and (G) above. If any Event of Default occurs, the Landlord, besides all- such other rights or remedies it may have under this Lease or in law or in equity, shall have the right, without demand or notice (and Tenant hereby expressly waives any notice to quit possession of the Demised Premises) to enter the Demised Premises and take possession thereof and of all permanent improvements thereon and may remove all persons and property, from the Demised Premises by force, summary action, or otherwise, and such property, may be removed and stored in a public warehouse or elsewhere at the cost of and for the account of Tenant, all without service of notice or resort to legal process, and without being deemed guilty of trespass or becoming liable for any loss or damage which may be occasioned thereby and without prejudice to any remedies which might otherwise be used for arrears of rent or preceding breach of covenant. Notwithstanding the above, Tenant shall at all times be entitled to remove its business records from the Demised Premises. Tenant agrees that Tenant shall have no further claim under this Lease and shall quit and deliver up the possession of the Demised Premises, including permanent improvements to the Demised-Premises; when this Lease terminates by limitation or in any other manner provided for herein. 14.2 REMEDIES: If an Event of Default occurs, the Landlord may elect-to re-enter or take possession as provided for herein, and it may either terminate this Lease, or it may from time to time without terminating this Lease make such alterations and repairs as may be necessary in order to relet the Demised Premises or any part thereof for such term or terms (which may be for a term extending beyond the term of this Lease) and at such rental or rentals and upon such other terms and conditions as Landlord in its sole discretion may deem advisable. Any reletting shall be done in such a manner as Landlord may deem proper. It is specifically understood and agreed that the Landlord shall *be entitled to take into account in connection with any reletting of the Demised Premises all relevant factors which would be taken into account by a sophisticated developer in securing a replacement tenant for the Demised Premises, such as, but not limited to, the type of shopping center then being operated on the Shopping center, matters of tenant mix, the type of operation proposed to be conducted by any such replacement tenant, and the financial responsibility of any such -replacement tenant; and the Tenant hereby waives, to the extent permitted by applicable law, any obligation the Landlord may have to mitigate the Tenant's damages. Further, if no such waiver of any duty that may be imposed upon Landlord to mitigate -30- ` Tenant's damages is effective, then at no time shall Landlord's decision to lease or let other available space in the Shopping Center be deemed to be a failure to mitigate said damages. Upon each such reletting all rentals received by Landlord shall be applied first to the payment of any indebtedness other than rent due hereunder from Tenant to Landlord; second to the payment of any costs and expenses of such reletting including brokerage fees and attorneys' fees, costs of collecting the rent in connection with such relet, and the costs of any necessary or desirable alterations and repairs; third to the payment of the most overdue rent owed at that time; and the residue, if any, shall be held by Landlord and applied in payment of future rent as the same may become due and payable hereunder from Tenant. If such rentals received from such reletting during any month be less than that to be paid during that month by Tenant hereunder, Tenant shall be liable for the payment of such deficiency to Landlord. Such deficiency shall be calculated and become payable monthly in the same manner as Minimum Rent, as specified in section 2.1 hereof. No such re-entry or the taking of possession of the Demised Premises by Landlord shall be construed as an election on its part to terminate this Lease or to accept a surrender thereof unless a written notice of such intention be given to Tenant. Notwithstanding any such reletting without termination, Landlord may at any time thereafter elect to terminate this Lease for such previous breach. Should Landlord at any time terminate this Lease for any Event of Default, in addition to any other remedies it may have, it may recover from Tenant all damages it may occur by reason of such breach, including the cost of recovering the Demised Premises, and the amount of rent and charges equivalent to rent reserved in this Lease for the remainder of the stated term, all of which amounts shall be immediately due and payable from Tenant to Landlord. In determining the rent which would be payable by Tenant hereunder subsequent to default, the annual rent for each year of the unexpired term shall be equal to the Minimum Rent set forth in Section 1.1G (or if default occurs during any option period hereto, as set forth in Section 1.1(J)), and the Additional and Percentage Rents specified in Section 14.3. To induce the Landlord to enter into this Lease, (i) the Tenant confirms and agrees that this transaction is a commercial and not a consumer transaction, (ii) the Tenant hereby waives, to the full extent permitted by law, any right to trial by jury in any action, proceeding or counterclaim brought by the Landlord against the Tenant on any matters whatsoever arising out of or in any way connected with this Lease, the relationship of the Landlord and the Tenant, the Tenant's use or occupancy of the Demised Premises, and/or any claim of injury or damage, and (iii) the Tenant agrees not to interpose, to the full extent permitted by law, unless Tenant would lose its cause of action by not doing so, any counterclaim of whatever nature or description in any proceeding commenced by the Landlord for nonpayment of Minimum Rent, Additional Rent or any other amount due hereunder, provided the foregoing shall not be construed as a waiver of the right of the Tenant to assert such claims in any separate action brought by the Tenant. 4 -31- C' THE FOLLOWING THREE PARAGRAPHS SET FORTH WARRANTS OF AUTH- ORITY FOR AN ATTORNEY TO CONFESS JUDGMENT AGAINST TENANT. IN GRANTING THESE WARRANTS OF ATTORNEY TO CONFESS JUDGMENTS AGAINST TENANT, TENANT HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, AND, ON THE ADVICE OF THE SEPARATE COUNSEL OF TENANT, UNCONDITION- ALLY WAIVES ANY AND ALL RIGHTS TENANT HAS OR MAY HAVE TO PRIOR NOTICE AND AN OPPORTUNITY FOR HEARING UNDER THE RESPECTIVE CON- STITUTIONS AND LAWS OF THE UNITED STATES AND.THE COMMONWEALTH OF PENNSYLVANIA. (A) Tenant hereby empowers any prothonotary or attorney of any Court of Record to appear for Tenant in any and all actions which may be brought for Minimum Rent, Percentage Rent, Additional Rent and/or any other charges, payments, costs and expenses herein reserved as rent, or herein agreed to be paid by Tenant and/or to sign for Tenant an agreement for entering in any competent Court an amicable action or actions for the recovery of such rent or other charges or expenses, and in said suits or in said amicable action or actions to confess judgment against Tenant for all or any part of the Minimum Rent, Percentage Rent, Additional Rent and other charges specified in this Lease and then due and unpaid, and for interest and costs together with reasonable attorney's fees. Such authority shall not be exhausted by one exercise thereof but judgment may be confessed as aforesaid from time to time as often as any of said rent and/or other charges shall fall due or be in arrears. (B) Upon the expiration of the then current term of this Lease or the earlier termination or surrender hereof as provided in this Lease, it shall be lawful for any attorney for Tenant, as well as for all persons claiming by, through or under Tenant, to sign an agreement for entering in any competent Court an amicable action in ejectment against Tenant and all persons claiming by, through or under Tenant and therein confess judgment of the recovery by Land- lord of possession of the Demised Premises, for which this Lease shall be its sufficient warrant, whereupon, if Landlord so desires, a writ of possession or other appropriate writ under the Rules of Civil Procedure then in effect may issue forthwith, without any prior writ or proceedings, provided, however, if this Lease is terminated and the possession of the Demised Premises remain in or be*restored to Tenant, Landlord shall have the right for the same default and upon any subsequent default or,defaults, or upon the termination of this Lease Lnder any of the terms of this Lease to bring one or more further amicable actions as hereinbefore set forth to recover possession of the Demised Premises and confess judgment for the recovery of possession of the Demised Premises as hereinabove provided. (C) In any amicable action of ejectment and/or rent, Landlord shall first cause to be filed in such action an affidavit made by him or someone acting for him, setting forth the facts -32- 6 • t.1 ? necessary to authorize the entry of judgment, and, if a true copy of this Lease (and of the truth of the copy such affidavit shall be sufficient evidence) be filed in such action, it shall not be necessary to file the original as a warrant of attorney, and Tenant hereby releases to Landlord and to any and all.attorneys who may appear for Tenant all errors in said proceedings and all liability thereof. If proceedings shall be commenced by Landlord to-recover possession under the Acts of Assembly and Rules of Civil Procedure, either at the end of the term or upon the earlier termination of this Lease, or for non-payment of rent or any other reason, Tenant specifically waives the right to any notice to quit which may be required by the Landlord and Tenant Act of 1951 or any other statute or law. 14.3 1ZDDITIONAL RENT: For the purposes of this ARTICLE XIV, it shall be deemed that Additional Rent, for any period after any default and entry by the Landlord would have been at a monthly rate thereafter equal to the average monthly Additional Rent which the Tenant was obligated to pay to the Landlord under this Lease either: (i) from the Commencement Date hereof to the to the date default; or (ii) during the last three (3) years prior of such default - whichever is greater. 14.4 guARA2i1'ORB: Intentionally omitted. 