HomeMy WebLinkAbout05-4038
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PR CAPITAL CITY LIMITED PARTNERSHIP, )
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Plaintiff,
CIVIL DIVISION
No. D$ -403f C,'uil/E.R.n---]
v.
J. PHILIP KNOBLOCH and NANCY L.
KNOBLOCH t/a KNOBLOCH'S DELI &
LOTTERY,
Defendant.
CONFESSION OF JUDGMENT FOR MONEY
Pursuant to the authority contained in the Warrant of Attorney, the original or a copy of
which is attached to the Complaint filed in this action, I appear for the Defendant and confess
judgment in favor of Plaintiff and against Defendant for money as follows:
Amount due from 11/1/04 through 8/1/05
$ 47,087.70
Attorneys' fees for enforcement and collection (5%)
provided under 919.06 of the Lease
$ 2,354.38
Filing Fee
$
19.50
TOTAL
$ 49,461.58
Dated: August L 2005
~..~~
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PR CAPITAL CITY LIMITED PARTNERSHIP, )
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Plaintiff,
v.
J. PHILIP KNOBLOCH and NANCY L.
KNOBLOCH tla KNOBLOCH'S DELI &
LOTTERY,
Defendant.
CIVIL DIVISION
No. or; -l..fDJf Ct'u',L '-r ~
COMPLAINT IN CONFESSION OF
JUDGMENT FOR MONEY
Filed on Behalf of the Plaintiff,
PR Capital City Limited Partnership
Counsel of Record for this Party:
Stephen S. Zubrow
PAID No. 43523
Dana L. MunhalI
PAID No. 82583
MARCUS & SHAPIRA, LLP
Firm No. 145
One Oxford Centre, 35th Floor
301 Grant Street
Pittsburgh, PA 15219
(412) 471-3490
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYL VANIA
PR CAPITAL CITY LIMITED PARTNERSHIP, )
)
)
)
)
)
)
)
)
CIVIL DIVISION
Plaintiff,
No. OS -~D3f e~;L 1U-"\.
v.
J. PHILIP KNOBLOCH and NANCY L.
KNOBLOCH t/a KNOBLOCH'S DELI &
LOTTERY,
Defendant.
COMPLAINT IN CONFESSION OF JUDGMENT FOR MONEY
1. Plaintiff, PR Capital City Limited Partnership, is a Delaware limited partnership,
with an address of c/o PREIT Services, LLC, 200 South Broad Street, Third Floor. Philadelphia,
P A 19102. PR Capital City Limited Partnership is the owner of the Capital City Mall in Camp
Hill, Pennsylvania and is the successor in interest to Crown American Capital City Associates,
L.P.
2. Defendants, J. Philip Knobloch and Nancy L. Knobloch are adult individuals t/a
Knobloch's Deli & Lottery. Defendants' last known address is 190 Black Rock Road, Hanover,
PA 17331.
3. The original instrument evidencing the obligation on which judgment is herein
confessed, or a photostatic copy or like reproduction showing the signatures of Defendant which
is a true and correct reproduction of the original, is attached hereto and marked as Exhibit I,
and is incorporated herein by reference. The instrument is a Lease dated December 22, 1995, as
amended by Amendment of Lease dated May 31, 2000, (the "Lease") between Crown American
Capital City Associates, L.P. and Defendant. Defendant is the Tenant under the Lease, and as
1
noted above, Plaintiff is the Landlord and the successor in interest to Crown American Capital
City Associates, L.P. under the Lease. This confession for money judgment is warranted by
Section 19.06 of the Lease.
4. Plaintiff avers that judgment on the Lease is not being entered by confession
against a natural person in connection with a consumer credit transaction. The underlying Lease
of real property at Capital City Mall, Camp Hill, Pennsylvania, was made as a commercial
transaction.
5. Crown American Capital City Associates, L.P. assigned the Lease to Plaintiff.
6. Judgment has not been entered on the Lease in this or any other jurisdiction.
7. Plaintiff avers that the Lease authorizes the entry of Judgment for money after an
Event of Default thereon. An Event of Default has occurred under the Lease in that Defendant
failed to make payment of rent and other charges which were due from approxirnately November
of 2004 forward. Plaintiff gave written notice of the failure to pay on, among other dates, July
22, 2005, and more than ten days have passed after Defendant received notice of its failure to
pay without making the missing payments.
8. The itemization of the amount presently due under the Lease and without waiver
of future damages is as follows:
Amount due from 11/1/04 through 8/1/05 (Ex. 2)
$ 47,087.70
Attorneys' fees for enforcement and collection (5%)
provided under 919.06 of the Lease
$ 2,354.3 8
Filing Fee
$
19.50
TOTAL
$ 49,461.58
2
WHEREFORE, Plaintiff as authorized by the warrant of attorney contained in the Lease
demands a money judgment against Defendant in the total sum of $49,461.58 plus costs,
attorneys' fees and interest at the Lease rate from and after the date of the Entry of Judgment as
provided in the Lease, and brings said Lease to Court to recover said sum.
Respectfully submitted,
Dated: August L, 2005
tephen S. Zubrow
Dana L. Munhall
MARCUS & SHAPIRA LLP
One Oxford Centre, 35th Floor
301 Grant Street
Pittsburgh, PA 15219
(412) 471-3490
Counsel for Plaintiff, PR Capital
City Limited Partnership
3
Knobloch's Deli & LDttery
UNSWORN VERIFICATION UNDER 18 PA.C.S. &4904
The undersigned hereby states subject to the penalties of 18 Pac C.S. S4904 regarding
unsworn falsification to authorities as follows: I am a duly authorized representative ofthe
Plaintiff identified in the attached Complaint in Confession of Judgment for Money and that
averments of fact contained in such Complaint are true and correct to the best of my knowledge,
information and belief.
PREIT SERVICES, LLC,
Agent for PR CAPITAL CITY LIMITED PARTNERSHIP
Dated:
IvQI
,2005
By:
!J?;L{{ cA Y1~
Debra Lambert
Vice President - Legal Services and
Corporate Affairs
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
J. PHILIP KNOBLOCH and NANCY L.
KNOBLOCH tla KNOBLOCH'S DELI &
LOTTERY,
PR CAPITAL CITY LIMITED PARTNERSHIP, )
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CIVIL DIVISION
Plaintiff,
No, D5 -
e~,L~~~
v.
Defendant.
NOTICE OF ENTRY OF CONFESSED JUDGMENT FOR MONEY
TO: J. PHILIP KNOBLOCH and NANCY L. KNOBLOCH tla KNOBLOCH'S DELI &
LOTTERY
Please take notice that ajudgment for money in the amount of$ 49,461.58 has been
entered against you by confession on the date below in favor of the Plaintiff.
Date:-1) I 1 q. P J ()(}.!;.
,
Prothonotary, Court 0 Co
Pleas of Cumberland Co
-~RDKNTDRR O~ LEASE-
THIS INDl!:N'I'tl1lE OP LEASE. made on the l-2~~ day of .[)"'e_\:>"~
1995, by CROWN AMERICAN PROPERTIES, L.P., a Delaware Limited
Partnership, by CROWN AMERICAN REALTY TRUST, as General Partner, with
its offices located at pasquerilla Plaza, Johnstown, Pennsylvania 15907
(her"inafter called "Landlord"), and J. PHILIP KNOBLOCH, AND NANCY L.
KNOBLOCH, Husband and Wife, WILLIAM M. KNOBLOCH AND JOHN P. KNOBLOCH, III.
Jointly and Severally,
trading as' ':KNOBLOCH' S DELI,
with an address at c/o Knobloch's Deli. North Hanover Mall, 1200
Carlisle Street, Hanover. pennsylvania 17331
(hereinafter called "Tenant"),
WITNESSETH:
A. Leased Premig@8,
Landlord hereby leases to Tenant and Tenant hereby rents from
Landlord the store premises (hereinafter referred to as the "premises".
Illeased premises. or 11demised premises") outlined in red on the plan
attached as Exhibit "B" hereto, now erected or hereafter to be erected
as part of a shopping center to be initially known as Capital City Mall,
3506 Capital City Mall Drive, camp Hill, Pennsylvania,
(hereinafter referred to as the IICenterll, "'Shopping Center" or lIentire
premises" and initially comprising the area shown in Exhibit "B"), the
demised premises being measured and described by the following
dimensions which are measured from the outside building lines of eacb
wall of the demised premises or, in the case of those walls separating
the demised premises from other stores in the Shopping Center, from the
center lines of such walls: (Food Court Room #848)
Front: Twenty Feet (20')
Depth: Twenty-Five Feet (25')
Total Area: Five Hundred (500') Square Feet
together with the right to the non-exclusive use in common with others
entitled to use same of all such automobile parking areas, driveways,
malls, courts, corridors and footways, loading facilities and other
facilities as may be designated by Landlord from time to time as more
fully set forth in and subject to the terms and conditions of this
Indenture of Lease and the Lease Agreement (hereinafter collectively
referred to as the -Leasell), and to such rules and regulations for the
use thereof as may be prescribed from time to time by the Landlord.
Exhibit I
B. 1:=.
The term of this Lease shall be for a period of five (5) years
beginning on the "cOI1IDencement daten as established by Section ~. 01. (a)
of the Lease; provided, however, Tenant's fixed minimum rental and other
charges will commence on November 19, 1995, whether Tenant is open for
business or not.
c. PiYAn Minimum ~An~.
Tenant shall pay to Landlord a guaranteed annual minimum rent
("Fixed Minimum Rent") as follows: The Fixed Minimum Rent for each of
the following periods during the term of this Lease shall be:
Time Period 1mnual Amnunt: Month1v Amount:
Year 1 $29,500.00 $2,458.33
Years 2 - 3 $30,500.00 $2,541.67
Years 4 - 5 $32,000.00 $2,666.67
Each such installment shall be due and payable on or before the first
day of eaeh calendar month in the term of this Lease, in advance, at the
office of Landlord or at such other plaee as may be designated by
Landlord from time to time, without any prior demand therefor and
without any deduction or setoff whatsoever, the first installment to be
paid on the commencement date whether or not the commencement date is
the first day of a calendar month. In the event that the eommencement
date of the term of this Lease shall be a day other than the first day
of a calendar month, Tenant's first payment of Fixed Minimum Rent shall
be prorated for the fractional month between the commencement date and
the first day of the first full calendar month in the term hereof, on a
per diem basis (calculated on a thirty (30) day month) .
D. Percentaae Rent.
In addition to the Fixed Minimum Rent as aforesaid, Tenant, in
accordance with Section :2.01 of the Lease, shal.l pay to Landlord, as
additional rent hereunder (hereinafter referred to as ~Percentage
Rentll), and as part of the consideration of the aforesaid demise, for
each lease year in the term of this Lease a sum equal to eight percent
(8t) of that portion of Gross Sales (as defined in Section 2.02 of the
Lease) during such lease year which is in excess of the applicable
Percentage Rent Gross Sales Base. The Percentage Rent Gross Sales Base
for the following periods within each lease year shall be:
Time Ppr;nd
Percentaae Rent Gross Sa]p.~ BaRp.
Year 1
Years 2 - 3
Years 4 - 5
$368,750.00
$381,250.00
$400,000.00
IL~CCMKD.DOC 10/10/95 (IND-LSE)
2
E. Use nf Premises.
subject to the provisions of Article v of the Lease, Tenant shall
use the leased premises solely for the purposes of conducting the
business of: Pennsylvania Lottery Ticket Sales and the retail sale of
hot and cold deli sandwiches made with rye, pumpernickel, onion, wheat,
white, and kaiser rolls, bread, buns and rolls, beef, pastrami, corned
beef, turkey, ham, ham salad, egg salad, seafood, chicken, ground beef,
bologna, salami, pepperoni, a variety of cheeses, vegetables and
condiments with side dishes or combination dishes of pasta, bowties,
noodles, rice, potato pancakes, cheese blintzes, cole s1aw, potato
salad, chicken salad, tuna salad, garden salads, soups and hot and cold
beverages, ice cream shakes, sodas and sundaes, (Tenant shall not sell
ice cream in cones), packaged snacks, jello, pudding, pie and mixed
desserts, fruit and fruit cups, ice cream may be sold from these
premises only as an ingredient to milk shakes.
F. Common Area Payment.
on the first day of each calendar month, Tenant shall pay to
Landlord, in advance, without demand and without any setoff or
deduction, as a minimum payment on account of Tenant's proportionate
share of the Operating Costs (as defined in Article VII of the Lease) an
amount never less than one-twelfth (1/12th) of the product obtained by
multiplying the square feet of floor area of the demised premises by the
sum of Five Dollars and Fifty Cents ($5.50). If the commencement date
hereof shall not be the first day of a calendar month, Tenant's payment
of its proportionate share of Operating Costs for the fractional month
between the commencement date and the first day of the first full
calendar month in the term shall be prorated on a per diem basis
(calculated on a thirty (30) day month) and shall be paid together with
the first payment of Fixed Minimum Rent.
In no event shall Tenant's payments hereunder exceed Five Dollars
and Fifty Cents ($5.50) per square foot of floor area contained in the
demised premises for the first (1st) twelve (~2) months of the term of
this Lease, and thereafter shall not be increased more than eight
percent (8t) over the amount paid the immediately preceding twelve (12)
month period.
Tenant should refer to Exhibit "A", attached hereto and made a part
hereof of this Lease, for Tenant's additional payment to Landlord for
Tenant's Food Court Proportionate Share of the Food Court Seating Area
Costs, which additional payment is in addition to, and not part of, any
sums due under this section.
G. Tenant's A1Jowance.
The Landlord shall not reimburse the Tenant on account of the cost
of construction of the items designated as Tenant I s Work in Exhibit nAil
attached hereto, subject to the terms and conditions set forth in said
Exhibi t _ Notwithstanding anything contained in Exhibit "'A" to t:he
IL-CCMKD.DOC 10/10/95 rINO.LSE)
3
"
contrary, Tenant shall only be required to perform a cosmetic remodeling
of the demised premises unless otherwise required pursuant to Articles
IX, X, XVI, XVII or similar provisions of this Lease.
H. Ap.curi~v D~noRit. -- NOT APPLICABLE.
I. Tax Rp...Ilt.
As an initial estimated payment on account of Tenant's
proportionate share of taxes as defined in Article II of the Lease,
Tenant shall pay monthly, in advance, as additional rent, together with
each monthly installment of fixed minimum rent, without demand or
setoff, an amount equal to one-twelfth (1/12th) of the product obtained
by multiplying the floor area of the demised premises by the sum of
$2.10.
J. Mp-rchantls ~sanciation/Adverti~in9.
Tenant covenants and agrees to become a. member of any Me.rchant I B
Association formed by the tenants of the Shopping Center and approved by
Landlord" and to maintain such membership throughout the term of this
Lease. Tenant further agrees to pay as its share of the cost of the
activities conducted by such association the sum of $.75 per year for
each square foot of floor area contained in the demised premises.
subject to CPI adjustment, as provided in Article XV of the Lease. In
no event shall Tenant's payments hereunder exceed $.75 per square foot
of floor area contained in the demised premises for the first (1st)
twelve (12) months of the term of this Lease, and thereafter shall not
be increased more than Five Percent (5\} over the amount paid the
immediately preceding twelve (12) month period.
Tenant shall also pay to Landlord as its contribution to the
Advertising Program for the Shopping center the sum of $.75 per year for
each square foot of floor area contained in th.e demised premises.
Tenant's Advertising Program payment and Merchant's Association payment
shall be made in monthly installments, together with payment of Fixed
Minimum Rent, and said Advertising Program payment shall be subject to
cpr adjustment in the same manner as Tenant's Merchant I S Association
payment as provided in Article XV of the Lease. In no event shall
Tenant's payments hereunder exceed $.75 per square foot of floor area
contained in the demised premises for the first (1st) twelve (12) months
af the term of this Lease, and thereafter shall not be increased more
than Five Percent (5%) over the amount paid the immediately preceding
twelve (12) month period.
K. PrODort:innat"p- Cost of aiF'.!~11'Y'itv.
In the event Landlord
Center, Tenant shall pay
together with each monthly
demand or setoff, an amount
elects to provide security for the Shopping
monthJ.y, in advance, as additional rent.
installment of Fixed Minim.um Rent, without
equal to one-twelfth (1/12th) of the product
IL-CCMKD.DOC 10/10/95 (IND-LSE)
4
obtained by multiplying the floor area of the demiaed premises by the
amount of $.50.
L. No COmDp-tin,g Bu~ine~F-;p-s Within Tranina Area.
Tenant covenants and agrees that during the term of this Lease~ and
any renewal or extensions of this Lease, Tenant will not individually~
nor by meane of an interest in a partnership or corporation, nor by
means of a parent, affiliate, subsidiary, or related corporation or
franchise, directly or indirectly, engage in any business similar to or
10 competition with that for which the Premises are let, within a radius
of ten (10l miles of the Shopping Center, without Landlord' B prior
written consent {-Violative Store"} _ The preceding sentence shall be
inapplicable to any business of Tenant which is in existenoe as of the
date of this Lease, provided the nature and character of such business
remains the same and is operated at the same location, and provided that
Tenant has disclosed the existence and nature of said business to
Landlord in writing before the execution of this Lease. If Tenant shall
breach this covenant, then in addition to the rights and remedies
elsewhere provided in this Lease, Landlord may, at its option either:
(a) Terminate this Lease upon thirty {30) days' written Notice to
Tenant;
(b) Enjoin the operation of the Violative Store;
(oj Include all Gross Sales generated by any Violative Store in
calculating the Percentage Rent due under this Lease and, in
such event, Tenant shall be required to report said sales
figures in accordance with Articles II and III of this Lease.
In the event that Tenant is a Franchisee. Tenant agrees to secure
the written acknowledgment of the Franchiser to tbis prevision... said
written acknowledgm~nt shall include Franchiser's covenant to be bound
by the terms, conditions, and remedies of this provision.
M. Leasp- Dn~Ump.ntR.
In addition to the Indenture of Lease ~nd the Lease Agreement, the
following are attached to the Lease and are hereby incorporated in and
made part of the Lease as fully as though set forth at length in the
Lease: Rider, if any... Exhibit IIAtll Exhibit liB", and Exhibit "err.
(Signatures appear on the following page.)
rL-CCM~.OOC ~O/10195 (!ND-LSEJ
5
IN WI'l'NllSS WHEREOF, the parties
bound hereby, have caused this Lease
year first above written.
(Corporate Beall
ATTEST: M~
Ronald P. RuBinak
Secretary
WITNI!:SS:
WITNIISS:
IL-CCMKD.DOC 10/10/95 CIND-LSK)
hereto, intending to be legally
to be duly executed the day and
CROIm' AJlBRICAN PROPIIRTIZS, L.P.,
A DBLAWARZ LIJIU'ZD PAll'l.'lllZllSHIP
BY: CROWN AJlZRICAN REALn TRO'ST,
AS GIlNBRAL PAll'l'Nllll
lIyL~dd~
Michael D. Starchville
Vice Pr..id....t
*Husband and Wife and WILLIAM M.
KNOBLOCH AND JOHN P. KNOBLOCH, III,
Jointly and Severally,
J. PHILIP KNOBLOCH/ARC
NANCY L. mOBLOCH"j I 'i'dJ..,II.. b.l '.
rIA moar-oCII's DELI
".
'1 ".
By. ~/? 4,( /(.1 ./)..- ~ ~.J~c{,
Nan L. Knf'lOC!i I '-""
&1}~L~\l.^-
J" I'l f'. !(nv Ioiop~i)'m
ill ~LR{ ~
Ell! t<"lob\~c.~. alkla William M. Knobloch
6
ARTICLE I
Section 1.01
AIlTlClf: II
Section 2.01
Section 2.112
SecUen 2.03
Section 2.01l
Section 2.05
'MTICLE III
Section ] .01
Section ].02
ARTIClE IV
Section A.Ol
Section A.II2
S.ction A.03
Section A.1l4
ARTIClE V
Section 5.01
S.ction 5.02
S.ction 5.0}
S.ction 5.04
ARTICLE VI
Section 6.01
ARTICLE V II
Section 7.01
Section 7.02
S.ction 7.03
S.ction 7.04
S.ction 7.05
Section 7. CI6
,Section 7.07
ARTICLE VIII
Section 8.01
S.ction 8.112
Section 8.03
ARTICLE IX
S.ction 9.01
S.ction 9.112
S.ction 9.03
ARTICLE X
S.ction 10.01
ART ICLE XI
Section 11.01
Section 11.02
Section 11.03
ARTICLE XII
Section 12.01
Section 12.02
Section 12.03
Section 12.01l
ARTIClE XIII
Section 13.01
Sect.lon .lJ.02
Section H.O}
Jla:X TO LWE NlIltEI€HT
TERM
ea-encellOnt or the
Pogo
Te~.................................................. 1
RENT
Percentage Rant........................................................... 1
Gras_ Sale. Derlned....................................................... 2
Percent8ge Rent State.ent. and P.r-enta................................... 2
t.xas..................................................................... ,
Addition81 Rent........................................................... 4
IIllOKS lJF AIXlIUNT ".'an
Tenantr. Records.......................................................... 5
Audit...............................................................,..... 5
CllNSTRlICTIIII Of LEASED PREMISES
Conatruetion by Landlord........ .............. ....... ... ......... ....., ,.... !)
Tenant'. ~roY.DBnt. and rixtur.......................................... 5
Fin.ncing.....................~........................................... 6
ExcUle or P.rfD~e..................................................... 6
CIIIlUCT Of 8IlSINESS
U.. of Pr~i.eB........................................................... 6
Storage.................. ". ......... ........... ............ ....... ....... ". 7
Additional u.e Dr the: Premises................................................ 7
Rules and Regul.tions...................................................~. 8
GRANT Of ClINCESSll11S
Conditione to Grant... .....-......,..~.... ............ ............... ........ 8
CllII<<JN AllEAS
Definition; COntrDl..... .... ................ ................... -0........ ....... 9
Parking Fec:ilities...... .... ......~. ......... ...... ............................ 9
Roor, __la, CheQgas end Additions.to Cenl:.er...........................u. 9
Right to Relocate........ .,. ..... ..... ........................... ..... ...... 10
E'itpensea................ ... ........ .................................. ......... 10
CorullLlln Are. P.yMent...... .............................. ..... ............ ~... ....... 10
Proportion.t. Coot of S.curity............................................ 11
SIGNS; A"I~GS; CANIIPIESI fUlURES. ALTEllATIONS
Signs, Awnings and Canopies..................................................... 12
Prop.rty in Oaadse4 Pr..l.e............................................... 12
ImprDve.ents ~d Alte~BtiDn8............................................." 12
HAINTEIlANCE AND REPAIR; SURHEIClEH Of LEASED PHEMISES
Repaira and Main~lnce by Ten.nt..............~................................ 1)
Structural Rep.irs~......................~.........~.............."~...'" 13
Surrender of Pre.i.es......................................................... 14
IHDEltUnCATIIII; SUBROGA 1111I
Inde..irir::atlan and Waiver of Claill... ..... ................... ................. 14
IHSURANCE
!naur.nce... ........ ... ..... ............. ............................. ......... 15
Inaurllf1ce Provisions.... .... ... .................... ......... ....... ......... IS
Erfect on Inllunnce ............... .......... ........... ....................... 15-
UTILI TIES
Utilities......... .............. ............. .............. ............... 16
Application far Utilities.........I&....................................... 16
Dperation Df Haating and Air-Conditioning................................. 16
Utility Chlrge Defined...... ..... .................................. ........ 16
ESrOPl'Q. CERTIflCATEI SU8OIIIJNATIONI ATTORNIlENT
txecutian af E.tappal Ce~tiric.te......................................... 16
foiluro to E.acuto Eotapp.l C.rtirie.te................................... 17
Subordination .nd AttD~~l................................................... 17
ARTICLE XIV
Section 14.01
Section 14.02
Section a.O)
ARTICLE XV
Section 15.Dl
AR TICL( XV I
Section 16.01
Section 16.02
ARTICLE XVII
Section 17.01
Section 17.02
Section 17 .0)
Secticn 17.04
Section 17.05
ARTICLE XVIII
Section 18.01
ARTICLE XIX
Section 19.01
Section 19.02
Section 19.0)
Section 19.04
Section 19.0S
Section 19.06
Section 19.07
ARTICLE XX
See lion 20. or
See tion 20.02
Section 20.03
Section 20.04
Section 20.05
Seetion 20.06
Section 20.07
S.ection 20.08
Section 20.09
Section 20.10
Section 20.11
Section 20.12
Section 2D.I)
Section 20..14
Section 20.15
Section 20.16
Section 20.17
Section 20.18
Section 20.19
Section 20.20
Section 20.21
Section 20.22
Section 20.23
Section 20.24
ASSIGNMENT NIJ SUBLETTlIIG
Assignunt and Subletting........................ ......... ............................................... 17
Application to ABsign or Sublet........................................... 18
Copy ar ABslgn.ent or Suble............................................... 18
IERCIlNlTS' ASSOCIATlONI I'IIOIlIlTlIJj fINll _ERTlSING
Herchantl' ASlGclat1Dn, Pra.otian Fund and Ad~8rtlBing.................... 19
DESTlllCTlIJj or LEASED PREIlISES
TDtal or Partial O..tructlan...............................................20
Pertial Destruction or Shopping C.nter.................................... 20
EMINENT DOIlAIN
Total Condem.tion...... ...... .......... .... .............. ........ ............ ._...21
Partial Conae.n.tlan...................................................... 21
P..ti.l Cond....t10n of Shopping Center................................... 21
LandlDrd'. O"ag8B........................................................ 21
Tenlnt's Da~8g88............................................................... 21
BoINCRUPTCY Oft INSll. VENCY
Bankruptcy or Insolvency..................................................... 22
EVENTS or DErAULTI LNIlLOIID'S REMEDIES
[venti or Default............................................................... 22
Deliberate Events of Default............................................... 23
Terain.tian........................~......................................... 23
Right .of Peale..ian.... ... ........ ....... ..... ... ...... ................... 2)
Additional Readies or landlord......-......................................... 2J
Confession or Judg.ent........................................................... 24
Waivers....... ......... ............ ...... ............ ..................... 2S
HISCEUANElIlS
Access by L.ndlord..................~..,.........................~........ 2~
Holdinl) Over...... ....... ......... ..... .... ... .... ......... .................... 25
Successors...... . ... ... .... .... .... . . ,.... . .. .. . ... .. .. . . . . . . . . . ... . . .... . .. 26
~iet Elljoyment........ ... ... .... ...... ........ .... .......... ..... ............ 26
WaiVer.. ... .... ............ ... ......... ....... .................... .............. 26
Custom 8~d Usage............................................................... 26
Accord and S.tiBfsction................................................................ 26
Perfornsnc8 of Tenant's Covenants.................................................... 26
Entire Agreement..................................................................27
No Partnership........................................................................... 27
Notices.. .... . . ...... .... . . . . ...... .... ... . .. .. .. . .. . .... . .. .. .. .. ... ... . .. . . . . . .. .. 27
Captions and Index................................................................. 27
Tenant Defined; USB Df Pronoun.................................................. 27
Negation of Persona! .Liability................................................... 27
Effect of Govern.ental U.mitation on Rents and Other Charges.................. 28
Psrti.l Invalidity; Saparete Covenants........................................... 28
Recording.............................................................................. 28
Brokerage Comni.sion................................~............................... 28
Coostruction.......................................................................... 28
Perpetuity.......................................................................... 28
Choice of LBW....................................................................... 28
Joint Preparation................................................................... 28
Interlineation.......... ...... ..... ..... ...... ....... ....... .... -............. ... 28
Submission of Lease to Tl!!nlnt......oO. ......... ............................. 29
LEASE AIlIlEElENT
ARTIClE I
TERM
SECTION 1..0L Comllanoino Dr the Term.
(e) the "Or1g1na1ti....-of thll L..... (here.ft.r llofintd) end 7....""t'. obligation to pay
rent end occupy the de.iRed prelli.. in accordance with the tar.. hereof shall c~ence on the ..rlier
of the follOtCinV date. (Iuch ..rlier date being herein called the Ilcauenc8Cftent. dete-): (1) an the
date ..t forth in Section "S" of the Ind.nture of Lease or (Z) the d.te on lOh1ch T....ont ohall first
open the delU8ed pr8lli811s for .busineaa.
(b) ,At eny tiOle ofter the =-.nc_t data .of the tera. of tho l.H.!'~ the parti.. .troll
executa ond deliver to ..ch other, at "'tho option 'of Loridlord. e1ther en inatr.--.t in reeardobio fOrB
or . letter 1IOreeaenl:. prepared by lendlord, .....ereJn Ten."t _hall. (.1) certify that the LealSl i. in
rull fOI'C1II end effect: and (2) certify the cOII/I!!nctment end tercin8t1on dates of the original ten of
this lease.
(0) This leBse end the t.en.nef hereby ere.ted shall cease and oeterlline at. the end or the
term hereof without the necessity of 8f'Iy notiee frail either landlord ot Tenant to tetllinete the 1I..e,
and Tenant hereby waive. l10tice to Y8cate the prellises end agrees that. landlord shall be entitled to
the benefit of all provisiona of 1.." respeeUng the lu_ry rec:cwery of' pas.casion of premise. frOD 8
tanont holding over to the B_ extent .0 if atotutory notice trod boon given.
(d) Tha podDd .-enc1ng on the dote herBOf ond ter..inot1ng on the date i_elliotely prior
t.o the co_eneelltl!nt date ie hereby referred to .. the "init.ial term". and the period froa the
cOllllencellent date t.o the date of the expiration Dr earlier tet'lIination or this Lease shall be referred
to herein a$ the "or1ginalterml'. for the purposes of this Lease the worda lithe term or this Lease"
.no "tem hereof" 8nall be deemed to meRn the initial term .and the Drigina} terll of thiS lease and all
extensions Dr renewals thereof.
ARTICLE II
RENT
SECTION 2.01. PercentaQe Rent.
(8) The Percentage Rent shall be payable without prior deund and without any Detoff" or
derCfuction whatsoever at the ties set forth hereinafter at the place then fixed for the payment of
Fi~Bd Minimum Rent.
. (b) Not liter than thirty (:)0) days after the expiration of the first "18ase year"
(hereinafter defined) of the terrn hereof and I unless Lsodlord exercises its option as set. fort.h in the
oetet sentence hereof, ttlereafter not later than thirty (30) days aft.et- the expiration Dr eech
8ubse~ent lease year in the tel'lI hereof, Tenll11t shall p..y to Landlord the Percentoge Rent due far the
lease year in ~estiDn. In the ellent that Percentage Rent shall be paya.ble for- any leaBe yeaf in the
term hereof t after the e~ir8tlon or the first leBae year cont.aining t.elve (12) cOllplet.e calendar
IIOnthR, land}ord, at LBndlord'a option to be exercised by written notice to Tlln-.t, IIIBY re&J.Iire Tenant
to pay, 88 additiDnal rent.. together with eaen monthly lnst.lllllent Dr rb;ed MinilllU. 'Rent due hereunder
co~encing _ith the rfrat aueh p'fMent due jmMediately after the receipt by Tenant or such noti~e an
amount equol to ano-twelfth (l/12th) of .ighty porcent (80~) of tho Percentoge Rent poyab1e for tile
im3Bdialely preceding 1e888 year. Thereafler, Tenant shall cantinu. to pay 8uch Bstimated payments ot
Percentage Rent together with Bach IIOnth1y installaenl or Fixad Minilltwn Rent due for each calendar
.onth 1n the tel'. hereof; prDvided. however, that tne anount of such estimated monthly pay..ent. or
Percent.ge Rent may, at Landlord'. option, be sdjusted at the expiration of each BubfJ,8qJent lease year
after receipt by landlord of Tenant's statetlent referred to in SectiDn 2.0)(b) to en allount e~Ql to
Dno-twe1 fth (l/12t1l) of eigllty porcent (80~) of the Porcent.ge Rent poyob1e for the 108a8 year
ilnAIIldiate1y preceding RUCr. adju8t.ent and commencing with the paYlIl!lnt of Fixed HiniaulI Rent due
imllediately .fter rB~eipt by Tenant or notice of' such adjtJstaent. Tenant ahall cDntinue to pey l!Iuch
adjusted amount until the next adjuBt_nt.. Although estimated Percentage Rent shall be payable
.onthly .. oforesoid. tho fino! cDllputation ond pa)'lllent ahall be on on onnuBl bOB i..