14.5 SANRRUPTgR OR OTHER DEFAULT: Tenant agrees that this Lease is a lease of "real property in a shopping center" and that a debtor in possession and/or trustee in bankruptcy acting pursuant to the provisions of the revised bankruptcy code, may assume this Lease only if, in addition to such other conditions of this Lease and of applicable law, said debtor in possession/trustee shall provide Landlord with such written assurances of future performance as are acceptable to Landlord. Any closing of Tenant's business, change in product or service mix, alteration in the size of the Demised Premises, change in advertising program, change in method of operation or change of Tenant's trade name by said debtor in possession/trustee shall be deemed to be a material disruption in the tenant mix and balance of the Shopping Center. Landlord shall have at all times a valid lien from all rentals and other sums of money becoming due hereunder from Tenant, upon all goods, waresof equipment, fixtures, furniture and other personal prop shall Tenant situated- on the Demised Premises, and such property not be removed therefrom without the consent of Landlord until all arrearages in rent as well as any and all other sums of money then due "to Landlord shall first have been discharged.Upon the occurrence ofany Ev nt of Default bya Tenant, n or Landlord may, in addition upany on they remedies Premises and stake enter to by law or equity, P possession of any and all goods, wares, equipment, fixtures, furniture and other personal property of Tenant situated on the Demised Premises without liability for trespass or con ersio ,soled sell the same with or without notice at public or private -33- ......... with or without having such property at the sale, at which Landlord or its assigns may purchase, and apply the proceeds thereof less any and all expenses connected with the taking of possession and sale of the property, as a credit against any sums due by Tenant to. Landlord. Any surplus shall be paid to Tenant, and Tenant agrees to pay any deficiency forthwith. Alternatively, the lien hereby granted may be foreclosed in the manner and form provided by law for foreclosure of security interest or in any. other form provided by law. Any statutory lien for rent is not hereby waived, the express contractual lien herein granted being in addition and supplementary thereto. Tenant will execute upon Landlord's request a financing statement and security agreement evidencing Landlord's security interest in Tenant's personal property and warrants to Landlord that there are no prior liens or security interests on said personal properties. In addition to other remedies available under this Lease, in the event of an occurrence of an Event of Default or, in the event of a threatened breach by Tenant of any of the covenants or provisions hereof, Landlord shall have the right of injunction and the right to invoke any remedy allowed by law or in equity as if re-entry, summary proceedings and other remedies were not herein provided for. Mention in this Lease of any particular remedy shall not preclude Landlord from any other remedy, at law or in equity. Tenant hereby expressly waives any and all rights of redemption granted by or under any present or future laws, including possession pursuant to §504 of the Landlord and Tenant Act of 1951, in the event Tenant is evicted or dispossessed for any cause, or in the event Landlord obtains possession of the Demised Premises. No receipt of monies by Landlord from or for the account of Tenant, or from anyone in possession or occupancy of the Demised Premises, after the termination of this Lease shall affect any notice given Tenant prior to the receipt of such money, it being agreed that after (i) Landlord has repossessed the Demised Premises, (ii) the service of notice of termination, (iii) the commencement of a suit, or (iv) final judgement for possession of the Demised Premises,. Landlord may receive and collect any rent or other amounts due Landlord and such payment shall not in any respect reinstate this Lease and shall not waive, affect or impair said possession, notice, suit or judgement without the express written consent of Landlord.' No delay or omission of Landlord to exercise any right or remedy under this Lease, or at law or in equity shall be construed as a waiver of any Event of Default. When, pursuant to the Bankruptcy code, the Trustee or Tenant and Debtor-In-Possession shall be obligated to pay reasonable use and occupancy charges for the use of the Demised Premises or any portion thereof, such charges shall not be less than the Minimum Rent, Percentage Rent, Additional Rent and all other charges accruing hereunder. 14.6 FAILURE TO PAY, INTEREST: If at any time Tenant shall fail to pay any taxes, assessments, or liens, provide insurance or perform any act required by this Lease to be made or performed by it, or fail to pay any charge payable by Tenant or to timely discharge any other monetary obligation of Tenant required by this -34- Lease, Landlord, without waiving or releasing Tenant from any obligation or default under this Lease, may (but shall be under no obligation to) at any time thereafter make such payment or perform such act for the account and at the expense of Tenant. Tenant shall pay to Landlord a "late charge" of five cents ($.05) for each dollar paid or each dollar of expense so incurred by Landlord and all sums payable by Tenant to Landlord under this Lease. All sums so -paid by Landlord, all costs and expenses so incurred and all sums payable by Tenant to Landlord under this Lease shall accrue interest at a rate equal to the lesser of one and one-half (1.5k) per month or the maximum rate permitted by law, from the date of payment or incurring thereof by Landlord and shall constitute Additional Rent payable by Te:iant under this Lease and shall be paid by Tenant to Landlord upon demand. ARTICLE XV: ACCESS BY LANDLORD 15.1 RIGHT OF ENTRY: Landlord or Landlord's agents shall have the right to enter the Demised Premises at all times as may be required by an emergency situation; and at all reasonable times after reasonable notice to Tenant to examine the same and to show it to prospective purchasers or lenders and to make such inspections, repairs, alterations, improvements or additions as Landlord may deem necessary or desirable, and Landlord shall be allowed to take all material into and upon said Demised Premises that may be required therefor without the same constituting an eviction of Tenant in whole or part. If repairs are required to be made by the Tenant pursuant to the terms hereof or if the Tenant is required to perform any other obligation under this Lease, the Landlord may demand that the Tenant make such repairs or perform such obligation forthwith, and if the Tenant refuses or neglects to commence such repairs or performance and complete the same with reasonable dispatch, after such demand, the Landlord may (but shall not be required so to) make or cause such repairs or performance to be done and shall not be responsible to the Tenant for any loss or damage that may accrue to its stock or business by reason thereof. If the Landlord makes or causes such repairs or performance to be-done, or endeavors so to do, the Tenant agrees that it will gorthwith, on demand, pay to the Landlord the cost thus incurred as Additional Rent, and if it shall default in such payment, the Landlord shall have the remedies provided in ARTICLE XIV hereof. During the six (6) months prior to the expiration of the term of this Lease or any renewal term, Landlord may exhibit the Demised Premises to prospective tenants or purchasers. Nothing herein contained, however, shall be deemed or con- strued to impose upon Landlord any obligation, responsibility or liability whatsoever for the care, maintenance or repair of the building or any part thereof, except as otherwise herein specifically provided. r -35-, Y' ARTICLE ZVI: TENANT'S PROPERTY 16.1 TAXES ON LEASEHOLD: Tenant shall be responsible for, and shall pay before delinquency, all municipal, county, or state taxes assessed during the term of this Lease against any leasehold in- terest or personal property of any kind owned by or placed in, upon, or about the Demised Premises by Tenant, and the Tenant shall pay all license fees and other charges which may lawfully be imposed upon the business of the Tenant. 16.2 LOBS AND DAMAGE: The Tenant agrees to use and occupy the Demised Premises and to use such other portions of,the Shopping center as it is herein given the right to use at its own risk; 'and that the Landlord shall have no responsibility or liability for any loss of or damage to the Tenant's leasehold improvements or to fixtures or other personal property of the Tenant or those claiming by, through or under the Tenant. The provisions of this Section shall apply during the whole of the term hereof, and any earlier period that Tenant may enter the Demised Premises after receiving written permission therefor from Landlord. The Tenant agrees that the Landlord shall not be responsible or liable to the Tenant, or to those claiming by, through or under the Tenant, for any loss or damage that may be occasioned by or through the acts or omissions of persons occupying adjoining premises or any part of the premises adjacent to or connecting with the Demised Premises or any of the buildings on the Shopping Center, or otherwise, or for any loss or damage resulting to the Tenant to those claiming by, through or under the Tenant, or its or their property, from the bursting, stopping or leaking of water, gas, sprinkler, sewer or steam pipes. 16.3 NOTICE 8Y TENANT: Tenant shall give immediate notice to Landlord in case of fire or accidents, or damage to or of defects in the Demised Premises or in the building of which the Demised Premises are a part. ARTICLE EVII: NOLDING OVER. SUCCESSORS 17.1 HOLDING OVER: Any holding over by the Tenant after the expiration of the term of this Lease shall be treated as a tenancy at sufferance at two times the Minimum Rent payable immediately before said expiration of the Lease (and if varying rates are specified herein, at two times the highest such rate) Additional Rent and other charges specified herein, prorated on a daily basis, and shall otherwise be on the terms and conditions set forth•in this Lease, so far as applicable. 17.2 • . SUCCESSORS AND ASSIGNS: Except as otherwise herein expressly provided, this Lease and all the covenants, terms, provisions and conditions herein contained shall inure to the benefit of and be binding upon the heirs, representatives, -36- O-Z _......... .,...:_._ _....__ ;._..._ _....:..__...__:•.. _.._ ..:......._...._.:; successors and assigns of each party hereto, and all covenants herein contained shall run with the land and bind any and all successors in title to Landlord. The reference contained herein to successors and assigns of the Tenant is not intended to constitute a consent to assignment by the Tenant, but has reference only to those instances in which the Landlord may later give consent to a particular assignment as required by the provisions of ARTICLE IX hereof. ARTICLE XVIII: OUIET' ENJOYMENT 18.1 TOMLORDOs COVENANT: The Tenant, subject to the terms and provisions of this Lease, on payment of the rent and observing, keeping and performing all of the terms and provisions of this Lease on its part to be observed, kept and performed, shall lawfully, peaceably and quietly have, hold, occupy and enjoy the Demised Premises during the term hereof without hindrance or ejection by any persons lawfully claiming under the Landlord; but it is understood and agreed that this covenant and any and all other covenants of the Landlord contained in this Lease shall be binding upon the Landlord and the Landlord's successors only with respect to breaches occurring during the Landlord's and the Landlord's successors' respective ownership of the Landlord's interest hereunder. It is further understood and agreed that the Landlord shall in no event be liable for failure to perform any obligation under this Lease in the event the Landlord is prevented from so performing by strike, lockout, breakdown, accident, order or regulation of or by any governmental authority, or failure of supply, or..inability by the exercise of reasonable diligence to obtain supplies, parts, or employees necessary to furnish such services, or because of war or other emergency, or for any cause beyond the Landlord's reasonable control, or for any cause due to., any act or neglect of the Tenant or its servants, agents, employees, licensees, or any person claiming by, through or under the Tenant, or any termination for any reason of the Landlord's occupancy of the premises from which any service or work is being supplied by the Landlord, and in no event shall the Landlord ever be liable to the Tenant for any indirect or consequential damages. EIE: 19.1 WAIVER: The waiver by Landlord of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition herein contained. No covenant, term or condition of this Lease shall be deemed to have been waived by Landlord unless such waiver shall be. in writing: 19.2 • ACCORD AND SATISPACTION: No payment by Tenant or receipt by Landlord of a lesser amount than shall be due hereunder, shall be deemed to be other than a payment on account nor shall any endorse- ment or statement on any check or any letter accompanying any check -37- .J r. or payment as rent be given any effect or be deemed an accord and satisfaction, and Landlord may accept such checks without prejudice to any other rights or remedies which the Landlord may have. 19.3 No PARTNSRSHI,,P: Landlord does not, in any way or for any purpose, become a partner of Tenant in the conduct of its business or otherwise, or joint adventurer or a member of a joint enterprise with Tenant. 19.4 YORCE MAJEIIRE: In the event that either party hereto shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of strikes, lockouts, labor troubles, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots, insurrection, war, or other reason of a like nature not the fault of the party delayed in performing work or doing acts required under the terms of this'Lease, then the time allowed for performance of such act shall.be extended by a period equivalent to the period of such delay. The provisions of this Section 19.4 shall not operate to excuse Tenant from the prompt payment of Minimum Rent, Percentage Rent, Additional Rent, or any other payments required by the terms of this Lease. 19.3 LANOLORDIS LIABILITY: If Landlord shall fail to perform any covenant, term or condition of this Lease upon Landlordts part to be performed, Tenant may not terminate the Lease, and Tenantfs sole remedies shall be money damages (except as set forth in.Zection 19.16), and further, Tenant hereby waives any and all rights or claims to consequential or special damages. If Tenant shall recover a money judgement against Landlord, such judgement shall be satisfied only out of the proceeds of sale received upon execution of such judgement and levy thereon against the right, title and interest of Landlord in the Shopping Center as the same may then be encumbered and neither Landlord nor if Landlord be a partnership, any of the partners comprising such partnership shall be liable for any deficiency. Notwithstanding anything herein contained to the contrary, it is specifically understood and agreed that there shall be no personal liability for any deficiency or otherwise on the part of the Landlord, its agents, representatives, employees, or any of its constituent members, partners or shareholders, or their respective legal representatives, heirs, successors and assigns as the case may be, with respect to any of the terms, provisions, covenants and conditions of this Lease or otherwise, and that Tenant shall look solely to the estate, property and equity of Landlord (or such successor in interest) in the Shopping center and subject to the prior rights of any mortgagees for the satisfaction of each and ' every remedy of Tenant in the event of any breach of any of the terms, provisions, covenants and conditions of this Lease to be performed by Landlord, or in the event of any other claim which Tenant may allege against Landlord, its agents, representatives, -38- i employees, constituent respective ees c e t members, partners or shareholders, or their which - - gal representatives, heirs, successors and assigns, without exculpation tion. of personal liability shall be absolute and In the event of the sale or other f Landlord's right, title and interest in the Demised Pre is ssorrthe obligati nsnhereundgrlord shall be released from all liability and 19.6 NOTICES fm n - be served by cert if0 Any notice by Tenant to Landlord must at the place desi # Postage prepaid, addressed to Landlord yment Slater, Sandler & Shulman, P.C., One Hartford S nt, with °op.O. to: 231336, Hartford, CT, 06106, Attention: James Ham. Shulman squ Box or at such other address or addresses as Landlord ma ' Esquire, from time to time by written notice. Any notice b y designate may be given by Landlord or Landlord's attorney or lmanag ment La (which company) to Tenant must be served by certified mail, postage prepaid, addressed to Tenant at the Demised Premises, or at such other address or addresses as Tenant may designate from time to time by written notice to Landlord. All notices shall be effective upon delivery or attempted delivery in accordance with this Section 19.6. Until otherwise notified in writing, Tenant shall pay all rent reserved herein and all other sums required under this Lease by check payable to the order of Landlord, and shall forward the same to Landlord as herein provided. 19.7 FINANCIAL nT behalf of Tenant hereb .n. The persons signing this Lease on Landlord that the financial stersonall at ments delivered to nLandlord prior to the execution of this Lease properly reflect the true and cor- rect value of all the assets and liabilities of Tenant. Tenant acknowledges that in entering into this Lease, Landlord is relying upon such statements and Tenant shall supply Landlord updated financial statements of Tenant each lease year. 19.8 ggaRWITORg: Intentionally Omitted. 19.9 CAPTIONS AND ggnmTnN NUMBERS: numbers, article numbers, and headings appearing captions, section inserted only as a matter of convenience enand in in no i ay Leasfine are limit, construe, or describe the scope or intent of such sections or articles of this Lease. 19.10 DEBINTT ONS: The word "Tenant" Pe r son, shall mean each and every firm or corporation 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 any one thereof, and it shall have the same force and effect as if given by or to all thereof. If there shall be more than one Tenant, they shall all be bound jointly and severally. -39- 19.11 PARTiAi• *NPALiDiTY: If any term, covenant, or condition of this Lease or the application thereof to any person or circum- stance, shall to any extent be invalid or unenforceable, the remainder of this Lease or the application of such term, covenant, or condition of this Lease shall be valid and enforceable to the fullest extent permitted by law. 19.12 B$COR M: The Tenant agrees not to record the within Lease, but each party hereto agrees, on request of the other, to execute a Notice of Lease in recordable form, complying with applicable Commonwealth of Pennsylvania laws, and reasonably satisfactory to Landlords attorneys. In no event shall such document set forth the rental or other charges payable by the Tenant under this Lease; and any such document shall expressly state that it is executed pursuant to the provisions contained in this Lease, and is not intended to vary the terms and conditions of this Lease. 19.13 AZMEE AG &ZLMM: The Lease and the exhibits and riders, if any, set forth all the covenants, promises, agreements, conditions and understandings between Landlord and Tenant concerning the Demised Premises and there are no covenants, promises, agreements, conditions or understandings, either oral or written, between them other than as herein set forth. All prior communications, negotia- tions, whether oral representations, ents both, between the agreemand hereto, and their representatives, are merged herein and extinguished, this Lease superseding and cancelling 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 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; (c) before entering into this Lease the Tenant has made its own observations, studies, determinations and projections with respect to the Tenant's business in the Demised Premises and all other factors relevant to the Tenant's decision to enter into this Lease, including, without limitation, competition, market size,-- -sales volume, profitability and general, so-called "demographics" -- both present and prospective; and (d) neither the Tenant nor any representative of the Tenant has relied upon any representation by (or any "conversation" with) the Landlord or any -40- 4 r;;; representative of the Landlord with respect to any of said factors, and Tenant hereby expressly waives all claims 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. 19.14 _VRVIVA?: Notwithstanding anythin in.this Lease to contrary, the representations and undertakings of Tenant under this Lease shall survive the expiration or termination of this Lease regardless of the means of such expiration or termination. 19.15 APPLICABLE LAW: This Lease and the rights and obligations of the parties arising hereunder shall be construed exclusively by the provisions hereof and in accordance with the laws of the Commonwealth of Pennsylvania. 19.16 CONSENTep „n APPnevnrv; Whenever Landlord's consent or approval is required herein, such consent or approval shall not be deewritmed until Landlord has provided such consent or approval Where the consent or approval of Landlord shall be required, such consent or approval shall be granted in Landlord's sole discretion, unless otherwise expressly provided. With respect to any provision of this Lease which either expressly provides or is held to provide that Landlord shall not unreasonably-withhold or unreasonably delay any consent or approval, Tenant shall not be damagesdinto make claim curred by Tenant by and Tenant reason of Landlord's waives failure itofor, comply, it being understood and agreed that Tenant's sole remedy shall be an action for specific performance. :.9.17 ARZKU TY: In the event Tenant hereunder shall be a corporation, the persons executing this Lease on behalf of Tenant hereby individually covenant and warrant that: Tenant is a duly qualified corporation; all steps have been taken prior to the date hereof to qualify Tenant to do business in the commonwealth of Pennsylvania; all franchise and corporate taxes have been paid to date; all future forms, reports, fees and other documents necessary to *comply with applicable laws will be filed when due; and those persons executing this Lease on behalf of Tenant are duly qualified and authorized to bind, and in fact do bind, the corporation. The Tenant and/or the Guarantor shall deliver to the Landlord, upon the execution of this Lease, a Clerk's Certificate or Secretary's Certificate in form reasonably satisfactory to the Landlord, confirming that the execution of this Lease has been duly authorized. In the event Tenant hereunder shall be a partnership, either general or limited, the persons or entities executing this Lease on behalf of Tenant hereby individually covenant and warrant that: -41- Tenant is a duly qualified partnership; all steps have been taken prior to the date hereof to qualify Tenant to do business in the Commonwealth of Pennsylvania, if required by law; all franchise and partnership taxes have been paid to date; all future forms# reports, fees and other documents necessary to comply with applicable law will be filed when due; and those entities executing this Lease on behalf of the partnership are duly qualified to bind, and in fact do bind, the partnership. 