(c) Whenever used in this lease the words "le8se yearll 81'\a11 lie an the twelVE (12) full
calendar lIonths of the terlll cDmmencing with the first day of the tet. Df this leeael proYided the
commencement of the tel''' of thia Leese is an thl! first dey or tile lIlonth Dr. if the term of this Leaae
CDlIIllIences an any dillY other then the first day of the lftOnth, then with the first dB)" of the month
illllediately following the CD""enCBftlent date and each succeeding twelve (12) aonth period.. In the
event that the fiut or l..t .1e8.8 year shall consist of lee. than twelve (12) full call1lndsr months,
the Percentage Rfmt GroBII Sales Base for such shGrter leaBe, year 8hall be dee_d to be that portian Dr
llucn Sales Base obtained by multiplying the applicable Percentage Rent GrDBB SaleR Base Bet forth in
tne Indenture Df lease by a fr8~tlon. the numer.tDr or whieh shall be the number of days contained in
such shorter lease yesr and the denominator of which ehall be three hundred sixty-five (l65). In the
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event the .",ount of the Perl::ent.ge Rent Grass Sales Base Bet forth ~er.in is l!Iubje~t to adjuat.entll
dllring tne t.er_ or this Lease, end the date en which auch adju&t.enl:. 18 to Det:ur (hereinAfter referred
t.e 88 the 'I Rental Adju81:Ja.nt nate") 18 othBr tIlan the first day of . le.Be YBaf. the Percentage Rent
Gross Sal" Base for the lease yeer 1n MtIich the Rental Adju.t.ent:. Date shall fell Shall be the sun
of, (.) th. l....r P.""ontoge Rant Cra.. Sol.. B... BOt forth in the Indonture of l_. .ulUpli.d by
i fract.i.ont the nUIDet'Btor of whiCh shall be the nullblr of daya in the period c~ncing on the f.i.rst
d.y of the 1.... ye.r in which the Rantal Adju.tllent Dote .hall f.lI WId onding on tn. d.y i_edi.tely
priar te the Rantal Adju.to.nt D.te WId th. den_in.tar of lOhich .n.n be tbree hundred .bty-five
(365). plUB (b) the gr..t.r P.rcentag. Rant Croo. Sole. Bu. ...t farth in the lnd."ture of l.....
lluIti,plied by . fractlol'1, the nUllet.tor of which .hall be the num.er or d.,..- in the period ~lng
on tho Rantal Adju.toent O.t. WId ..ding on tha l..t day af tho le...yoor in ""ich the Rental
AdjuSta.nt Dote "".11 faU and the detlOll.ln.tor of which """11 b. thr.. llundred obty-fbe (30).
Rent in iuel f . 'air and adeCJIat.. rental for th. d.alaed prem.... end WDuld not. have en nto
thi... l.... ...10.. T0l\8I1t hod abl1Vatod it.alf ta ,p.y..P.l'Ilant_ .Rent Which..l8I1d _acta to
.uppl....nt the ~bod Hinilltl. Rent to provide auen fair 8I1d aclo",ata _tal ret harefDre. if. in
each of' et least two (2) of the first three (l) full l..slt years in the areof, Tenant_nall not
have been obligated to pey P8r~Bnl:age Rent. in the a~unt 88 let Indenture Df Lease, Landlord
My, at: its: option, (1) teminate this Leaae upon written to ten.,t given at 8n)' ti_ within
sb (6) nonths .ftu the receipt by landlof"d of T wmual statement of Gross Sale. far such
third full lease year, (or, if eBtlier, the e thereof) and this Leese shall term.inate Ind be
null and void sixty (60) 081s after de of IlUCh notice, Dr (2) decrease the Percentage Rent Cro..
Salea Sase Bet forth in Sectio the Indenture of Leese to en MOunt eCJ.Ill to the Grass Sales
reparted by Tenant .t the th. }eo.. ye.r i.o..diat.ly preeeding the date on ""ien landlord oakes
the election hen tenant shall thBreafter PIlIY to Landlord Percentage Rent in excess of the
decreased P age Rent Gro.. Sal.. Ba.. for elch 1.... year during the rllll8.inder of the bra af
this (including the lease year during whicf1 the Perc:ent.ge Rent Gross Sa!1!I'S Rase has been
SE~TIDN 2.02. Craes Sales Defined.
e 8.) "'Tiie"Wnrds IIGroes Sales" 88 used herein .hall Mean the Qruss amount of all sale!l of all
goods, wares and merchandise sold and Bll setvicl!S performed by Tensnt snd/or by 81ly aubbmant,
licensee or concessionaire if\, at. at from .the cerJIiled' prllllli&es (including, but not limited to,
catalogue aales Inade at or from the demised prellises)., whether for cash, credit or other
l::onsidention, with such ather consideration being de.termined at fair market value end financing
charges on all Gross Sales (without reserve or deduction for inability or failure to collect)
including I but not limited to, such aal~s and services (1) 88 . result or trenS8~tian6 or!ginating in,
at or frOM the demised premises, whether delivery or perforlllll1ce is ",ade froe the demised prerdses or
frOOl 8ame ather place; (2J pursuant to mail, telephone, telegrsph, closed TV Circuit, Dial-A.-8uy and
other devices, 8Uto.ated or other'lllise, whereby orders. are received at the delllised pre.ises or (:s>
which Tenant or any subtenant, licensee or concessionaire in the flOflnal course of its business would
att,ribute to its operations at the demised prelliBea. Gross Sales also include all deposits not:
refunded to pUrChaS8l'8. Each BBh upon inat&lllllent ar credit sh811 be treated BB a sale for the full
price in the month during llIhi~h such sale ahall be made t irrespective of the tias when Tenant Shall
receive payment therefot.
(b) The following shell be deducted frOG Gross Sales if originally included therein, or
elCeluded therefrom, IS thlll case Ny be, provided separate records are 8upplied aupportin~ alleh
deductions or eltclyt:l'lans, namely: (1) any e:itehange of nerchendlse between storelJ Df Tenant where sucn
eXl::hsnge is I\8de sollly ror tne convenient aperetion or Tenant's busin8'88 and not for the purpose at
COhsUIIlInlting e 8sle ..de ln, It or froll the de.iBed prellises, (2) returrls to shippers or
lIanufacturers, (J) Cash Dr credit refunds to custo"efB Dn tnnllllctions ot.herwise included in Croa8
Sales, (4) ssleB of fixtures, I18chinery end eqJipllent after use t~ereof in the conduct of Ten8nt's
buainess in the dellisftd preaUB8B, (5) anounts collected and paid out by tenant for .ny Galee ta)(
i"J)08ed by .ny duly constituted gDvemllllef1tel authority provided such tax is both added to the selling
price ae a 8epar8te end diltinct ..aunt in addition to the regular price of teosnt1e merchendis8 and
paid to th~ tBxing authority by Tenant (but Rot by an)! vendor Df Tenent), (6) the emount of any
discount on &s188 to employees, and (7) receipts from the permitt.ed pS1 telephone and vending machines
r~rerred to in S~tian 5.0:J{r). No v.lue added tSl(, end no franchiBe or capital stock tgJl: and no
incoll8. g.roBs receipts or sillilar tax baBed upon income, prorJ.ts or gross receipts as sue" shell be
deducted frOlJl GrOBs Sales.
SECTION 2.03. P.re.nt.Q. Rent St.t.ment..
(8) No later than-fhe th~rt~eth (30th) day after the end of each l::slendBT month in the term
t:"'t'eof, Teneot shall Bubl7lit ta Landlord 8n itBllized and eccurate written atateeent signed by Tenant,
lts duly 8uthorized ofriC:cr or duly authorized rep1'8scntat.he, ref"leeting the full amount of Gros8
Sales l1lade during the preceding cllendar lIlonth. If the commencement dote hereof eha.\! not be the
first day of 8 c81endat month, the period bet",een the cOlI:IDencclllent Oste and the firat dB)! of the first
full c.lendal" .onth in the ter" and Tenantl. Groas Sales during BUC'h period shall be added to the
first cehndar month for both the purpose of the CDI'IpUtation of Percentage Rent end the purpose of
reporting of GroBS Sales.
(b) Not later th.n the date set forth in Section 2.0l(b) hereof, 1emant shall submjt to
LaTldlord 8 complete written atatelllent of Tenant.. Grass Sales for the preceding lease yeu.r in 8uch
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reasonable detail all rSCJ.lested by Landlord, certified by lenant, ita duly 8uthor1..zed of'fieer- or
reprea8ntaUve, accolllP8nled by 8 eertlf1ed atat.BlII!lnt 8igned by Tenant's 1'egulerly engaged independent
public Bccountsnt st.ating thet the G:oe8 Sales reported by Tenant are in accord tIIith the Haunt
thereof Bet forth on Ten.ntta regularly tllllntained books ...d reeordl. Siaultaneooaly with the
delivery of the statell8nt referred to in the preceding sentence, ten.nt eball pay to Landlord the full
Utlpaid bBlanoe of the Percentaljl'D Rent due ...d payable for such le..e yael', if any. In the event
Tenant is ..king esUNted peyllenta af Percentage R...t and Tenont is not then ln defeult hereunder ar
othendle indebted to lBndlard. any excae. of ..ti_ted Percentlqe Rent that TenBnt .,y have paid far
8uch lease year over the Percentag_ Rent actually due for 8uch l..se year ahall be refunded to Tenant
wlth!n thlrty (3D) d.y., provided, lf 8LlCh overp.)'IIIIRt is far the 18et 1.... y..., I.8ndlard shell nat
be obligated to refund to T...ent the BBOunt af ouch overp.yII.nt ..,tU Ten.nt hee fully .perrar&led sll
of its oblig.tlon. ..,der the leu., 1. nat indebted to lBndlard end hes vecated the d..laed prB8liase
ln ."""rdence with the provislons ar W. lee.e. In the ......t Tenent 1. lndebted to landlard far any
reason wheteGeyer f l.er1dlord _y deduct auch allQunt owed frolll such overpapent.
(c) The .coopteace b.y l...dlordaf.,payll...ta.af. Perc8lltage ,Reot.ar,.rep,prta,.tnauof _ball be
without pre judiclt , and shall in na event conatitut.e . waiVtlf of Landlorc:l'. righta to clall1'1 8
deficiency of 8uch Perl;!entage Rent or to audit Tenant's books end records 8S 8et forth 1n Section 3.01
hereor.
(d) If T...snt .hall fsU to deliver .uch .tat_ent .. ...."'ired by Section Z.D3(b), withln
the period 8et forth therein and Buch failure shall eontinue for ten (lO) ds)"'8 .fter the dste Dr
wtitlen notice Df such failure froa Landlord, Landlord shall h.ve the right thereafter to Hlploy 8
certified public aceountant to _ke such ex.einatia" of Tenant's books and records 88 uy be necessary
to cert:.1fy the 8lIOunt of Tenant'e Cross 5.1.. for Baid leas. year, the certification 80 a.de shall be
binding upon Tenant end Tenant ahall procapUy pey 10 landlord tile cost of the examination, together
with the full balance of Percentage Rl!!Iflt due and payable for aaid 1e8811 year. In addition., lend10rd
ilia)' treat the failure to deliver such etatllaent.B within ten (ID) days after the afot'esaid not.iee 88 a
Deliberate Event of Default.
- (e) Tenant's obligetians under this Seetion Z.O} shall sUt'vive the expiration or earlier
termination of this Leese.
SECTION Z.04. Taxes.
(8) -riiF"" the purpolles of this Section 2.04, the word -taxes" shall include all taxes
sttributable to i.JIprovenl8nts now or herllafter IUde to the Shopping Center or sny part ther-eor or
attributable t:o the present or future installation in the- Shopping Center or any part thereof of
fixtures. lIlachinery or eq.,ljpment, all real I:8tat.e taxes, BBsess.entB, roll-back taxes or assessllenta,
water Bnd sewer rents Bnd other governmental impositions and char985 of every kind and nature
whatsoever, nonrecurring a8 well as recurring, special' or "extraordinary as well 8S ordinary, foreseen
and unforeseen. and Bach and every installment thereof." which shall or- .ay during the tef'1D. of this
Lease be levied. assessed or imposed, Dr became due and payable or becDlle liens upon. or arise in
connection with the use, occupancy or passession of, or sny interest in, the Shopping Center or aoy
part thereof, Dr any land, buildings or other improvements the~ln end all casts and feee incurred by
L8n~lard in contesting and/or negotiating Baid taxes. less all ..aunts paid 88 trul;esto Landlord by
the occupants of any .'Separately Assessed Pr..ises" (as defined in Section 2.04(d) heraor>. The word
"tal(es" shall not include eny charge. such as water meter charge and sewer rent based thereon, which
is measured by the coneuRfltion by the actual user of the ite.. or service fot' which the charge i6 INIde.
(b} For e.ch "Tax Year" (ea defined in Section 2.04(e) hereor> during the ter.. Dr this
Lesst!!, Tenent shall pay 10 lsndlord as additionB! rent (hereinafter called "Tax Rent") I the 81'110unt
obtained by lIulHplying the total of all' taxes 'payable during !lUch Tall: Year by 8 fraction, the
nuurBtol" of" which shall be the sr:pare feet of flDor area af the dBlllised premia.. and the dena.instor
of which shall be the BCJ.I&re feet of' all "leasable floor area" (S8 defined in Section 2.D4(d) hereon
in the Shopping Center co~uted sa of each date l.ndlord h.a . right ooder Section 2.D4(c) to blll
Tenant for .n installment of Tax Rent. On account of Tax Rent, Te.,.nt shall pay monthly, in advance,
a8 additional rent, together with each IIDnthly installment of Fixed KinieUfIl Rent, without demand or
setoff, the alllOunt aet forth in Section "l" of the Indenture of Lesse.. Such ..ount may bit adjusted by
Landlord .t any tille during the tor. hereof to sn .mDunt equsl to one-twelfth (1/12) of the Tsx Rent
payable by Tenant for the preceding Tax Year. If Tenant's pBy.ent on account of Tax Rent for sny Tax
Yoar exceeds the actual .mount p8yable by Tenant a8 Tax Rent for such Tax Vear and Tenant is not in
default hereunder Dr othel"WiBe indebted to landlord, Landlord shall credit such excess to Tenant I s
future tax obligations; provided. if 8uch DverpaYllent is for the last TIIX Year, Landlord ahall nat be
obligated to refund to Tenant the ."Dunt of such overpayaent until Tenant has fully perforlled all of
its obligations under this Lease, is not indebted to landlord and haB vacated the demised premises in
accordance with the provisions hereof. In the event Tenant is indebted to Landlord for any reason
whatsoever Landlord may deduct such amount owed from such overp8y~ent.
(c) Landlord shall have the right to bill Tenant for Tax Rent during each Tax Year .rter
eech rsceipt by Landlord of a bill. a9sessment, levy, notice of imposition or other evidence of taxe8
due Dr payable all of which are hereinafter collectively referred to 88 a "tax bill" (whether such
bill is a final bill, an esUlaBte of iIIlnual taxes or repre8ents a tel( bill baaed upon . final or
partial aS8eSSllent. ar det.er.ination) ~ Tenllflt shall pay the balBnce of ita Tal( Rent wi thin thirty (30)
dayt of receipt frOll Landlord of 8 written 8tatenent setting forth the taxe8 for vhic:h Landlord has
received I tax bill, Tenant's share or taxes, and Ten81"lt'. payment.s theretofore made on account of Tax
Rent. In Rlaking the COlllputations 88 aforelaid, 8 tB'X bill Dr photocopy thereof eubmi tted by lend lord
to Tenant shall be conclusive e~idence of the amount of the taxes included in the computation of the
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Tax Rent in ~estionl pt'O'iid~dt howl!lIv.rt Landlord ahall have the right to bill Tenant fat" Tenant' 8
shan or the Tax RlM'lt for the last Ie.at year in the terti hereof whether or nat LlUldlord ahall
theretofore hIve reeeived 8 tax bill covering Ule period froll the d.te of the tax bill which for.ed
the b_la of the 1II01It recent i....t..llMnl on account of Tax Rent billed to Tenant to the expil'atior. of
the te1'lR hereoF. Ir landlord has not receJved . t.ax bill for such period I Landlord ahell estl_te the
amount of auoh loot in_tallllltlnt of Tax Rent on the basi_ of infa.....tion oontained in the tax bill _t.
recently received b., Landlord I subject to adjusbaent when LWldlord receives a t.x bill which inc:ludee
the period frorl the date Df' 8uch bx bill to the expiration of the term hereor. Ten.nt ahall pay auch
edjusted e""unt upon billing by Londlard.
(d) for the purpoeBB of thi. LeeBB, the warda .Separataly ....se..ed Prellli.... .sholl _
only each or the following Pbrtione of the Shapp.1hg Center tthich are in f.ct .1!I~ar.tel)' _a.aaed or
far which the MOunt of t..e8 actuall)' Dsessed i8 re8dily ucertain.ble Qr which are used in
oann_otian wHh the oper.tion or . depar!:alent etare or portion. or the Shopping !:enter tohieh ....
oWll.d, l.ased to or other.la. acc,",pied by 8 deplIltblent alare or portions of the ShOpping Center which
are owned, le8i11ed to., or at:herwiae OC'Ctlplad. by . ",ar.1l!\)'..,Of. .pacial~...u,r.e... _. ror~..puzpoaaa .of thia
l_ae a "variety Dr specialty storell 11 an oc:c:uPllnt wh1eh lea... ar occupies 15,000 8~rl!l feet Dt'
IlOre Df building space in the Shopping Center. For the purposes Dr this leaae the .ot-de "lea.able
floor area" shllll Il'leM tha ecpare feet of floor area in eru::l0ged buildings which are erected CW'I
pDrtions of the Shopping Center other thin Separately Asse...d Premises and Mhiel't are designed
eXClusively for use end cx:cupancy by Tenants other thin DCCUPllnts of Saparetely Asse..ed Prerdsee and
which are apen for business by such tanBnt.~
(e) for the purpoae of this Leaae the words 'lfax Year" shall .an the twelve (12) full
calendar IIOnths of the terl! cOMMcing with the ....nuar)' 1st immediately following the cOIIIllence.ent
date end ending Oeeenbet nit of such calendar )'eer and each succeeding twelve (12) .onth period
thereafter cOdIlIencing in the ter. of this leRSe; pravided, how-elller, the first T8X Year eh.1l cDflmenc::e
on the c~Mence~t date and term1nate on the imeediately succeeding Date.ber '1st.
(f) Jf for reasons other than Tenant's default the tet'lll Df this leBse term1nete. on II date
other than the last day of a Tex Year, Tenant I. lax Rent shall be eqJitebly p1"O-rated.
Nobithstanding 8I"Iything herein to the contrary, far the purpose of cOllputing the Talt Rent dutl for the
first Tax Year, Bll tsxes (e""Uably pro-reted) paysble during the calendar )lear in wh.ich the f"irst
TQX Year ahall fall ahall be deemed paysble duri~9 the first TSK Year.
(y) If. after Tenant shall have _de the reqJired annuBl payltent of Tax Rent, Landlord
shall r'cceive 8 refund of any port1on of the taxes lnc"luded in the cOlllPutat1on of such Tax Rent,
provided Tenant is not then 1n default hereunder, landlord oehull tredit to Tenant that percentage of
the net refund after deducting all costs ...d expenses ,{including, but: not li..iteo to. attorlle)'s' snd
appraisers I fe!!s) expended Dr .incurred in Dbtaining such refund, which the portion of the te:JC:es in
queBtion paid by Tenant bears to the entire Hount of sueh taxes imlaediately priCJr to the refund.
Tenant shall not institute an)' proceedings with resp~t to the 8sseBsed veluetian of the Stlopping
Center or Bny part thercaf for the purpose of securing a tex. reduction. In the event the lencHotd
shall retain sny consultant to negotiate the 811launt of taxes, tax rete, s88s.aed wslue lind/or othe%'
factors influencing the anount of la_Be and/or institute any admniatrative and/or legal proceedlnoa
challenqing the talC rate, assessed wallie or other factofa inf1uBOcing the allaunt of taxes, "'nether Dr
not such .tUon reaulh in B reducHon in t.he IIIIO\Jnt of taxe., Tenant's Ta.. Rent. .hall include tne
portian of the 8ggregate of ell such reasonable reea, reasonable ettorneye' and appraisers' fees end
all disbursemsnts, court COSt.a snd other ai.Har ite-JIS paid Dr ineurred by Landlord during the
applicable Tax Year with respect to 8uch proceedings which is obtsined by .ult1Ply1n9 the aggregate of
8ueh sums by the fraction Bet forth in Section 2.04(b) hereof.
(h) Ir et any t1me during the' tef'lll or this Lease, under tile la.. of anyone or .:tre
Jurisdictions in which the ShDpping Center is located, 8 lex I imposition. chaz:ge, .sle..lftel1t. levy.
excise or license fee is levied on, imposed against or .oeBured, computed or deternined, whether as a
substitute or not far the whale ar eny part of the la"ea now levied, asaeased or iapoaed on real
estate a8 such, theee shallbB le'Yied, assessed or llllpose:d (1) B tax on the rent. received froll such
real estste, or (2) s li~nBe fee "ellsured by the nnt. receivable.by landlord from lBndlord'. Parcel
or any portion thereof, or ()) 8 t:.Bx or license fee illpDsed upon landlord Mhich i8 othertdaB Maauntd
by or based in whale or plrt upon Landlord'll Parcel Dr InY portion thereof, or (4) WI lncDIIe or
franchise tu t then the Same shall be included in the cOlJ\PutaUon of taxes hereunder, COfIPuted S8 1 r
the arn[]unt of such tu or fee 110 payable. were that due if landlord's Parcel were the only property of
landlord subject thereto. In addition to the foregoing. should any 90vernll:ental Buthority scting
under any ell'isting or future law, ordjn.n~e or requ18tion, levy, aBsess or l.mpaae III tal(, excise and/or
88SeSSl1lDnt upon or against this Lee.B, the eXe~ution hereDf and/ar the Hinillurn Rant, or .ny it.. of
additional rent payable by Tenant to landlord whether by _Iy or sub.titution for or in addition to any
.xisting tex or otherdoe, end whother or not evidenced by documentary et_nope or the like, Ten...t
shall be responsible for and shall pay luch tax. excise and/or BB8eBBIlt8f'lt, or shall reilllbut'Be landlor-d
for the amount thereof, 8S the case mBY be.
(1) Tenant's obligations unOaT this ,Sec-lion 2.04 shall Burvive the expiration or earlier
terMination of the term of this Lease.
(j) In the event of any (bs:oute liS tt) the floar erea in the Shopp1nS Cenler or any pat'lion
thereof (other than the leased preci8Bb which shall be deteNlined by the provieiona of the Indenture
of Lease), the determinstiDn of landlord'. architect shill be bInding u"on the partiet8.
SECTION 2.05. Additional Rent.
AU sums of money or charges rBCJ.Iired to be paid by Tenant t.lf"lder thiB lease, whether or not.
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the SAe are cMa1gnat.d 'ludditiDnal rent", shall fot" all purposes hereunder be dee.ed and ehall be
paid b)' Tenant as refit. If luch MOoota or chargelll are not paid at. the tiN provided in this Leue..
they shall nevertheleu, if nc.t paid 'When due. be collectible 8S rent. with the next lnst.ell.l!!lnt or
fixed Minillum Rent thereafter falling due hereunder and shall bear interest fro. t.he due date thereof
to the d.te of p&yMl1t .t the highe.t ret. .Uowed by 1.0,
ARTIa.E 111
BllOKS or ACCIlJ/T MID AlDIT
SECTION 3,01. Too.nt'. Record..
<e) llK181"1t ~"'en8ntB and *oreel that. the buRin... of T..ant and Qf any subtenant.. licensee
or concessionaire. upon the delli.ad preMi.... shaU be aperatad 80 that . dup11cate dated salea slip.
dated invoice or dated cIBhregister receipt, ..riall)' nu.bered. shall be laued wit~ ..~ 8Bl. or
tranaactIDn. whether far" eesh. credit:. or incehangi, end to record'.l1 cash.....yes 1en..t shall utilize"
or eaU$e t.o be utilized, cash registers e~ipped with eealed continuous total ar auch other- devote_
for controlling s81s8 IS LlU'ldlard ahall .pprave. furthermore, Tenant ahall- keep at all ti_s during
the ten hereof I at the dellisld prImae. or at the general office of Tenant, full, COIIPlete .nd
8CCUl'Ite books of account and recards in Record.nee .1tt't Iccepted accounting pr.ctlces ",ith respect to
all operations of the business to be conducted in or froll tho dellilad preais6 including t without
limit8tian, the recording of Gross Sales an4 the receipt of 811 _rchandise into and the delilU'ery of'
811 merchandise from the deIIi.lld prelli... during the tel'_ hereoF IfId .hell retain alJ'Ch books and
recorda. capies of all t.lll reports subllli.ttea to the appropriete ta.dng authorJ.ties, .. well as copies
of conlrecte, vouchers, Checks, inventory records. dlted cash register tIpS. end ather docu~ts and
pspere in any way relating to the operation of such buaineaa (all of which are hereinafter
coller:tively referred to 8. "baOtc:B and records"), for at least three (,) years froll the end of the
lease year to which they Br'e applicable, or, if an 8udit 18 cOllmanced or if I: controversy shDuld arise
between the par-ties hereto reoarding the rent pa)'lble hereur'lder, until such aUdit or controversy is
terminated even though 8uch retention period .BY be .fter the expiration of the ter. of. or ear-lieI'
terlllination of, this Laase. Such books end rer:ords shall at all reasonable times during the .foresald
retention period be open to the inspection of landlord or Us duly euthorh:ed repres8l'ltatives, who
shell neve full .nd 'ree access to such books III'Id records., the right to audit such books and reCQrds
end the right to req,Jire of Tenant, its agents and ell'iploytu!!I, aueh infafllt8tiDf"l or e)Cplanation with
respect to such books and recDt'de 18 lIB)' be neCe8$Bry for 8 proper examination end/ar audit thereof.
(b) In the event len..,t viol.t.. the provision. of Section 3.0ll.) ....d .8 . result of such
violation. Lsndlord. or its duly authorized representative. is unable to collduct a proper exetdnat.i.on
and/ar audit, t.he partin _grlte that landlord Shall have been deprived of an important right under
this LeaBe and, as 8 result thereof, will 8uffer dalRage' in an .mount which is not readily
8scertainable and thus, in such Itvent. landlord, in addition to and not in lieu of any other relll!idieB
which landlDrd has under t.his LeaBe, It law or in eq,iity, shall have the right., at ita option, to
collect, 85 liCJJidated damaoea Bnd not 88 a penslt:y, -an amount e~al to b,enty percent (20~) of the
greater of (.) Percentage Rent reported for the period or periods in qJestion. 01' (b) the annual Fixed
Minimum Rent payable for the period Dr periods i~ question.
SECTION 3.02. Audit.
If the-exallination and/or audit referred to in Section 3.01 shell disclose that Tensnt has
understated its Gross Sales by CJI'Ie percent- (1:)' or .Dre for the period being enca.inedt Tenant ahall
pay to Landlord t upon de..nd, the cost Df such exaait"l8tion and/or audit in addit.ion to the deficiency
.in Percentaoe Rent which shall be payable 1n any event. In addition, tllndlord 1I8Y tt'eat the eldsll!tOCe
of such liability 88 8 Deliberate Event of Oef8ult.
Aft lICLE IV
CONSTRUCTION OF LEASED PREMISES
SECTION .l.t..Ol. Construction!!l. tBndlord~
landlord, st its cost and expenBe, shall construct the demised preais8s incorporating in
euc:h construction all HeM of wotk described 89 Landlord'. Work in Exh.ibH HAil attached hereto and
made 8 part hereof (all such itelftS are hereinafter collectively referred to sa "Landlord I B Work")..
landlord shell have the exclusive right to dete-Nil'le the architectural design snd the structural,
mechanical and otheI' IItandard det.ails and specifications of Landlord's Work, including.. but not
limited to, the type of I18ter1eJs and the manufacturer and 8upplier thereof.
SECTION 4.02. lensntls I~rovements and Fixtures.
C.) Within thirty (30) daya after Landlordfa architect provides Tenant with Outline Plans
for the demised premises, Tenant shall furnish be LandloI'd, for Landlord'a approval, co~lete working
dnwinl}B IInd speciricetionst pursuant to r"hibit "A".
(b) Within ten (10) days after the notice of approval of lenant'e cOlllplete working drawings
and 5pBcificat.ions by landlord's architect, Tenant shall. at ite: sole COBl Bnd expenBe, subject to any
- s -
provisiuns fDr reh,bur:llellent eet forth in the Indenture.. c~ence and thereafter pr~tly coaaplete all
the work and other req,JirllllCllntB ll1posed upon Tenant 1n Exhibit "A-, (all 8uch lteuas being herein
ref'erred to .. "Ten.nt's Work"). In the event Landlord, on Tenant's behalf, shall pl!trfON any work or
ineblll any lICJ.Iiplllent included in Tenant.'e Work, Tenant, within firteen (is) dB". .fter t'eceipt Dr a
bill thereFor, oholl por to Lendlord, o. Bddltional rent, a ouo .QUol to all au.. paid and "".to
incurred by Landlord in perforaing ouch work and/or inotaIling .ucn .QUip...nt plus adllinlatraUve
costo af Londlol'll in . aU8 eQUal I:a t_ty percent (201) of Buen .uas and/ar costo. Natwithatanding
anything cantoinsd in this Sectian 4.02 ta th. contrary, londlDl'II sholl not be ruponBiblo Dr liabl.
t.o Tenant, ibl ,u)enu, ..rv...te, IIlIIlPloyees. licer18888, Dr cont.r.cto.". or their reapeetive .gente,
.srvonta, 811pIDyeea, liceno_ Dr eootracto1'1l, for ....y 10.. ar _ge to the prop.rty af _h perty
oceurring priar I:a ar .ubs.",ent I:a th. o_nD8Mnt of the tara. Nothing in thl. L...e Bhall be
construed RS in any oy constituting. cOIlBBnt:. or reqJ8st. by LlII1dlol'd, expre..ed or illPlied, by
inference Dr otherwh., to any contr.ctar, .ubcontractor, laborer, or _terialll8f1 for the perfDrllance
of ony labor of the furnishing of any ..terie1.. for any spscific or gensr.l illpro...,ent, alt.ration,
ar repair Dr or to the dea~.ad pretti.. or to 8f1Y bUildil:lge or illPE'o"elleftte thereon. .or lo ..ny part
thereof.
SECTION 4.03, finoncing.
landlord rllBervl!S the right to sever the ownership or or title to the \l'8r-ioUB section8 of
t.he Shopping Center and/or to p!8ee aartoaqea DI1 "id .ection., in which C88e the right of Tenant end
other tenants in the ShoppinQ Center will be pr..ened by a written declaration Dr agree.ent, to be
executed by landlord and duly recorded. ereating .utuel. reciprocal ....d 1nterdetJ.-.dent rignt.e to US"
the parkinll end other cDllllDn 81:'ea8 Ind the uUllUee and f.e11itiea naedsd for the Full use end
.nJoyaent af tho daai..d proal.e. by Tenont end oth.r tanento ar occuponts in tile Shapping Cant.r
without illjloirin9 ony af the duti.o ornI obligationa of L....dlDrd to Tenant und.r tniB Le.... Tanant
ahall execute frolft tine tD tine 8uch !natrullel'lta reasonably E'eQJired by Landlord and ite tnortgagee t.D
eFfectuate the provialano af this Section 4.0).
SECTION 4.04. Excuse of Perfor.ance.
NotwithstandIng anyt"ing in this L_se to the contrary, if TeoElnt. ahall be delayed or
hindered in or p~evnnted from performance of any act requited hereunder by r~Bson of Bny strlket lock-
out, labo~ dispute, civil camaotion, warlike operatian, invasion, rebellion, hostilitiest military or
usurped power, .abotage, governllental regulations or c~trolsl failure of power, inability to obtai.n
any mater1Bl or aerv1eB, Act of GDCI or other reasona Df', s -like nature not related to the fault of
Ten8t'lt, then perforunce of such act by Tenant Shall. be excused for the period Df the delay end the
period for the perfomance of any Such Bct by Tenant. shall be extended for. period e~halent to the
period of such delay; provided, however, the fDreODlng prov"isian of this Section 4.04 shall not excuee
Tenant froll the prompt paYllent of Flxed Minillum Rent. percent.age Rent, Tax Rent, Bdditional rent or
any other payments required by the teras of this Lease. Motwithst8~dino anything in this lease to the
contra!:'y, L.ndlord shall not be dee"ed 1n default with tI!lspeet to the- perFontJsnce of any of the terms,
covensn!::. and conditions of thia Leise if landlordl& failure to perform euch terauit ~OYen8nts and
conditian8 is due to .nr strike, lockout. labor dispute.. civil cotmotion7 warlike operation, invesion,
rebellion, hastllities, flil1hry ar usurped pDICer, .Bbot.age I goyormlet'ltal regulatiDns Dr controls,
f.Hure of power, inability ta obtBin any uterial, 8erYice or financing, Act of God.. fire or other
casualty Dr other cause, whether similar or diss1.lilar to thDlJe enumerated in this Section, which is
beyond the reasonable cDntrol of Landlord.
ARTIClE V
CDNDlJCT Of BUS INESS
SECTION 5.Ul. U... Dr Pr""'i....