19.18 1PSEN LEASE BECOMES EFFECTIVE; This Lease shall be effective only when it is signed and delivered by both Landlord and Tenant. The Tenant's submission of a signed lease for review by the Landlord does not give the Tenant any interest, right or option in the Demised Premises. Upon such full execution and delivery, all terms, provisions, covenants and obligations of the parties hereto shall be immediately in full force and effect, and enforceable in accordance with the terms hereof. 19.19 IMERPRETATTOM: Both parties have read this Lease and had the opportunity to employ legal counsel and negotiate changes to the Lease. The Lease is the joint product of the parties and, in the event of any ambiguity herein, no inference shall be drawn against a party by reason of document preparation. 19.20 BROKERS: Tenant represents and warrants to Landlord that no broker or agent negotiated or was instrumental in negotiating or consummating this Lease excepting only Wargo Properties, representing Landlord and Dakota Realty Corporation, representing Tenant as cooperating Broker, as set forth in Section 1.1 (P). Both Brokers' commissions shall be paid by Landlord. Tenant knows of no other real estate broker or agent who is or might be entitled to a commission or compensation in connection with this Lease. All fees, commissions or other compensation payable to any broker *or agent of Tenant other than Wargo Properties and Dakota Realty Corporation shall be paid by Tenant. Tenant shall hold Landlord harmless from all damages and shall indemnify Landlord for all damages paid or incurred by Landlord resulting from any claims asserted against Landlord by brokers or agents claiming through Tenant, other than Dakota Realty Corporation. Tenant acknowledges that Tenant has been informed that person(s) associated with Realtor may have or may acquire an ownership interest in the Shopping Center, and Tenant acknowledges by signing this Lease that such ownership interest shall not affect the terms, conditions or validity of this Lease. 39.21 LANDLORDS PEES AND EXPENSES: Unless prohibited by applic- able law, the Tenant agrees to pay to the Landlord the amount of all legal fees and expenses incurred by the Landlord arising out of or resulting from any act or omission by the Tenant with respect to this Lease or the Demised Premises, including without limitation, any breach by the Tenant of its obligations hereunder. Further, if Tenant shall request the Landlord's consent or joinder in any instrument pertaining fo this Lease, the Tenant agrees promptly to reimburse the Landlord for the legal fees -42- incurred by the Landlord in processing such request, whether or not the Landlord complies therewith; and if the Tenant shall fail promptly so to reimburse the Landlord, same shall be deemed to be a default in the -Tenant's monetary obligations under this Lease. Whenever the Tenant shall request approval by the Landlord or the Landlord's Architect of plans, drawings, specifications, or otherwise with respect to initial alteration of the Demised Premises,g subsequent remodelling thereof, installation of signs includin subsequent changes thereof, or the like, the Tenant specifically agrees promptly to pay to the Landlordfs Architect (or reimburse the Landlord for the payment the Landlord makes to said Architect) for all charges involved in the review and re-review, if necessary and approval or disapproval thereof, whether or not approval shall ultimately be given. 19.22. o_TxER AO TXTS: The Tenant hereby warrants and represents that neither this Lease nor the operation of the Demised Premises hereunder violates the provisions of any instrument heretofore executed by the Tenant or any affiliate of the Tenant, including, without limitation, any so-called radius restriction contained in any such instrument. 19.23 HBSFT CL•anav: Intentionally Omitted. ARTICLE Z$: $ECDRITY AND RENT DEPOSITS 20.01 R1fOD2iT OF BECJMITY DEPOSIT: Tenant, shall deposit upon Delivery of Possession with Landlord the sum set forth in Section 1.1 (R) as the security Deposit, the receipt of which is hereby acknowledged by Landlord. The security Deposit shall be held by Landlord for the duration of the term hereof, without liability for interest, as security for the faithful performance by Tenant of all the terms, covenants, conditions and obligations of this Lease by said Tenant to be kept and performed during the term hereof. Tenant specifically agrees that any deposit held hereunder by Landlord may be commingled with any other funds of Landlord. 20.02 4sE AND 9m*+aN OF SECURIT DE SIT: Should Tenant fail to keep or perform any of the terms, covenants, and conditions of this Lease to be kept and performed by Tenant, Landlord may appropriate and apply the entire Security Deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained by Landlord due to such breach, without prejudice to its further rights and remedies. should the entire Security Deposit, or any portion thereof, be appropriated and applied by Landlord in accordance with the provisions hereof, then Tenant shall, upon the written demand of Landlord, forthwith remit to Landlord a sufficient amount in cash to restore said deposit to the original sum deposited. -43- .(7 Landlord shall have the same rights and remedies for the non- payment by Tenant of any amounts due on account of the Security Deposit as Landlord has hereunder for the failure of Tenant to pay the Minimum Rent. Provided Tenant shall not then be in default, Landlord shall return the Security Deposit, without interest, or so much thereof as shall not have theretofore been applied in accord- ance with the terms of this Article XX, to Tenant within 30 days after the last to occur of: (i) the expiration. or earlier termina- tion of the term hereof or (ii) the surrender of possession of the Demised Premises by Tenant to Landlord. Notwithstanding the fore- going, if the amounts to be paid by Tenant to Landlord, such as Tenant's pro rata share of Real Estate Taxes, or the like, have not been determined as of the expiration or earlier termination of this Lease, then Landlord may retain such portion of the security Deposit as Landlord be-lieves in the exercise of Landlord's good faith judgment is an appropriate reserve against such future liability of Tenant and return only the balance of the Security Deposit pending the final determination and payment of all such amounts by Tenant to Landlord. If Landlord conveys Landlord's interest under this Lease, the Security Deposit (or any part thereof not previously applied in accordance with this Article XX) will be turned over by Landlord to Landlord's grantee, and, if so turned over, Tenant agrees to look solely to such qrantee for proper application of the Security Deposit in accordance with the terms of this Article.., and the return thereof in accordance therewith. The holder of a mortgage on property which includes the Demised Premises shall not be responsible to Tenant for the return or application of any such Security Deposit, whether or not it succeeds to the position of Landlord hereunder, unless such Security Deposit shall actually have been received by such holder. 20.03 RENT DEPOSIT: Tenant, shall deposit upon Delivery of Possession with landlord the sum set forth in Section 1.1 (L) to be held and applied to the first month's rent due under this Lease. ARTICLE XXIf TENANT COVENANTS EASEMENTS 21.01 TENANT COVENANTS: Notwithstanding anything to the contrary contained herein, this Lease is subject to and made on the understanding that Landlord has granted and/or will grant certain restrictions and exclusive use covenants to other tenants of the Shopping Center (herein the "Tenant Covenants"). Tenant acknowledges that Tenant's use and/or occupancy of the Demised Premises in violation of any current or future Tenant Covenants would subject Landlord to substantial damages and as such Tenant acknowledges and agrees that any such violation by Tenant of any such -Tenant Covenants shall constitute a default hereunder entitling Landlord to cancel this Lease or enjoin Tenant from violating such Tenant Covenants, or exercise any of the remedies stated in Article XIV hereof and any other remedies available -44- 7-1 under the law of the Commonwealth of Pennsylvania. Nothing ed in on 2' shall be construed to Tenantnto expand ithesuseirest ictions set forth in se tion 1.1 (m) hereof. 21.02 EaBE NTS The Shopping center is and/or may be encumbered and/or benefitted from time to time by certain easements, development and operating covenants, and similar agreements. Tenant agrees that it shall abide by any such agreement, including any such agreement as may be amended from time to time in Landlords sole discretion. Landlord shall have the right to enter into and/or terminate any such agreement in Landlord's sole discretion. IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the day and year first above written. Signed, Sealed and Delivered in the presence of: (58/92) LANDL40RD: SILVER SPRING CENTER LIMITED PARTNERSHIP By: ABS DEVELOPHIMT COIF Its: PABTng By: P ich Its:Execsda Vice President TENANT: 4 -1' 1 B C Its: -45- . :,., f' i' i • • • H?IHIT 71-+ LEGAL DESCRTPTTON 0 SHOPPrrrr CENTER 6 LEGAL DESCRIPTION r: A.H.S. - 53.2436 ACRES BEGINNING at a point on the Northern right-of-way Route oil (Carlisle pike) ection right-of?way line of at the inters line o. U.S. right-of-wa U•S.Route jr11 (Carlisle Pike) of the Northern along the yEaster?f Tiaffie Route 1114 (Hogestwn and Road); Eastern (Hogestown Road) on a curve,°curvingltonethef Traffic )' t•ence 28.51 feet Route rl_ 9 : same North ' 19^ da ° length of 226.65 feet to -a t of t. a radius o to agrees 17 minutes 30 seconds West, a distance of minutes 39 seconds thence along same North 10 de thence aloe west, a distance of 202.24 feet grees <5 distance g same North 19 degrees 17 minutes 30 dsaWeoint; Of 245.00 feet to a Point or, t line of Sporting Green Drive; thence, along theu secSoutherng -way way right-of = line of een Drive, North 70 degrees 42 minutes seconds East Sporting , a Gr distance Of 116.56 feet to a same,on 30 feet an a curve, curving to the left, having point; thence along arc length of 204.31 test to a 9 a radius of 330.00 Eastern right-of-way line of s point on the and Eastern right-of-wa Porting Green Drive; the DriveNorthe3 14 minutes 10 Secondsl East of apdistancerofn225.06, f et to sadPo the thence along sameame g?ees distance of 5,fa North to a degrees 31 minutes 32 seconds East$ a curving to the left, having apradiustofn325 along eet me on a lunge, ar: of 217.34 feet to a point; thence along same, North 03 degrees length minutes 45 seconds West, a distance of 404.46 feet to thence along same on a curve, curving to the right, having aradius of 275.00 feet a P°-nt; alon , an arc length of 236.97 feet to a point; thence g same, North 46 degrees 17 minutes 35 seconds East, a distance of 25.94 feet to a point on the Western line of lands of Sporting Green Associates; thence along lands of Sporting Green Associates, South 43 degrees 42 minutes 25 seconds East, a distance of 463.00 feet to a point on the Southern line of lands of Sporting Green Associates; thence along the Southern line of lands of Sporting Green Associates, North 70 degrees 59 minutes 50 'seconds East, a distance of 327.60 feet to a point on the low water mark of the Conodoguinet Creek; thence along the low water mark of the Conodoguinet Creek, South 60 degrees 02 minutes 02 seconds East,a distance of 86.53 fast to a point on the Western line of lands now or late of Christian E. and Sarah E. Thomas; thence along the western line of lands now or late of Christian E. and Sarah E. Thomas, South 00 degrees 59 minutes 04 seconds West, a distance of 338.50 feet to a point on the Southern right-of-way line of Creek Road; thence along the Geuthern riyhL-vl-way line of vreex Hoa°, North 83 degrees 35 minutes 39 seconds East, a distance of 364.19 feet to a point; thence along same, North 78 degrees 43 minutes 51 t aeeonoz, Last, a .lielanue of S1.4v feet to a point on the Western right=of-way li'- of Silver Drive; thence r ing the Western right- of-way line of-- ver Drive, South 13 deq• 33 minutes 05 seconds neat, o a:.La.._, jr 66%.#* tees to a point ?n the Nortnern right- of-way line of Circle Drive; thence along the Northern right-of-way line of circle Drive, South 86 degrees 18 minutes 57 seconds West, a distance of 210.48 feet to a point on the Western line of lands now or late of James Pagliaro extended; thence along the Wester:; line of lands 'now or late of Jame's Pagliaro, South 00 degrees 46 minutes 57 seconds West, a distance of 382.87 feet to a point on the Northern line of lands now or late of the Silver Spring Community Fire Company; thence along the Northern line of lands now or late of the Silver Spring Community -Fire Company and the Northern line of lands now or late of Richard L. Radabaugh, Sout. 88 degrees 31 minutes 30 seconds West, a distance of 400.74 feet*e a point on the Western line of lands now or late of Richard L. Radabaugh; thence along the Western line of lands now or late of Richard L. Radabaugh, South 00 degrees 59 minutes 04 seconds West, a distance of 157.69 feet to a point on the Northern right-of-way line of U.S.Routs ill (Carlisle Pike) ; thence along the Northern right-of-way line of U.S.Route ill (Carlisle Pike) on a curve, curving to the left, having a radius of 5,779.65 feet, an arc length of 252.33 feet to a point; thence along same, South 85 degrees 30 minutes 30 seconds West, a distance of 227.77 feet to a point; thence along same, North 84 degrees 29 minutes 30 seconds West, a distance of 30.00 feet to a point; thence along same, South 85 degrees 30 minutes 30 seconds West, a distance of 547.64 feet to a point, said point being the place of beginning. CONTAINING $3.2436 acres. Excepting therefrom the following described parcel, known as the Wal-Mart Tract.' or-110t !, /{': . saa/•L ot.147t19•tf0f a/,1,?irr tsutt ?' tto't 171 - t 1tC2xMtxa ae a potAx on tae xorrli•rf+ rtgne-et-vay lln• at orn Or it 0.2.Joutw 11 byte 11.1.1Reut• tie sold got?,,: 1.Lnq the tovtsr•?srtof : easelaa a.lonq U• Torc.darn el4ntras lvs of 1,771.63 fa•% and an /t ;-,a? cyrvlriq to the tact, na Lnq ?a"•c• eontlnalnq elan Y au•. cast lonq%h of 107.74 fast eo a ptnel Veet. a dlse.anaa •t 17.11 ouC3 t1 drgr•sa 1a aLnut•o )O aoeendslareal /f 1, erione• aloM Out s us 1•tt, aerlr9•a radlus of f0•ao t a•C to the ldvthaaatarn as R`a c? of Out ?anc• aonL lnu•LnQ 'Lml parcel I1 W 4 oa of 71T^, o•11f 71 teat an ?n .14 twc w • Oe el as alnut•s so esaanda vest, a aistan 14414 If d asa length ntr 11 sonclnuLnq alor.q 044's. along sacs, xorV4 Oa do g taaa i9 11t f ! l Viet. a 414 pn?tes rodt 4141+"'•`e of 160.00 test ca a to nas degtaa• 10 aLnvtas 70 s•as Lee Ilt anancs alenq Let /s 111• tollovi[q vest. S liavnae 11 varLa 04 degrees 71 aLnvtas 70 seaanas at 161.07 teat. t1 Marta 11 Agrssa 70 alnacN 70 aegenda v?av. a d fLanae at 000.11 Nat, hest, a 6.l arwflN 7) south 00 Agrees 00 LLRewa 00 saaand+ at 46'10 94et1 00 ainutss 00 •saseels LLet, a 41,8%a o 41 NutA to olomsa vest. • llscs+raa at 224.!1 tees. AO ssaanas f1 faoreal 00 swrses 00 aL7lates a alsaal+a• of 77.71 S6et1 0o atnutaA q0 a4esnds Last, s t) sou%h,tO 01TV" of 171.01 loq%ia 00 aSnvNS 00 seaanda vest, a "I"AASs 71 ofu77.71 rest, dtAtIA!"' 01 South to dagrrss o/ 1100% 'on the westernttLjAt-qt•raY at Milt 9101619 tRlr•t fain, along the v41t4rn Ttgat-41-"Y 11ns of 111vat Ortva, louts • dlswnea of 116.7/ l?iAt? 17 ds1rase 19 %LAU%$$ 01 teconda t4str esa• Tagli or ets of llasot h to s ee asa ne Jnv??n? ovl of latetof OT 411 ro 1004eA to to s 90 110.16. gal, 7 seeends vest, alo ,Ielonds n901 seconds vest. 4 4Ne to 00 da?asa /t alnutes $ eontinuing along asa•, the worth*" L* Of w nd nOV 1sw aloAq a dLstance of )11.17 its,, .'Lo inanll tavnsnlT ftr• Ce+Tan CC ea• 1LSvee I?tlnq To t IL%Ttt 1TtLn0 nds a H i A Lina of Is adnaa soatf? 11 doveso 71 al Autos 10 N nd %te end Ittn4rd L. Aadasa . 9o or at riot, Rertf+H•Cadn r•n 00,74 test to %A* a7 dagrsssu7tl StAt a llsunas of 40.7 Ou aionq we "rest la. Mo -lost to a qe Taroot Itl hare' d ats.Aas a Of ! 71.10 cos 10 ascends vast. 10 seconds rise. • vac 70 aLav aU M seas tovea 04 rontl.nutnq L-10" 9419 togtrn t! dwrne1A41+M I ClAtAj%ce of 101.91 Nstl ?L??, a,dlstana+ It 110.17 I v of d ass it a.LMU"0 90 saeond =8 1611, Usy a t Lttt. potncl taenea lrl a CUT" _vQ6i'at 71 jg ?Kg LttCi m test am Ln P-0 l •. 111 1 M'! ?s 6?+ reeiy,bq ?.?"??. vo7rf7s>'t)ro, , 1 ,ravt i - P.$$THTT B ' ?IARD-??RK the work Landclassifiedlord's is rTenantrsbWorkHrein. All 8toref on 1• Aluminum and glass door single acting 3-9-011 X 71-0 centered in storefront. 2• Aluminum storefront framing with 1/4" clear lass from floor line to 101-0" above the floor line. g Interior Fi^tshea 1• Demising partitions: 3-5/8" metal studs at 16" o.c. with primed fire code gypsum board d o , an c at painted with one coat of white paint. Interior gypsum partitions: 3-5/8" studs at 16" o.c. with 1/2" board on sales location Exhibit B All bock walls din and ar furr d ea e be out and covered with 1/2" gypsum board, ready for Tenant's paint. Opening and do or shall be provided in drywall partition between sales and stock a reas. 2. Concrete floor, troweled smooth (no finish flooring materials). . 3• Vinyl composition tile in toilet room. 4. Commercial grade duty white suspended acoustical ceiling the and white metal grid t 1 " a 10 -0 A.F.F. in the sales area only and an 80-0" A.F.F. ceiling height in bathroom. 5• One 31-0" X 61-8" hollow metal insulated door (Painted) 'and frame at rear, with panic h ardware. Eath r? (6? x 6,) 1. Complete with fixtures, including water closet, lavatory, toilet tissues holder li ht fi , g xtures And exhaust fan, as shown at location #2 on Exhibit B-1. 2• one 311-0" X 6-#-8" hollow core wood door with a privacy latch. 3• Complete with handicap accessible fixtures and accessories including grab ba t r a toilet. 4• Bathroom walls of 1/2" gypsum wallboard, ready to paint. 5. i Water service to tenant space bathroom (3/4"). ` 6. i One strip type fluorescent light fixture with lens. Tenant agrees as follows; servic411 e loading and unloading shall be through the rear entrance entry specified b ord. D All garbage and refuse shall be kept y landlord. Demised Premises that has in a container the o a lid ca peeing and shall capable of totals within the prevent vermin be kept in such a sanita y fitting over insects and offensive odors. condition as to 3) Tenant shall not burn trash or garbage of any kind in or about the Demised Premises. 4) No radio device , television or other comet shall be installed by Tenant on the roof or common area of the Shopping Center without ?Landl d sic nsent subjective discretionhich consent shall be in Landlord's sole and 5) No loud speakers, television, phonograph, making device may be used in such a manner as to be heard outside the Demised Premises without Landlord's consent thereto other noise which consent shall be in writing, discretion. Landlord's sole nin subjective 6) Tenant shall maintain a temperature sufficiently high to prevent freezing of water in pipes and fixtures. 7) Tenant and Tenant's vehicles only in those employees shall park their cars and other areas designated Landlord, and landlord s hall have the for that purpose by the impose fines Upon Tenant or to tow such carsgor?Other veh; vehicles that fail to comply with this regulation at Tenant's. sole expense. 8) Tenant shall install and maintain fire extinguishers per local and state codes. 9) Tenant shall be allowed to hold a. Grand Opening Promotion for a period of two weeks after the commencement pate, which shall include the display of the large "Bike Line" balloon. SION CRITERIA SILVER SPRING COMMONS SILVER SPRING, PENNSYLVANIA I. OENERAL: The following sign orfterls h00 been astsbllohsd for the purpose of.dwdoping uniform, highly visible, aesthetically glassing store 81911191 And resole to hermunlte with and compliment the shopplno center's building material, A. Each Tenant will Idsntlfy its store will) Landlord approved signs. 5. Tenant will provide at its expense two Copies of drewinge of 118 p10Pa10d den. Sign drawings shall Include a scale showing Individual lettering height and 1ute1 copy length, 6p fn cgnOlructlon, installation diagram , malsrl0l Information end color scheme shell also be Indicated, isapproval, Upon review, Landlord will notify Tenant Or sign mmtvloulurer of approve, of d lexPProv C. All Tenant signs will be designed and Installed at Tonent's 9341711180. All signs shall meet rlqulremente and 1peclllaetlon/ 801 forth In the Landlord's slue criteria. Please note: It Is the Tonent's rasponllovily to be Informed or slpn ordinances In lilt local ans. Where governmenlel sign requirements ere more I,tllcllve than Lmdlord'r criteria, governments[ restrictions will prsvail. Necessity sign permits shall a Landlo d at the Tenant'/ expense. In some erase, your Von company will Provide ordinance Information at wall es obtaining necessary sign permits. Tenant will be held IlAbly and bear ell costs for removal/and or correction of signs; sign Installation and damage to the building bedsuse of $"no a 1nstalbllon that don not conform with Landlord's sign criteria, Upon Tenant's departure, Tenant will remove he sign and repair store front sign blank to Its oelglnd condition. 