(.) "tiCePt'.s otherwise speCifically provided nerein~ cOlI.el'1cing on the cormencellte"t date
and the~e8rter for the bal.nee of the t.er. of this Lease, Tenant shall continuously occupy and use the
demised pre",ise. solely for tonducting the business specified in the Indenture of Lesse 88 the
parmitted use, and will not use or permit or euffer the use of the demised premises for any other
business or purpose. In .ddlt1an. Tenant 89reBs that Tenanl ahall not oper:Bte or Cause or permit to
be operated any catalDgue, 18il, or telephone order 8ale8 in or from the demised premises except the
incident.l sale of MerchendiBe which Te~.nt is peraitt..d to sell over the CDunter to customet8 in the
d.mised prelli..B PUrBUBIlt to tne permitted u.e set forth in the Indenture of Le.se. The autharization
of the use Df the pr_iBes for the butinus8 purposes set fort.h in the Indenture of lease does not
constitute 8 representation or warranty by Landlord that any particular use of the premises i. now Dr
will continue to be permitted under applicable l.ws or reQulations.
(b) TI,"8nt shall not per-ait, allow or cause Bny of the rollo"ing to be conducted in the
demised prellises: any public or private auction, Dr any sale which "'Duld indicate to the public that
Tenent 18 bankrupt, i8 ;o1n9 out. Df business, or he. 108t its leaae. Tenant sh811 not use or permit
any use of the detllieed prellises. exc-ept in e ..nnet' cOIlsi.tent with the generel high atandards of
.erenandiaing in the Shopping Center, nar ehall Ten8~t'8 advertising indicate or infer that Tenant i8
operating its bUS!nB8S 1n . ..nner which i8 not consistent with the general high standards of
lletehandising in the Shopping Center. Nothing oontained in this. Section 5.0l(b) Shall affeet Dr is
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srCTltlj 5.02. StDraIj.
Ten.nt iIIIo _NIDII., .tatl' _lor .tDDIr .Ill tho a_od p__ 1Il1y .""h gDOdl, .roo end
IOrch.nail. II T....t iI pono1ttod ..d intondo to off_ fill' oaltI .t ..toll .Ill, .t or ft'Oll the l....d
pmi.... Thil _11 not p_ludo _~ -l'IJIIICY a-f... of _db. to other .I:oreo of
T....t, if ony. not l_ted II1t111n tho Shopp1n9 Conter.
srCTltlj 5.03. Additional l/o. of tile Pred....
Tonlllt ""nnlllti'incj-O'gNia that l..ent It lte -. """t end _.
(.) Will Jr.." ill ..tedor one! interior .taro rtllnt nrf_ cl.... ..d "ill _intoin the
..st of the de.bod preal... ..d .11 corrido.. IlId lHding ._ t.edbtely odJoining thl do.i...d
pr!llll... in . clean, orderly wad unitary canditian .mI rn. ar 1naecta, rodents, "enain .,d oth.t
pests; . . '
(b) Will not """'it .,.,.....l.U.... of .." rof..., but will ~v. the .... daily .nd k.ep
.- rofuae tn ador-flroof, rat-9n>of conboin..... wit.hin ,tho interior of tile d..1ood p....II1... shielded
frDll the view of the gen....l public ",Ul ~ved ..d "ill not "'m ..,. ...fuR ""-t.a.,"r but "ill
cau.. .11 SUCh refu.. to be .....od by ouch "".......or ~ia., IIlaludin9 LlIldlard, .. ..y be
de.ign.tld in writing by Londlard ..d 11111 PIIY all chor9n thar:efar, .Ul HeU" .U _t garb.g. in
he.vy-duty trllh begs, .nd "ill "'" _cisl ....ana-ta for tha dispaul af ony f.ts, aU., gr......
.nd/ar b.tt.r. If ranont "".U rul ta _. .11 .....h tl'f...... or _ld fill ta like ap.dal
.rrll1gelllnto far the dl.pa..l of .." f.bo, aUs. g...... ..d/or b.tter. Londlard ..y ro",," or disPClle
of tho .... and T.....t 11III11 pay to \.IInlIlard .U _ ..d .....te lMurred by Landlord in ".rfa....lng
.uch rema..l or dilp...l plus adaini"troU," _te of tho LMdlat1l in . a.. ..",al to twenty percent
(2D=) of suCh e.. endlar _bo . addlUonsl rant,
(c) WUl r""l.... pr_tly "ith gIll. of like Ic1nd and "",lity .." pl.te gIns or dttdDw
gl.8S of the dellilsd prllllia.1 which .y bacolle cracked ar broken;
(d) Will not. wtthout tho lMidlord'. prior wrltbtn """"...t. pl_ Dr ..int.ln ..y
_rchendise or Dth.r erttcl.. in ...y vestibule or ...try Df tho __ ~.... ar ..ithin ba (2) feet
Df any ..ntnnce f.... the dni.ad prllUe.. tD the ""loe.d _U, sn tho faDtw.lka edJ."...t tharete Dr
elsewnen on the exteriar theno'l
\e) Will nat ... ar penit the UIU~ of ..y Ipparatua, III" sound reproduction or trlll1ss1saion,
er any ......cel inst~t, in .ueII _e. th.t the ......., eo I'lIProduced. t.......tbod or predueed ehall
be eudible b.ysnd tho canftn.. Df t/Ie pn.i.... II1d "ill not "" sny athlr .'lYlrtl.ai"'l ..dl..,
including without itan.tt... fl..hll19 Ughte, or ..arch U!lhte which _y be heard ar oaplrienced
Dutoid. ef tho lan.d p...101l'
( f) Will k...p ell aechll1ic.l app.r.tus fI'ae Dr .ibraUsn end no101 which ..y be tran..Htld
b..yend the can fln.e Df the d..i.ad p...1oe.,
(g) Will not cau.. or pe.IIU obJectisn.bl. ado... to _enate Dr be diapell.d frOll the
d~il.d p~isest
(h) Will not .oUcH .....In.... diltrlbuto handbilb Dr ather ad.lrU.ing ..tter Dr hDld
dentetnstnHon. in the Plrkin; ar... or other ec-an Area,
0) Will nDt perait the parking Df doUvlry _icl.. ID . tll tnterfl" with the YOe Df any
dr.ive"ay, ".lk, par-k1ng .1'.., or other Co.IOn Are. in the Shapping C8nter;
(j) Will c_ly "ith 011 notices, ardor.. ltIw and Drdin_. mcludin9 .11 ....lronaentol
1... and led rellting to ...t.. and haurdoull ..terW. .. any enw1rDlWBl1tal .tate, CDunt.y or 101::&1
law Qr regulations, the CalprehensiY8 En.iron_ntal R_pgnBB, eo.pen..Uan ud Lilab111ty Act of 1980
ana the Resource CanlllrvaUan ..d lteco".ry Act or 19761 .. ...ded fr_ t1_ tD tille, with any prl!-
.ppreYSlI, if ..",ired, to be grll1ted by the reepeetiY. _......bol .gency, ..d aU r'_.Uen.
of the A11loci.t1on of rire Underwriten, r.etory ItIb:lti tneu1"aIICe Calpant_1 the- Jneunance Servicaa
Drg""inUen, Dr ether ol.il.r body ..t.bU.hing .tand.ra fDr fi... in.urIIle. ...Ung. with ...pect to
tM UIIe or ocC'upaney or the pr..is.a by Ten...t, WId will plrtlc1p.te in per1Dd1c fire b:rig.de
instruction and drills at the f'eqJnt of l8ndlDrd and will supply, ..intain, repair- Md replace ror
if 9:00 p.lll.. or ~ hours
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intended to affect Tanont'. p:-1einv pol.1ci...
(c) Beca... the ad.",ocy or the _tal ~r 11 Ilopllodont. """" T....t.. G_ S.l.a
Ilhethlr Dr nDt Pe..anbog. Rent 10 payellls ..~. llll..t ...... that _..ing "ith thl
_ne..ent d.te ..d the...rter throughout the tera or thia ~, r_t will continuDualy, acti..ly
end diligently operate ar ""... the pono1ttlld -..au to ba -""tad .Ill good 'aith IlId In ..
efficient, b..t.....allJco and ....poctalla _r. _.IIltain1ng in tI1e doaiIld proal... . ruU etaff Df
_lDY". end . full ItDclc Df ___le .~ or the ..,aUty, kind. type - breedth lIh.1ch
r..""t Ulually .Ills, end _laying r....t.. ...t eantillual .ffDrta .... abiliUn ... thl ..d th.t the
.xi... Gral. 5.1.. lIlt1ch can .......ably be prad....., ,... tINt dnlaad or-t- ....11 be produced.
T..lI1t .hall not ... ar Pllno1t ony YO. of the delI10ad pnIIi_. or .." pert thoreof, .Ill a _Ir which
in Lanll.1arll'e opinion ......ld injure tho _tott... or the 5hDpplng Contar Dr the nligtlborhClDd af' which
it 10 e part.
(d) lbrougllllUt the tera Dr this Lnu. T_t oha11 _ lta 11:0.. tll ......in open frail
10.00 A.M. llI'Itil .t !oBlt*f.. P .11. """" doy of tho .... .. tMu houN ... s..ndaya ..d haUd.,.
during whiell tho sn~lo_ aalLla .ap" to .the.pooh".. 'T-.t..... ..that J:he..bou.....dW::inQ .m1ch
t.....t i. obl1V.ted to _r.te _y be .I_'Io6d by lAnd.lard rr.. u. tll u.. p~w1dld that LandlDrd
.Ul not ...t in . dilcria1natary ......r.
(.) renant 11III11 _..ta ..d/ar edvarUea the ....In... .......ted .t Dr rr.. thl dllliled
p..ill. sn1y undel' the n_ oat farth in the fint _ af the IndontuN of Le..I. ...1eu and until
thl "" af ..ather na. iI ......itted. in writing. by Landlat1l.
- 7 -
the de.i8sd prelJi.es an)' fire c'tt.1nguishera ot Dther fire prevention eCJJ1~lHmt (including installation
of approY.d hood. and duoto if oooking aoUvity ia conducted on the pr..uaos) .."'i....d by the
afotBlI8ntioned rulea, regu!Btiane alld Association or other body in order to obttin inaurwJee at the
lowest available pre.iull rate throughout the teN 0' thia Lease, end will not:. engage in the t.reat.en~
of any ..at.. exoept ao p8t".nted or re",ired by law and aubj.ct to the oonoent of the l_lard end
the ia.uanoe of all appropriate Hoon.... and p.r.ite and COIIPHano. ..Uh all 1.... and regulaHone
relating t:.o 8uch treetment;
(k) Will not reoeiv. or .hip .rUol... of any kind ex""pt through the f.ciliU... provided
for that purpoo. by L.andlord .nd ..ill not pertlit any deUvery Df good" ._a.., earchandi.., or
nxture. to or frOll the hased prll8h.. to be ..d. through any of the enc:l08ed Ml18 unlea. the 1._
preolia.. hay. no antr"""" other than OIl auoh a _11, in ""i.... latter cue lanant ..all usa ita _t
Itffart8 to schedule .ueh deliverie!l outside Shopping Center buslneal hours, e.cept with ~dlordl.
epptova1 1ft eeergency aitultional
(1) ~ill light the ahow windoll8 of the _a"" pr_ia.. and axtarior .ign. aaoto clay of tIw
yeor to the axtont ""ich oh.ll be ro",irod by ,L.ndlord but in ,!o event 1atar than ORa hour .ftar the
close of the C..t:er;
(.) ror eny exterior entrenee Dr service door elCClulJhely 8erving the dellised premi_,
..ill ke.p 011 oubide .r..o iloftledi.toly adjoining the ..... including, but not U_ited to, a1da...1ks
snd loading clocko free fr... ioe end anow .nd renent hereby .g..... thot Tenant is aol..ly li.b1.. for _y
accidents oceurrir1g on aeid outside areas due at' alleged to be due to any eccuraulation of ice end
snow;
(n) Will refBr to the nllle Df the Shopping Center in aU advertising done to pr.-ot.e 8ales
at the demieed premises;
(0) ~Ul. if re",ired by londlord. inet811, inapect and maintain filtration <laYices,
including, without limitBtion, grease trap., all splitters and/or acid neutralizer6, in end an
Tenant'8 sewage linea prior to any d.i$chllrge of water or se"lge frOG the dellised pre.l... into
landlord.. S~et lines. In the event thst:. Tenant ahall fail to Inste1l, inspect ot aaintain the
.fo~e..jd filtration devices, Landlord may undertake such installation, inspection and/or .aintenance
ond Tenont sholl poy to I.8ndlord 011 .""" and coot. .incurred by lo...diord in p..rforaing auch
instalbtion, in.pecticn and/or lIaintenance plus adaif\istrative coats Df the Landlord in . ...... eCJ1al
to twenty percent (20::) of such SUIIIS III1dlar casts as additionsl rent.
(p) Will not use the plumbinQ facilities for any other purpose than that far wh.ic:h they 8re
constructed and ..Ul not per.it any foreign lIub9tance of BOY kind to be thrOMh therein snd the expense
of repairing IIT1Y breakage, stopp.ge, seepage '01' damsge, .-whether occur-Uno on Qr off the pr-eRiaes,
resulting from a "iolBlion of this proviSion by lenent Dr TenantlB elaPloyees, agants Dr lnviteee sh.ll
be borne by Tenant. All grease traps Bod othe'r plumbing traps shall be kept clean and operable by
Tenant at Tenant's own cost and expense;
(q) Will J')Dt perm1t any shopping carts in' the Comlllon Areas even if taken there by
customers;
(r) Will not place or cause or perKllit to be pllllced within the dellised pt'eBIi.e&. pay
telephones, vending machines (e~ept those for the exclusiv. UBe or Tenant'. elIployeea) Dr BlIUBellent
devices of any kind without the prior written consent of Landlord;
SECTION 5.04. Rules and Regulatioos.
(8) Liiiid.iiira" reserves the right frOll tille t:.o title to adept and prollulgate rules and
regulations applicable to the dem1$ed prem1aes end the ShoPpin9 Center and to attend and 8upple.ent
such rules and regulations. Notice of BUch rule. and regulations end of any amendnent end aupple.entB
thereto .hall be given to Tenant .nd T.,ant agrees thereupon to comply with and obur'Ve all 8uch rules
and regulations. provided that, to the extent pr8cttc8ble, the 8ame Bhall be epp11ed uniforlftl)t' to
substantially all non-department store retail tenant. of the Snapping Center.
{bl llndlordls rii]ht8 Bnd remedies in the event hnant shall fsil to c-o~ly "ith and
observe such rules and regulations shall be the Bame as though Bueta rules and regulations were Bet
forth in Section S .OJ of this lease.
ARTICLE VI
GRANT or COOCESSIllNS
SECTlClN 6.01. Conditions to Grant.
The provision against subletting elaewhere contained 1n tnia leaae shall be applicable BO 8S
to prohibit Tenant from qrBnli~~ concessions without the consent of landlord for the operation or one
or more departments Df the business of Tenant, snd any grant of concessions consented to by landlord
shell be 5ubject to the conditions that (a) eBch such concession which ~ay be granted by Tenant:. shall
be subjeet to ell the terms snd provisions of this Lesse; (b) the GroBB Sales from the operation of
each such concession shall be deemed to be 8 part of the GroSB S81e8 of Tenant fDr the purpose of
determining the Percentage Rent payable to Landlord; (c) all of the provisions h.,reunder spply1ng to
the business of Tenant inCluding, but not l1rnited to, tile provisions of Articles II .00 III shall
apply to each such concession; (d) unles8 otherwise approved in writing by LandlDrd. .u~ depBtbaent
or departments shall be operated only as part of the business operation generally conducted by Tenant
on the demised premises and under the advertiaed nalle of Tenant; and (e) at least seventy_five percent
(75~) of the Bales floor ere, of the leBsed premises shall at all Umn be operated directly by
Tenant.
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ARTICLE VII
ClHOl AREAS
SECTION 7.01. O.f.nitian, Control.
All Bree., spaee, f.c1lJties, eqJlplIBnt, and s1gna, to the extent ade aVIUable by 18ndlord
for the COlllllon end joint UBIS and benefit of Landlord. Tenant and other tenants and DCcupanta of the
Shopping Center, Bnd their respet!tlve ellPloyees, agents, aubtensntB, eanr:esalonairea, lieeneeea,
cUBtDller8 and other inviteel, are collectively referr.d to herein 88 "ea..an Ares"" If and to the
extent _de 8vBllsble by llndlDrd, COIMI.on Are.. shall include, but not be liaited tc), the Bid_lks,
perking areas, ace.,.. roe. end drlv_, dr.h'ew8Y8, parking decks, bri.dges, landeclIPed are... truck
lordcewIYs, tunnels, IDllClil1Q docks, open IIfId eneloled pedestrl" .alk..y., corridoftl and _lla,
cDurts, stairs, rallp8, el",.ton, escalators, eo.fort .,d fint aid atetiona, public walShroc.s,
cannunity hall Dr auditoriua, paroel piClt....!> atationl and util.1ty Un.... All C_ Arttaa In or .lIbout
the Shopping Center 8ha11 be lubjllct t:.o the exclusb'e contral of landlord. Landlord ahall operate.
manage, 8qJip, c188l1, light., 8urfaee and lIIint.ain the COIIUIon Areu aU 1n such ..nner as Landlord, in
1t8 101e discretion, III)', frOOl U.e to tie, detef1ltne (including, without li_itation, the riQht to
knp the enclosed rlall open only during the hours wtum the Shopping Center ill open for bU.l".aa) and
Landlord shell have the Bole right and exclusive 8uthority to ..ploy and diach.~ all personnel with
r89pect thersto. Landlord hereby expreSSly reaar-..eS the right frotl lie to t.ime to construct t
uinta in and operate lighting end other facilities, equip.ent WId 81gns on alia' the -[:Dellan Are.1I1 to
clean the COI'IIrIOn Areas; to use Bnd allow Dtners to ule the Cmtft'lon Arells for any purpose ~ to enange the
sil"e, ares, level, location and arreng..ent of the Coeaon Ares.; to build -..!lti-etory and/or
subterranean parking faclUtie8; to regulate parking by tenants and other OCCUpBrlta of the Snapp-tnO'
Center and their respsctivs BlIPloyees, agents, subtenants, concl!lssionaires end licenseea; to enforce
parking charges (by operation of lIeters, ar othertt1ae) with appropriate provillona for perking ticket
vaHdet10n for tenants I to elo$e tSlIIPorat"ily all Dr .ny portion of the CDllllDn Areas for the purpose of
caking repairs, Changes oraJterstionB thereto or perror~ng necessary ..intenlnee in connection with
Bny emergency, in connection with closings resultin9 fro. .dversl weather conditions or for .ny other
purpose whatsQevltt, wnether such purpose is similar or dissimilar to the foregoing; to di,courage non-
customer parKing; to establish, InOdify and enforce reasonable- rules and regulations with respect to
the Common AreaS and the use to be made thereof. For the tara of' this lease Tenant is hereby given
the Hcerrse in COD'JOI'l with all others to whom landlord has .or _BY hereafter grant tighta to use, the
COIMX)n AreBs 8S they may frO/ll time to time e)(ist; provided, however, thGt if such license shall at eny
time be revoked, in whole Of ill put, or the size, area, level, locetion or arr8flgecnent of such Common
AreBS Dr the type of facilities st aoy time for~in9 8 ~art thereaF be chanowd, altered, re8r~an9~d or
diminished, Lendlord shall nat be subject to any liability therefor, nor _hsll Tenant be entitled to
any compenaatiOf1 ar dilllinut10n or sbateme-nt of rent therefor, nDr shall such alteration,
rearrangement, revocation, change or di.inutian of such Ccnman AreBS be dDemed &; constructive ar
actual ey iction or otherwise be grounds for terllinaUng Or lIodi fyin9 this Lease. In order to
es~.blilh that the ShoppinliJ Center or any portion thereof is and will continue to rearain private
property and to puvent a dedicstion thereof or the accrual of any rights to any pereon or to the
public: thereon, landlord hereby reserves the utu'estricted right, in Landlord's 80le discretion, to
close all or en)' por-Hon of the C~on Are.s to such extent .., 1n the opinion of the Landlord's
counsel, may be legally sufficient to prevent 8uch dedication thereof ar aecru_l of any rights to any
person or the public thereon; provided, however, L8ndlard reserves the rigtlt at Bny time and froll time
to time to dedicah to public use part or all of the ring roadB, access road, Bnd drives and utility
lines, together with all easeDlents relJ1ired to effectuate such dedicationa, as it IDa)' see fit.
SECTION 7.02. Parking Faciliti.s.
Tenant shall cauae it Bnd its 81llPloyees to park only in the outer ureas of the parking lot
Dr such places 88 provided and designated from ti.e to time by landlord ror e~lDyee pafking. ~ithin
ten (10) dRys after 8 req.lest by landlord, Tenant shall deUver to Landlord a liat or leolltlt'a and ita
ellployees' automobile., which such list ahall aet forth the description of end the license n~rabera
assigned to BUch automobiles and their state Df issue. Ihereafter, Tenant. ahall advise landlord of
Bny changes, 8ddlt.ions Dr deletionB in such list. If Bny automobile appearing on Baid lilt i8 pa~ked
in sny ares of the Shopping CDoter other than the areB designated by Landlord at sny time .ftsr
Lsndlord has given notice to Tenant or Tenantls Btore _.nBger thut the same automobile has previously
been parked in violation of this provision, then Tenant ehall psy to landlord the GUM of Twenty-rive
Oollars ($25.00) per day far each such BlItrnIobile for each day (or part thereof) it is parked in
violation of this provision. Tenant shall pay such sun to landlord within ten (10) days after receipt
of notice from landlord. In addition to the foregoing, Tenant hereby authorized Landlord in such
event to remQve from the Shopping Cent.er any of Ten.nt's autollobiles, or automobiles belanQioq to
Tenant's employees, and/or to sttllch violation stiQkers ot" notices to such automobileB, and Tenant
hereby waives Bl)d releases landlord end hereby IndemnJ.f.iee and holds Landlord harmlesllll fro" ell
clsiE, liabilities, costa and expenses which may arise therefron.
SECTION 7.03. Roof Walls Chanaes Bnd Additions to Center.
(a) ~o~ebY re9~rYeS the exclU81ve rlght .t .ny Ume and frOfl'l time to time to use
all or sny part of the roof and e)(terior walls of the demised premises for eny purpose; to erect
aC8ffolds, prote~tive b8r~i8rs or Dther aid! to construction on, around and about the exterior of the
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deMised premi.ee, provided that acceBS to the deailed premisea shall not be aubat8~tl.11y denied; to
enter the delli.eet pnnllaeB to ahore the foundation. and/or waU.. ttlereof and/or to .lost.II, ..1ntain,
uee, repair, inBpe~t end replace pipes, ducta, condulta end wir.. l..d:i.ng t.l't.rough or located Bdjaeent
to the de.hed p.....iae. Ind lervin~ oth.r parts of the Shopping Canter in loeetions ""ieh do not
GBleriaUy interfere wit.h TeftBtlt'e use thereof. Tenant. further agreee that Landlord aay _eke .ny UBe
it d9ires or the side or rear walla Dr ceiling apace of the demised premises, provided that t....re
.h.ll be no .n"roletl.ant upon the int.rior of the d.-iaed pre.ise.. lIIndlord'. rignt hereunder ..y be
ea: robed by Landlord' 8 designees.
(b) Landlord hereby r...rv.. the rJ.Qht .t: ..y u.. to ".ke alteratione or additions to, and
to build additional etori.. an, ond ta bolld adjoining to, the building in wIlieh the de.ieed preal....
are contained, and Tenant .hall have no intarest of ony kind "".tea.ver in the e.id addition. or
additional atore. or adjoining buildings. Landlord alao r..erves tfle r.ight to enlarge the: are. of the
Shopping Center by ad<lin~ Idditianal ground th.reta froe tie to U.. and, "".ther ar nat .0 enlerged,
to eon.lruet other buildlnge or 1nIprDV_ts in the Shopping Canter at any li_ and frOll U_ to U.s
.nd ta ..I<e alteroUona !;hereta or .dditions thereto ,and to. build .dditional etori....an...ueb..bu1ld1n\l
or /wildingl and to build adjoining tha ...e ...d ta eonatruet double-de"" elev.ted or aubterr.n....
p.rking fl"i1iti...
(e) If any excavation ahlllll be _de or authorized to be ..de upon land adjacent to the
181e8d premises, Tenent shall .fford tD the peraCW1 eausing or authorized to cause such exe8yation
license to enter upon the le.Bed prHiaes for the purpose of doing 8uc:h work &. l.ndlord ahall dee.
neee.aary to preaerwe the wall or the building of which the leased pro_iees forI! 8 part fro. injury or
damage and to support the .pe by proper foundation_, wit.holJt any clai. far d.ugeB Dr inde.,.1fieatJ.on
aga1nst landlord or dlminution or .bat~nt of rent.
(d) landlot"d Shall not be liable in MY Buch ease for .ny J.nconvenienCB, disturbence, 1088
Dr business or eny other annoYBnce Brising rr~ the exsrciBe of any or all of the rights of landlord
in this SI"tian 7 .OJ.
SECTION 7.04. RiQht to Reloe.te.
The pUl'p.oseat the plan hereto ...need aa Exhibit "B" is 801e1r to show the approxi_te
location of the demised premia.B. Landlord hereby J:'ltBsrve& the right at any time end from tiDe to
tille to make changes or revision in such plan, including, but not limited to, additions tD,
subtractions fro"" and/or relocat.ions or rearrangelJlef'lt8 of.; the buildings, parking ereas. and ather
COIlBM ArlS. (eo d.fined in S."tion 7 .01 hereof) anown. on aueh plen; provided only th.t the size ...d
location of the demised premises shall not be alte!:ed 'Bod rea.sonable actess theretD shall not be
substantially impaired; provided, however, that: lendlor-D r8BBrYI!tS the right to relocate e kiosk
pr8flises, It its sole ex:penee, to a location of e~al desirability upon fifteen (15) days. notice to
Tenant. -
SECTION 7.05. E.p.n....
L8ndlard (aubjeet to the CDlIRlon Area Payment as 8et forth in Section 7..06) will 8t its
expense ope rIte and uinta in or cause ttJ be ap8rated and maintained the Conunon Areas and the Shopping
Center.. Far the purposes of this Lease, "OperBting Coste" aha II be tha8e CQsts of" Dperating and
Maintsining, or of causing the operation Ind ..intenance of, the ComDon Areas Bnd t~e Shopping Center
of which the demised premiseB fol"llS a pert in . ..nner deelled by landlord to be reasonable BOd
8pprapriate including, but not: limited to, all CDlte and expense8, whether expended ar incurred of'
rep81rlng, lighting, cleaning, painting, refurbishing, replacing and saint.ining (inclUding, but not
lilnUed to, preventive maintenance) and insuring the a.u: with luch policies and companies and in 8u~n_
limits .s selected by landlord (ln~ludinv, uut not limited tD, fire inaurence with extended coverage,
Ibbll1ty insurBf1ce covering personsl injury, deaths and propel'ty daDl.ge with a persDnal injury
endors~nt cDvering ralae arrest, detention or imprisonment, malicious prosecution, libel and
slander, and wrongful entry or evietlon.. vor&c-.n'. CQIllpen88tion insurance, plate gla88 .insurance,
contractu81 liability 1neurBnce end fidelity bonda); remoYino -snow, lee, rubb1sh and debris;
inspecting, rental and depreciltion (over 8 period not exceeding 8ixty l60) Mo"tha) of .aehinery and
equiptlent lod ather non real estat.e a'.eta used in the aperetion and lIIIintensnce of the Shopping
Center, repa1ring and/or replacing of paving, roofing, curbs, walkways, landscaping.. drainage. Dn-site
water linss, senitlry sewer lines, .torm water lines. electrical lines end other equip~t serving the
property on "hich Shopping Center or eny part thereof i8 constructed or is to be conBtructed; heating.
ventilating and air conditioning enclosed COIIllon Are.s, uniforms and replacement of unlfoflllS; the
rental or lIIuaic pragr811l8, services and loudspeaker eY8tems including the furnishing of electricity
therefor; all Charge, that. may result from any environllental or ather laws, rules, regulation.,
guidelines or orders; the cost of obtelning and operating public transportatiDn ar 8huttle bus systemS
uled in "ann."tion with bringing customer. to the Shopping Center; the \lro.. eo~pen.8tian of all
pereonnel required Dr necelsar-y to i.ple~nt tne operation, maintenance, administ.ration, or repair of
the Shopping Center lncluding, without limitation, man8ge~ent, eBcretari81, off1ce, maintenence
personnel, the cost of compensating landlordls off-site personnel involved in the administration of,
and providing services to, the Shopping [enter, including, without li.itBtion, legell accounting and
secretarial personnel, based upon an apportionment or such compensation among all properties in which
Landlord or it. affiliates own 8n equity interest and to 8upervise Bnd accoqpli8h the foregoing and 8n
adminiatrathe charge sCfJal to fifteen percent (15%) of the total of all Operltlng Costa..
SECTI~ 7.06.
(0)
~ Area Payment.
For eaCii""Accounting Period" (as defined in Section 7.06(f) during the term of this
- 10 -
Lease I T.,,8nt shall ~y to LlIftdlard. _ addJ.tJ.anal rant,. .. Tenllnt.~. .tUlrlt or the Opel'at1nv Costa. .
au. ~al to tlta praduet otltllined by llUlt..\plying (1) tlta total [)panting Coata "'" auCh kcauntinq
Pariod 1."" .11 oantrlbutl""a tltareta actually aada ta \.8ndlard by accupanto of any 5epar.uly
Aaaaaaed P.....i... by (il) a fractian, tha n.......tor of ,,*,i"" ."all Ila the .~are feet af I1Dor ar.. af
tha daIoiaad pJ"aaiaaa IOld t:n. tlenllOlinatar of _ ahall D. tha .!JIar8 feet of le..d naar area in
the Shapping Contar.' for the pIaPOlI" af thts Section, Ia.8d flaar .ra. a"all .- the ....ar. feet
af flocr araa ill "claaed bulldillga ..nlch.are IIl'lICtad an PDrtiana af tha Shapp1ng Cant.r ath.r than
Saparataly AIIaaaaed Pra.iaaa .. defined jn Saction 2.U.(d), IIh1ch .re daaiQnod aacJaaivaly for vaa _
aec""ancy by tan..to ..tiler th.. accupanta of Sepant.1y _and f'roIIIa.. and. ...ich .. lJDCupied
purauant to an .",._t with lAndlord by the ta_ of oit1.cII landlanl ""tal"" ...... than . nlllainal
rental. All.uch floar uaa ....11 b. .. clotanined pu..u..t I:Il the prod.i""a af 5ectian 2.00\(J) ..d
a"all ba fixed a. af tha laat day of tIuI applicable AccounUng I'8riad.
(b) l)1 tit. fint day af .."" calemI... .with during, that portian of the taN her..of r.lling
within th. fir.t Ac<:a...Un; Period. T_t ...all pay to Landlord, in adv_. and .. odditianal ...nt,
without dennd and without ..y ..torf or daduction.J . alniJ!ua p._t... f~r, Tenant'. all..... of, the
Operating Casta .. ..t fDrt" in Sacti... Of" of tho Indani>lra Df La.... If the __t date
be"Df ""all not be th. rtrat d.y of . calend.r ...tII, T.....t.. payaant of ita sh.r. af Op.rating
Costo for tha fractional _t" betden tIllt ,..-c_nt data..d tha firat day of the firat full
caland.r aunt" in tit. tan _11 Ila prorated ... . par di.. b..U (calcul.ted "" . thirty (30' d.y
eanth) and ."all Ila pRid tog.tlulr with the firat p_t af n..d MIni.... Rent.
(c) After tit. f.lnot AccolDltin; P.riod, Tanont .b.ll c...tinua to pay .uch ain1mu. pa)'lllenta
for T...""t's ....r. Df ~er.ting Coata ... tII. firat day ar ..ch _th jn ad.ance and .. IlClditian.l
r.nt, witbDut da_d and without any .etorr or _tt..., but the .fo.....ld _unt ar Tellant'. Bb...
of IIp.rating Costa ..y b. incr_d by t.arldlard .,tar the and of _ Accounting P.riad during tile
t."" h.reof on the buio or tha .ctua.l Operetinq l:Data for the _diat.ly preceding Acc:al81ting
Period. Upon landlDrd fumi""1"g to T_t . .ta_t ..tting forth .uch ravlellCl Opar.ting Coats,
Tenant .".U pay I:Il landlDrd.1NICl1 ravle.d .hant in .",.1 ....thly inatal~ta, nDl1 .uch tnatal.laont
to b. " RUlli .!JI.I to one_twelfth (Uth) af ""'" rav1ead Oper.ting CGata in adv..ce on the fi....t tley of
..ch calend.r aantlt thar.aft.r ...W the nBet -o<lJnG ra.leian. .
(d' fallowing tit. and of a.ch .........ttnq Period ill ....iell Tenant '. .h.r. af Op.rating Coats
e"".eds tho aini... p.yant Ht farth .in Section "f'" of the Indllnture Df l....., landlord lIhall fumi.h
to Tenant. written .tate_nt in __le dIltaU CIIV.rlng tha Accounting Periad juet .xPir.d ""awing
the tatei Operating Coate for __ AccaIlntJng Period, the uaunt of r....ant.. praparU"".te ""are
thereof end p.,..."ta _ by Tenant with _pact _rata. In _in; tII. CGeplltaUon. .. aforesaid,
landlord'. atat..ant .b.U b. conclusiv. avielenc. ar Op.reting C..ts.