0. Tenant shell hove sign Installed and operating within ahlty 1001 days of Lease commencement data. E, 140lontil, or Regional Temntsl Landlord reserves the right to allow these Tenants to place •Iheir reglnered sign and trade mark on the Is w s, 11, -FASCIA SIONI A. TYPE: Individual Channel Lepers Internally I1 lumin6ted. DIMENSIONS, 1 • Maximum overall height: 90 Inches 2• Maximum overall length: 76% of the front footage of lilt store. (Ill feet for a • twenty/oat alorefronLl ;,•' Minimum letter height: one Ill loot. C. CONSTRUCTIONI 1• The 001111911 will be fabricated from ,050 aluminum. All letter shall hove a while Interior for an even distribution of lighting. The contour of the letter $boll be approved by Landlord, All 041160 returns 811611 hove a factory finish polyurelharie coating. IC01or as per Landlord.) SIIv1 trim shall coordinote with loner color. 2. All letters will be (Iced with 9/10" acryllo supplied by the Rohm b Hess Company. 9. Each letter will have a diffused hinting Oifeot lot on Ivan distribution or Illumination. The neon tubing (Site of tubes (obvant to site of leult) will be is provided by the Corning Company with EOL oleetrodes. for squall and with a Proper vacuum cold pressure or neon ties. The 1ron3forntetl powering the lighting system will be 60 m11118mp for Increase Illumination, and will be underrated 0% it, compensate lot v0118pe fluctuation end Basuto Oven light distribution, The electrodes will be loused In pyrex spring We units which will be protected born the elements. Secondary wiring will be eccomnlishod by prone, high tension cable and Ste-Con fasteners, All wlrlnp shall be remote. All electrical mull be U.L. Approved and meet All local and •81816 codes. 0, BALANCE; J ... .1. VerUOeh Vnteea styllled by deeign, Copilot letters will be mpsoed so there Is on equal border on lop end bottom of each later with em?nar als l i h h o etters even w t t e bottom of the capital letter. 1. Horl=onuh Letters will be evenly balanced from midpoint of the sign. ~. 0. Lo0oa Mutt fit within the 36" height requirement. j E. I OTHERt I 1, No ftuhing motion nor other mechanic at animation will be permitted. { 2. Tensnt's Won must be kept glean atJ ht good operating condition ?t $11 times at TenenYe expense. III. MOVNT•INOv A. Mounting breokets Pre to be stainless stool festvnae to prevent eulninp of rugim. 0. Mounting brackets ale not to be exposed or be seen. C, 619111 Pre to be mounted for bird control. IV, UND611 CANOPY 810N8: A. Under canopy aluminum sign boom to be Installed by Landlord. Sign boss will be lour 141 feat In length end externally lit with existi d ng un er canopy lighting, E. lenanl to Instsli individual vinyl composition fallen with a'pesl end stick' adhesive looking. The m"Imum height of each loiter will b i e s x 101 Inches and all letters will be Pinions /17.1111 In color. C. The sign boss must be at Wet forty 1401 degrees prior to applying lettae, rM1f b.rd TENANT'S WORK APPROVAL PROCEDM: The Landlord will provide Tenant with scale drawings showing the general features of the Demised Premises and locations of toilet room, air ducts, electrical outlets, and sprinkler system (if installed). Tenant shall supply Landlord with Tenant's interior working draw- ings and plans prior to making any alterations or improvements to the Demised Premises. The Landlord reserves the right to approve such plans for the purpose of insuring such planned changes will not overload the existing electrical system, degrade the air flow, sprinkler system, or weaken the structural integrity of the Demised Premises or otherwise be detrimental to the Demised Premises or the adjoining stores in the Shopping Center, and to make sure that such plans conform to the architectural design standards of the project. Such approval shall not be unreasonably withheld and shall be promptly responded to by Landlord, Landlord's contractor and/or architect. All Tenant's work shall be at Tenant's expense. Work undertaken-by Tenant shall be handled in the following manner.: a. Structural alterations such as plumbing, electrical work, additional walls 'or bathrooms, vents, grease traps etc., may be awarded to any operating licensed contractor approved by state or local authority and whose livelihood is derived primarily from such work. b. Construction personnel hired by Landlord may be used by Tenant, at Tenant's expense, to complete some or all of Tenant's interior upfit, providing such additional employment will not conflict with the Landlord's completion of the Shopping Center and Tenant enters a separate agreement with the contractor. Landlord will not be responsible for or obligated to Tenant or contractor to intercede on either parties behalf, should disputes arise over work or payment thereof. TENANT ADDITIONS: The following work, should Tenant desire, shall be done at Tenant's expense. 1. Installation and service cost of telephone. 2. Installation of a intercom, radio or T.V. and associated wiring. 3. Ceiling light covers not standard to project. 4. Display window platforms, elevated floors, room partitions or special rooms. 5, store signs. 6. Automatic doors. 7. If approved, any special exterior fascia treatment, and any atained,'etched or covered glass or doors. 8. Complete plans showing all details of interior design, electrical and mechanical items which affect Landlord's work, if required by Landlord in order to prepare preliminary plans, including special venting or air handling equipment necessary for tenants occupancy and use. 9. All interior walls and curtain wall within the Demised Premises except as provided by Landlord's work. 10. All signs in or on the Demised -Premises including construction, furnishing and installation. No sign shall be erected without prior written approval of the Landlord or Landlord's architect. OTHER: Tenant may add to this list at Tenant's discretion, so long as any such improvements are coordinated with the Landlord beforehand. Exhibit B PURCHASE. AND SAIZ AGREEMENT THIS PURCHASE AND SALE AGREEMENT (the "Agreement") is made and executed this 28th day of June, 1996, by and between the Silver Spring Center Limited Partnership, a Connecticut limited partnership with offices at Suite 2575, One Atlanta Plaza, 950 East Paces Ferry Road, Atlanta, Georgia 30326 (the "Seller") and Silver Spring Commons Holdings, Inc., a Pennsylvania corporation with offices at Suite 200, 259 Radnor-Chester Road, Radnor, Pennsylvania 19087 (the 'Buyer"). WHEREAS, Seller is the owner in fee simple of the real estate more particularly described on Exhibit "A" attached heretu and incorporated herein by reference, the buildings, improvements and structures thereon (except for the buildings, improvements and structures located on that part of the Real Property which is subject to ground leases) and the easements, access rights, and appurtenances and hereditaments thereto (all being hereinafter collectively referred to as the "Real Property"); and WHEREAS, Seller is the owner of the personal property more particularly described on Exhibit 'B" attached hereto and incorporated herein by reference, located on and used in connection with the Real Property (such personal property being hereinafter collectively referred to as the 'Personal Property"); and WHEREAS, the Real Property and the Personal Property comprise a two hundred sixty nine thousand three hundred two (269,302) net rentable square foot shopping center on thirty-seven and nine hundred four thousandths (37.904) acres more or less which are located on the Northeast corner of United States Route 11 and Pennsylvania Route 114 in Silver Spring Township, Cumberland County, Pennsylvania and known as Silver Spring Commons; and WHEREAS, Seller is the landlord under the tenant leases and ground leases affecting the Property, which ground leases and tenant leases (there are no subleases known to or approved by Seller except as permitted in the Amendment of Lease dated July 14, 1994 between Seller as Landlord and M.J. Todd, Inc. as Tenant) are listed and described on Exhibit "C" attached hereto and incorporated heroin by reference (the "Leases"); and WHEREAS, Seller has entered into and is the obligee under certain service, supply, maintenance, leasing and management agreements if any affecting the Personal Property and the Real Property which service, supply, maintenance, leasing and management agreements are listed and described on Exhibit "D" attached hereto and incorporated herein by reference (the "Contracts'); and WHEREAS, Seller is the owner of certain rights and benefits relating to the Property, including all development rights, permits, licenses, warranties (including but not limited to the roof warranties contained on Exhibit "L" attached hereto and incorporated herein by reference), guarantees, indemnities and deposits, (these rights of Seller's counsel required by Section 6.5(aXviii) hereof may be rendered under Connecticut law. 11.6 Time is of the Essence. Time is of the essence with respect to each and every provision of this Agreement. 11.7 Performance on Business Days. If any date for the occurrence of any event or act under this Agreement falls an a Saturday or Sunday nr legal holiday in the Commonwealth of Pennsylvania, then the time for the occurrence of such event or act shall be extended to the next succeeding business day. 11.8 Entire Agreement. This Agreement, together with all the Exhibits attached hereto and incorporated by reference herein, constitutes the entire undertaking between the parties hereto, and supersedes any and all prior agreements, arrangements and undertakings between the parties. 