(a) If Tanant'. pnrpartianate ""... of Oper.ting Coats a""...d. Tenant'. p.ymenta with
r..poet to any Accounting Period, Tonent _11 pay to !.Mdlard tit. d.f1ciency within tlt8l1ty (2D) day.
after th. d.t. of the fuml.II1ng of the .tateaont fr... l.lllldlard.
(rJ rDr the purpo.. of thle l..... tha 1lPrc18 "Acc:DW1ting Pertad" ...an the period COtlIl1eting
of twelve (12) COlU08Cutlve c.land.. _tIuI .-cing an a date clot.rained by LandlDnI and .ecI'l
allcceadin; tw.lve (U) calandar ..nth p.riod _cing dudnq tha ta.... of tlti. le..a, prDvid.d,
how.ver, the firat lIce....tin; Period .tw.U c .~... the data the Shapping Center fir.t apana for
bU.ill..a with tho public and ....U taNin.te ... tIllt date ilaadiat.ly pr....ading the d.t. .a detandned
by Landlord. ' ,."
(g) If tha ta... of tltle L.... ............ .rter th.. data tit. Shapping Center first apena for
busin... with the pullllr Dr taNin.tea (ath.r than by re.."" of Tenant'. default) during an Aecauntlng
Period, Tenant'. oblig.tion far Tenant'. .hara of Operating C..te far .uch Accounting Period .".11 be
equitably pro-rated. .. .
(h) Tenant'. obligatian. under I:hia Section 7.06 ."a11 lu",ive the .xpiratian or ..rlier
t.rmin.tion of tha ta.. of I:hU l.....
SECTION 7.m. P~rU"'"ta Caat af Secur1tv.
Landliir _y eioct,Diit"ili..u nIIt be ...",trod, to provid. ..curH~ 'or the Shopping C.nt..r.
If Landlord .h.U .lact I:Il pnrvid. ..cuUty for tha Shopping Centar, Tenant ."011 p.y ita praparUDt1-
Ita co.t of .uch _urit,. datanlined .. fallowa.
Ca)" .. .. J'" . . . . ..... - .. 1_ .....- ..--- I..____r Tenant shall pay to
L.ndlord, .. .ddUlanel .....t. the ..aunt aIItainad by ..lt1plying tit. tatal of all ca.te and ..Petls...
of e\'l!ry kind .nd natun incurred by Landlord in pravicling ..curity far the Shopping Canter by a
fra.et1un, the nu.erator of l'lIh1eh 811.11 be the lIq,Jan fnt of. floar area of the deaiaed premi..., and
tb. d.nDleinator af wIIi"" ....11 be the .",ora f..t of ell "le...ble floor .r.." (n defin.d in Section
Z.04(d) of' WI L.....,* All such floor 8rea shull be _ determined pursuant to the prD'Iislon!l of
SectiDn Z.DA(j) end .holl b. fl",d.. af the l..t d.y of tho lII'pHc.ble Accounting Period.
(b) Tenll1t """ll ","yfits propartion.te cost of .ecurity within ~"iJ.;~Q) qay.s aFt.r .the
date of tho furnishing or I .tetamant af IUch charges by Landlord tlr L!fdl ~ or portim+
(e) AJ.though Tenant 8h.ll pay ita proportionate ahare 4' the eo.st of 8ecu:ril:.y, lIS
Bfarllll8Bid, 1n additiDl"l to, and nat: .. . campQnent af, its proportiDnlte share of Operating tests for
the purpose Df ArticleB XVIII ana XIX and SectiDns 1'.02, 14.01 and 2D.02 Df thill Leese, the ;ords
"Operating Costa" .hall be dtttllaed CD include such share of eost of a.cur1 ty .
ARTla.E VIII
SIGNS, AItIINllS; CANOPIES, rlX7URES, A1.JDlATIlIN5
- u -
~~thsn tb! llIIIUJt lEt forth in ~... K of the ~ af I.mse am in the DmIlE["
IBny :Uu in
+tI.,,,,,,f.
SECTION B. 01. S~gn8 I AwninOIl Bl'ld CanoPieD.
(8) ensnt 8hall.-at lta awn riBk. lawfully eteet. illu.inated signs, concerning the
bl.lBinnS8 of the occupant of the dellliHd preaieee t ,and agrees to _intain said &19"8 in good eand1tion
and _tete of repair and BeYll Landlord harala8s fro. any 1088 t cost or d_oe as a result. Dr the
erection, aaintenence, etc1.tence or t'ftIover of 8uch .igns.. All signs ahall be in ac:cardanee with
landlord'. Sign Specificetiane, . copy of which will b. .ttoched to the OuUine Pl.n ond lII1.11 be
.pproved in or !ting by londlord. Upon v.c.ting the d..1.ed prea1..e, the T enan t .gre.. to re.ove .11
signs end. repair all damaqe caused by luch r.oval. Tenant cDvlmmtll that no flashing. 111ua1nated or
p.per Bigna will be u.ed onY"here in the dea1eed pre.l... .od .11 .!gnlng 1. aubjoct to L_lord'.
prior written apprO\"al. Tenant ahlll not tnst:all or .ffix .n)' aign... _v1Ce,. antem.J fixture or-
ettach...nt an ar to tho ..teri.r Dr interiDr Df the deBi.ed preme.. inclUding, by ...y Df
J.l1ustretion, any wJ.ndow or door;: nor plIca any vent, atrueblre, building, 1JIptave.enl. 81gn Dr
adverti.sing device or DbBtruetian of an)' kind within the C~ A't'lta or on the exterior ar interiar
..11. .f the d_.ed pre.1o.., w1thllUt f1rot obtaininO Landlord's written cansent.
(b) T....nt .hell neither pl."" n.r _inbdn nor aufror to be pl.~ or .ainta1ned an the
exterior df'the demiaed Pfllll'liBB8 Dr on 'the gl... of any .indow Dr"ilDOl' at the diHlsed preabi_ which
.hall be vieLble fro. tile ..tariar thereDf Dr withln three (3) feet Df eny .uch 01... (ather than
neet1y lettered .ign. of r.uaneble 81ze pleced an the floor af the di.pley window identifying
articles offered for Bale and the price thereof) ..,y sign, 8'<<'Iing, canopy, decoration, lettering,
advertising utter or 1Ifl)l other thing without in each inst<<ctce first obtaining tandJard'a written
approval thereof; and Tenant fUl"thel' IIQre.. to design .,d to _intel., such .ign. decQration
letterinlJ, advertising ..atter ar other thing lIS _)' be approved 1n goad condition end repair at all
times.
(c) Tenant shall not paint o~ decar.te any part of the exteriar of the de.tsed pre.isea, or
.ny p.rt of tho pr..,1... wh1ch shall be vlaible (rOlll the exterior there.f, without first obtaining
Landlord's ~r1tten appraval of 8uch painting Dr decor.ticn.
Cd) Tenant shall install 8nd maintain .t all times, subject to the other proviSions of this
SectiOJ'\, displaYB ar seasonable m8t'chandiB8 .1n the shaw windo1lfS (if any) of the dem1eed prealees; and
1enant further agrees that all articles .nd the arr,ngl:msnt, style, color Bnd general eppearance
thereor t 1n the interiDr af the delli_eel prellia8s Mhich shall be visible 'rD. the exterior' thsl'eof t
including, but not limited tal window displays, IldvertleinQ atter, siqt1s, auu'cnandise and etore
fixtures, Shall be maintained in the premiass 40 as to ba in keeping with the character end &tsndsrds
of the Shopping Center.
SECTIDIl 8.02. Property in Dellised Premises.
(.) All leasehQld ~lIprOYelllents, 8ueh as light fixtures, heating and air..conditioning
e(J.1iprnent, shall when installed attach to the fee and becOtlle and re.a.in the properly Df Landlord.
Such property shall not be removed unleRs replaced with like property.
(bJ All in~entary and .11 trade fixtures hereafter installed or placed by Tenant in t.he
demised premises shall be new, shall relJlain the property of Tenant and snall be re~Qv8ble by TenBtlt at
the elCpiral:.ion Dr earlier termination of the terca of this Lease provided that: (1) Tenent ahall not at
Buell time be in default under t.hiB Lease t Bnd (2) in the event or the reaoval of any or all of such
properly Tenant shall proraptl)' rest.ore the dllftllge done to t:.he premises by the install.tion and/or
rellOvBl thereof. Should lert:8nt f8il to 8D l'8J1DVe Tenant II praperty and/or to 80 restore the prefli.8s,
Landlord lIay do 80,. collecting, at landlord's option, the eost and expenae thereof, aa additional
r8flt, upon demand. An)' such property .h1ch il not rBlIOved .and which by the ternm ar tn, leese is nDt
removable by Tenant at or prior to any terllination of this lease including, but: nat lilllited to, .
tr:rmination by Landlord pursullnt to this le.se, shall. unle8& Landlord gives Tenant notice to remove
any or 811 of such property I be end ~cwa the pfoper-ty of Landlord (without any obligation by
Landlord to pay cDnlpensation for such property). In the event Landlord gives Tenant au~h notice to
remove aDy or all of such property, Tensnt shall pronptly remove auch property 88 may b, specified by
Landlord in such notice. "otwithatanding 8nyth1no herein contained to the contrary or any decision of
any court to the contrary, the tere t1tr8de fi:lC.tures" shall not include any Itteched leasehold
improvementa including bot not limited to air-conditioning, haating, li9htin9, electrical .nd plu~bing
eq.lipment installed by Tenant in the de.ised pre.bee, nor .,y wiring ar other .pparatu. tel.tad
thereto.
(c) In the event Tenant ceases its business operation in the d.emised premises end 18 in
default with respect to its obligation far the continuous Dperation of its bUBinees, Tenant shall be
deemed to hbve abandoned the demised p~emi.eB and all prQperty of Tenant shall a180 be dee~ed to have
been abandoned 60d said property ~y be retained or dispoeed of by Landlord 88 landlord de8ires.
SECTION 8.03. l~provements and AlterationSa
(a) Tenant CQvenents and agrees nol: to CDake or permit to be made any alterationa,
improvements and additioo8 to the demised premises or any part thereof except by and with the written
consent of Landlord first had. All alterationst improvements and additiona to said pt.~i8e8 &hall be
made in 8ceardance with all applicable l8ws and shall at once when ~e or instilled be desaed to have
attached to the freehold end to navebncome the property of LandlQrd and shell rema1n for the benerit
af landlord at the end of the term or other expiration of this Leese in 88 good Drder and condition 88
they were when installed, reasonable wear and tear excepted.
. (b) In making such alterations, additions and improvements to the de.isl!Id preniae& and in
Installing such Chattels, equipment and fixtures or doing such other work, Tenant shall pro.ptly pay
ell contractors snd Materialmen so ae to ninilli2:e the possibility of . lien attaching to the demised
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predan or the Shopping tenter, and Tenant shall include in all contracta end. Bubcontrects far work
to be perfD.rlMJd on lenant's behalf at thede.ieed preailel pl"Ovision8 .merein such contraetor Ot'
aubcontractDr 8olcnowledges thllt Landlord h.. no U.ab1lity under such contracts and 8ubcoDtracte and
tn.t such contractor or 8ubcontractor wei'f'8s any right it may have to li.n ot' attach Landlorcl'a percel
Dt' the Shopping Center of which Lam!lordl. parCel 18 . part, .nd should any such lien or notice of"
intent10n 1:0 perfo1'Rl ar fumil!lh ..terialll ('INotice-) be .&de or filed, lenant ahall bond against. or
diad1aroe the .alllll Dr notice of intention to parrON Dr fum18h ..teriala (-Notice") within twenty
C2Dl day. .ftor writbon ..",..t by LanClIDrd. If T....t aIIsl~ f.il to c;.u.e suc.h lien or NoU"" to bot
bmded .g.inst or to be di.oharged within tho pariod .for..o.d, than, ... oddihan to any oth.r right
or r_y whioh Landlord _y h..e unllsr thia Louo, .t lAlla or in .",ity, Landlord ..y, but ahall not
be Dblig.tod to, di.ch."IIe the .... .ithor by paying tho uount clai..d to be due or by prllC1Jring the
discharge of e""h lien by deposit or by bonding proce.ding. O/1d, 1n .ny .uch o.ent, Landlord ahall be
e~t1tled, if Landlord .0 oleots, to "-01 the pro..cuUCWl of any .ot..... for the f..""'l.aeure or aUDh
lien or Notice by tho 'U..or with 1nto....t, coate and e....nses. Any aaaunt .0 paid by Landlord and
.U coo to ond elq>on.o. incurred by Landlord in conneoUan tharewith, together w1th intera.t thereon et
the ~ghe.t 'r.te 'poreittllcl by tow-fr.. .th.. respeotive lIetea Of 'tondlord'o .sklng 'of the p._t and
incurring of tho cost and exp.n.., .h.ll con.titute addition.l rent p.yabls by Ten.nt under thi. Lo..e
.nd .hell be p.id by Tenant to Lendlord on de"""".
(c) The prov.itlions Df this Article ahall survive the expiration or IlIBrller terllination of
the term of this lease.
ARTICLE IX
MAINTENANCE N/D REPAIRI StlRREMlfR /If LEASm PRElllSES
SECTION 9.01. Rep.irs .nd Heintsnence !!:l. Ton.nt. ".
(8) lenBnt Shill at all l1.lIes""it1't9 own expense keep and 1I&1nta~n the de.:l.sed pre.i8l1s
(inclUding, but not limited to, aU entrances emf the inside IU'Id outside of all gla,. in the doors end
windows and I.how window moldings) Bnd all part1tians, doors, fixtures, 819n&, equipment Bnd
appurtenances thereof in qood order ."d repair, and in 8 nest, 8afe, clean and orderly condition,
including, but not limited to, re880nsble periodic palnttng SB determined by Landlord and ..king all
non-structural ardinsry and extraordinary, far.neen and..url,farsssen repairs Ind repllc8..ent8 tD the
demised premise., lncluding. without lilaitatioo, repairs and replsC8l11ttOt5 to the plullbing MJd sewage
facilities within the demised premises Dr under the floor Blsb including free flow up to the nain
setller line. electrical, heating, ventilating and .air-c:ol'Jditioning llI)'stellB and escalators and
elevatora, if "y, and Ilt8chanical ayah_ and installations thlllrein. Tenant shall not o'f'el'laad the
e.lectril:al wiril'\g serving the prellises Dr within the prerllis8a, and will install at it.s own expense but
only .fter obb.ining Landlord's written approval, any additional electrical wlring wtd.c:h may be
reQJired in conneetiOl1 with ti'le dellliaed premises. .
(b) TenBf'lt will repair promptly at its own expense any damlge (whether structural or
nOM-structural) to the delli.ed premises cauaed by any construction Dr alter-aUona perfornred by Tenant
Dr bringing jnto the premililes eny property for Tenant's U$e, ar by the installation ar relloval of such
property, regardless of fault or by whom such dBnllge 8hell be caused t unless caul!Ied Bolely by the
negligence of Landlord or its servants Dr emploY81l1Sa
Ce} In the event Tenant defaulte in the perfo.runee to Landlord's 88Usfaction of any Df
its obligations under thi8 Section 9aOl, and 8uch default continues for. pllIriod of ten (.ul) daYB
after written notice frm L.sndlord C excl!tpt that in an. emergency no notice shsll be reCJ.Iired),
LandlOl"d, in addition tD landlord1s other remedies undsr this Lease, at 1.8" or in e~lty, ".Y (but
Shell not be obligated to do BO) cure Bueh default on behalf of Tenant without any liability of
Landlord, its agents, servants, employees, contractors or 8ubeontrlctDrs for d8tll'sge to Tenantt.8
lIerchandise, fixturn Dr Dther property or to lenantls business by reasDO thereof, and Tenant ahell
reilllbut'8e Landlord, as additional rent, upon deNnd, for any BUIIlB paid or costs incurrecl in curing
llIuch default, plus 8dllliniBtrBt.ive costs of landlord in 8 BUrl! ftqJal to twenty percent (20:=:) of 8uch
su~ and/or costs.
SECTION 9.02. Structural Repai,a.
(a) Except a8 otherwIse provided by 9.01(b), structural portions of the premises, the roof
Df the demiaed premdsB8 and those portions of the exterior of the demised pr~iee& which Tenant is not
obligated to maintain purluant to Section 9.01(8) will be repaired by LBndlord provided Tenlllnt gives
Landlord notice specifying the need for 8nd nlture of such repairs} prDvided. however, if L8ndlo~d Is
req..aired to make Bny repairs to such portions of the demised prollises by reason, in whole or in part,
of the negligent act or failure ta act by Tenant or Tenantls agent, servants, employees, contractors
or slJbr=on~r.ctora, .or by reason of Iny unusual use of the demised prelnisDs by lenal'lt (whether or not
such USe 18 a per.1tted use hereunder), Landlord .ay collect the cost of such repairs, alii additional
rent, upon dell8nd. For the purpose of this Leese, all)' dlrrerlllnce in floor level. shifting of floor
slab, Dr deviation in finished floor height resulting fran. the insertion or construction of an
expansion jQint Dr strip in the floor Blab ahall not be deemed 8 .~ructural defect requi~in9 repair by
Landlord, but rather, a normal const.ructiDn practice which shsll be Tenant'. rsspDnsibili ty to
appropriately plan for in its construction and use of the deMieed premisDe.
(b) If. ....ithout landlord '8 prior consent, Tenant perforM any slter8tions, additions,
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imp r-ovemsn ts , coanglll8., af'f1xelione of chattels or other work which .ffecta the ~lruct.ural portiona 0'
the dBllliud prera1aee end/ar the roof or the building of which thlll deaiaea prttllaes are a pert end/ot"
that po~tion of the eM:terior- of the delli.ee prud.see Nhieh landlord i. Qblig.te~ to t'ep.i.r purau~t. to
5ectiOh 9.02(.) or which .rrects the sttuctural integrity of the buUding of vtu.ch the l...ed pren.lses
shall farm 8 pert, such action by len8nt ahall release and dlad1arge Landlord.. of the C~en~t
ot such altar.tioo, addition, illluOYB.ent, .ffixation or aeher work of and (rOIl such repair obligat.1an
and therellftl!lr lenant ague8 to be 80lely ~espo"'.lble far the ..tntenance, rt!Ipa1r Bod replaaeaent of
any or dI such Itructurel portion., rDof, exterior ..d building whieh "VB been affected .s
.faresaid; provided, in the event lenant 8hall drtfault in the perra~ca, to lancUorcf'a ..tl.faC'tlCX\,
of ouch reaponaibll1ti.., Londlord, in addition to Landlord'. othar "'Mdiaa under t1JiB l..... .t l_
or in .",ity, _y (but .hell not be obliV.ted to do .0) CUb .uch def.ult an ~lf of Tanent Idthout
ony liability Dr Landlord, ito agento, ......to, Boploy...., contr.cto... or Btlbcontr.ctore for ~g.
to Tenant 'a ael'cnandi.., fixture. or at.her property Dl' to Ten.,t;.t. bwlinl88 by reason thareof, .xl
Tenant shall reillbunl tMldlol"d, _ addit.ional rent, upon de..nd. for any.... paid ar coata incurred
.In curing .""h def.ult, p1ue adll1niBtr.UYB c..to of \.endlord in . .ue e",.l to twnty perc.nt (ZOSl
of oucl\ ""me '.ndlor _to, for the ....rposoa 'of'tIJa foregolno, "If ionont petro.... any .uch
altar.Hons, addltiDrlI. il1lPratlllIBnts, c:t1anges. .fflxaUons or ather work in . unnlr not conai.tent
with lendlordr. prior con8ent thereto. such work .hIIII be de"Hd to have been perforMd without
Landlord's consent.
SECTION 9.03. Surrender of Pre.iBea.
At t.he expiration of or earlier- leninati.on of the terti Df this lellse, Tenll11t shall
pellce.hly 8urrender the leased premises in the .-.eo condition including. but. not Ii.ited to, the
conditi.ons of cle8nlineBB, 88 the leased pre.iles ware upon the COIIIIencelllltnt of the tere Df this
lease, Drdinary ..,.: ~ tear excepted to the extent th. l...ed pr8llieea 1a not re~ired tCJ be
repeired end/or ..intained by TenUit and d..age by unavoidable ca.ualty e:ll:cllpted to the extent that
the sue ia covered by Landlord's fire inlUl'8nCO policy with extended covlraoe endorsement, and Tenant
shall aurrender 1111 key. far the leaBed pre.iB.a to landlDrd at. the place then fixed for the payment
of rent. end shall noUfy Landlord in writing af 811 cDdb1natians af locks, aafes and vaults, if any.
in the l....d pr.miaes. Too""t .llIIll e_ly w.ltIJ the proYision. of Section 8.02 nop.et.l1\9 the
remoV'al of its property before surrendering the I1tllli.8. as .farea.ld. Arty property not 80 I:"ellOved Bt
the expiration Df the ter.. hereof. shall be deemed t.o h.V'1l been abandoned by Te1'l8nt, and lilY be
retained or disposed of by L8I\dlord, as Land:lord shall desire. Jan8ntls obligation to obaerve and
perform the covenants Bet forth 1n this Section 9.DJ shall survive the expiration or ea-rlier
termination af the term af this leass. . ~
ARTICU: i:
IHDEllilF ItA TIDHI SUBRIlGATTDN
SECTION 10.01. IndeMnification aoc Waiv~r of Clat..
(e) T~nant will defend and, eXQept~he extent caused by the negligence of LandlDrd. its
agents, servants, and elllployees I will inde.nlfy Landlord and Agent. snd eave them harlllless (rOll and
against en)' and all chins, actions, d8118ges, liability and expense (including, but nat limited to,
attorney'B fees and disbursements) in connection with the 108s of' life, penon.l injury or damage tD
prDperty D'[ business arising from. related to, or i.n cDrIll.i:tian with the accupaney or ase by TenBI'Jt: of
the delll.iaeci prelRieea or any part of Landlord t 8 property ar the Shopp1ng Center or occlllioned Wholly or
in pllrt by act or oniaaion of Tenant, its contr8l:tan:. BubcontractDul' 8ubtenents, licensees or
concessionaires. or ita or their respective agent.a. 8erv.,ts or enrployeel. Tenant ahall a180 pa)' all
costs. expenses and reasonable attDrney's fees that ..)' be eKpended or incurred by Lendlord and/or
Agent in BUccessfully enforcing the cQvenants and agreewaentB of t~i8 Least. The prQv1eionu of this
Section 10.01 shall survive the termination Dr earlier 8Kp1rat1on of the ter. of th1a Lease.
(b) Unl... and th"" oolo1y to the extent euch d....ge .10 e.used by tho neglivent .et. or
omissions of Landlord, Agent, or their respective agents, servant., and ...ployee8, neither Lendlord,
Agent nor their respective agents, servants, emplDyees Dr contr8ctors shall be liable for. and Tenunt.,
in cOl1eideration of Landlord's elleeution of thi8 LeaBs, hereby releasBe all claiM far 1088 of life,
personal injury Dr d8~Bge to property or business sustained by Tenant or any person clai.ino through
Tenant resulting frOll 8n)' fire, accident, occur-rence Dr condition in or upon the Shopping Cl!llI'1ter or
any "art. thereof (including. withDut Ii.itaUon, the d..iBed prendses end the building of which the
seme h a part), includ.:.ing, but not l1adt.ed to, such claim for 108s of' life, personal injury OJ:'
d9msge resulting from (1) sny defect in or failure of plullb1ng t heating Dr- air condil:.ioning eq,Jipatent,
electrical wiring or installation thereof. wehr pipes, stein, railiogB or walks; (2) any BCJ.Iipment
or appurt.enances being out of repair; (}) the bursting, leaking or running of any tank t washstand I
water closet, waste pipe, dr-ain or any other pipe or tank in, upon or about the Shopping Center; (~)
the backing up of any s~er pipe; (5) the escape or steam or hat water. (6) water, snow Dr lee being
upon or Com.lnfjl through the roof OJ:' any other place upon 0'[ near the demiaed preaiaes Dr the building
or fl'hieh t.he same is a part or otherwise. (1) the falling of any fixture, Plaster Dr atuccal (8)
broken q1889; (9) any act or omission of other tenants or ather occupants of the Shopping Center; and
(10) any Bet or omission of landlord, Agent or their respective principals, agents, servant. and
amployees Whether occurring on. prior to, or 8ubseqJenl:. to the date of this lease.. The foregoing
- 14 -
'.
waiver aod release is inbnded by Landlord and Tenant to be lbaolute f uncondit..ion.l end without
excepticn and to supersede any 8p~clfic repair obli08tion i~D8ed upon Landlord hereUnder.
ARTICLE Xl
INSURANCE
SECTIlIN 11.01. ]nsurance.
C.) Tenant will keep in farce in cacapanin licensed to do busines. 1n the .tete ~ere the
C.nt.r 10 located .t T.nont'. .xpen.. .t .II U... during the t.ra of this L.... .nd during ouch ather
ti~8' as Tenant occupies the deal. ad preal... ar any part thereofl
(Il Public U.bUlty intlur.nce with re.pect l:D the ""ll1eed pr.!.",,_ the .ide...lk.
abutting and sdjaining the de.leed pre.i..... if any, and the bUBine.8 op8r8t.ed by Tenant and any
subtenants, licansees, anI' concH.ion,ires af leoant 1n or f~ the de_i.ed pretti... with .1ni.ulI
11..it. of One MilUon Dall.re 1$I,OOO,OllIl) ':"""bined .ingl. liolit far _1Iy injury and property
d...g., .nd including co..rage far liability ...u..d und.r cantr.cte.
(2) "'orken' Callpen..tlan in.urenae whlet! will proYide for all Tenant.'. etIIplDyeea the
statutory benefitl for the state in which dell1sed pre.isBa are located, and will .180 include
Eoaplayers' U.bility in.urlllce odth .ini_ Huts of an. Hundred Thau..nd Dall.re ($]00,000.00).
(l) Such ather type. of in.ursnce (excluding rent inaur.nce in f..ar of Landlardl .nd
luch additional .flaunt, of inaurance n, in landlord.s juOglnent, are nec"sit.ted by good bU81ru~sB
practice.
(b) Prior to d.liv.ry of pos....ian of the do_iBed presi... end Mithln ten (10) d.ya of
each occasion or renewal or repJace.nt Df in8urance COYerege, thr-oughout the tilt. of the lease,
1 enant shall subllit t.o Landlord, arked "Attention Insurance OeJ)8t'tlftet1t". . .alld Certi fic.te of
Insunm::e, signed by In authorized 80ant of the insurer, which shall evidence all the insurance
ca..r.g. required by this S.ction 11.01 and which shail ..t forth the fallowing:
(l) LBndlord i8 n_ed In ".dd1tionBl insured" on the public liability insurance
(2) At least thirty (lO) d.y. prior naUce .han b. gi..n to L.ndlard e. to .ny
policy cancellation ar -"y material alteratiQn 1n coverage.
()) The public liability inslJt'ence polic)' 1s an Noccurrence" for.. or cover8ge;
(claims-made insurance is hot acceptable).
policy.
SECTION 11.02. Insurance Provislona.
It is a cond.ltion of this Lease that the 'fenant shall install Blld uintain, in prDper
working ot'der, an Underwriterls Laboratory and Rating Byre8U approved Autollst!c Extinguishing System
in the heods and ducts serving such Tenantl8 cooking Bq.Jipment and deep fat rryer.. The 8yatep! shall
also be arranged to shut orf the electrical current and/ot' 98& supply to the deep fat fryers when the
extinguishing sY8tea is Betiyated. ND change affecting the operation of this system shall be made
wit.l1aut qiving prior notification to the Landlord.
SECTION 11.03. Eff.ct an ]nsuronc..
(e) [anent 'Mill not do, CWIIit to dOt Dr suffer to bit done Dr keep Dr Buffer to be kept
anything in t upon or about the leased premises which will violate the prOVisions of Landlord IS
policies Insuring 8g'sinst 1088 Dr d8llllqe by fire or other hazarda (including, but not lillited to,
public liabillty)', which will .dyer.ely .ffect Landlord's fire or liability insurance premiulI rating
or which 'Mill prevent Llndlord frOll procuring 8uch policies in c0llP8niee 8ceeptl!llble tD landlord,
provided Tenent is firet given acIoqJate notice of t.he requirellents of such polic1e8. If anyth1ng
don!, oftlitted to be dane or suffered to be done by Tenent. or kept Dr Buffered by Tenant to be kept
in. upoo or about the pre_ises ahall by 1taelf Dr In coabinatiDn with other circu.9tanc88 existing at
the Snapping Center cause the gremiuM rate of fire or other insurance on the lea8ed pre_lees or other
property Df the Shopping Center in cOIllp81l1es acceptable to Landlord to be increased beyond the
estsbliehed rate fro. tiae to tiMe fixad by the appropriate underwritere with regard to the ute of the
demised premises for the purposea perllitted under this lease or to 8uch other property in the Shopping
Center ror the USe or use8 made thereof, Tenant will pay the amount of euch increase or, in the event
that Dther circurlStBnces existing at the ShoppinliJ Center shall hsve contributed to such increase, such
equitable portion or such increase 88 reasonably deter_lned by Landlord, 88 additional rent upon
landlord's dellland and .ill thereafter pey the amount of such increase, 118 the alme Ilay "'.ry from tillle
to tibet with respect to every prellliuIJ relating to coverage of the demised prelllisBs during 8 period
falling within the tor. of thi8 lease until such increBse i. eliminated. In additinnf if applicable.
landlord muy at its option rectify the condition existing on the demised premises which caused or was
. eontributinq CRuse of the increased premiuJl rate in the event that the lenant al1Duld fail to do 80
and may charge the cost of auch action to lenant a8 additional l'enl, payable on demand. In
determining whether increased prellliulI!I are the rs8ult of Tenant'. use of the Ie.Bsed prembe8, 8
schedule, isaued by the organization IINIking the insur.ncs rate on the leased premi-sfJlI, showing the
various conponenta of 8uch rate, ahall be concluBive evidence of the 8e...eral items and charges which
.eke up the fire insul"-"ce r8te on the leased preaiseB.
(b) If for any relSon wh.tsoever includin9, but not lillit:.ed to, the abandonment of the
dellised prefllisea, Tenent'. f.ilure to PBY the inBUrBnCe prelliulI at 'Tenant-e failure to oecupy the
dellhed premiseB 88 herein permi tted f Tenant fails to provide and keep it( For-ce any Or' all or the
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inaur.nce policies Bcl forth in Seetion 11.01 hereof. tt1en in such eYeIlt Tenant shall iOde.,1,.y end
hold Landlord harmleae egainat ~y loss which would have been covered by 8uch insurance.
(c:) If' Tenant shall not comply with its covenants ..de .in this Section, L8ndlord jn
addition to landlord's other re.,diea hereunder ..y (but ahall not be obligat.ed to) eeU8e ineurance
.., .foresale. to be issued. 811d in .uch 8'\"ant TMJant agrees to p8Y the pr_iUII for such .t.n.u:r.nee .~
additional rent promptly upon Landlord's .und, Dr landlord, at its opti.on. .8Y treat such failure to
cDmply a. 8 Deliberate Event of Default.
.TJC!.[ XII
UTILITIES
SECfI(t/ 12.01. UtilitillS. ,
. (al.. Tenant 8haU. b. 80lely ..aponaible for and 'pr_tlypay 8U Charges for heat, _ter
(including stMldby), electricity, sewer rente or chargea, sprinkler charges. A.D.T.. or ather alat'WI
eyst_, water treat.",ent facility ch.rges, and en)' other utility used ar consuHd in the leased
prwu8 or in providing heating 8r1d air conditioning to the leaaed pre_lees, 'li!ithout lillitetion,
together with .11 connection end serviCtl' charges and all taxes Dr other charges levied on such
utilities. said responsibility COIIUIencing on the Gate Lendlord notifies Tenant that t.he leased
premises are ready for TeNlnt'. cmrnenceMel1t of Tenant's Work. Should landlord elect or be t'eqJired
to supply Dr ..ke ByaUable Iny utility used or consumed .t the demised premises. Tenant agrees to
pUl'Chaa8 and pay for 18118, a8 additional rent. every IIOnth 1n the tent hereof; provided that. Tenant
Shall not be obligsted to PlY to landlard en aggregate annual lUll ttuuefDr in ex.QeB$ of the aggregate
InnuBl amount therefor which Tenant would otherwi8e be obligated bD pay for a1_1Iar util1ty U8age and
service .. . r.t.il cu.taosr Df tns public utility or .unicipsl I.thority then suppiying ouch utility
to the Cenler. Tenant agrees to purchase frDAI Landlord .nd pay for electric:ity to be used by Tenaf1t
at the demised premi8$a in accQrdance with the Utility Schedule .tteched hereto .. Exhibit "C".
(b) In the event that Tenant doel: not hne .& water lIetet installed in the }e_ed prelll!1e8.
Tenant ",ill pay to landlord, 8S additional rent, every month in the tl!rfR of thi& Lease tl'te Mini.uta
charge foC' the size or the Hne installed in tne leesed premiaes in aecoraance with tl1e rates.
established frOM tiMe to tis. by the company or authority supplying w.ter to the premises.
(c) In the svent the loeal authority, .unicipal1ty, utility or other body collects for the
Nster and/or sewerage or sanitery service end/ar consumption, as aforesaid, Tenant covenants and
agrees to pay the water end 8ftWer rent charge (both mlnillu. and otherMise) and any other tax.. rent,
levy, connection f~e al' trteter or other charge .which .now' or hereafter is 8ssei!ised, imposed or ..y
beeolH a lien upon the dellised praJlises, or the realty. of which they are a part, put'suant to 1.""
Drder or regulation made Qr isaued in connection with the use, consumption t maintenance or supply of
water, or the wBter or sewerage connection or system.
(d) In no event 8nall Landlord be liable to Tenant in damages or otherwise for any
interruption, curtailment or ._pension of any of the- foregoIng utility serviees in the event of B
defeult by Tensnt under this Leas! ar due to repairs, action of public Buthority, strikes, acts of God
Dr public enemy, or any other cause. whether similar or dissimilar to the aforesaid.
SECTION 12.02. Applio.tio" For Utilities.
Tenant shall mBKe-aI) appropriste applications to the locsl utjlity cDmpsnies at such times
.s shsll be necessary to lnsuf'e utiliti.es being avallable at the demised premiaea no lstsr th.8n the
cDlMJencelellt of the t.eTe and pay all l"eq..Jired dl!positB J connection fees and/ar charges for meters
within the applicable ti~ period set by the local utility company.
SECTION 12.03. Operation of Heatinq and Air~cnditionjnq.
Tenant must apel'ate heating and cooling equip~ent to "flintain store temperatures at such
tempe~.tures 85 will prevent the freezing or bursting of pipes and the draining Dfheated and chilled
lir from the enclosed naIl.
SECTION 12.04. Utility ~D.fi".d.
A.ll SUIIS to be paid by Tenant in 8ccordance with this Article XII are collectively hel"C'in
referred to as the "Utility Chlllrgell.
ARTICLE XIII
ESTOPPEL CERTIFICATE; SUBDRDINATI~I AlTOllN~NT
SECTION 13.01. Execution of EstoPf:el Certificate.
At eny tillle anTfroll 111e to hlle, upDn the lIIritten reCJJest of landlord or BOy mortqagee,
Tenant, within blenty (20) days of the date of such written req.Jf:st, agrees to execute 8fld de}jver to
Landlord and/or such mortgagee, without:. charge and in 8 forI! satisfaetor)' to Landlord and/or such
mortqaqee, a written stateaentl (.) ratifying this Leasej (b) confirming the co.~nceMent and
expiralion dates of the term Dr this Lease; (e) certifying that Tenant is in occupancy of the demised
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prea18es, and ttlat the Leal. is in full force end effect end has not been lIOdified t _lgned,
aupplementea or ..ended e.cept by .uch writings ae ahall be atetaa; (d) certifying thet all C<a>ditione
Ind agreements under thiB Leaee to be .eU,sHed or perfol"lNd by lanlUora have bean sa.tia"'ied ..,d
perfor",.d .xcept lIB .hall be atatad; (.) CIIrtifytng that LlIfldlord 18 not in default ..,der the le.e
end there ere no dofeno.. or off..ta l1geinot tho ..,forc...ont of thie leee by landlord, or etating the
defllUlto and/or def.noe. clsi.ed by Tenant; (f) reciting the aeaunt of sdvence rent. if any. paid by
T..,8I1t and the aste to oI1i"" Bud> rent haB been paidl (g) _iting tho asount af aecurity depoeited
with landlord, if anYI (h) certifying c_Uanee with the environ..ntal covananto of the Le... sa _t
forth in Section S .Ol(j) or the l.u.; ..,d (1) any ather info.asUan oI1ich landlord or the ...rl:9a9'.
shall reCJ.Iba.
SECTICl'/ 1l.02. f.ilure to E...cute EatallPel tert.! ficat..
the ra11urw oTlenent to axecuttl1 aCKnowleDge and deliver to Landlord and/Dr any ..,rtQ.gee
a .tat_nt 1n 8CCard8nce with the pravial.an. of Section 1l.01 Ibove a1thin the period aet fDrth In
SoeUan 1l.01 ahall constitute an aclcnaaledQ1lOflt by Tenont,eI)icl1.a.y be .rel1l1!l.upotl .bY'''y.pe::eon
holct1ng or intend'ing to ac:q.sire any 1nttllrdt tmaboever 1n the delli..d pre.i... Dr the Shopping Center
that this lease has nDt been uligned, ...nded, changed or IIOdified, is in full force and effect and
that the rixed MinimulI Rent, To Rent, Tenant'. share of Operating Castat Utilit, Charge, P8rcentage
Rent 8nd adoitian81 rent have bean duly Ind fully paid not beyond the reBp8cthe due date. l~di.tel,
preceding the date of the request for such atat.Not and shall constitute tIS to any persona entitled
t.o rely on lIueh _tate.ante 8 ..-her or .,y defaults by landlord ar defenses or offseta against the
.nforce~t of this tease by landlord' which MY exist prior to t.he: date of the written re",..t, and
landlord, et its optiant illY treat such failu['8 88 a Deliberate Event of' Oef.ult..
SECTION 13.03. SubordinatiDn and Attornment.
Tenant agrees {B) fhiit, except as hereinarter provided, this lesee is, and all of Tenant'.
rights hereunder are and shall always be, 8ubject and subDrdinate to Bny .ortgllge, leasH of
Landlord's prDperty (in aale-leaseback) pursuant to which Landlord has Dr shall ret.ain the right of
posseS5ian of the deeised pt"ellises Dr 8ecurity instrulDIInt& (collectiVely called "Mortgage-) th8t now
exist, or My hereafter be p18eed upDn the demised premises Dr the ShOPPing Center or any part thereof
and to all advBOces made OT' to be made thereunder gnd to thIS interest thereon, and all hnewals t
rBplacellents, IIOdlf1catiDns, consolidations, or extensions ,thereof; and (b) that if the holder of any
such Mol:'tgllge ("MortQsgee11), the pul'Chaser at any forecl08ure! .81e or .t any aale under 8 power of
881e contained in any Hal'toaqe, or the o.ner, ..t the Ulile,of..the hereinafter deseribed reQJlt8t, of the
fee estate or the leasehold 8at.ata of the rssl estate upon which the delli.ed premises is situate
(hereinafter referred to 89 Landlord for purposes of t:his Section) shall at its Bole optiOh so
reqJest, Tenant will attarn to, Bnd recognize Buch Mortgagee, purchaser, or lan.dlord, as the cas& alay
be, as Landlord under this Leese for the b81Bnee then remaining of the term Df this Lease, subject to
all terms of this leasei end (c) that the aforesaid provisions ahall be self operative at1d no further
instrullent or document Shall be necessary unless reCJJired by .ny auch Mort.gagee I purchaser, Dr
landlord. ~otwi thshnding anything to the contrary eet forth &bolfe, sny Hortgagee _.y at any ti.e
subordinate ita Mortgage to this Lease, without !enlnt's consent, by execution of . written dor:ument
&ubordill8ting auch Mort.gage to this Leese to the extent set forth therein, and thereupon this LeBse
shaU be deelled prior to such Martgege to the e_tent Bet Forth in such written document without regard
to their respective dates of execution, delivery and/or recordin9 Bnd in that eVlIInt, to the elCtent set
forth in Buch written dOCUMent .uch Mortgagee ahall have the Barile rights with re8pect to this Lease 8S
though this Lease had been executed and a lIIellOrandurn thereof recorded prior to the ekeeutian, delivery
.an~ recDrding of the Mortgage and as though this lease had been ..signed to .uch Mortgagee... Should
landlord or 8IlY HortQ80ee or purchaser desire confirmation or either auen 8ubcrdination or .uch
attarnllent, a8 the cue ..y be, Tet\ant upon written re~1l!l9t, and from time t.o tiH, _ill execute and
deHver without charge 8f1d in forI! Batiefactol"y to Landlord, the Mortgagee or the purchner all
in8tru.entB and/or doculI8nts that ..y be rCqJ8ated to acknD'llledge ~uch Bubordination and/ot' 8grceWlent
to attorn, in recordable ferm.
ARTICLE XIV
ASSIGNHENT AND SUBLETTING
SECTION 14.01, A..iqn~ent and SublettlnQ.
(8) Tenant ehelIlnnt voluntarily, involuntarily, or by operation of law 8ssign, trsosfer.
~rt9age or otherwise encullber (herein collectively referred tD 8S an 1188signment"~ this lease or .ny
Interest of Tenant herein I in tmole or in part, nor aublet the whole or any part of the de_tsed
pretllbes, nor permit the demised premises or any part thereof to be used or oct:uplfld by otl'1e.t'a,
without first obtaining in each end every instance the pr10r written consent of Landlord. Any consent
by Landlord to an assignment Dr subletting or USe or occupancy by others ahall be held to apply only
to the specific transaction thereby authorized and shall not constitute 8 waiver of the nBoessity for
such consent to any 8ubBe~ent assignment or subletting Druse or occupancy by others7 including, but
not limited to, B BubseqJent BS9ignraent or sublet.ting by any trustee, receiver, liCJ,lidator, Dr
personsl representative of Tenant, nor shell the references anywhere In this Lease to sobtenants,
licensees Bnd concessionaires be construed as a consent by landlord to an assignment.. If this lease
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Dr any 1nterest herein be aBsigned or if the demi8ed p~i.8. or .ny pert thereof be aublet ar used Dr
occupied by anyone other than lenent "'ithaut Lendlord'. prior written eonaent havinQ been obtained
therotD, Landlord liAr nevertheless ~llect rent (including. but not limited to, rbed M1nlllU. Rent,
Percenhge Rent, the Utility Charg., Tax Rent, Tenant'. propDrtionate ahare of lllt1dlord's Operating
COllt.s, end additionsl rent.) from the 11881gneet subl.Bee, user or occuplnt end apply the net 8IIOUnt
colbcted to the renta herein rtIlerved. .nd furthe1"llJN in aRY 8ueh event. Tenant shall pay to l8ndlDrd
naontllly, 88 additional rent, the excesa Dr the cDnsideration received or to be received during such
lIonth ror 8uch assigmaent, sublease, or occupancy ('Mhether ar nDt denoted 88 rent) over the rent.l
reserved rot' luch IIDnth 1n this Laue epp11cable, to 8uch portian of the de.ieed pre.i_. .0 ..s1l)1le!d.
sublet or IICcuplod. No such ..slgnnoent. eubletting. u.., acc:upency or collection shell be -..d a
...iver Qf the covenant herein ag.inet ...1grwent. .obI.tUng or use Dr ClCcupaney by other_, or the
accept.ance of' the ..,i;nR. aubtenllnt, ussr or occupant as Tenant hereunder. Dr eonatitute a release
of Tenant f.... the further perfo....,..,.,. by Tenant or the te... and pra.i.lane of thi1l Leue. If thia
Lene Dr any inter.at of TIII1.,t herein be Baigned ar if the .mole or any part of the deaised pntlluea
be 8Ublet Dr uoed or, ac;eupled_ by athe~J aftsr ....ing obtained. Landlard'a .prior written """sent
thereto, Tenant ohall ne.orthel... re...in fully liable for tha full perforllAnee of ell abligotione
undst this Lea8e to be per-fonaed by Tenant end Tensnt ~all not be releaBed t:.herefrom in any "nner.
(b) If at any tiale during the terM of this LeB.e .ny pat't or all of the corporate shares
of Tenant. or of' . parent. corporation of which Tenant 1. . direct or indirect aubaidiary, shell be
transferred by sale, assignHnt. befJIest, inheritance, operation of 1." or ather disposition so 8S to
result in a change in the present effectiVe yotin; control of TenlU1t OI" of such parent: COrpDI"8t1on by
tht: parson or persons owing or controllin; 8 IIIIjDrity or the shares or Tenant or of such p8rent
corporation on the date of this Lease. Tenant sh.ll Pf'DllPt.lY notify Landlord in writing of such
change. and auch change 1n ...oting contral Shall constitute 8n ...ignllent ot this Lease for all
p'UrpOBl!!8 of this SectiDnJ provided, however, that this provision .hall not apply in the event th8t
over fifty ~ercent ($0=) of the voting po.er or the Tenent corporation or of 8uch parent corporation
is held by fifty (50) or .ore unrelated ehareholders or distributed to such number of Ulre18ted
shareholders in a public distribution of securities. This c-lauae shall not a.Dply to a corporation
whose .tock i8 traded on B nationally recognized stock exchange.
(c} If Ten8t'lt i. a partnership Ind if It any Uae during the terln Df this Leese eny person
who at the time of the execution of thiB Leaso owns . general partner' 8 interest ceBses to 0,," Buch
general p8t'tnerls interest, such cessation of ownerShip shall constitute an 8ssivnment of this lease
for all purposes of this Section.
Cd) Upon the occurrence of any of 9uch events. el described in Section l~.Ol(.), l~.Ol(b),
or 14 .OI(c) hereof. wheth!'r II'oluntary, invDluntary, by operation of law. or otherwise, without t.he
prior written consent of landlord (whether Dr not Tenant shall have given notice thereof to landlord),
tsndlord may treat any such occurrence as B Deliberate Event Df Default.
SECTION 14.02. Application to tssiQt" or Sublet.
In the event that enan BhaUIa-aesire to _usign or sublet the whole or 8 part of the
leu sed premisea I Tenant ahall submit to Landlord a written stateftlent, lIiQned by TI!!Inant, settin<<;1 forth
the following information:
(.) The name and address of the prtJpos.ed assignee or subtenant: anti the character of ita
bUGiness;
(b) The Bctivities to be conducted in and the uee to be made or the precaisss by the
proposed 89si9nee or Bubten.nt;
ee) A full and tonplete outline of all of the terDS and conditione of the proposed
assignment or subletting; .
(d) Such financial information and credit infar..tion pertaining to the proposed assignee
or subtenent sufficient to enable landlord to e~a1uate it. financiel reapDnBibilitYi
(e) A repre8entati.on that the proposed assignee or aubten8l1t is not B tenant, subtenant.
8ss.lgnee or occupant of eny spBce in the Shopping Center.
During B period of thirty (30) days after receipt by Landlord of the foregoin9 information, Lendlord
InB)' elect (1) to consent to such prop08ed 8881gn.nt or subletting; or (2) tD tefusl!t or withhold
consent to SUCR 8Bsi9nment or 8~bletting; or (3) terminlte this Lease, in .hich event this Leese shall
terminate Bod end ~pon thirty (3D) days' _ritten notice Df landlard'a decision to 80 ter~in8te. Such
election .sy be exercised by written notice served upon Tenant within euch thirty (30) dey period, but
if no such notice is aerved, it shall be deelHd that laodlord has elected to refuse or withhold
consent of the proposed 8aaignll8nt or Bubletting. Landlord agress not unreasonably to refuse or
wilhhold congent to .uch prapo,.d assignment Dr subletting, but it shall conclu8iv~ly be deeDed that
Landlord's refusal or withholding of consent is not unreasonable if the proposed assignee Dr
subtenant. or the character (If the buelO11tss of the propo8ed 8ssignee or 8ubbtnBnt, or the use for
whieh the proposed aSBignee or subtenant 18 to occupy said premises, ar any of them, is in landlord's
sole disr:retion le8s deeir8blej Ind it shall conclushely be deemed that lartdlordls refusal Dr
w1~hholding of consent is not unreaBon~ble if the lubleBse rent is greater thin the rent payeble onder
th18 Lease, unless Tenant agrees in wrlting that-such excess Shall be paid to Landlord.
SECT100 14.03. ~ of MaiQnment ar Suble.,e.
LBndlord's consent:. to Bny assignment or lublesse shall not be erf"ective until one- (1)
fully-e:.cecul:ed copy of any writt.en instrument of aBaignlDeot or sublelse has been delivered to
Landlord.
_ 18 _
ARTICLE XV
IE:IlCIlANTS' ASSOCIATlllN; PRllNlITlllN F1JII)I mYERTISING
SECTION 15.01. Merchants' Association. Promotion Fund and AdvertislnQ.
(8) lenlnt covenants and agrees to DeCQIIB .-.e.ber of eny Herch8'la.' AssDei.tion fQl:"IIed by
the tencrnts of the Shopping Center end approved by landlord. and to 118lntain such ~er8hi.p
throughout the tel''' of thil t..e..e. 1en.-.t further &grad to pay as its llhare of tne cost Df the
ocUYiU.. conducted by ouch ..eDcioUon the IIUII eot forth in Sectian "J" of the Indenture Df leo.. _
J...:::.1. U! LJl 11 It 11 l 1... ' ... L) .LL U ~ &. t & z.ti -, hereinafter reFerred. to a.
JlHerchBnt,' Association P8)'11enttl, pB)'IIble in advance in IICInthly inat811Mnts to the Merchants'
A..Dcietion. If lrndlord oleel:8. Umdlard .y collect .oid Ilorchonta' A..acioUon Pey_nt an behalf
of t.he Merchant.' M8oc1aUon in which c..e len8ftt'a ttetc:henu' .....oci.tian Paytllent. ahall be p.y.ble
IlDnthly together with 11181:81111III11:8 of fix.d Minisuo Rent. 1n odd1tion, .hould lonont feil to _Ice Ony
BUch Merchants' 'As'aciatiiin pBytlBnts when'due, landlord, on behalf or the Merchants' ASSOCiation, ..Y
collect said paYll8flu in the .a"8 ..nner and wi th the II8IIe: rights gr..-led to Landlord under the Lease
for the colJectian Df rent or other chargee. COlImenclng with the 8econd lease YSB.t 1 end each le...
Year thereafter, the H8rcl'aant.s' Aaaociation p.yaent .hall be adjust.ed in the .anner eet forth below,
but never 1e8s than the above .-aunt. The allDunt of the Kerch.obl' Anaciation payment:. for each lease
Yest', cOIImencing with the second Lease Year, .hall be detereined as follD""': Using the lIlCorlSUMt".
Price Indo. __ U.S. Average, AU It_ end C.....d1ty Groupe", published ...,thly 1n the .Manthly lobor
Review" by the United States Oepart.nt Dr labor, for the IIOftth and year during ...hich the lease was
executed 8B the denDMinator and the index number for the riE'Bt IIOnth or eaeh lease Year there.ft8[, as
th" numerator, Ilultiply add resulting fraction tillfdl the 'above stated Merehant:.sl Associat1on rate.
In t.he event that the Bureau of Labor Stati.Uca shall chan~ the- bue period, the new indek nu-.bet"s
Shall be substit.uted for the old index n...bers 1n lIIslcintj the abave computation. In the ewent the
Consumer's Price Index of the United St.ates Bureau of labor. Statistics is discQntinued, t:OIIParsble
statistics on the purchBsintj power of the consumer dollar as published at the time of aaid
discontinustion by A l'esponBible financial periodical Df recognized authority ahall be used for .eking
Buch computat1on. Tenant also agrees t.o cooperat.e fully with the landlord and other tenants Df' the
Shapping Center in promoting the use Df trade nameS and Blogsns a6 "BY be adopted fDr the Shopping
Center. and all promotional and advertising campaigns. .
by the Merchants' Association. Within t:t.lrty (30) deys ..after b B 0 pay in
addition to the foregoing dues, a single ini' _ 0 the amount Bet forth in Seetion
"J" of the lode 110 anal e:tpe:nst!s in .introducing the shopping center to the-
enant agrees that t..ndlord or its designee ...y in its BOle discretiDn and oodet its
exclusive C:Qntrol 81'10 supervis10n provide the association- with any or all of', and be reimbursed by the
Bssociation fot' providing the follQwing; (1) the services of a marl<l!lting director Bnd ell ataff snd
outside consultants (including professional ID8rketing service arganiZlltions) dee",ed necessary by
Landlord to carry out effectively the marketing and public relations objectives of the Merchants'
Association including, without liiUtation, all payroll, plyroll taxes and. etlPloyee benefits of any
50eh director end staff; (i.i) such reasonable amount of space within the shDpping center lIS may be
necessary Tor the Merchants' Assoc1.tion, the rental tllerefor to be C::Orlp8rable to the rent_la for
sillilsrly S1Uld tenant. space in tandlord's building; Ciii) all actual costa incurl"ed in advertising
Bnd promoting the Shopping Center, including without li.it.tion radio, newspaper, television, direet
and indirect costs of aervicel!lijo artwork, eopy, printing, paper, stationery llnd supplies I end (iv) such
office equipment, utilities and telephDnes' as ..y be deemed necessary by the ..rketinq director.
(b) Notwithstanding that L8f'1dlord "'BY form the Association .s set forth abovt" , Landlord Dr
the Lsndlord's designee reserves the right at an)' ti..e and (ron time to time, lIIithout Tensnt's consent
or approval, to institute in ita plBce a Promotion Fund to furnish Bnd l18int81n adverti.ing end sales
promotions fDr the benefit of all tenants of the Shopping Center. Upon forflUltion of the PrOllotion
Fund, the AsSOCiation will turn over all amounts in its possession to Landlord or the Landlord'8
desiqnae which will open and l18inlBin a bank account, separate fr'o.. 811 of its other b8nk accounts,
into which landlord 'Dr the landlord '8 dssignee shall deposIt the prOCllotian fund contribution paid by
Tenant, the aforesaid 8.lIount received frDln the Association, 8S well as, othtlr contributions whieh
landlord or the Landlordls designee IaBY receive frOfl time to tillle frol'll other tenants of the Center
(the aggregate of suoh funds on hand from time to ti",e being referred to herein 89 the II1Pt"cmotion
Fund"). Upon turning over 8uch funds to LlIl"Idlord of the landlor-d'a de9ignee, the Association shall be
li~idated and dissolved. COIIl'lenclng wIth the fotllstion of the PrOfllot.ion Fund, and thereafter while
the Promotion Fund is in existence, Tensnl shall p8)' to landlord Dr tl1e Landlord'a designee, 88
Tenant's contr-111ution to the PrOllotion fund, the i .H.i._l .J:l._ l;r- I'~ !A annual charge ("Prcnotion
ChBrgetl) 1Ifh1ch ahall be in the 88l1e amount8, including any CPI adjustmenta, 8S the assessment Tenant
wDuld be re[J.lired to pay to the Association if the Barte was in effect, e:tt:epl that the annual ~hBrge
shall be payable monthly together "lith inBtel1ments of fbed Hinilll'ull'I Rent.. The- Promotion Fund shall
be used by landlord Dr the Landlord'. designee to pay all costs and expensee associated with the
implelDentation of an ongoing progrsm for the prollot.ion of the Shopping Center, which program may
include, without lintitation, special events, ShDWS~ displays, eigne, aea80nal evants, institutional
advertising for the Shopping Centet', promDtional literature and other- activities designed to attract
custOMers to the Shopping Center. In connection with the operation of the Promotion Fund, landlord or
the Landlord's designee shsll have the right to BlIPl!))'. or esuse to be employed all prOClDtional
services and personnel .mien, in the judgntC'nt of the l.ndlord or the Landlord's designee, are
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"
necesBlry t.e adllinister such fund and such prOllotional activities, ....d 8uch personnel ahall be ....der
tile exclusive control and 8uper-whiO" of Landlord or the Landlord-. designel who .h.ll have the 801e
authority to employ and disc:hlll'ge such personnel.. The Prollotion fund ..Y .110 be used to de"hI)' the
cost of administration of the PrcnatiDn Fund and BUeh .d.vl!lrtblng .prograIHI including, 'd.thout
lill1btiao. the salary of the pro.ation .nd advertising d1rectar and related adlliniltrat1ve peraonnel
rent and insurance. landlord shall hive no obligation to e)(pend an such ongoing progr8lll!l any r...,d8 i~
excels of the annual BUill contributed to the Pronation fund .fter p8yt11!tnt of all BUch sdllinietr.tive
and other expenses.
(c) All .u.. ..",tr.d to be p.id by Tonont purouont to this ArUch XV .hall be de.....d
"additional rent". llhall be peyable without dellllf1d, deduction or offaett 1I'ld. for the purpaees of
Articlea XVIII and XIX of thia Le"". .hall b. rofarrad to as the Proaotion Cha"l)e. .
Cd) Notwithotonding onything to the contrary cootain.d h.rein, Landlord or the L.ndlord'a
designee reaervea the right, frDII tille to t.illtl upon .ritten nDUee to TBllMl, to convert the Associ-
ation or Proaotion Fund to any other antity ee10cted by r..andlard or the Landlord' a d..igna. to ""rFo...
tha .anice. theretofore perforaod by tha As.ociation orpl'OllQtion fund. Upon the. For_tian of .uch
ent:11:y. the provisions of 'IICtIon. ta) ...d/or (b" h..eoT .""ich are then. .in effect .hall caase end
bocOfle null and void. end thereafter Tenant .hall cDllply ..iUt the en.rter or by-laws of' IJUCh _ new
entity. Tenant Shall ply to luch new entity, Landlord. or the landlord-' designee. .. directed by
lsndlard or the Landlord's designee, the P8Yllents th.eret.ofare req.Jlred to be paid by Tenant to the
Association or Promotion Fund.
aree equal to mare than ten pel:'clBnt (IOS) of the floor area initially con
Cl!!Inter, Tenant shall pay to Landlord. on de..nd, 11I'1 -IIIOunt . 1 IlUltiplying the floor
area of the d8llli8ed pretaiaes by the average r DOt or all contribuUone which tenants of'
the expansion aree shall b . .81cl!!l with respect to promotion and advet<t.i8ing or tile
initial a expansion for business, and (ii) dividing the product thus obtained by two
ARTICLE XVI
DESTRUCTION Of LEASED PREMISES
SECTION 16.01. Tot.l or Partial Oeshuction.' .
(a) ~the leaaed premises shall be damaged by fire or other caaualty covered by
landlord's policies of fire and broad forlll extended COoyer8ge insurance but are nat thereby rendered
untenantBble in whole or in part, subject to the limitations hereBfter set forth, lsndlord, at its 0","
expense, may Cause such dBmage to be repaired, and the nnt ahall not be abated. If by reason of such
occorrence, the premises shaU be rendered untenantable in Nhole Dr in part I subject to the
limItations hereafter set forth, Landlord. at its own expense, l18y cause the damage to be repaired and
the Fixed Minimum Rent Shall be abated proportionately 88 to the portion or the premises rendered
untenantable until the completion of Landlord's repaira thereto. If the leased premises shall be
dam8ged ar destroyed by . fire at c88uBlty, in whole Of in part, Bnd the l.ndlord, 8t its aptian.
decides not to repair and testore the premises. Landlord shall nave the right. to be exercised by
notice in writing delivered to TenBnt within 8ixty (60) days frail Bnd .ner the occurrence. of such
dalllage or dest.ruction, to c.ncel and terminate this Lease. Either party ahall have the right, to be
exercised by notice in writing, delivered to the other within thirty (3D) dlY. frail and af'ter any
occurrence lId1ich rendera the praises wholly untenantable to eancel this leUe. i r aaid destruction of
the prellisea occurs within the last three ()) ".are of the ter. of this lease. .Bid cancellation to
take effect ninety (90) days frOll and after the receipt of such notice by the other party, and in such
event this Leass and the tenancy hereby created shall class aa of the aforesaid cancellation date, the
rent to be 8djusted as of sUt"h datel provided. however, that if Landlord al'1al1 CDIlPlenCe repairs Dr
reconstruction of the destroyed premiaes during the period prior to the cencellatlon dete, the tenancy
shall reMain in effect end said notice of cBncellstion shall be eonaidered void. In no ewent ahall
Landlord be obligat.d to .xpand for any r""aira or recon.tructlon purou.,t to thia S.ctlon 1'.01 an
amount 1n excess of the insurance proceeds recovered by it end allocable to the dallBge to the leased
premises after deduction therefrom of LandlorC:PB reasonable expenses in obtaining such proceeds snd
8ny amounts re'JIired to be paid to Landlord's mortgagee. Nothing in this Section sholl be construed
to per~it the abatement in Mhale or in part of the Percentsge Rent, Bod the calculation of Percentage
Rant shall be gov.rned .olely by Section 2.0ICc) hereof.
(b) If the landlord is reqJired to repair Dr reconstruct the leased preRlia!!!. pur.u..,t to
the provisions of this Sectlon 16.01, its obligation .hall be !l.fted to the building Shell. Ten.nt
8t Tenant' s expense Shall prOlllptly perform .U repairs or restofation not required to be done by
Landlord and snall promptly re....,nter the demised premises Bnd CDmll.ence doing business .1n 8ccordanee
with the provisions of this lease. Landlord shall not be liable for delsys occasioned by adjustment
of 10sges with in9ursnce carriers or by eny other cause eo long 89 landlord ahell proeeed in good
faith.
(c) Nobdthstsnding anything set forth herein to the cOl1trarYI Tenant shell be responsible
far ell repairs and replacements of d8lllBge and/or deltruct~on of the leased preMises neeessit.ted by
burglary or sttelllPted burglBry, Dr any other illegal Dr forcible entry into the dMliged prellises.
SECTION 16.02. Partial Destruction of ShoppillQ Center.
In the event that fifty percent (50:) or more of the gfOSS h/il88ble f"loor area or the
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Shopping Center shall be damaged or destroyed by n.rc Dr ather cau.. notwithstanding that the leaBed
prelllbes tnIIy be unaffected by such fire or other ~uae, Landlord shall have the rioht, to be exerei.ed
by notice in writing delivered to Tenant within Bhrty (60) days after .aid DCCurrenee, to c..,e:el end
terminate thia Lease. Upon the giving of such noUee, the tet'll of this Lea.a ahall e:acpire by lap.. of
Ume upon the fifteenth (lSth) day after auch notice is Qiwen .-Jd Tenant shall vacate the leased
premises end surrender the s.me to landlord.
ARTICLE XVII
EMINENT DOMAIN
SECTIIJl 17.01. Total COnlie..aUon.
If thi""iihOle of the deai.ed pre.Isee ahall be taken by any public or ",..lopubUr authority
under the power 0'_ n:inen~ do_sin. condellllltiano~ expropr;atian, o~ in the evant of . COI;t'lltyance 1n
lieu thereof, then thi8 L8..a ahall terminate 88 of the date on which poll8enion of the de.lsed
preniaes i8 reQJired to be BUl'I'endered to the conde~ing authority, and Tenll1t lhall have no clai.
against Landlard or the condemning authority for the value of the unBKPired te~ Dr this Lease.
SECTION 17.CZ. Parll.l Condemnation.
Ir any part of the l..sed premises shall be 10 taken or conveyed and ir 8uch partial takino
or conveyance shall render the leased premises un8u!hble for the bus!n... of the Tenant, then the
te1'lll Df this lease shill c.... and terllinate a8 of the dale on which posse..ion of the dem.ised
premises is retpJired to be surrendered to the condemning author it)' Bf1d Ten.,t lhell have no claim
ageioBt Landlord or the cond..,;ing authority for the value of any unexpired ter. of this Lease. In
the event such partial tlking or convepoce 1& not extensive enDugh tG render the pre.ia.a unauitable
for the business of lenent, this Lease shall continue in full force and effect except t.hat the rhced
HinimulI Rent and thl!! Percentage Rent Gross Sales Base shall each be reduced in the 8ame proportion
that the noor area of the dl!!mised premises so talcen or conveyed bears ta such floor area ianediately
prior to such taking ar conveyance, IIUch reduction cOraJlencing 88 of the dete Tenant .is reCJ.tired to
8urrender possession of such portion and with t'8speet to the dayB during wl"lich the dellieed prelftises
are not open for business the calcuJ.ation of Percentage Rent sh.ll be adjusted in accordance wi th
Section 2.Dl( c) hereof. LandlQrd shell prOllptly restore the leased prellises, to the extent of
condemnation proceeds available for such purp'ose. .s nearly. as practicable ta 8 condition comparable
to their condition 8S the time of such condemn.tion 188s the portion lost in the taking or conveyance
.nd Tenant &hall promptly make all necessary repairs, restoration and alteratiDns of Tenant's
fixtures, equipment and furnishings and shall promptly re-enter the leased premises and commence doing
busine8s in accordance with the provisions of this Lease-. For purposes of' determining the amount of
funds available rot restoration of the leased prelllises frOG the condemnation award. Baid amount w111
be deemed to be that part of the award which remains after payment Dr landlord'8 reasonable expenses
incurred in recovering s....e snd of any amounts due to liny lllortQ8gee Dr Landlord, end which represents
8 portion of the total sum 80 .v.iIDbIe (exclUding any award or other compensation for land) which is
equitable allocable to the leased premi8es.
SECTION 17.0J. Partial Condemnation of Sh01rin, Center.