11.9 Counterparts This Agreement may be executed in any number of identical counterparts by the parties hereto, each of which shall collectively constitute one agreement, but in making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year above first written, intending to be legally bound hereby. SELLER: SILVER SPRING CENTER LIMITED PARTNERSHIP By: AHOLD REAL ESTATE COMPANY Its only gener partner and its duly autho gent By Name: Q. dA4,p J Title: BUYER: SILVER SPRING COMMONS HOLDINGS, INC. 17 By; Name: GU/llucM^ F /?'1 ` Title: ,??? ?' Exhibit C • APR••29-1999 1046 MDRG4V LEWIS PHILADELPHIA 215 963 5299 P.02i12 ASSIGNMENT AND ASSUMPTION OF LEASES Q??? This Assignment and Assumption of Leases ("Assignment") is entered into as of this ? r'^ day of January, 1999, by SILVER SPRING COMMONS HOLDINGS, INC., a Pennsylvania corporation, with an address c/o 239 Radnor-Cheater Road, Suite 200, Radnor, PA 19087, Attn: Kathleen Hands ("Assignor"), and EASTERN RETAIL HOLDINGS LIMITED PARTNERSHIP, a Delaware limited partnership, with an address of LMRES Real Estate Advisers, Inc., c/o Legg Mason Real Estate Services, Inc., 1735 Market Street, 12th Floor, Philadelphia, PA 191,03 ("Atsigna"). For valuable consideration, the parties hereto, each intending to be legally bound and to bind their respective successors and assigns, hereby covenant and agree as follows. A. Assignor is the owner of that certain real property known as Silver Spring Commons Shopping Center situated in the Township of Silver Spring, County of Cumberland, Pennsylvania (the "Real Property'). The Real Property is more particularly described on Exhibit ,g attached hereto and made a part hereof. B. In connection with the contribution of the leasehold estate in the Real Property pursuant to that certain Contribution Agreement, dated as of December 30,1998 (the "Agreement'), by and among Assignor, as contributor, and Assignee, as acquiror, Assignor has agreed to assign its interest in the leases pertaining to the Real Property to Assignee, and Assignee has agreed to assume and accept the same. NOW, THEREFORE, in consideration of the premises, the promises and conditions contained herein and in the Agreement, and other good and valuable consideration in hand paid by Assignee, to Assignor, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Assignor hereby assigns, transfers and sets over unto Assignee, and Assignee hereby accepts, all Assignor's rights, title and Interest in ahd to those certain leases, which are listed In Exhibit 'B' attached hereto and made a part hereof ("Leers."), which Leases pertain to various portions of that certain Real Property which Assignor has contemporaneously herewith conveyed unto Assignee. This Assignment includes () all sureties and guaranties of the Leases, (ii) the right to collect from all tenants under the Leases (collectively, "Tenants') all rents and other payments whether heretofore or hereafter payable (to be applied as set forth in the Agreement), (Ili) tha right to enforce all obligations of the APR-29-1999 1847 Nt7RGRV LEWIS PHILADELPHIA 215 963 5299 P.83i12 Tenants under the Leases and all sureties and guaranties, and (iv) all security deposits paid by the tenants under the Leases. 2. Assignee hereby assumes and agrees to perform all agreements and obligations of the landlord with respect to the Leases arising on and after the date hereof. However, Assignor, and not Assignee, shall be responsible for the observance and performance of all agreements and obligations of the landlord with respect to the Leases arising prior to the date hereof. 3. '.Nothing herein contained is intended to create agreements or obligations of the landlord to any Tenant under any Lease. 4. Assignor shall defend, protect, indemnify and save harmless Assignee from and against any and all liabilities, suits, actions, losses, damages, costs and expenses, including without limitation counsel fees, suffered or incurred by Assignee resulting from or relating to any failure by Assignor to observe or perform any of its agreements or obligations under the Leases prior to the date hereof. Assignee shall defend, protect, indemnify and save harmless Assignor from and against any and all liabilities, suits, actions, losses, damages, costs and expenses, including, without limitation counsel fees, suffered or incurred by Assignor resulting from or relating to any failure by Assignee to observe or perform any of its agreements or obligations under the Leases on or after the date hereof. [Execution Page Follows] M-V25D8.1 .APR-29-1999 1047 MOROAH LEWIS PHILADELPHIA 215 963 5299 P.04i12 IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment as of the date first above written. SILVER SPRING COMMONS HOLDINGS, INC., a Pennsylvania corporation By: OA Name: Dgvto d Zrj.,oct Title: V(m e,"s1,oz jv- EASTEMN RETAIL HOLDINGS LIMITED PARTNERSHIP, a Delaware limited partnership By: L.MRES Real Estate Advisers, Inc., its general partner By: a4rAvj d' Name: kvtd v Trs?omo Title: Vtcc t°trnUvr PHIMP11.1 -3- APR-28-1999 1048 MORGIN LEWIS PHILADELPHIA 215 953 5299 . P.05/12 EX$TBIT "A'I nczm7ua.) -4- APR-29-1999 10:49 MORGAN LEWIS PHILADELPHIA 215 903 5299 P.06/12 SCM9D= b Legal Description Lot No. 2 Shyer Spring Commom All that certain lot, tract or parcel of land situated in Silver Spring Township, eymborland county, Dennsylvania; bounded and dsacribed as. follows: 3egituli3&g at a point on the eastern right-of-way line of S.R. o114, said point being located one hundred eighty and fifty-six hundredths feet north of the northern right-of-way line of the carlisle Piks ((S.R. 0011); thence from said point of 8egiaaing, by the eastern rigbt-of-way line of S.R. 01144 the following four (4) courses 1), by a curve to the left, having.& radius of nine hundred twenty-eight and fifty-one hundredths feet (R = 928.51'), an arc distance of forty-six and nine hundredths feet (A/L a 46.020) 2) Borth nineteen degrees, seventeen minutes, thirty seconds west (N 199 171 3001 A) a distance of one hundred forty-two and ssvsnty-.six huildradths feet (142.761) 3) North ten dagreas,.forty-five Minutes, thirty-nine seconds West (N 106 451 3911 W) a distance of two hundred two and twanty-four hundredths feet (202.24') a) North nineteen degrees, seventeen minutes, thirty seconds. West (x 191 171 3011 W) a distance of two hundred forty feet (240.004) to a point, thence. by the southern right-of-way line of Sporting Green Drive, the following five (5) courses 1) North sixty-eight d ees$ fifteen rtnutos, seven seconds last (N 6e: 2.51 0711 8) a distance of one hundred sixteen and sixty-seven hundredths feet (116.971) 2) by a curve to the left, having a radius of three hundred thirty feet (R = 330.0a'), an are distance of two hundred tour and thirty-one hundredths feet (204.2i') 3) North thirty-five degrees, fourteen minutes, tan seconds East (N 39' 141 101, E) a distance of two hundred twenty-five and six hundredths feet (225.061) 4) North twenty-nine degrees, thirty-one minutes, thirty-two seconds zest (H 29' 311 3211 2) a•distance of fifty and twenty-five hundredths feet (50.291) 5) by a curve to the left, having a radius of three hundred twenty-fiva feet (R = 325.000), an arc distance of two hundred seventeen and thirty-four hundredths feet (A/L = 217.341)to a point; thence by the southern right-of-way line of sporting Green Drive and by Lot No. i North three degrees, four minutes, forty-five seconds West (N 03' 04' 4511 W) a distance of four hundred four and forty-six hundredths •rest (404.491) to a point) thence. by Lot No. i the following five (5) courses 1) by a curve to the right, having a radius of two hundred seventy-five feet (R = 279.00') an are distance of seventy-nine and fifty-two hundredths feet (A/L = 79.521) 2) Due East (N 90' 001 00" E) a distance of two hundred forty-one and ninety-nine hundredths fast (241.991) 3) South forty-three degrees, forty-two minutes, twenty- five seconds East (e 431 421 2511 E) a distance of one hundred twenty and ten hundredths feet (120.101) 4) South eighty-six degrees, twenty-four minutes, forty-five seconds East (9 e6' 241 4511 E) a distance of oha-hundred Seventy-four and hinety-two hundredths feet Mini? "All BOOK 143 AW 654 APR-28-1999 10:49 . MORGAN LEWIS PHILADELPHIA 215 963 5299 P.07/12 SCHEDULE A COIWTTJMLrD (L74.921), (erroneously shown an Plan as North eighty-six degrees,. twenty-five minutes, forty-aight seconds East a distance of one- hundred seventy-four and ninety'-one hundredths feet) 5) North eighty-four degrees, twenty-two minutes, seven seconds East (N 64' 22 07" B) a distance of two hundred twenty-saven and thirty-saven hundredths feet (227.371)to a point at or near the top of bank of the Conodoguinst Creek; thence down said crook south sixty degrees, two minutes, two seconds East (e e0- oz' call x) a distance of. eighty-six and fifty-three hundredths feet (26.531) to a point; thence by land now or late of Christian and Sara Thomas South zero degrees, fifty-nine minutes, four seconds West (S oo4.s9' 04" 11) a distance of three hundred thirty-eight and fifty hundredths feet (33&.509) to a point on the coutherrk right-of-way Line of Creek Drive; thence by said right-of-way the following two (2) courses 1) North eighty-three degrees, thirty-five minutes, thirty-nine seconds East (N 83' 35' 39" 8) a distance of three hundred sixty- four and nineteen hundredths feet (364.19') 2) North seventy-eight degrees, forty-throe minutes, fifty-one seconds East (N 72' 43' $1" E) a distance of thirty-one and forty hundredths goat (31.404) to a point; thence by the western right-of-way line of silver Drive South thirteen degrees, thirty-three minutes, five seconds East (S 130 33' 05" s) a distance of six hundred seventy and ninety-six hundredths feet (6709991) to a point; thence by Lot No. 7 the following eight (8) courses 1) Due Wast (N 9o- 00' Coll W) a distance of one hundred ninety-nine and eighteen hundredths feet (39941&') 2) Due North (N 00' 00' 00" S) a distance of seventy-seven and seventy-nine hundredths feet (77.791) 3)'Due West (2I 90 00' Co" W) a'dsstance of one hundred seventy-five and sixty-seven hundredths feet (175.671) 4) Due South (& 00' CC' 00" E) a distance of seventy- seven and saventy-nine hundredths feet (77.791) 5) Due West (N 90' 091 Co" W) a distance of two hundred twenty and sixty-two hundredths feet (220.621) 6) Due North (x 09' Go' 0011 Z) a distance of forty-six and sixteen hundredths feat (45.161) 7) South eighty- rive degrees, thirty minutes, thirty seconds West (S 05' 30' ;0" W) a distance of six hundred six and eighty-one hundredths feet (606.81') 8) South four degrees, twenty-nine minutes, thirty seconds East (s 04' 291 30" E) a distance of give hurkdred eighty-two and sixty-seven hundredths feet (562.678) to a point on the line of Let No. 5; thence by Lot No. 5 and Lot No. 3 south eighty-five degrees, thirty minutes, thirty seconds west (S 85. 30' 30".11) a distance of two hundred thirty-four and twenty-seven hundredths feet (234.271) to a point; thence by Lot No. 3 south eighty-five degrees, eighteen minutes, forty-five seconds West (s 85 15' 45" IP) a distance of two hundred forty-seven and seven hundredths feet (247.071) to a point on the eastern right-of-way line of S.R. Oils, the place of Beginning. Said tract contains 1,469,627.64 square feet or 33.74 acres. Being Lot No. 2 on a Final Limited ResuLdivisio Lots #1 and #2 Lot Silver Sprinq Comaons as records s of the Recorder of Deed of and for Cumberland court in Plar. Book 65 Volume ____ Page 3 ySloxa? EXHIBIT "A" °" APR-29-1999 10:50 MORGAN LEWIS PHILADELPHIA 21S 963 5299 P.09i12 SGZi M= A coD LEGAL DESC IMON OI3v$ t3ARDEN . LOT 03, S1L'm SPIM0 COMMONS SILVER SPRING T WME3 LVCUbMERLA= COM' if UGlNNWG at It point, said point being the intersection of theNorthem . ne of the Carlisle Pilm (S.R.0011) with the Eastern line of S.R.0114; thence in curvirls to Northerly b direction *long the the l radius of 928 Sl tcct and an we 13 eugth of 180.56 f a the let; t, having a r point, said poiatbdng theinterstxtioa of the Southern line of aS0' Right-nt g1aY and the x"tam line of SA. 0114; thence along the Right-of-Way the following two (2) ourses daa distancees Southern line of the 50' 1. North 85 degrees 18 minutes 4$ seconds Fast, a distance of 247.07 feet to a point, 2. North 85 degrees 30 arinutes 30 seconds East, a distance of 228.78 foot m a point;' Thence along the Westem line Of Lot N5, South 04 degrees 29 minutes 30 seconds Fast, a distance of 180.00 feet to a point on tye Northern line of the Carlisle Pike; thence along the Northern line of the Carlisle