(a) If 1ll0re than one-Uura (11 0 tFiit'!Dor area tlf the buildings Dr which the dellised
pre.iles are a part or more than one-third (l/J) of the Ieaslble rloor area or the Shopping Center Dr
~re then onb-~rrird (1/3) of the Com~on Areas shall be 80 taken or conveyed, or (b) if 8ny part of the
parking ares 1n the Shopping Center is so takan Dr conveyed and as a result of such partial taking ar
conveyance the 9ize, lByout Dr location of the reraaining parkirKJ fscilities will violate the
requlrement~ of the applicable zoning or 8i.ilar 1ew (or any permitted vari_nee Dr exception thereto),
then in any or all such events notwithstanding the fact that the ~.ised preaisea are not 10 taken Dr
conveyed I Lsndlord shsll h8ve the ri9~t and power, at its option to be exercised by written notice to
Tenant, to terminate this Lease effectiye either the date title velts in the condel'lling authority Dr
thB date Landlord is req.Jired to deliver possession of the part 80 taken or conveyed; provided,
however, in the event of 8 taking ar conveyance described in clause (b), if LBndlord shall take
imlediate steps towards eliminating such violation, this Lease shall be unaffected and re~ain in full
force Bnd effect. In any eyent, Tenant Bhall have no clailll against Landlord or the condemning
authority for the value of any unexpired te~ of this lease.
SECTION 17.04. lendlord'. Co.ages.
In the event o~ eny Condemnation or taking 89 hereinbefore provided, whether tthole or
partial, the Tenant Shall not be entitled to any psrt of the award 8S demages or otherwise for such
condemnation and Landlord and any mortgagee of Landlord are to receive the full amount of such awsrd
as their respective interests .ay appear. Tenant hereby expressly waives any ri.ght or claim to any
part thereof Bnd assigns to landlord sny sueh right: 01' claim to which Tenant might become entitled.
SECTION 17.0S. Tenantls Damaqes.
Although all damages in the event of gny condemnBtion are to belong to the Landlord and eny
lIIortg.gee of landlord as aforesaid t whether such dameges are awarded as full compensation for
diminution 1n walue of the leasehold of to the fee of the leased premises, Tenant shall haVe the right
to the extent that. salle shall ntlt diainish the landlord I IS or suc-h ftIortgageel B award to claim and
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recover- fran the eondelVling authority, but not f~ tandlon::l or Buch morto.gee, 8ueh cOIIpell88tlon as
..ay be aep8r.tel~ ..arded or recoverable by Tenant. under the EIIinent O~ain Code in lenentl. own right
rar Dr an a!:Count: of, and lilli1ted Bclaly ta, any coat to which Tenant lIight be put in :remDving
Tenant' B .erehandi.e, furnitura, fiKtuns, and eqJipllenl.
ARTICLE XVIII
BNlKRUPTCY OR INSII. VENCY
SECTION 18.01. 8ankruptcy or lnsalvsncy.
<a) If at any Erm. prior to the d.t. hsra1n fix.d os the CDllIIIlIllCSMnt of the te... of this
Lease ar at any U.e thereafter there shall be filed' by or aqa1nat lenant in any court PUl"8U8f1t to any
.tatut. s1th.r of the Unit.d State. or of sny .tete, . pet1t1pn in in.alvency, or if 18Nlnt ..... ....
8ssignllef1t for the benefit of creditars or if there il Bn assignlllltnt by operatian of 1.., Dr if Tenant
.akes application to TeI'l8l1t'B creditors to settle or collpDund or extend the tiMe for JMIywaent of
Tenant'. obligation, or if any 811CecuUon or attschatlllnt ahall be levil!ld upon any of the: T.,.nt'.
proplllrty or the dBlRiaed pre.illes Ire taken or occupied or ettellpted to be t.kan Of occ::upied by so.eone
other than the Tenlnt, then this Lease shall at the Landlordla option be cancelled and ter_inated and,
in which event, neither Tenant nor any penon claillling through or under Tenant ar by virtue of any
Btatute or of an order of eny court shall be entitled to pOBseseion of the demi.ed pr..laes.
(b) If at any t1.e prior to the date here1n fixed 88 the con.enclll~t Df the te~ of this
tease or It IIny tille t:here.fter thBl"1!I ahall be riled by or against Tenant in any court of the United
Stetl!lS 8 petition in bankruptcy or far rearganization Of for the appointaent of . receiver or trustee
of all or a portion or Tenant's property, then t.hil l.ase ehall at the Landlord's option be cancelled
and terminsted if such cancel18t.ion or ter"ination iB permitt.ed by the BPPlicabb la.... Ir 8uch
terlllination Of cancellation is not permitted by the appliclble law, then: (1) upan the filing af 8
petition by or llIoainst Ten8llt under the Bankruptcy Code, Tenlnt, as debt.or and lIS debtDr in
possession, and Bny trustee who uy be appointed, agree to perro", each and every obligation of Tenant
under this lease ooUl such ti.Jae 88 this. Lease is either rejected ar a88U11ed by order of the United
States Bankruptcy Court; and to pay IIOn~hly in advance on the first day of each month as reasonably
compenaatien for use and oecupancy of thlll Premises sn allouot e~sl to ell Annual Mini.u. Rent and
Additional Rent; and to reject or B88UIIS this- lease within sixty (60) days of the filing Dr such
petition under the Benkruptcy Cod~; and to give Landlord at 18Bst forty-five (.S) days prior ...ritten
notice or any prDceeding relating to any assumption of this lease; and tD give at least thirty (30)
days prior written notice of any Bbandonllent of the -Premises; any such abandon.-ent to be dee.ed a
rejection of this leass; and to do all other things or 'benefit to Landlord otherwise reCJJired under
the Bankruptcy Code; and to be deelned to have rejected this leBse in the event of" the railure to
comply with Bny of the above; Bnd to have consented to the entry of an order by an Ipprapriate United
States Bankruptcy Court providing all of the above" waiving; notice Ind hearing of the entry of same;
(ii) nD default of this lease by Tenent, either prior to or 8ubal!q,Jent to the filing of such 8
petition, Shall be deelned to have bellln waived unless expressly done BO in writing by landlord, (iii)
it iB understood and agreed th.t this ill a Lease of reel property in a 8hopping center and of non-
residential real property 89 8Uch 8 lease is described or referred to in the Bankrupte)" CodeJ (iv)
included within and in sddition to any other conditions or obligations imp088'd UPDn Tenant ar its
successor in the event or assumption and/or 8Bsiomnent ere the cure of eny llonlllt8ry defaults Ind the
reilftbuneMnt of pecuniary 10811 within not lIare than thirty (JO) daya of ee.unption and/or a::uioignment;
and the deposit of an additional 8um equal to three (3) Months' Rent; and the UBe of the Pre.lses 88
set forth in the Indenture or this Lease and the quality and/or linel or merchandise or any gDods or
8er~ices required to be offered for sale are unChanged; and the reorganl%ed debtor or ..signee or such
debtor in poslessiDn or of Tensntls trustee demonstrates In writing that it has sufficient background
ineludingt but not li.1ted to, substantial retailing experience in shopping cantera of comparable size
and financial Bbility to operate 8 reteil estsbliehment out of thia Lease, and the Preflltees, at all
timea, re..in8 8 8ingle atore and no physical ch8n0l!!l8 of any kind may be Made to the Pre.lees unless
in compliance with the applicable provisions of this lease.
ARflClE XIX
EVENTS Of OEfAUlTI LANDlORO'S REHEOIES
SECTION 19,01. Events of Defsult.
The following shall constitute EVents_of Default:
(8) If Tenant dehultl!!l: in the p8ymBnt of any 8um of' money (whether rilled Mini.... Rent,
Percentage Rent. Tax Rent, Tenant's proportionlte share or Operating Costs, the Utility Char;e"
Promotion Charge, additional rent or ot.herlli'ise) when due ,and such default sl1all continue for 8 period
of mDre than ten (10) days after the date Baid paYMent is due.
(b) Except as to acts, defaults, 0Il1ssions and/or occurrences characterized, defined,
denoted, or identified in this leaBe as Deliberate Events of OeFault, if Tenant der.ult& in fulfilling
any of the other covenants of this lease on Tanant1s part to be performed hereunder and 8uch def8~lt
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shall continue Far the period within which perfar_nce is f8qJired tc be .ade by specific provision of
this Lease, Dr, if no such period 11 provided fifteen (15) d8y1 after the date of written notice frag
LBndlord to Tenant specifying the nat.ure of ~.id default, or, if the defBult 10 8peeiried ahall be of
8uch B n..ture that the sa. eannat be rtl8Sanably cured or t'elledied within said fifteen (15) day
period, if Ten.,t. shall not in good faith have cOIIlIIeneed the cu:rin~ or t'elt8dying of auc:h default
within such fifteen OS) dB)' period and ahall 110t thereaner diligent.ly proceed thel"eWith to
co.pletion.
(e) If .ny execution or .f:.tachD:enf:. shall be issued aga1nst Tenant or any of Tenant. 8
property IIOd shall nat be diBcharoed ar .a..tad within tan (10) d.ys after tha iaaullO.. thereof.
(d) Any ewent d..cr1bed in 5ectian 18.01. .
(e) H Tonont ehsn lIbondan the _..d prm.e. ar if the deaia.d
permitted to becOll8 vae:.nt, Dr ahall fail to keep the de.iaed premisee
uninterruptedly open for business.
pr_isee ehall be
eontinuDUsly and
SECT!1Jj 19.1lZ. DeUberate Ew.nto af O.fault.
.. .. --(,,) . Notwithstan"iHiig'1II1ythi1lg .tD"the """"trary"I!t'"'~arth in "thiS te..e; "If"' lsnan't ihaU
defoult (I) in the ti..ly pey..nt of Filed Mini.... Rent, Percentaoe Rent. Ta. Rent. Tsnont'a
praparU"".te shore af Dperoting Casts. the Utility Choroe, ar ProtIlltion ChBroe Dr in the U...ly
repartino af Graso Ssles or ony af th.... .nd any auch def.ult sholl be repeet.d two (2) ti.eo in any
period of twelve (12) aonthsj or (2) in the perforallnce of any ot.her eovenent of this lease IIOre than
three C)) times in ""y p.riad of twelve (12) .anthe, then, natwithotondinO that ouch default. ohall
have been curad within the period after notice 8. above pt'ovided, any further silliIer default within
such twelve (12) Month pariod ahall be deemed to be a Deliberate Event Df Default.
(b) Any default, Bet, omi..ian or occurrence characterized, defined, denoted, or
identified elsewhere 1n this Lease 8S B Deliberate Event: of Default shall aleo be 8 Deliberate Event
of Default.
(c) In the e.ent af a Deliberate Event of Def.ult. Landlard, without giving Tenant eny
notice and without affordin9 Tenant an opporturuty to cure _the default (Tenant hereby speei fically
waiving any right of t.ender) ..y exercise any Dr all of . ita rights under this le.se in addition to
those it m8)' have at laM or in equity.
SECTION 19.03. Termination.
Upon or after the occurrence Df eny one or rqare of such Event of Default or Deliberate
Events of Default, if the terl! ahall not have .commenced, ~an!ilard may illllllediately cancel this Lease by
written notice to Tenant, Dr if the term shall have cam.enced Landlord may Berve upon Tenant. writt.en
notice that this Lease al1d the terll will terminate on 8 date to be speCified therein, which an811 not
be less than ten 00) days after the date of such noUee. end, in either event., Tenant shall have no
right to avoid the cancellation or ter.ination by payment of any 5UII due ar by other performance of"
any Condition t terra or covenant braken. Upon the date speci Fied in the aforesaid notice of
termination, this les5e and the terll hereof shall ter.inate and come to sn end aB fully and coatpletely
as if such dlte were the day herein definitely fixed for the end and expiration of this lease Bnd such
term, and Tenant Shall then lJIit and 8urrender the de.ised prelli.Be to Landlord, but notwithstending
enr statute, rule of law, or decision of any court to the contrary, Tenant ahall remain liable 88 8et
forth hersinafter. Notwithstanding landlat"d1s electiOl'l to teralnate th18 Lease, landlord IUY, Bt ita
aptian, reinstate this lene at any tin thereaFter J Bnd a letter from LBndlord, Agent or the attorney
for landlord or Agent setting forth Landlordl. exercise Dr it. option to rei.nstate the Lease shell be
sufficient to re!nst_te thi! Lease upon 811 of it. terllS sod conditions, without eny other notice to
or from either party to the ather.
SECTION 19.04. Riqht J!!. Panea.ian.
Upon or after anyone or .ore Events of Default or Deliberete Events of Default; or if the
not1ee provided for sbove in Section 19.03 hereof shall have been given Bod this LeBae shall be
teminated; or if the dellliaed premises become vacant or desertedj then, in all or any of lIIuch events,
in addition to, end not in lieu of, all other rellediea of Landlord, Landlord IN)' without notice
terminate all service8 (includ!ng, but not 11.!ted to, the furnishing of utilities) and/or re-enter
the demiaed premieB8, either by force Dr otherwise, Ind/ar by SUQJrlary proceedings or otherwise
dispossess Tenant snd the legal repregentethe of Tenant or ather occupant of the demiBed premiges,
and remDve -their efFects and repossess and enjoy the de.ised pretlises, together with all altentions,
additions and illprovellents, all without being li.ble to prosecution or damages there for.
SECTION 19.05. Additico.l Reaedie. af Landlard.
(8) In the event gf any t;.vent or Default, Deliberate (veflt Dr Default, re-entry,
termination and/or dispoaee8sion by SUNmary proceedings ot' otherwiee, in addition to, end not in lieu
of, all other remedies which landlord has undttr this Le8se, at law or il"l cq.Jity: (1) the fixed Hini",ulI
Rent shall becOClIe due thereupon and be paid up to the title of such re-entry, dhp0888Bsion and/or
expiratioo; Bnd (2) landlot'd I118Y. in ih sole discretion, relet the demised prl!tllliis88 or any part or
parts thereof, either in the n..e of lsndlard or ot.herwise, for 8 term which .ay at landlord's option
be 18BS than or exceed the periDd which would otherwise have constituted the balance Df the tel"lft of
this Leaee, and may grant cooce&siona Dr free rent; pro~idedt however, Landlord is expressly under no
obligation to relet the demised pr8mi8es~ and (3) Tenant or the legal representative of Tenant shall
alao pay Landlord, at Landlord's option and whethe~ or not Lundlord has terminated or cancelled this
Lease, 89 liQUidated oamages for the failure of Tenant to observe end perforfl Baid Teneot's covenants
- ZJ -
herein contained. for e.ch Illonth of the pl!!lriod which Wtluld otherwise have_ constituted the balance of
the bra. the I!UCC8BS, if any, of the .UID of ane monthly inlltalleent of riX8d Mini... Rent, ontt-twelrth
(l/l2th) of the Bnnual average Percent..ge Rent. payable hereunder for the titr.. <,> leu. years
ilUlediately pz:oeceding (or for the entire preceding portion of the tel'll of th18 Lease if leu than
three (3) leale ye:IU), the IIOnthly partion Df the paywaent of Tax Rent. that lfDuld have been payable
for the period in qJeetlan but for IUeh l"8~ntry af terainetlan, the Utility eh8rge P8yable for aueh
.anth """puted an the boa1. af tho overage ..nthly cherllll far the .a1d thr.. (3) preceding 1.... yo...
or entire preceding portion of the ura, 8. the cue .ay be, the IIOnthly payment of Tenant1e current
proportionate ahare of Operating COBb. the PrcMlotion Cherge' t:OIIputed 00 . IIDnthly b8lll1a over the net
llItOunt, if any, or the rents Bctually collected an accooot Dr the- 1.... Dr leUlel of the dBmlllld
p~...l"" far auch mmth. The refu.1l ar feUure af l.endlard to rel.t ttIe dea1.ed prea1a.. or ellY pert
ar perte thereof ahlll not rel.... ar .ff.ct Tenant'. liebll1ty far _&gas. In CDBlput1ng a""h
li~1d.t.d _VII th.r. shill be .dd.d ta tho aa1d def1clency aueh eXlJOll_ a. Lenlllard ..y incur in
connection with reletUng. 8uch a. court coste, attameyl t fen and disbureeMntll. brabtr.Qe ...d
IIBnBge.ent -feea and corahsians, cost Dr putting 8I1d keeping the cktai.ed prftiaea in Quad order .-ad
ca.t.-llf-I"'.PI.-1ng "thl -d."lAd pre.ile. ~ar,...l"tting -as tlereimtfter 'prodded. - 1\ny -.uch '11",1d.1:.11
dBllBgea shall be paid in .onthly installJlants by Tenant on the day spllei f1ed 1n this Lea.e for the
paytaent tlf rb:ed HinillUII Rent and Iny act.ion brought to collect the aaount or deficiency far- any mnth
shall not prejudice in In)' .BY either the rights of landlot'd to collect the defiCiency fat' .,,.
subseQUent ~Dnth by a aiN118r proceeding; provided only that such liquideted d...ge. ahall be reduced
by the amount, lf any, of lIonthly l1rJ1idated dallagee collected by Landlord llIinua the actual cost
(including attorneys' feeB and cosb) of ealleeting Buch IKJnthly liquidated dBlI8gee. Landlord,.t
Landlordls option, may .skl! such alterations. repairs, repl.ceaents and/or decorlt10M in the dlHli.ad
pt'8IIi18S 88 landlord 1n L.,dlord's 80le judgllent considers adv1sable and neceBsary for the purpose of
reletting the dellised pruises; and the ftIa1c:ing of such alterationa and/or decorations shall not
operate or be construed to rele:8se Tenent from liability hereunder aa afot'eaaid.. Landlord shall in no
event be lisble in any way whataoeYer for failure to relet the delliaed prsllisea, or, in the event that
the dellisBd premses are relet, for feilure to eollect the rent thereof under such reletting..
(b) In any of the circumstanees lIentioned in the for89cing Section 19.05(a) in which
Landlord shall have the right to hold Tenant liable as - therein provided. Landlord ahall have the
election, iR place and inste.d of holding Tenant eo liable, forthwith to recover against Tenant, as
liq.lideted damages for loss of the bargain and not as a penalt.y I 8 8Uft\l 8CJ.1al t.o the Fixed Hinitnull Rent
multiplied by the number of IIOnths and frae-ticnsl IIOnth ~ich would have constituted the balence Df
the term, together with costs and attorneys' f8e&.
ee) In the event of a breach or threatened breach by Tenant of any of the covenants or
provisions hereof, Landlord shllll have the right of injunction Bnd the right to invoke any remedy
allowed at law or in eQ..lHy 8S if re-entry, 8unmBry proceedings and other remedies were not herein
provided for. lolent1on in this llli&se of any particularreDledy shall not preclUde Landlord frortl eny
other reMedies under this lease, or nOM or herllisfter existing at law or in equity or by statute.
(d) Tenant hereny expressly waives the service of notice of intefltion to re-enter Gr to
institute legal proceedings to that end Bnd sny end 811 rights of redenption granted by Dr under 8ny
present or future laws in the event of' Tensnt being evicted or dispossessed for any cause, Dr in the
event of Landlord obtaining possession of' tile dellised prelllbes by reason of the violat.ion by Tenant of
8n~ of the covenants and conditions of this lease Dr otherwise. The worde "re-enter" end "re-entry"
8& used in this Lease are not. restricted to their technical legal 1le8ning..
SECTION 19.06. Canfel1lian af .)JdQm.nt.
(8) Upon the occurrence of any [vent of Default, or in the event of a Deliberate C:.ent of
Default ss defined herein, Tenant hereby 811,pOwers 8ny Prothonotary or eny attorney of any cDurt of
record ~ithin the United Statea or elsewhere to appear for Tenant with declaration filed, and confess
judgllent in favor of Landlord, its SUCCessors Dr ..signs, a& of any ter., for soy deterlllined 8aount. to
whiCh. Lsndlord h'Ould be entitled 8S dmages under the provisions of Article XIX her-eof including olso
an attorney's fee for collection of the same of five percent (5~) of the total slIOunt of such d..sges,
together with costs of BUit, and TenBnt. hereby waives all errors, defects and imperfections in
entering 8aid judgllfmt or in any writ, or prDcsss, or proceeding thereon or thereto or in any Idee
touching Dr concerning the Samel and for the confession and. entry of' such judgment, thie lease or 8
true and correct copy thereof shall be sufficient "'Brunt and authority. The authority and pOMer
contained herein shall not be exhausted by one BlCerciae thereof r but judgment may be confessed 88
.foresaid from tille to time and as often a9 there js .n oce-urrence of any Event of Default, or in the
event of Ell Deliberate Event of Default 118 defined herein; sod furtherllKlre sUCh authority and power lIay
be elCercised during the original term and any extension Dr renewal thereof, Dr after the expiration or
8erlierterminBtion or the term hereof.
(b) When this leBse shsll be terminated or cancelled by reason of t.he breech of any
prevision hereof, either during the original terll of thi6 lease or any reneMal thereof, end alao 88
900n as the term hereby crested or any renewal thereoF Shall have expired, it ehall be lawful for Iny
attorney as sttorney for Tenant to file 8n agreealant for entering 1n any court of cocapetent
jurisdiction 8n emie.bIe action and confession of judg.ent in ejectment against Tenant aod all persona
claiming under Tensnt for the recovery by Landlord of possession of the dellised pre.ieea, for whiC'h
this Lease or 8 true and cDrrect copy thereof shall be his sufficient warrant, whereupon, if Landlord
80 desires, a writ of posseSSion msy issue forthwith, without any prior writ or proceedin08
ti'hatsoever, and provided that if for any resson after such ae-tion shall have been COlIl1lenced t.he sa.e
shall be terminated and posseSSion remain in or be restored to Tenant, Landlord shall have the right
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upon any 8uba8qJent default or default.. or upon the t!::rl'llnation or c:.n~l1atjon or this Lease as
hereinbefore set forth, to br-ing one or Ilore araie.bIe action or IctiDl'\8 88 hereinbeFore Bet forth to
recover \X1aatlsBion 88 BfOf&88.id.
SECTION 19.07. W.iv.rs.
(.) Tenlnt expressly waives:
(1) The benefit of all laws, now at herearter in force. elCIlIPtin\) any goods on the
dn.iaed pr.iaee.. ot elshher,., frMi distraint, levy or .ale 1n any legal proceedings t.8lcen by
L....dlord 1;0 enforee any rightl under this Leaae.
(2) Th. bOl18fit af .11 1.... naw ..d. ar whIch ..y h.ro.ft.r be ..d. reQarding 8fty
U.U.tian .. ta the good. upan which, or the U.. within which, distreo. is to be ..d. .fter the
rolllJvol of good., .nd furth.r rell.v.. L.ndlard af the abligaUan af praving ar identifying Bueh
goo<i., it being the purpose .nd intent af thl. provulan th.t an gaad. af Tenant, whether upan the
demlaed preellss or not, ahall be liable to dlstresa for rent.
J)) Th. right to i..ue . writ of replevin far the recav.ry af any goad8 seized uMer
a '"distress 'far tent' or '.1Dvy upon an exetUltian "far -rent, denll'.o... or. otherwise. .
(4) The right to delay execut10n on any reel estate th.t uy be levied Upon to
collect any UO\8lt .ttich nay become due ...,der the tenns and conditione or thiB lease and any right t.o
have the ...e appraised, end Tenant authorizes lUly Prothonotar)' or clerk tc enter B writ ar eK8cut.ion
or other- process upon Tenlnt's voluntary waiver and further agrees that said real est.8te ma)' be sold
on I writ of execution or ather procees.
(5) All rlgtttB under an)' bw, ordinance or statute relating to landlord and Tenant
righta to the e:ICtent of nereby authorizing the sale of any goods diatralned for rent at enyti..e .rter
sewen (7) days from said diBtraint withQut appraiaement and condemn.tion thereof.
(6) The tiqht to tntee 0) .anth.' neUe. end/Ot fifte.n (l~) or thirty DO} doy.'
notice reqJ1red under certain c1rcLtlDSunces by The PennlylY.-nil L.ndlcrd and Tenant. Act or 1951, as
BIIended. hereby agreeing that any notice time period 8S req.rired in this Lease AgreetltBnt shall be
suffi~ient in either or any such case. l8ndlord and Tenant agree that this Section (f) shall only be
applicable if the demised pr.-18es is situate in Pennsylv~i8.
(b) The parties herwy waive trial by jury in 8I"ly .etion, proceeding or counterclaim
brought by either party against the other on any .atter whatsoever arising out Dr, or in 811)' way
connected with, this LeIse, the felationship or Landlord B,nd Tenant created hereby, tenan.t's use or
occupancy or the Delli.ad Pre.ises, and/or any claim ror. injury or damage. In the event Landlord
commenCes any .ction or proceeding for nanpaYllent Dr HinilltUm Rent or any items of additional rent due
hsrsunder, tenant shall nDt interpose any eounterclsim of" any nature or description in Bny such action
or proceeding. Jhe fDregoing, however, shall not be construed as e waiver or Tenantts right to assert
such cIai. in 8 separate action or proceeding institut~d by Tenant.
ARTiCLE XX
MISCELlANEWS
SECTION 20.01. Ace... !!!.lsndlord.
landlord lIay at 811 reasonable times during the teJ"ll of this Luse enter to inspect th~
demised pre.lises and/ar My &ttaw the def\1sed p.remiae'!s and building to others. At llIf'ly tilne wi thin one
(1) )I'.,ar i.lledi.tely preceding th: ~pit"Btion or the hE'll of tf'1is Lease, Lsndlord shall have the right
to disp1ey on the eJCterior Dr tht!! delnised prslliBes (but not 80 as to unre8sonsbly obstruct the \fiew
thenaf Dr aCCeSs thereto) the custo...ry "for Rent" sign and during Buch period Landlord mey sho... the
prenliaeB and .11 perts thereof to- prDspect.i.ve tenants between the hours of 9:00 A.M. and 9:00 P.~. on
any day. Landlord also r8serV'eS the tight after notice of intention to 80 enttfr {except that in the
event of an eIlergenc)', no notice shall be reqJired) to enter the premises at. any time -and from time to
tille to ake such repaira, additions or alterations as it _BY deem necessary for the safety,
inlproyl!t_nt or preservation thereof. or or the building in .tlhieh the dnised premises is cootained,
bot Landlord 815SUlles no obligation to do 80, end the perfotllanee thereof by Landlord shall not
constitute 8 waiver of Tenant's default in failing to perform the same. Landlord shall in no event be
liable for an)' inconvenience. disturbances, 108s of business Dr other damsge to Tenant by rea90n of
the perforunce by landlord of In'l woc-k in, upon, abolle or ul'\d~r the deMi.sed preftlige$. If Tenant
shall havlI YBcated or deserted the delllised prelliaes or, in the eyen t of an eme roenc:y. or if 1n any
other instlnce after landlord has given notice of Landlord's intention to enter, Tenent ar lenant'6
employees .hall not. be personally pre.llllnt to pemit 8n entry into the delllised preraises, then, in Bny
such event, Llndlord or its agents or employees may enter the 88!1e by the use of force or otherwise
without rendering landlord liable therefor, and '-Citho\Jt in aoy lIlanner affecting Tenant's obligations
under this lesae. The exercise of any such reaerved right by lend!ord shall not be deemed .n evil::tion
or disturbsnce of Tenantts use and possession of the premises and shull not render landlord liable in
an)' lIlanner to Tenant Of' to any other person, nor shall the same constitute any grounds for an
Bb8t~nt of any rent hereunder. .
SECT10N 20.02. Holdinq Over.
Should Tenant hold over in possession of the demised premises after the e1(pirati.on of the
term hereof without the execution of 8 new lease sgreement or ~xtension or renewal agreement, Tenant,
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at tht! aptian Dr Landlord, shall be deshed tc be. occupying the delliaed prellLiBe8 fr~ IlIDflth to mont.h
8ubject to such occupancy being te1'llinated by either party upon at le..t thirty (30) days. ..,ritte~
notice, at the rental, including, but not linit.ed tD. Fixed HinilUlI RBf\t CDllputed at . rate which i.
double the Fixed Hini... Rent rat. in .ffect for the 18st full _onth of the tetll of this Lease
Percentage Rent. Tax Rlnt, Tenant's proportionat.e ahare of Operating Coat., the Utility Charge:
Promotion Charge, and additional rent all calculated, froll ti118 to ti_. a8 though the telW of this
Lease had continued and otherwise subject to all Df the othet tll'~. covenants and conditions of the
leese insofBr 88 the .ame 8&Y be applicable to . month. to month tenancy.
SECTION 20.03. Succee.....
All ughts, obligationa and liabilities h.reln gl..n to, Dr iIllpD..d upon, the ....spective
partiee hereto ehdl extend to Ind bind the several respective heirs. executon, adllini8tratora.
trustees, receivers, leval representatives, BUCcesaar8 and lalign. of the .aid pBrtieB1 and, if there
shall be MOre thin one tenant, they ahall all be bound Jointly and severally by the terms. covenant.
end agreements herein. No rights, hDwever, ahall inure .tD the. blnaritaf any a.8ignee, legal
reprell!ntative, trustee, rIIcelver, -lega1:.ae' Dr ather perao'nal' representative Df Tenant. mlees the
assignment to such party has been approved by Landlord 1n writing .. provided in Section 11l.Ol(.)
hereof. Any ref~rence to Bny depBrtmeot atore herein shall apply to its successor., replace..nt. O~
18Bign6.
SEcrION 20.04. Duiet Enio.ment.
So long-&; Tenant shell pay the rents herein provided within the respective times provided
therefor, .nd provided and BO long as Ten8nt observes and perrarca .11 the covenants, terma and
conditions on Tenantla part to be observed snd perfor_d, Tenant shall peaceably and c;r.Iletly hold and
enjoy the ds,dled premises for the terll hereby dellised without hindrance or interrtlptlon by landlord
or any other parson ot persons lBwfully claiainq by, through or under Landlord, subject, nevertheless.
to the terms and cDnditions of this Leese. Landlordls liability under tnia Section shall eease upon 8
conveyance by landlotd of the premises.
SECTION 20.05. ~.
The welVer by Landlord of any breach of any term, CD'Ienant or condition herein contained
shall not be deemed to be 11 waiver Dr any subseq.Jent breach of the salle or a waiver of any ather term,
covenant or condition herein contsined. The subseQJent acceptance by Landlord of rent due hereunder
or any or all other lAonetary oblig8tions of Tenant. hereunder. .hether or not denoted a& rent
hereunder, Shall not be deeDed to be a waiver of any precedtnQ breach by Tenant of any ter~, covenent
or cond.ition of this leBse, other thin the failure of Tensnt to lUke the partieular payment 80
accepted, regardless of landlord1s knowledge of such pte~eding breach at the tile of Ir:eeptsnce of
such rent. No covenant. tet'. or condition of this lease shall be deened to have been waiyed by
Landlord. unless 8ueh _aiver be in Nrlting and executed by landlord.
SECTION 20.06. Cust.m and U.aae.
Any 1.N, usage or custom to the contrlry notwithstanding, Landlord shall have the ~ight at
all times to enforce the c:ovenBntB and conditions of this leCls~ in strict accordance with the terms
hereor I notwithstanding eny conduct or custom an the part of the Landlord in refraining froll 80 doing
at any time or times with respect to the Tenant hereunder or with respect to other tOMllnta of the
Shopping Center. The failure of Landlord at ~my tille or til'llB8 to enforce ita right. under said
cO'lenante and provisions strictly 1n Bccordsnce with the 8ame shall not be construed as kaving created
8 custom ~~ any way Dr Manner contrary to"the specific terms, ptaviuiona and Coyenante of this lease
or 8S having in any way or ..nner 80dified the 8ame.
SECTION 20.07. Accord and SatiBfaction.
No paymBnt b~enBnt or receipt by landlord of 8 lesser a~ount thin Iny payment of rent or
additional rent herein 8tipul.ted ahall be deemed to be other 'than on account. of the earliest
ItipulBted rent or additiDnal rent then due Bnd peyable, nor shall any endorlement or 8tBte~nt on any
eheck or any letter 8CcD",.nying any check ar paYllent &8 rent be deellBd an accDrd and satisfaction.
and landlord may accept auch check or payment without pr~judice to Llndlord'a right to recover the
balanee of such rent ar pLlrsue any other remedy prOVided in this Lesse, .t llw or in eQ,Jity~
SECTION ZO~08~ Performance of Tenant's Covenlnta.
Tenant covenents and agrees that it will perfor., all agreements and observe all covenants
herein expressed an its part to be performed and observed and that it .ill promptly, upon receipt of
written notice specifying action desired by lendlord in COl'Vl8ction with any luch agreel8ent or
covenant, comply with such notiO!l and further, that if Tenant shill not comply ~ith any such notice
to the sBtiafaction of landlord prior to the date on which such nOncDDlpliBnce would constitute an
Event of Default. in addition to, and not in lieu of or in limitation of any other reaedy which
Landlord may have pursuant to thie Lease. at law or 1n eQ,Jity., Lanc:Hord _ay, but shall not be
obligated to, enter upon the premises and do the things specified in 8aid notice. Landlord shull have
no liability to Tenant for Bny lOBS or d.mage resulting in any wey fro. Buch action and Tenant agrees
to pay upon damandl as additional rent, sny expense incurred by Landlord in tlking such action.
Notwithstsnding the fot"egoingt landlDrd' B performance of any or 011 of Tenant 18 covenants &hall not
relesse TenBnt rrom liability for non-perfornance.
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SECTION 20.09. Entire AQreement.