Pike, South 85 degrees 30 minutes 30 seconds West, a distance of 433.80 feet to a point, said point being the place of beginning. CON' naxG 83,224.3737 square feet OR 1.911 Acres. ERRIEIT 'W' . . PPR-29-1999 10 50 MORaRN LEWIS PHILRDELP4lR 215 963 5299 P.03/12 SC?IILB a CORQ'MUED LEGAL DUCkMON 'TACO l3FI.L 1110T V NOW LOT 05 OF SMVER SPRING COW40NS sILVER SPRING TOWNSFIIP, CUMBE MAM COUNTY PENNSYLVANIA AL'L' TEAT CERTAIN tract or parcel of land situate on the Northbast Corser of Route ing, County of 114 Cumberland, Commonwealth ea th of Pennsylvania, moremparticuululy bof Silver ounded- dczcdbt4 as follows to wit: BEGUMMO AT A point on the Ndrtbem Right:-a--Way line or the Carlisle Pike, said polat being S70A0 feet Fast of the intersection of Route 114 and the Carlisle Pike; thence aloa; I=& of lAt #3 of Silver Spring Commons, North 04 degrees 29 minutes 30 smcndsttast• a distance of 180.00 feet to a point, said point being on the 50-foot wide axes: easement between Lot 95 and Let 97 of Silvat Spring Commons. thence along the aforementioned access easement, North 85 degrees 30 minutes 30 seconds Fast, a distance of 284.06 feet to a point; thence along a 92.00 foot axes easement for the entrance to Silver Spring Commons from the Carlisle Pike, South 04 degrees 29 minutes 30 seconds Fast, a disartea of 160.00 feet to It Point; thence on a curve, curviag to the right, having a radius of 50.00 feet and an'= length of.78.54 feet to apt con theNorth= Right-of flay line of the Carlislo Pike; thence along tits Northesti Right of-Way line of the Carlisle VAe, South 85 degrees 30 minutes 30 seconds West, a distance of 142.22 feet to a point; thence along same. North 04 degrees 29 minutes 30 seconds West, a dktanee of 30.00 feet to a point; thbace along saute, South 85 degrees 30 minutes 30 seconds West, % ;distance of 91.84 feet to a .point, said point being the PLACE OF BEGUMNG. BONG MOWN AS Lot #5 an shown on the Final Resubdivision Plar. of Lots #3, #4 and #5, Silver Spring Commons. CONTAiN1NG 56,361.31 gquaze feet OR 1.294 acres. .. •• • 7txkiI9IT "A" 6GLK '? ?ie? PAG: 6657 APR-28-1993 10 51 MQRSAN LEWIS PHI!RDELPHIR 91CMU= a CO1VTINm OUT PARCEL 06 215 963 5233 P.10/12 9EGINNING at a point on the Northern right-ot-way line of U.S. Routs 11 and the Western line of land now or late of Richard L. Radabaugh; thence along the Northern right-of-way line of U.S. Route 11 by a curve, curving to the left, having a radius of 5,779.65 feet and an are length of 146.79 feet to the line of land of Lot 17; thence along Lot 07 by a curve, curving to the right, having a radius cf-5O.00 feet and an arc length of 77.43 fret to a point; thence continuing along. sane, North 04 degrees 29 minutes 30 seconds West,• a distance -of 160.97 feet to a point; thence continuing along same, North 85 degrees 30 minutes 30 seconds East, a distance of 165.31. feet to a•point; thence continuing along same South 42 degrees 22, minutes to seconds East, a distance or 74.10 feet to the Northwest corner or lands now or late of Richard L. ltadabaugh; thence along lands of Radabaugh, South 00 degrees 59 minutes 04 seconds West, a distance of 157.69 feet to a point, said point being the place of BEGXMNG. CONTAINING 41,797.63 Square Feet or 0.959 Acres E'J.HIHY: "A" BOOT( A3 P?., 65cg APR-28-1939 10 52 "10RrjPN LEWIS PHIL4DFLPH19 215 953 5299 P.11/12 9 K a LBO- I J, 11 r uwa".1 'S" • RPR-29-1999 "10 52 GY sm PAN MORCAY LEWIS PHILADELPHIA 215 353 5299 P.12/12 1 f, .w w r M. M w w.•. r ...... •. r r r w .. 0 EE?KeBEpii¢Q144$??9QEE w ?? 439 EE:6EEEE EEIEEE EEEE El r n w. i r F w .. ?• ?w f . w n A ? ? w ? » . A .. • .. w r N w ? . r ? w . . w w . a lC96: R:?. GAR aAi;?ti not a rw. 19fl5?sxv.r5sw LT09G69GTG G0 :8L s4su' 997Cl'ORCU PI 'ilk 'Q 'v vAQVm AA:9 wnv: tt7hf•7n n0 10 it TOTAL P.12 ui... ..,... in?o uiIL° Exhibit D 04/20/1999 14:09 7177302121 CROSSGATES/HARRIS3G. PAGE 02 -• ••••-', •• -• uuuu mnOVn ArOAL 6a:Alt atKSI(;EJ TH- 6i0 964 0830 P.002 >RWI A)4M%M6MM TO LEASE Tm Fw A1tpo&wTP is made n of dais & day o?P&4.4i y 1997, by andbeMm MVM17JKG C014b NS H=INGS INC,, a Paoasylvacia ootposatien,atteaasaY fwmSilva3pingCettterLimitedpumership Li 3 ord and IflU1,tAS It wnil M3 egad DORCAS A wallAMS, d/b/a Bike «, r?• tin, A. Lattd<ordis*sbn&udwdTm=istheuaantun&acerteiulndenttareof Lease puraasm to w" TewttWm froaa Landlord Store 0-7, muraiaiag appraogoataellnwo sbasssrsd fore httadred OA squue feet of space in Silver Spring Com--- - Shopplag Client, ]Viatbsttinbnrg; Paulsylvania (the "pemited Premises") for a terra commendog ills NesemtI 4,1992 sod expiring oa Jaauay 31,1998 (the 'OripadTerm"). 8. Team]: is desisiag of ?exe?eo?rinj is to extend the Lease pursw•mt to Sections 1.L]. and IA thsru? ia>s?oad itw w sbwTtmwto so exercise, even d=W&Te=m has nor #m lr m dlocd et last ix mcmths prior vshma notice of exerdw, u required by mW SeWoa 1.6. NOW; T MRWF=B, for and in ooasidersdoa of the emttusl covenants and agreem =hereinooaobenf,atadsnrendiostobelegallybootad,LandlordaadTenant hereby eoemm?t and agtas ab fioflows: 1. Thepmvisioas of the foregoing 'Background" section of ttut? mmat at erxby Incorporated into sod made a part of this FuxAmeadauerx 2. efi 3=Vc as cq naly otbeswise indicated Twin to the conoaty, acxpa w" and phrases coovd-ed is this First Amendment shall have the• amaze tmeatsin; end di6sltiaa as as eotiodoed in the Lease, 3. F.xarcise atNam a SSW, Tent; byia execution of this First Amt narft, earm and eclmoalodga its imention to exercise its I+w pns? to Sea!=11J. and 1.6 thereof. Landlord hereby option to extend ebe aaa adamwledges aced rreagir _Ilia FrnsA mradmatt a+ coatsinuing Teaane's exercise of its 'Vtioa to entcraod the Um m alareWd, u dwsives the requlremertr tbat Tea=t give Zaadlardwrftten podw aE is ammu of es m caead the Lase u least six snroAd+s prior to the at?irdssn erf tha Orisma = 4. The Original Term is hereby estended for as additional period cammmgag not 1,1998 nod ca]aauuy 31, 2003 (such addidaenl period is henia aled the"ExteteiedZj. 04/20/199g..14:09 -7177302121 CROSSGATES/HARRISEG. PAGE 63 • uuuu mmuvm inner, carAIL D6KrN63 UL 6!O 964 Og3o P.003 S. ?T- - wed ?j i? '? erm P=qn as hereinafter psoyidal, The scans as oameoas of th` ?t a Estended Term shall be the same m 5? d ! 04" T?+?epcslug b9n1rm=Reny shall be as is set forthim the hi Term 1 aifollows:? of restatealsot, the Teams Mia)mum Reor during adad Is 2111!i -1/31/99 SOW.- 53 2111!9 -1/31/00 4700. $32,400. ?11/00 -1/31/01 $2,800. 533,600. 2/1/01-1/31/03 $20900. S34,800. 6. Othor Mwslad Zanma and camimom. a. Tix sumo ad addnas of the? sadloed as set forth is Section 1.0. of the Leas we herabyr cbmq d to read a foOmm 40. LAMMOM. Sam c% SP&g Commons Holdings Inc. St103ynlsiitseVAA Suise loo M40( stmis, PA 194W b. Secdoa of 19.6. of the Lme is ber sby rescued in its earlrety so as to read as follows: ' 19.6 NOTIM AND PAYDri' M1 say notice byTeoant to Landlord muse be aseved by cadfied marl, postage Prepaid, or by nationally reeopeiari aaprsss tntil ddivety service, addressed to Landlord at site dM+gasad for ebe of rear, with copies for John S. jr., &4,2!9 r-dtmter Road, Suite 200, Radnor, PA 190q a s sasdt ocher address or s?cidresses as Landlord mry desi?nte from Awe to time bywri zm noeicm Any notic a byLandtord (which may be firm byLaaford or Landlord's attorney or management company) ro Teams somet be rrervsd bycatdW mail, postage prepaid, or by nationally seco/eawd aapeas mtil delivery savim, addressed to Tenant at the De:atiaei lssmiees, or a such other address or addresses as Tenant may Am&: a?aee a to *u bywrh=notice to Landlord AD notices this Sas>oon 19 6 epos delivery or=mpted delivery in accordance with Vrml otherwise nodal is wrung, Tenant shall pay all rotor tasarvad hereto and all other earns recruited under this Lease by check pa" m %be order of LandkuA and shall forward the Tame to Landlord 04/,20/1999 14:09 7177302121 CROSSGATES/HARRISBG. PAGE 04 "•"'• •• •• uuuv ivnovn nGnv GJlfllt J6RY16t4 ,. 1'tL:OlU 964 U830 P-004 77. 1 and infidl60 s= W°°' M=Wdedthel:eat 4Zremaint+nmodified a?i? and Tau= and their mpemve b. Io tf>t aws as{aw earpies betwam du piariaoni of the Iease aar! the oEthL firs Ate, tlse prositboos of this Fitat odpry, Aiueadmeat shall eoetml 6= s T6 acdeo M lraifa! of this Firx Amaadauat are for roaveaien of on1. wdtaustp f„re heaoL this Em AAmochom n VNWJMF, 6d sad Tenant have executed and delivered ? 7?' $rs above written. IAt`1DI.Om smvunm(;Commmx=,NcS INC TMANT ??.t? 6E?f?u3e?i/? B v 7 i s r ? Johnson, Duffle, Stewart & Weidner By: David J. Lanza I.D. No. 57782 301 Market Street P. O. Box 109 Lemoyne, Pennsylvania 17043-0109 (717) 761-4540 LMRES REAL ESTATE ADVISERS, INC., Ua EASTERN RETAIL HOLDINGS, L.P., Attorneys for Plaintiff COPY IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. Cr C? #i8` - CIVIL THOMAS H. WILLIAMS and DORCAS A. WILLIAMS, Defendants TO: THOMAS H. and DORCAS A. WILLIAMS 26 Bourbon Red Drive Mechanicsburg, PA 17055 CIVIL ACTION - LAW You are hereby noted that orl- 1999, judgment by confession was entered against you in the sum of $121,317.00 he above-captioned case. , I DATE: tP ` ?7 ' ll YOU SHOULD TAKE THIS PAPER TO YOb9 VV)YER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TEL HONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Court Administrator Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013 (717) 240-6200 1 hereby certify that the following is the address of the Defendant stated in the certificate of residence: THOMAS H. and DORCAS A. WILLIAMS 26 Bourbon Red Drive MechanirgA 17055 .A I Attorney for Plaintiff Johnson, Duffie, Stewart & Weidner By: David J. Lanza I.D. No. 57782 301 Market Street P. 0. Box 109 Lemoyne, Pennsylvania 1 7043-0 1 09 (717) 761-4540 LMRES REAL ESTATE ADVISERS, INC., Ua EASTERN RETAIL HOLDINGS, L.P., Plaintiff V. THOMAS H. WILLIAMS and DORCAS A. WILLIAMS, Defendants PRAEC/PE TO SAT/SFy AND DISCONTINUE TO THE PROTHONOTARY: NO. 99-3891 Civil CIVIL ACTION - LAW Kindly mark the above-captioned matter satisfied and discontinue this action. Respectfully submitted, Attorneys for Plaintiff INU E COURT OF COMMON PLEAS OF CMBERLAND COUNTY, PENNSYLVANIA JOHNSON,`DUFFIE, STEWART & WEIDNER By: David J. Lanza Attorney for Plaintiff 27606 Cn -i ?J U? iJ LOUIS L. CAPOZZI, JR., PLAINTIFF V. LATSHA & CAPOZZI, P.C., KIMBER L. LATSHA, GLENN R. DAVIS and DOUGLAS C. YOHE, DEFENDANTS IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA 99-3981 CIVIL TERM 99-3542 CIVIL TERM 97-5584 CIVIL TERM AND NOW, this. Z day of December, 2000, the argument current scheduled for January 8, 2001, is cancelled and rescheduled for Courtroom Number 2, at 9:30 a.m., Wednesday, February 7, 2001. Plaintiff shall file a brief in chambers not later than Friday, January 12, 2001, and defendants shall file a brief in chambers not later than Wednesday, January 31, 2001. Edgar B. John McN. Cramer, Esquire C(,PjQ3 mq,?w For Louis J. Capozzi, Jr. Ja - 29 - c>o Richard H. Wix, Esquire For Latsha and Capozzi, P.C. ?? Q? r G,Ic.a Kimber L. Latsha, Glenn R. Davis and Douglas C. Yohe ? Court Administrator :saa 0 f) C3 emi N 0 2 _ __. ?._ ? ?+ -- ?"?.'J ?? ?.7 __ I . l l .' LJ .-? %. i ci V ? _. sq:<,