The Indentul'fl: of LeBse, the Lease Agreement, the ExhibU:s end Rider, if any, Bet forth 811
the covenants, prollbes, 8greements, conditions and undaratandlnOl between Landlord Bnd Tenant
'concerning the d..ieed prBllliel!ls and there are no eovenanta, pI"OaIi.... agr88....ta. condiUona Dr
under8tandinos. either oral or written, bebleen th_ ather thIn as herein eel forth. Al.l prior
cOlllmunications, negoUaUor'll, ernmgeeenta, representlltians, agrel!!laenb and understandings, whether
oral, writ.ten or both, between the parti.. hereto, .-ad their repr..ent:8U".I, are _rged herein and
l!Ixt1nvuiBhed I thiB Lealile auP8raed1ng and c:&ncelllng the SI.e. Except _ herein Dtherwiee provided. no
8ub8eQJent alteration, IIIlIenDent, Change Dr Bddition to thia Le... ahall be b1:nding upon Landlord or
Te...t 1I11e.. .educed to writing and .xecuted by the p.rty egainat llhich .uch .ub.e",..t alt.rationa.
....dllont. change Dr ..dificetion i. to be ..farced. If any prayi.ion """tuned in any rider h.reta
1B 1I1con8isteot with any printed provisions of this LeaslI, the proviaion conta1ned in suet! rider ahBl1
.upe...de ..1d p.inted proYision. Tenant hereby .cknow1edg.. th.t, (a) thio l.ue contain. no
restrlethe covenant. Dr exclusive. in favor of Tenant; (b) thil Lease ahall nat. be ~ed or
inh!,preted _ tD .contain, by_ l""li,e.~ion o.r. Othe.t:Wi8~, _ .III!Y wa~ran~y, ~pre~.!'tat~an ~r ~i'r~t. CIIl the
part of landlord that any ijepart:.ant .tore "or regional or n.fiana! ehaln .tore or any other -.erchant
8nl11 o,.n for bus1nea Dr occupy Dr CCN1UnU., to oceupy any prnian 1n or adjoining the Shopping
Can tar during the ter. of this Le.se at any part thereof and lenant hereby exprc..ly waives all elai_
witb respect thereto .,d acknowledges that Ten.,t 1a not relying on any luch werranty, representation
or agreMent by Landlord either IS a matter of induc::elft8nt in entering into this leaBe or 8S .
condition of this Lease or .s a covenant by Landlord.
SECTION 20.10. ND P..t....hip.
LBI1dlord does nol, in eny way or for any purpose, became I partner of Tenant In the conduct
of its businslB, or atherwhe, or joint venturer or 8 -.ber of I joint enterprise with Tenant. The
provisions of this Leue relating to the Percentage Rent paYlble hereunder are included Bolely f'or the
purpose of providing 8 lIethod whereby 8dl!l~.te rent 1s to be la8uured and B8certained.
SECTION 20.11. Notice..
All payment! of rent and any and all other- lIonetary Obligations of Tenant accruing
hereunder, whether Dr nol denoted BS rent, ahall be paid to landlord Dr ita Igent at the address set
forth in t.he Indenture or Lesse, until Tenant is notified otherwise in writing, and all notices given
to Landlord hereunder shall be in writinQ and forwarded to- it at Hueh addrea, pOBlaQe prepaid. by
registered at" certified mail, return receipt rBCJ.Iested, or prepaid by Iny nationally recognized
express or overnight mail delivery service whieh provides proof of receipt. All notices to Tenant
shall be forwardee to it at the addrells set forth in the Indenture of Lease. until LandlDrd 11
notified other..is8 1n writing, by postage prepaid, registered ar certified "ail, return receipt
rSqJl!lated, or prepaid by any nationally recognized II::xj:lres& or overnight ail delivery service which
provides proof of receipt, or by delivery in person and in the event of 8 delivery in pet'aon, the
affidavit of the person .lIking Bueh delivery shall be eonclu8ive proDf of the delivery and of the date
and time of such delivery. All notiees shall be dee.ad. to have been 9iw'en on the date .men deposited
in the 1a811 recept8cle~ l18intained by the corporation which has been chartered by the United States
Gov~rmnent to operate and deliver the !lsil. deposited with the express or overnight Mil service as
aforesaid or, in the case of notices delivered in peraon to Tenant, when 80 delivered. Notices by the
Landlord may be given on its behalf by Agent or by any .ttorney far Landlord Dr Agent.
SECTION 20.12. Captions and Index.
The captIons 3na-index appearing in this Lease are inserted only 88 a ~atter of con~~~lence
and in no way define. li.il, conatrue or de.cribe the 8cope or intent of Bu~h .actions or articles or
this lease nor in 8ny way effect this lease.
SECTION 20.13. Tenant OefinedT Use of PronDun.
The word "Tenant" aFiiiI1be de.fIled and tlken to mean each and every person or party
mentioned a8 B Ten81'1t herein, be the 8811e one or 1I0re; and, if there ahall be IlOre than Dne Tenant,
any notice reqJired or per.itt.ed by the te1'1llS of this lee81t Il.ay be given by or to any ona thereof, and
shall have the 88me force Bnd effect 8S if given by Of to 811 thereof. The use of the neuter sinQulBr
pronoun to refer to landlord or Tenant shall be dtJemed B proper reference even though l.ndlord Dr
Tenant may be 8n individual, 8 partnerShip. 8 corpor.Uon, Dr 8 group Dr two Dr lIore individuals: Of
corporations. The necessary gralllaatical changes relJJired to lIaKe the provisions of this Lease apply
in the plural null'lber where there 18 more than one Landlord or Tenant end to either corporations,
.ssociations, partnerships Of individuals I 1181es or felll81es, shall in III instances be BS8umed 8S
though in each case fully expressed.
SECTION 20.14. NeQation of Parsonal liabilita.
Notwithstanding anything containe herein tD the contrary, Tellant agrees thet landlord
shall have no personal liability with respect to any of the provlaione of thia L~aBe end Tenant shsll
look solely to the estate and property of landlord in the lBnd and buildingl cOtl'lprising the Shopping
Center of which the demised pre.iges forlDS a part for the aatisflct10n or Ten IIn t '8 ~dies,
inell.ldin9, withDut li.itlt1on, the collection of any judgllllnt Dr the enforcement Df IIIlY other judi~i.l
process reCJ.liring the p8Yllent or expendH.ure of IIOney by landlord in the event of any derault Dr
breach by Lend lord with respect to any of the term and provisions of this Leaae to be observed end/Dr
performed by Landlord, Bubject, however, to the prior rights of any holder of any Hortg.ge covaring
- 27 -
all or part or the. ShQPpi1\9 Center, .nd no other uaeta of LandlDrd or any pr1neipal of Landlord ahall
be subject to levy, execution or other judieill praces. for the l.t1.f.ction or Tenant's clal. and, in
the l!,,'.nt Tenant obtains I judQlllent against. Landlord. thll judg~t docket shall be 80 nGted... This
SeCtion &h.U inure to th., benefit of' Landlord'. aucca..ora and ..Sf!':....:id their ~pec:tlve
principai.. (Q:ntinuecl (1\ Page 29. Addendtm to Secticn 31.14, NeAatial of T;Alnl;t:y.)
SECTION 20.15. Eff.ct of Gov.rn..nbll Ulait.Uan on Ranbl .nd Utll.r Charg...
In thee;;nrth.t ..y 1.., O.=1lion f ru.iiCiF' fiiulation of MY VDvorn..,t:.al bod,. h8Vin;
jurisdiction .hlll h... tIl. .ff.ct of UaiUng for Iny periacl .f U.. the ......nt af rent ar ather
charg.. p.y.hl. by Tenant to any ...unt i... th... thet ath.rwiso pra.ldod purau...t to thia Le_e, the
'oUowing ...unts .IulU nov.rthel.... be poyoble by lenent. (I) throughout euch period af 11.UaUan,
Tenant "'"11 ..sin li.bl. for tIl. 118d..... I..unt of rent ond otll.r ""a1'9" whi"" are l.gally plyaUe
(without reglrd to .,..y U.ibltion ta the uount ther..f .xpreaaed in tIlil L.... .xcept that all
."""nbl payabll by r...on af this S.ction 20.15 811.11 not in the .ggreg.t. .xceed the tatel af all
..ounts which .ould ath....i.e be p.yabl. by T...nt pursu.nt to tho te... of thia Lelee far the period
of-'it./:tat.tClli.. (b-)--et-t;m"tftai...ti",,'llf'-ouch- period Of '1t1i1lt.~ion. 1en.n1::-I\;I1:1: PlY to landlord, DR
de..nd but anly to the e.tont l.s9111y calloctlbie by Landlord. .ny ....unbl whicn would h..e been due
froln the Tenant dur.ing the period of Ua1tat1an but which were nat paid bet:AU8e. of .uc::h liaiting la.,
deeiaion. rule or regulation, and (c) far the re.aining terll of this Lease foUowi'19 the period of
11.itatian, Tenant shall pay to Landlord all ..ounts due far luch portion or the ter1l of thia lea.e in
accorc1ence 'With th8 teT'llS hereof calculated as thauoh there had been no intllnening period of
li.itation.
SECTION 20.16. Perti.l Inv.lidity; Seplrlt. Cov.nantl.
If any terll. covenant ar conditron or thi8 lease ar the application thereof to eny person.
Dr circUlUt8nce shall, to ."y extent, be tnvalid ar ""enforceable, the :re..inder of thla lease or the
application of such tena. covenant or condition to per~ns or circurastlncBI other than tho.e .. to
which it is held invllid or unenforcaable shall not be effected thereby ana each terM, covenant end
condition or this LeBBe sl1all be valid and be enforeed to the fullest extl!!nt permitted by 1a.._
rurthe~re, each covenant, agreement. obligation and other provision contained in this Lease i8. and
shell be deel'led and construed as, . eeparate and independent covenant of the party bound by,
undertak.ing or ..k.inQ the samet and not dependent on .ny other prDvision of this Le.l!l:!le unless
expressly se provided.
SECTJON 20.17. R.cordinQ.
Tenant ahaH not record this Leise "without the Mritten consent of llndlord. If Tenant
req..u:sts, and Landlord consent., the parties shall I!lx.ecut,e Bnd acknowledge B sl10rt form of Lease for
recording purpos=s wnich shall be recorded at lenenlls-expense.
SECTION 20.18. Brokeraae Commission.
Landlord and Tenant each ",.rrent to the other .that neither has been represented by Bny
Broker with regard to tn!s lease Agre~ent. Further, Landlord and Tenant euch agree to inde~lry end
hald harl\less the other 8hOu1d en)l cl.111 be lIade by any Broker clailling to h.....e represented either
Landlord or Tenant regarding this LeBse Agreeaent.
SECTION 20.19. Construction.
It is thl!l Intent or the partiee hel"eto that if Iny term, covenant, condition ar a9reeraent
or this lease is c8pab~: of two or IIDfe constructions, one Dr !aore of which would "renOer the provision
void, snd the other or others or which would render the pfDYisio~ valid, then tne provision shall he...e
tne deBning or Meanings which would render it ~alid.
SECTION 20.20. ~etuit~.
If the'terll D this Lea!e shall not h."e comllenced ..ithin three (3) years of the ~t.e
hereof, then this lease .lJt.oaIEltically shall becQIle null and void end both Landlord end Tenant Shall be
relieved or all ObliQationa hereunder.
SECTION 20.21. Choic. af L.w
This Leese .1iifIoe construed and enforced in accordance W'Hh the luws and jlJris"diction 0 f
the Stste in which the delliRed premiees is situate.
SECTION 20.22. ~ Prepar.tion
This Lease is to be deemed to hllle been prepared jointly by the parties hereto and any
uncertainty or ambiguity existing herein, if sny, shall not. be interpreted egainst any party. but
shall be interpreted according to the application of the rules or interpretation. ror IIrmla length
agreements.
SECTION 20.23. Inte<lioeotion
Whenever in this Lease any printed portion has been stricken Dut. whether or not 8ny
relative provision has been added, this Lease shall be construed as if the material 80 stricken was
never included herein and no inference shall be drawn Prom the material so stricken out which would be
- 2B -
incon~istent 1n any WBywith the construction or interpretation which wDuld be appropriate if such
materlal wore never contained herein.
SECTION 20.24. Submission or Le.ae to Tanant.
THE SJBHlSSION BYlANllrnI6TO TENANT OF THIS LEASE SHAlL HAVE NO BINDING FORCE OR EFFECT,
SHALL NOT CONSTITUTE AN OPTION FOR THE LEASING OF THE DEMISED PREMISES, NOR CONFER ANY RIGHTS OR
IMPOSE ANY OOLIGATIONS UPON EITHER PARTY UNTIL THE EXEOJTION THEREOF BY LANDLORl AND THE DELIVERY OF
AN EXECUTED ORIGINAL COPY THEREOF TO TENANT OR ITS REPRESENTATIVE.
ADDENDUM TO SECTION 20.14, Neaation of Peraonal Liability.
The referencBs to "l.ndlordlt in this Lease ehall be limited to lIBan and include only the owner
of the Shopping Cl:Rblll' of which the Prfllllises fOrllls a part. In the event Dr a sale ar transfer of such
intereBt (except a Mortgage or ather tran.fer a& 88cur1ty for. debt), the -L.ndlordll initially named
herein, ar in the case of B SUbsequent transfer, the transferor, &s of the date of such transfer,
shall be automatically relesled from ell liability for the performBnce or observance of any term,
conditiDn, covenant Dr obligation required to be perforlled or observed by landlord hereunder; and the
transferee &hall be deemed to have aaau. all Df' such tarlllSt conditions, covenants and obligations
except IS tD pre-existing defaults by landlDrd. The coyenants and obligations conbained in this Lease
to be perfoI'lled on the part of "Landlord" shall be binding on the Landlord or any transferor only
during the periods in "*tich it is 8 lDndlard hereunder. The nalle and designation Crown American
Realty Trust is the nue of the Trust and the eollecUve designation of the Trustees from time to time
undar the Declaration of Trust, 8IIandad and reatated .a or Auguat 6, 1993, .nd as may be further
a~nded and/or restated, .nd ell persona dealing with the Crown Americ8" Realty Trust must look solely
to the Shopping Center for the enforcBmBnt of any claims aga~n8t- Crown American Realty Trust, ss
neither the Trustees, afficers, agents Dr shareholders of the Crown American Realty Trust assume any
personal liability for oblig.tiona entered into by the Crown A..ric8n Realty Trust by reason of their
status 88 said Trustee, officer, agent or shareholder.
.
- 29 -
CAPITAL CITY MALL
Camp Hill, Pennsylvania
Revision Date February 3, 1994
EXHIBIT "A"
(Food Court Tenant "As Is")
1. Tenant has inspected the premises and agrees to accept the premises in an 'as is" condttion.
Except as provided in the foregoing lease Agreement, Landlord shall not be required to expend
any amount of money or do any other act which might be required to make the demised premises
sunable for the use permitted in the lease Agreement.
2. Tenant hereby aCknowledges and agrees that Tenant is a Food Court Tenant.
Each of the following words or expressions have, for the purposes of this Section and for the
purpose of this Lease. the meaning set forth:
A. "Food Court" means that certain portion or those certain portions 01 the Shopping Center
consisting of the Food Court Seating Area and the Rentable Area of the Food Court as shown
on Exhibn "B" attached to each of the leases for Food Court Tenants,
B. "Food Court Retail' means all those tenants designated by Landlord from time to time as Food
Court Tenants. .
C. "Food Court Seating Area' means that portion or those portions of the Food Court not intended,
from time to time by Landlord, to be ieased to Food Court Tenants and which portion or
portions are part 01 the common areas and are shown on Exhibil "S' attached to each of the
leases for Food Court Tenants.
D. "Food Court Tenant" means a tenant whose Demised Premises are designated from time to
time by Landlord to share in common with other tenants 01 a similar nature, the costs of
maintaining and operating the Food Court Seating area in the manner set forth in this Section
and who comprise Food Court Retail.
E. "Rentable Area of the Food Court" means the Gross leasabie Area of all araas wilhin the Food
Court leased to Food Court Tenants.
F. "Food Court Seating Area Costs" means those costs and expenses incurred as a resull of the
maintenance and operation of the Food Court Seating Area (including those incurred in the
maintenance and operation of such area as a part of the common areas). Such costs and
expanses include, wilhout limiting the generaiily of the foregoing: (a) ccsls of bus-boy and
cleaning services and garbage and wasle collection and disposal; (b) rental of equipment and
signs; (c) repairs or replacements 10, and meintenence and operation of, the Food Court
Seating Area, the fixtures and equipment including HVAG serving the Food Court Sealing Area:
(d) depreciation of all fixtures, equipment, interest on the undepreciated capital cost of all
fixtures, equipment, facilities and improvements serving the Food Court Seating Area; (e) the
cost of addnional security, policing and supervision lor Ihe Food Court Seating Area; and (I)
and administrative fee of fifteen percent (15%) of the total annual costs incurred in the
maintenance and operation of Food Court Seating Area.
Page 1
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G. "Food Court Proportionate Share" means an amount &qual to the sum of the amounts
determined in (1) and (2) below, which shall be an amount never less than the sum obtained by
muhiplying the square feet of floor area of the demised premises by the sum of Eleven
Ibllars and Fortv Cents ($11.40)
a. One-half of the Food Court Seating Area Costs for the Lease Year multiplied by a fraction,
the numerator of which shall be Tenant's Gross Sales for the calendar year, and the
denominator of which shall be the aggregate amount of "Gross Sales" (as such term is
defined in the respective leases of all Food Court Tenants, including Tenant) reported by all
Food Court Tenants.
b. One-half of the Food Court Seating Area Costs for the Lease Year multiplied by a fraction,
the numerator of which is the Gross Leasable Area of the Demised Premises, and the
denominator of whIch is the Rentable Aree of the Food Court.
c. See "*.
In the event Tenant does not submh a report of Gross Sales on a timely basis as required in
Article II of the Lease Agreement, Tenanfs Gross Sales for purposes of calculating Tenant's
Food Court Proportionate Share shall be deemed to be the product of the Tenant's square feet
area times the highest Gross Sales per square foot reported by Food Court Retail Tenants for
Ihe calendar year,
In each Lease year. Tenant shall pay to Landlord Tenant's Food Court Proportionate Share of
the Food Court Seating Area Costs, in addition to the Rxed Minimum Rent and other charge
required to be paid pursuant to this Lease, inciuding, without limitation. the Common Area
Charge.
Tenant's Food Court Proportionate Share as set out in this Paragraph is applicable only to Food
Court Tenants and, for the purpose of this Section, such Food Court Tenants will be the only
tenants in the Shopping Center responsible for the payment of Food Court Seating Area Costs,
Notwithstanding the foregoing, Landiord has the right from time to time to relocate or rearrang e
the Food Court and the Food Court Seating Area and to extend or expand the Food Court and
the Food Court Seating Area including designating other portions of the common areas
immediateiy adjacent to the Food Court and, in such evenl, the provisions of this Paragraph
shall apply.
The Tenant shall reimburse the Landiord hs pro rata share of the caphal costs and will
subsequently reimburse the Landlord for the maintenance and upkeep expense incurred by the
Landlord for; sanitary sewer lines, and air conditioning 01 the Food Court Seating Area.
Tenant acknowledges and agrees that it is a condition 01 this Lease that Landlord reserves the
right 10 formulate, determine and enlorce such merchandising policies, standards and practioes
for the Food Court as Landlord determines necessary or advisable in the best interest of the
overail operation of the Food Court 8l1d the Shopping Center in order ihat Landlord may
properly and elficiently supervise and manage the Food Court and the Shopping Center as a
whole, and the Tenant agrees to be bound by and to comply with such policies, standards and
practices
Page 2
F. Without Iim~ing the generality of the foregoing, Tenant, at all times during the Lease Term, in
the operation of Its business in the Food Court, will abide by all rules and regulations and
directions of Landlord relating to (a) the haalth and sanitary cond~ions of the Demised
Premises, the Food Court and employees of Tenant In the Food Court; (b) standards and
qual~y of merchandise end merchandising as determined by Landlord; (c) customer relations
and resolution of complaints of customers; (d) such other matters as Landlord determines from
time to time with respect to the operation of the Food Court. All of Tenant's personnel working
at ~s sales counter(s) shall be similarly attired in unMorms of Tenant's choice. Such uniforms
shall be kept in a neat and clean condttion at all limas and their design shall be in keeping wtth
the first-class, high quality image of the Shopping Center.
G. The amounts payable by Tenant pursuant to this Section may be estimated by Landlord for
such period as Landlord determines from lime 10 time, and Tenant agrees to pay to Landlord
Tenant's Food Court Proportionate Share, as so estimated, of such amounts In monthly
installments In advance during such period together wtth other payments of rent provided for in
this lease. Following the end of the calendar year for which such estimated payments have
been made, Landlord shall deliver to Tenant e statement of the Food Court Seating Area Costs,
together wtth a statement of the Tenant's Food Court Proportionate Share of such costs: and, ~
necessary, an adjustment shall be made between the parties in the manner hereinafter set forth,
If Tenant has paid in excess of the amounts due, the excess shall be cred~ed by landlord
against Tenant's futUre payments of Tenant's Food Court Seating Area costs. If the amounl
Tenant has paid Is less than the amounts due, Tenant agrees to pay any such addttional
amounts due wtth the next monthly payment of Rxed Minimum Rent. ~ any Lease Year during
the Lease Term is greater or less than any such period detennined by Landlord as aforesaid,
Tenant's Food Court Proportionate Share shall be subject to a per diem, pro rata adjustment.
4. Tenant's Plans and Specifications:
A. Complete professionally prepared working drawings and spec~ications shall be submitted for
review andlor approval by Landlord within thirty (30) days after the Landlord provides the tenant
with a criteria package for the demised space.
B. Drawings and specrtications shall be prepared and arranged in four (4) categories as
applicable: Architectural, HV.A.C., Plumbing and Electrical. The practice of combining two or
more groups onto one plan shouid be avoided. Each group shall be clearly designated. Plans
shall be drawn a11/8" scala or larger, on a standard paper size no larger than 30" x 42"
throughout. All drawing submissions shall include properly completed Landlord Construction
Standards (LCS) Drawings (set of LCS Drawings are part of Tenant Crtteria Package).
C. During all phases of plan development and prior to bidding or commencing of construction, the
tenant shall make a physical on-stte inspection of the demised space and verify condttions.
dimensions etc, of the demised space, Failure to do so shall be at Ihe risk and sole expense of
the tenant.
D. Landlord's plan review andlor approval is for compliance wtth Landlord's criteria oniy, and this
approval does not relieve tenant of responsibility for compliance wllh local, state and federal
codes. and regulatory agencies governing this area.
The fee schedule for drawing review and approval by Landlord is $1,200.00 for a Restaurant.
You will be invoiced upon approval of plans. All fees are payable to Landlord prior to opening
your Restaurant.
Page 3
5. Compliance:
Tenant shall be required to attain all necassmy approvals and permits llom state and local
goveming authorities including a final Inspection and a Certifioate of Occupancy from the State
De?artment of Lab or & Industry, and Plan ReviewslFscirlty Inspections by the Slate Department of
Heanh, as required. Tenant shalf also comply with any requirements of the American's with
Disabilities At:! (A.D.A.) as applicable and as mandated by local and state authorities.
6. Mandatory RemodeUng Requirllment5:
If the store has not been remodeled within the last three (3) yesrs, the following requirements will
apply. If thastOfe has been remodeled within the past three (3) years, remodeling requirements will
be enforced at Landlord's option.
Mandatory Remodeling Requirements Include:
A. Storefront. Minimal storefront remodeling requiremerrts would include all new finishes,
materials, and signage. Refer to Tenant Design & Construction Criteria for specific guidelines.
B. HVAC Unn . If existing rooftop unit is more than ten (10) years old, and tenant intends to reuse
it, Landlord will require e written statement from a bonallde HVAC Contractor that the unit has
been inspected In all phases of operation and is in good working condition.
C. All electrical work shall comply with the lates! National 8ectricaJ Code (N.E.C.), and all Federal,
State and Local Codes. Landlord does not Permit:
a. Exposed light source in public or safes area.
b. Ramel( - All wiring must be in conduit.
D. Ceiling 'Tile. landlord recommends the use of a 2' x 2' ceiling tHe pattem.
E. The tenant's store design, drawings, specifications and construction must comply with all the
Landlord requirements presented within the Tenant Design & Construction Criteria HandbOOK.
Tenant, tenant's agents, tenant's architect and/or engineer, and tenant's contractor(s) andior
s~bcontractor(s) are responsible to comply with all Landlord requirements and specifications.
7. Tenant's Construction/Remodel Worle
Tenant shall promptly commence end thereafter dUigently proceed with and complete the
remodeling of the demised premises within sixty (60) days alter the approval of such plans and
specifications. If Tenant shaD neglect, fail or refuse to commence its work as aforesaid or thereafter
neglects, fails or refuses to dUlgently proceed with and complete Its work, the Landlord, In addition
to other rights or remedies It may have and after fifteen (IS) days notice to Tenant, may (a)
complete Tenant's remodeling work at Tenant's expense and thereupon the R8nta1 Commencement
Date shall occur and all of' Tenant's payment obligations pUlSuanlthereto will commence, (b) cause
the Rental commencement Dale to occur and all of Tenant's payment obHgations pursuant thereto
to commence, notwithstanding the incompletion of Tenant's remodeling work, or (c) declare the
Lease cancelled and of no further force and effect.
Page 4
A. Tenant's progress and workmanship is subject to Landlord's inspection and approval. Any
violation involving the Tenant's store construction shall be corrected and made accaptable to
the Landlord, at the Tenant's sole responsibility and cost. Tenant's failure to correct violations
wtthin fifteen (15) days of notice of same to the tenant shall, at Landlord's option, rasull in
correction of same by Landlord or lis agent. Related costs will be blUed to the tenant as
addllional rent under the terms and condllions of the lease.
B. Tenant shall perlorm and cause tenant's contractor(s) and subcontractor(s) to perform all
tenant's work in a manner so as not to damage, delay or interlere wllh the prosecution or
completion of any work being perlormed by the Landlord or the Landlord's contractor(s) in the
demised space or in or about any other portion of the Shopping Center, or to comply with all
construction procedures and regulations prescribed in, or pursuant to, this Exhiblt 'A" for the
executiDrl of Ihe lenanl's work and the coordination of such work with work being performed by
the landlord or by the Landlord's contractor(s).
a Landlord, in Its sole discretion, and for any reason, shall have the right to order tenant to
terminate any construction work being performed by or on behall of tenant in Ihe demised
premises. Upon nomication from Landlord to tenant to cease any such work, tenent shall
forthwith remove from the demised premises all agents, employees and contractors of the
tenant's performing such work until such time as Landlord shall have given ils consent for
the resumptions of such
construction work and tenant shall have no claim for damage of any nature whatsoever
against Landlord in cDnnection therewllh.
b. Should tenant fail to comply wllh the rules and regulations established by Landlord or lis
cDntractors in any union contract to which Landlord, tts contractors Dr any subcontractor
may be a party. Landlord shall have the optiDn ellher 10 cancel the lease agreement or to
compel tenant immediately tD suspend the work being performed.
c. Ail work must be perfDrmed by bonaflde licenses contractor(s) and conform wllh all
applicable laws, rules. regulations, spec~ications, cDdes, and standards.
8. Insurance:
Tenant is responsible to furnish the Landlord with evidence of general liability and property
damages insurance coverage for the lenant's contractor(s) and/or sub-cDntractor(s) prior to the stert
ot any construction within the demised space. General liability insurance shall be a combined
singie limll of one million dollars ($1,000,000.00). Tenant shall indemnify and hold harmless the
LandlDrd frDm and against any claims, actions or damages resuiting from the acts or neglects 01
the subcontractDr(s) in the perfDrmance of the tenant's work. '
9. Notification:
Tenant shall notify the Landlord a minimum ot one (1) week priDr to moving Dnto the job tD
commence construotion. Tenant must also check in wllh the mall manger and present him/her with
a sel of approved plans along with the building permit number (where applicable).
Page 5
10. ServIce Charges:
The following services will be handled directly by the Mall Management Office with all associated
costs invoiced 10 the tenant's contractor(s), unless directed otherwise by the tenant in wr~ing to the
Manag ement office.
A. Trash dumpster will be provided and handled for the demised space up to the tenant's opening
date. Landlord will locate a construction dumpster. The tenant's contractor(s) or
subcontractor(s) are responsibie to place all rubbish, construction trash and surplus malerial in
the dumpster. The tenant or its contractor(s) is cautioned against having trash accumulated
within the demised space. Should this develop, Landlord will remove the trash and charge the
tenant for all costs.
B. Temporary electrical service as necessary will be provided under the following conditions:
1. Termination of this service is at Landlord's sole discretion.
2, Landlord is not responsibie for interruption 01 this service.
3. One (1) hook-up is provided for the demised space.
C. Roof work and reflashing for HV.A.C. equipment, plumbing vents, penetrations, etc., shall be
provided by the Landlord's roofing contractor only (as per Landlord construction standard
drawings). Tenant shall be responsible for the removal of any abandoned rooltop equipment
within the demised premises.
D. Sprinkler system modffication with respect to the tenant design and specifications will be
perlormed by the landlord's Sprinkler contractor, in compliance with N.F.P.A. Regulations and
Landlord's Insurance Co.
11. Waiver of Liens:
A. Tenant agrees to enter into Waiver of Liens Agreements or Waiver of Rights to file Lien contract
with any of its contractors, subcontractors, materialmen, or other persons furnishing services.
labor or materials concerning, in any way, work to be completed in part, or while, in connection
with tenant's work and provide Landlord with copies of same.
B, Any mechanic's lien filed against the demised premises or the Shopping Cenler for work
claimed to have been done or for materials claimed to have been furnished to Tenant shall be
discharged within twenty (20) days alter filing by bonding or as provided or required by law or
in any other lawful manner. Tenant's failure to comply with this (Paragraphs 11, A & B) shall be
deemed an event 01 default. .
12, Hazardous Materials:
Tenant andlor Its arch~ect andlor contractor(s) andlor subconlractor(s) shall not specify, furnish,
install or use any materials containing any hazardous or carcinogenic producing materials in the
completion of tenant's work. Ten (10) working days aher completion of tenant's work, the tenant or
tenant's architecl shall deliver 10 Landlord a cert~lcation that none of the materials used in the
completion of tenant's work contains hazardous/or carcinogenic producing materials.
Page 6
13. H.V.A.C. Maintenance:
Wrthin ninety (90) days of tenant's opening for businass, tenant is required to place in force and
keep in force for the full term of the lease agreement a maintenance agreement, wnh a reputable
licensed company, for the service. repair and maintenance of all the tenant's H.VAC. unlt(s)
providing service to the demised space. The agreement shall provide for but not be limned to at
least four (4) inspection and services each year and a minimum of eight (8) lilter changes each
year. A copy of the agreement must be delivered to the Landlord.
14. After Tenant opens for business, Landlord will be responsible for removing Tenant's trash,
excluding grease trap residue, from an area as designated by the Mall Management to a
compactor andlor holding bin(s). Tenant shall contact mall management office prior to opening for
business to make all necessary arrangements for trash removal. Tenant is responsible to separate
dry trash from wet and suitably bag and/or containerize same as directed by the Landlord. Costs
for removal shall be part of Tenant's Food Court Common Area Maintenance Charges.
15. Grease Trap CI.aning & Maintenance:
Tenant will enher reuse existing or install a new grease trap for the exclusive use of their premises.
Tenant, at their own expense, will maintain the grease trap, The tenant must place in force and
keep In lorce for the full term of the lease agreement a service contract with a reputable licensed
disposal company for collection and disposal of all grease for the demised spaoe. A oOPY of the
agreement must be delivered to the landlord prior to Tenant opening for business. Landlord
reserves the right to inspect the grease trap to insure that it is being properly cleaned and
maintained and, if not, Landlord will have same cleaned and maintained at Tenant's cost.
Page 7
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EX~IBIT "C'
UTILITY SCHEDULE
RATE.
1. Utility Services shall be furnished to individual tenants as needed. TenQnt agrees to
use and pay for utility service supplied by Landlord as additional rent under the Lease on a monthly
basis. Landlord may estimste such periodic billings and confirll and/or adjust 8allle on a leas frequent
basis. Charges for utility service shall be in accordance with Tenant's use category as if Tenant
were serviced djrectly by the local public utility ar municipal authority then supplying utility ge1'-
\fiee to the Shopping Center (the llt:.ariff") and any 8upplellsnts thereto Dr any tariffs issued to Buper-
sece said tariff, which may hereaFter be filed. Bnd Tenant shall s180 pay any taxes. surCharges,
illpositions., penalties or other additional charges applieable to the utility service used by it which
are not included in the aforesaid rate Bnd tarirf, provided that such ta~es, surcharges. !~ositions
or other charges are required by law to be cDllected rrom Tenent or Bre paid by Landlord to ite
supplier of utility service.
2. Notwithstanding anything contained herein to the contrary, in the event thet the rate
which would be charged by a public utility for equivalent amounts of service becomes insufficient to
compensate Landlord for the reasonable costs of 8upplying utilities to Tenant. then Landlord shall be
entitled to eharge Tenant an amount equal to the actual cost of supplying the utility service,
together with an amount not to exceed lS~ of each utility bill.
J. In no event shell Landlord be liabll! for the quality, quantity, failure Dr interruption
of any utility s"srvice to the demised premises.
4. The Landlord may. at its option, install., Energy Management System to efficiently con-
serve utility usage. Tenant agrees tD pay a monthly charge of $50.00 as Tenant's share of the Energy
Management System purchase, installment, maintenance and upgrade costs. Tenant shall remit this
charge, which will be aeparately identified in the original invoice, 8S part of the Tenantts reg~18r
monthly utility payment.
ELECTRIC SERVICE.
Electric energy supplied hereunder by landlord shall be nominally sixty-cycle, unregulated
alternating current, in the fcrm of J phase, 4 wires, and of 8 voltage designated by landlord.
Installation of Tenant's electric facilities shall be in conformity with the Lease, the National
Electric Code and the ['equirentents of the public utility or municipal authority then furnishing
electricity to the Shopping Center.
If Tenant ia replacing a. prior tenant in the derniEied premises, landlord will charge the new
Tenant a 5150.00 charge for the transfer of utility services respon8ibilities from landlord to new
Tenant.
RIGHT TO CUT-Off.
Landlord shall have the right to discontinue its utility service to Tenant and to remove
its property from Tenant's premises whenever bills for utilities are in arrears beyond the grace
period set forth in the Lease, or in case Tenant fails to comply with or perform any of the terms,
conditions or obligations or violates any of the covenants set forth in the Lease beyond the grace
period set forth in the Lease.
APPLICATION fOR UTILITY SERVICE.
Tenant shall make application for utility service to Landlord, in accordance with rules
and regulations set forth in Landlord's Utilit)l hooklet, where such service is supplied by Landlord.
On May 1 S\ 1999 WILLIAM M KNOBLOCH acquired the
husiness known as KNOBLOCH'S DELI, NORTH HANOVER
MALL HANOVER, PA 17331 from the partnership of J. PHILIP,
NANCY L., WILLIAM M., and JOHN P. KNOBLOCH.
His former partners have no invested interest in his business.
Conversely, WILLIAM KNOBLOCH has no invested interest in
the partnership of J PHILIP, NANCY L. and JOHN P
KNOBLOCH.
Attested by; J PHILIP KNOBLOCH on behalf of the partnership
doing business as KNOBLOCH'S DELI, CAPITAL CITY MALL,
CAMP HILL, PA.
. -1' "
"., ,:;. /,1,.';";'-'>.;/ (",);"::2/;:;(
:.L I .; ",fj il { II . rvJ.t!/S!
x':"l' :i.,:( ;..f}d0.,',Y.' ..{dated...... ..'../
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.
....MENDMENT OF LEASE
rms AMENDMENT OF LEASE, lIWlc on this 1!!1fdolt of .Ih~ .2000, by CROWN AMERICAN
PROPERTIES. L.P.. 0 Delaware Limilod PaI1nersbip. by Clown Amorican T1WIl, it.! Sole General PorlDcr. witlt it.!
offices IDClIed at Puqo.crilla PIua, Jolmstown, PallISYlvaoia 15901 ~ called "Landlord"), and J. PHILJP
KNOBLOCH and NANCY L. KNOBLOCH, Husbend and Wif.; ~''lLr,J.<.! III laIBBL9BII; and JOHN P. KNOBLOCH, IU.
loinny IIId Severally.
tradin& as KNOBLOCH'S DELI &: LOTI'ERY.
with on address at 190 Black Rode Rood, Haoover. PalDSylvaoia 17331.
(hereinafter called "1'cnon('),
WITNESSETH:
WHEREAS. by iDdcmurc of Lease and Lease Ajp'eelDcnt daIod De<:omber 22. 1995. Landlord leased and demised to
Teuant 0 ccrWn Food Court promiJes. No. 848. 10Cllcd in 1Ite ClpitaI City Mall, 3506 Capital MaIl Dri.., Camp Hil~ P....
(hereinafter reCemxlto as tIl. "Lcue"); lOld
.-
WHEIlEAS, Landlord and Ten"'t wish to amend 1hc Lease in lb......... and to the _ as hereinaftlor provided.
NOW. THEREFORE, in COIISideralion of !be pnmi8eo and mulUll promi... berein S<l forth, Landlord and Tetlllll
.... dlat!be Lease be and is amended in !be following manner:
l J:s!:!!. (Pmgraph B of!be Indenture)
The Icml of the Lease sball b. extended for 0 period of approximately -five- (5) y.... beginniog on the
"conun........m date" as established by Seclion 1.01(0) of !be Lease; provided, howev.... Tenont'. fIXed minimum renlll and
o1Iter charges will commence on November 19. 2000. wbether T.nant is open for business or not, ond sha1I terminate ond expire
"" Imuary 31. 2006.
2, FIud Minim... ReDt. (Pmgrapb C of !be Indenture)
TCIIIIIIl sball pay to Landlord. gnanntced lDI1ua1 minimum rent ("F1ud Minimum Rent") as follows: Th. Fixed
Minimum Rent for each of !be following periods during 1110 tmm of dlis AmeIIdmlOll of Lease nil be:
y""" 1- 5
Annual Amount
$35.000.00
Mon1hlv Amount
Time Period
$'2,9\6.67
Each such installment shall be due and payable on or before the first dolt of each ca1endar month in the k:nn of this Amendment
of Lease, in ad_ at tile office of Landlord or at such o1It.r place as may be dc:signa!ed by Landlord from time to time,
without my prior demand therefor and without any deduction or setoff _...... !be lint installment 10 be paid on the
comm.ncement date wbetbcr Dr not tit. eommencemcnt date is 1hc first day of . calendar month. [0 the eveat that tit.
commencement date of the 1lmD of this Amendment of Lease shall be a day otller than !be first day of 0 <:aIendu monlb,
T....t.. first payment of Fixed Minimum Reot shall be protlIled for th. fractional month between tbe commencem...' date and
tile fmday of!be first full calendar month in tile term h....o~ on o per diem basis (calculated 00. tbirty [30) day month).
..
3. ,.,....1.... Re.l. (Paragraph D oflbe Indenture)
10 addition to lb. Fixed Minimum Rent as afmesaid, Tenon~ in oa:ordance with Section 2.01 of lb. Lease, shall pay 10
Londlord, as additional rent bereuoder (bc:reinaftcr refermi to as "Percentage Rent"). and as part of lbe considmtioo of !be
aforesaid demise, for eacb 1.... year io lb. term of this Amcndmeat of Lease . SI1ID equaL to eight pen:cnt (8%) oflhat portion
of Groa S.les (as defined in Sedion 2.02 of lb. Lease) durina sucb 1cuc year wbich is in ..cess of the applicable Pon:enlap
Rent Groa Sal.s Base. The Pen:enlap Rent Groos Sales Base for 1hc following periods within eacb I.... year sball be:
Time Period
~b.lle Rent Gross Sales Base
Y....I-5
5437,500.00
4. T....t.. A1lowe.... (Paragraph G of the IndeD1llR>) shall b. amended by adding 1hc following paragraph to lb. end
lb.....f:
~~
~ "Prior 10 Jr.20e0. Tenont shall complete. cosmetic remodeling of lbe demised premi.... !be extent of
T- _ich shall b. mnlUllly fiIeed upon by Landlord and T.oan~ pursuant to lb. provisions of Exhibit 'A'."
5. Marbtlu lIu.dI....dv.rtl.I... (Paragrapb J oflbelndenture)
Tenant cov.....ts and _ to become . member of any Markding Fund approved by Landlord, lIIIII,tIl maintain .uch
membership tbroughout the term of this Amendment of Lease. Tenant furtber _ to pay as its shuc of the cost of lb.
activities coodudcd by .uch assoc:ltnoo !be sum of -$. 75- per year for eacb square: foot of floor area contained io the demised
praois... subject to CPI adjustmeo~ as provided in Article XV of lb. Lease. In no event .hall Tenant's paymeots bereunder
increase more !ban .ight pereent (8%) over the amount paid lb. immediately preceding twelve (12) mootll period.
Tenlllt sb.ll also pay lD Landlord as its contribution to !be Advertising Proenm for !be Sbopping Ccnt...th. sum of
-$,75- per year for each squar. foot of floor area CDnlained in 1hc demised premi8eo. Tenant's Ad_ins Progrom payment
IIId Madteting Fuod payment shall be made in monthly installments, lolletbcr wilb payment of Fixed Minimum Root, and sald
Advertising /'roglut payment shall be subject to CPI adjUSllllCllt in the sam. manocr as Tenont's Mukcting Fund payment as
provided in Artide XV of !be L..... In no event shall Tenant's paymenlS hereunder in....... more !ban elgbt pen:eut (8%) over
!be amount paid !be immediately preceding tw.lv. (12) mootlt period.
6. ProoortloD.le Cort of Seeuritv. (Paragraph K of !be lodenture) shall b. amended by adding lbefollowiDg pIlI'l&rlPh to lbe
end 1It=of:
"10 no event shall Tenonl's p.ymeots bercunder increase more lban eight percent (8%) ov<<1he amount paid the
immediately preceding twelve (12) month period."
7. GrOll Sales DeIiDed. (Seeti.. 2.02(.) oflbe Lease Agreement) shall be deleted in its entirety and roslated as follows:
"(a) Th. words 'Gross Sales' as used herein shall meao tit. gross amount of all sales of all goods, waRS and
mcrcbandix .old and all ..rvices performed by Tenant and/or by ony subtensnt, licen... or concessionaire in, at Dr from the
demised premixs (including, but not limilod to. cstalogu. sales made at or from lbe dcn!ised pmnixs). whedtcr for cosh, credit
or o!ber considemion, with such other consideration b.ing dctcnnined at fair market value ",d rmancing clwgcs on all Gross
Sales (without reserv. or deducti.. for inability or failure to collect) including, but Dolllmilod to, such saIcs ond ocrviccs (I) as a
result oflransaclioos originatin8 in, at or from lb. demised premises, wbetbcr ddivery or pclformancc is made from the demised
prcmisc:s Dr from some other plscc; (2) pursuant to mail, telepb..e, te1earaph. c10.ed TV Circuil, Disl-A..Jluy. eLectronic. video.
computer. Dr other technology-based systems ond other devices, .-natod or otherwise, wbetbcr existing now or developed in
the futun: wbe",by orders arc received at Dr supplied from !be demised premi_ or (3) wbich Tenant o. ...y subtenant, licensee
or concessiODaire in the normal course of its business would IlIributc to its operations attbc demised premisra. Oross Sales also
ioelud. all deposits oat refunded to purchasers. Each sale upon installment Dr credit .haIl be treared as a sale for !be full price in
lbe month during which such sal. .haIl be mad., irrespective of tit. time wben Teolrlt shall receive payment therefor."
,
tJ,
,
..
.
8. P_pb 2G(c) ofExhlblt "A" (Food Court Tenant As-I,) Jball be deleted in its entirety and restated as follows:
"In no .....t Jball TenaDl" payments hereunder I........ more !ban the greator of (I) eislrt pen:ent (ll'Y.) over the
amount paid !be immediatol)o pteeediDg twelve (11) monlh period, or (ii) three percent (3%) of Tenant', Gross Sales for tlte
immediately pn:ccdiog twelve (12) month period."
9. Excc:pt as _ess!y amended berein, the Lease Is hereby ratified and _cd and the lcnns, conditillllS, a_nlS,
ob1igatioas and provisions 1Iteteof are incorporated hereby as if fully set fonh herein and !be same shllil <:ontinue In full force
and_
10. This Amendment of L..... d1a11 he biDding upoo and sba11 inure to the bencf"rt of 1hc puti.. berelo IlId their tcspeClive
heirs,
adminislrlltors. reprcsealIlives, ,ucceuors and, 10 !be ""....t permitted by !be Ierm, of1lte Leos.. their ISSlgoees.
IN WITNESS WHEREOF, !be poniea ba<<o, intending to he legllily bound hereby, hive CllIscd tbisAmendment of
Lease to be duly c:xeculCd !be day and yar ftllt.- written.
A1TBfi:fl:!!/jJ~~
d P. RUIillak, Se<mary ~
(Corporate Seal)
J. PHILIP KNOBLOCH and NANCY L. KNOBLOCH,
Husband IIId Wife; WIIo.I I W 11. Kl' 19111. 9S1I; and
JOHN P. KNOBLOCH, II~ Jointly and Severally,
riA KNOBLOCH'S DELI &: LOTIERY
~SS: ~ ;:i/JiJnJJ
~~~~
~~J_,
~~ ;f~J##AL)
Nancy ,Knob _
WITNESS:
(SEAL)
"'illir- II Y&Illl!luh
~ss~~
6u>k~
lolln P. Knobloch, m
(SEAL)
CCM-KnobIocl", Deli Am.d.
.3-
STATEMENT
Date-
Account-
Statement No -
Page-
Make Check
Payable To:
PR CAPITAL CITY LIMITED PARTNERSHIP
PO BOX 644052
PITTSBURGH PA 15264-4052
From: CAPITAL CITY MALL
3506 CAPITAL CITY MALL DR
CAMP HILL PA 17011-7003
To:
J. Philip & Nancy L. Knobloch
190 Black Rock Rd.
Hanover PA 17331-4205
Tenant: Knobloch's Deli #848
FOR INQUIRIES CAlL: Mary Lee Parley TEL 717-737-8275 or FAX: 717-737-0607 Amount Remitted:
Remit top portion with payment.
DETAIL CHARGE
Capital CIty Mall Knobloch's Dell #848 Lease 00006679
Invoice Date Description Charges Payments Balance Check Number
1/1/2003 Balance Forward ,00
121112003 Real Estate Tax.Small Retail 87.50 (87,50) ,00 2502
121112003 Marketing Fund Dues 31.25 (31,25) ,00 2502
12/1/2003 TenantAdvertising Fund 31.25 (31.25) ,00 2502
12/1/2003 Energy Management 50.00 (50,00) ,00 2502
12/1/2003 Base Renl-Small Retail Shops 2,916.67 (2,916.67) ,00 0
12/1/2003 Common Area Maint-Small Retail 288.88 (288,88) ,00 8600
12/112003 Security 28.98 (28,98) ,00 8600
12/1/2003 Food Court CAM 925.60 (925,60) ,00 8600
12/31/2003 UTILITIES-ELECTRIC 477.16 (477.16) ,00 2520
12/31/2003 SALES TAX 28.63 (28,63) ,00 2520
111/2004 Real Estate Tax-Small Retail 87.50 (87,50) ,00 8600
1/112004 Marketing Fund Dues 31.25 (31.25) .00 8600
1/1/2004 Tenant Advertising Fund 31.25 (31,25) ,00 8600
1/1/2004 Energy Management 50.00 (50,00) ,00 8600
1/1/2004 Base Renl-Small Retail Shops 2,916.67 (2,916.67) ,00 5547
1/1/2004 Common Area Maint-Small Retail 288.88 (288,88) ,00 8600
1/1/2004 Security 28.98 (28,98) ,00 8600
1/1/2004 Food Court CAM 925.60 (925.60) ,00 2520
2/1/2004 REAL ESTATE TAXES 87.50 (87,50) ,00 8611
2/1/2004 Marketing Fund 31.25 (31,25) .00 8611
2/112004 ADVERTISING 31.25 (31,25) ,00 8611
2/1/2004 ELECTRIC 50.00 (50,00) ,00 8611
2/1/2004 MINIMUM RENT 2,916.67 (2,916.67) ,00 5547
2/112004 CAM ESCROW 288.88 (288,88) ,00 8611
2/1/2004 Security 28.98 (28,98) ,00 8611
2/1/2004 FOOD COURT CAM 925.60 (925,60) ,00 8611
2/17/2004 electric penalty (521,91) ,00 2520
2/1712004 Electirc - Penalty 16.12 (16.12) ,00 2520
2/2012004 SEWER 188.24 (188.24) ,00 2593
2/25/2004 ELECTRIC 430.07 (430.07) ,00 2593
2/2512004 STATE TAX 25.80 (25,80) ,00 2593
3/1/2004 ELECTRIC 50.00 (50,00) ,00 5547
3/1/2004 MINIMUM RENT 2,916.67 (2,916.67) ,00 2613
3/1/2004 CAM ESCROW 288.88 (288.88) ,00 2593
3/1/2004 Security 28.98 (28.98) ,00 5547
3/1/2004 FOOD COURT CAM 925.60 (925,60) ,00 2593
Exhibit 2
7/29/2005
720076
37125
1
STATEMENT Date- 7/2912005
Account- 720076
Statement No - 37125
page- 2
3/1/2004 REAL ESTATE TAXES 87.50 (87,50) ,00 5547
3/1f2004 Marketing Fund 31.25 (31,25) .00 5547
3/1/2004 ADVERTISING 31.25 131,25) ,00 5547
3/18/2004 Electric 374.08 (374,08) ,00 2613
3/1812004 State Tax 22.44 (22,44) ,00 793
4{1/2004 REAL ESTATE TAXES 87.50 (87,50) ,00 2613
4/1/2004 Marketing Fund 31.25 (31,25) .00 2613
4/1/2004 ADVERTISING 31.25 (31,25) ,00 2613
4/1/2004 ELECTRIC 50.00 (50,00) ,00 2613
4/1/2004 MINIMUM RENT 2,916.67 (2,915,67) ,00 5417
4f1/2004 CAM ESCROW 288.88 (288,88) ,00 5417
4/112004 Security 28.98 (28,98) ,00 5417
4/1/2004 FOOD COURT CAM 925.60 (925,60) ,00 5417
4/1/2004 Electric 372.99 (372,99) ,00 793
4/1/2004 State Tax 22.38 (22,38) ,00 793
5f1/2004 REAL ESTATE TAXES 87.50 (87.50) ,00 5417
5f1fZ004 Marketing Fund 31.25 (31.25) ,00 5417
5/112004 ADVERTISING 31.25 (31,25) ,00 5417
5/1/2004 ELECTRIC 50.00 (50,00) ,00 5417
5/1/2004 MINIMUM RENT 2,916.67 (2,916,87) ,00 5417
5/1/2004 CAM ESCROW 288.88 (288,88) ,00 5417
5/1/2004 Security 28.98 (28,98) ,00 5417
5/1/2004 FOOD COURT CAM 925.60 (925,60) ,00 5417
5f6/2004 Electric 449.80 (449.80) ,00 5417
5f6f2004 State Tax 26.99 (28,99) ,00 5417
6f1f2004 REAL ESTATE TAXES 87.50 (87,50) ,00 5417
6/1/2004 Marketing Fund 31.25 (31,25) ,00 5417
6/1/2004 ADVERTISING 31.25 (31,25) ,00 5417
6/1/2004 ELECTRIC 50.00 (50,00) ,00 5417
6/1/2004 MINIMUM RENT 2,916.67 (2.916,67) ,00 1733
6/1/2004 CAM ESCROW 288.88 (288,88) ,00 5417
6/1/2004 Security 28.98 (28,98) ,00 5417
6/1/2004 FOOD COURT CAM 925.60 (925,60) ,00 5417
6/312004 Electric 463.04 (463,04) ,00 5417
6/3/2004 State Tax 27.78 (27.78) ,00 5417
6/18/2004 Sewer 68.09 (68,09) ,00 5417
6/25/2004 Electric 488.09 (488.09) ,00 2671
6/25/2004 State Tax 29.29 (29,29) ,00 2671
7/112004 REAL ESTATE TAXES 87.50 (87,50) ,00 865
7/112004 Marketing Fund 31.25 (31,25) ,00 865
7/1/2004 ADVERTISING 31.25 (31.25) ,00 865
7f1/2004 ELECTRIC 50.00 (50,00) ,00 865
7/1/2004 MINIMUM RENT 2,916.67 (2,916.67) ,00 865
7/1/2004 CAM ESCROW 288.88 (288,88) ,00 1733
7/1/2004 Security 28.98 (28,98) ,00 1733
7/1/2004 FOOD COURT CAM 925.60 (925,80) ,00 1733
7f1812004 CAM EXCESS 2003 277.31 (277.31) ,00 1733
7/18/2004 SEC EXCESS 2003 8.27 (8,27) ,00 1733
7/18/2004 FOOD COURT EXCESS 2003 1,110.72 (1,110,72) ,00 1733
7/18/2004 FOOD CT INT 1/1/04-7/31104 647.92 (647,92) ,00 1733
7/1812004 CAM INTERIM 1/1/04-7/31/04 161.77 (161.77) ,00 1733
7/18/2004 SEC INTERIM 1/1/04-7/31104 4.83 (4.83) ,00 1733
7/29/2004 Electric 525.40 (525.40) ,00 2679
7/29/2004 State Tax 31.52 (31.52) ,00 2679
8/1/2004 REAL ESTATE TAXES 87.50 (87.50) ,00 865
8/1/2004 Marketing Fund 31.25 (31,25) ,00 885
8/1/2004 ADVERTISING 31.25 (31.25) ,00 885
8/1/2004 MINIMUM RENT 2,916.67 (2,916.67) ,00 885
STATEMENT Date- 7f29/2005
Account - 720076
Statement No - 37125
page- 3
8/112004 Energy Management Fee 50.00 (50,OO) ,00 865
8/1/2004 FOOD COURT CAM 1,018.16 (1,018.16) ,00 1733
8/1/2004 eAM ESCROW 311.99 (311.99) ,00 1733
8/1/2004 Security 29.67 (29,67) ,00 1733
9/1/2004 REAL ESTATE TAXES 87.50 (87,50) ,00 1733
9/1/2004 Marketing Fund 31.25 (31,25) ,00 1733
9/1/2004 ADVERTISING 31.25 (31.25) ,00 1733
9/1/2004 MINIMUM RENT 2,916.67 (2,916.67) ,00 1733
9/1/2004 Energy Management Fee 50.00 150,00) .00 1733
9/1/2004 FOOD COURT CAM 1,018.16 (1,018.16) .00 2758
9/1/2004 CAM ESCROW 311.99 (311.99) ,00 2758
91112004 Security 29.67 (29,67) ,00 2758
9/3/2004 Electric 511.24 (511.24) ,00 2709
91312004 State Tax 30.67 (30,67) ,00 2709
9/8/2004 Knobloch's Deli/spread UCIDave (7,500.43) ,00 865
9/15/2004 Sewer 38.13 (38,13) ,00 2728
10/1/2004 REAL ESTATE TAXES 87.50 (B7.50) ,00 2758
1 0/1 f2004 Marketing Fund 31.25 (31,25) ,00 2758
10/1f2004 ADVERTISING 31.25 (31,25) ,00 2758
10/1/2004 MINIMUM RENT 2.916.67 (2,916,67) ,00 2791
10/1/2004 Energy Management Fee 50.00 (50,00) ,00 2791
10/1f2004 FOOD COURT CAM 1,018.16 (1,018,16) ,00 2797
10/1/2004 CAM ESCROW 311.99 1311,99) ,00 2797
10/1/2004 Security 29.67 (29,67) ,00 2797
9/28/2004 Electric Penalty 16.84 (16,84) ,00 2728
10/4/2004 Electric 528.63 (528,63) ,00 2728
10/4/2004 State Tax 31.72 (31.72) ,00 2728
10/5f2004 NetDr&Cr/J. Lovejoy (558,75) ,00 2709
1 0/8/2004 Knobloch's/Spread per Dave H. (1,000.00) ,00 2714
10/27/2004 Electric Penalty 17.21 (17,21) ,00 2709
10/29/2004 Electric 439.61 (439,61) ,00 2761
10/29/2004 State Tax 26.38 (26,38) ,00 2761
11/1/2004 Energy Management Fee 50.00 (50,00) ,00 2797
11/1/2004 FOOD COURT CAM 1,018.16 (802.22) 215.94 2797
11/112004 CAM ESCROW 311.99 311.99
11/1/2004 Security 29.67 29.67
11/1/2004 REAL ESTATE TAXES 87.50 87.50
11/1/2004 Marketing Fund 31.25 31.25
11/112004 ADVERTISING 31.25 31.25
11/1f2004 MINIMUM RENT 2,916.67 2,916.67
12/112004 REAL ESTATE TAXES 87.50 87.50
12/1/2004 Marketing Fund 31.25 31.25
12/1/2004 ADVERTISING 31.25 31.25
12/1/2004 MINIMUM RENT 2.916.67 2,916.67
12/1f2004 Energy Management Fee 50.00 50.00
12/112004 FOOD COURT CAM 1,018.16 1,018.16
12/1/2004 CAM ESCROW 311.99 311.99
12/1/2004 Security 29.67 29.67
12/312004 Electric 414.11 (414,11) ,00 2783
12/312004 State Tax 24.85 (24,85) ,00 2783
12/15/2004 Sewer 37.23 (37.23) ,00 2796
1/1/2005 Energy Management Fee 50.00 50.00
1/112005 FOOD COURT CAM 1,018.16 1,018.16
1/1/2005 CAM ESCROW 311.99 311.99
1/1/2005 Security 29.67 29.67
1/1/2005 REAL ESTATE TAXES 87.50 87.50
1/1/2005 Marketing Fund 31.25 31.25
1/1/2005 ADVERTISING 31.25 31.25
STATEMENT Dale- 7/29/2005
Account- 720076
Statement No - 37125
Page- 4
1/1/2005 MINIMUM RENT 2,916.67 2,916.67
1/4/2005 Electric 480.04 (480.04) ,00 2834
1f4/2005 State Tax 28.80 (26,60) ,00 2834
112812005 Electric Penalty 16.18 (16,16) .00 2834
1/3112005 Electric 438.29 438.29
1/3112005 State Tax 26.30 26.30
2/1/2005 Energy Management Fee 50.00 50.00
2/1/2005 FOOD COURT CAM 1,018.16 1,018.16
2/1/2005 CAM ESCROW 311.99 311.99
2/1/2005 Security 29.67 29.67
2/1/2005 REAL ESTATE TAXES 87.50 87.50
2/1/2005 Marketing Fund 31.25 31.25
2/1/2005 ADVERTISING 31.25 31.25
2/1/2005 MINIMUM RENT 2,916.67 2,916.67
2/28/2005 Electric 424.01 424.01
2/28/2005 Stale Tax 25.44 25.44
3/1/2005 Energy Management Fee 50.00 50.00
3/1/2005 FOOD COURT CAM 1,018.16 1,018.16
3/112005 CAM ESCROW 311.99 311.99
3/1/2005 Security 29.67 29.67
3/1/2005 REAL ESTATE TAXES 87.50 87.50
3/1/2005 Marketing Fund 31.25 31.25
3/1/2005 ADVERTISING 31.25 31.25
3/1/2005 MINIMUM RENT 2,916.67 2,916.67
3/11/2005 Sewer 37.23 37.23
4/1/2005 REAL ESTATE TAXES 87.50 87.50
4/1/2005 Marketing Fund 31.25 31.25
4/1/2005 ADVERTISING 31.25 31.25
4/1/2005 MINIMUM RENT 2,916.67 2,916.67
4/1/2005 Energy Management Fee 50.00 50.00
4/1/2005 FOOD COURT CAM 1,018.16 1,018.16
4/1/2005 CAM ESCROW 311.99 311.99
4/1/2005 Security 29.67 29.67
4/112005 Electric 412.38 412.38
4/1/2005 State Tax 24.74 24.74
4/27/2005 Electric Penalty 14.74 14.74
4/27/2005 Electric 523.70 523.70
4/27/2005 State Tax 31.42 31.42
5/1/2005 REAL ESTATE TAXES 87.50 87.50
5/1/2005 Marketing Fund 31.25 31.25
5/1/2005 ADVERTISING 31.25 31.25
5/1/2005 MINIMUM RENT 2,916.67 2,916.67
5/1/2005 Energy Management Fee 50.00 50.00
5/1/2005 FOOD COURT CAM 1,018.16 1,018.16
5/1/2005 CAM ESCROW 311.99 311.99
5/1/2005 Security 29.67 29.67
5/31/2005 Electric 506.41 506.41
5/31/2005 State Tax 30.38 30.38
6/1/2005 REAL ESTATE TAXES 87.50 87.50
6/1/2005 Marketing Fund 31.25 31.25
6/1/2005 ADVERTISING 31.25 31.25
6/1/2005 MINIMUM RENT 2,916.67 2,916.67
6/1/2005 Energy Management Fee 50.00 50.00
6/1/2005 FOOD COURT CAM 1,018.16 1,018.16
6/1/2005 CAM ESCROW 311.99 311.99
6/1/2005 Security 29.67 29.67
6/15/2005 Sewer 98.89 98.89
7/1/2005 REAL ESTATE TAXES 87.50 87.50
STATEMENT
Date-
7/29/2005
720076
37125
5
Account-
Statement No -
Page-
7/1/2005 Marketing Fund 31.25
7/1/2005 ADVERTISING 31.25
7/1/2005 MINIMUM RENT 2,916.67
7/1/2005 Energy Management Fee 50.00
7/1/2005 FOOD COURT CAM 1,018.16
7/1/2005 CAM ESCROW 311.99
7/1/2005 Security 29.67
7/1/2005 Electric 548.20
7/1f2005 State Tax 32.89
811/2005 REAL ESTATE TAXES 87.50
8/1/2005 Marketing Fund 31.25
8/1/2005 ADVERTISING 31.25
8/1/2005 MINIMUM RENT 2,916.67
8/1/2005 Energy Management Fee 50.00
8/1/2005 FOOD COURT CAM 1,018.16
8f1/2005 CAM ESCROW 311.99
8/1/2005 Security 29.67
PAYMENTS SECTION
31.25
31.25
2,916.67
50.00
1,018.16
311.99
29.67
548.20
32.89
87.50
31.25
31.25
2,916.67
50.00
1,018.16
311.99
29.67
GILDate Description Payments Check Number Remark Balance
1/12/2004 Payment Rec'd - Thank You 492.31 2502 492.31
1/15/2004 Payment Rec'd - Thank You 2,916.67 0 3,408.98
2/212004 Payment Rec'd - Thank You 2.000.00 8600 5,408.98
2/17/2004 Payment Rec'd - Thank You 1,855.67 2520 7,264.65
2112/2004 Payment Rec'd - Thank You 916.67 2519 8,181.32
313/2004 Payment Rec'd - Thank You 2,800.00 8611 10,981.32
3/812004 Payment Rec'd - Thank You 521.48 2545 11,502.80
3/18/2004 Payment Rec'd - Thank You 2,599.50 5547 14,102.30
4/1/2004 Payment Rec'd - Thank You 1,000.00 2562 15,102.30
41712004 Payment Rec'd - Thank You 1,416.67 2569 16,518.97
4/2112004 Payment Rec'd - Thank You 1,247.76 793 17,766.73
5/4/2004 Payment Rec'd - Thank You 2,000.00 2593 19,766.73
6/1/2004 Payment Rec'd - Thank You 1,000.00 2613 20,766.73
619/2004 Payment Rec'd. Thank You 600.00 8638 21,366.73
619/2004 Payment Rec'd - Thank You 1,000.00 176001 22,366.73
6/24/2004 Payment Rec'd - Thank You 10,000.00 5417 32,366.73
819/2004 Payment Rec'd - Thank You 517.38 2671 32,884.11
8/18/2004 Payment Rec'd - Thank You 556.92 2679 33,441.03
9/812004 Payment Rec'd - Thank You 7,500.43 865 40,941.46
1 0/5/2004 Payment Rec'd - Thank You 558.75 2709 41,500.21
10/8/2004 Payment Rec'd - Thank You 1,000.00 2714 42,500.21
10/27/2004 Payment Rec'd - Thank You 615.69 2728 43.115.90
11/10/2004 Payment Rec'd - Thank You 7,500.00 1733 50,615.90
121112004 Payment Rec'd - Thank You 1,000.00 2758 51,615.90
1211/2004 Payment Rec'd - Thank You 481.31 2761 52,097.21
12/9/2004 Payment Rec'd - Thank You 1,000.00 2770 53,097.21
12120/2004 Payment Rec'd - Thank You 438.96 2783 53,536.17
12120/2004 Payment Rec'd - Thank You 1,000.00 2784 54,536.17
12/2812004 Payment Rec'd - Thank You 1,500.00 2791 56,036.17
1/312005 Payment Rec'd - Thank You 1,500.00 2797 57,536.17
1/5/2005 Payment Rec'd - Thank You 37.23 2796 57,573.40
2/10/2005 Payment Rec'd - Thank You 525.02 2834 58,098.42
ACCOUNT SUMMARY
Balance Prior To 1/1/2003 .00
Plus Charges From 1/112003 105,170.80
Less Payments / Credits From 1/1/2003 (58,083.10)
ACCOUNT AGING
Current
4,476.49
1.30
5.057.58
STATEMENT
31 -60
5,112.17
AMOUNT DUE:
61 -90
4,476.49
Date-
Account.
Statement No -
Page-
47087.70
91-120
5,483.47
7/29f2005
720076
37125
6
Over 120
22,481.50
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1. PHILIP KNOBLOCH and NANCY L.
KNOBLOCH t/a KNOBLOCH'S DELI &
LOTTERY,
PR CAPITAL CITY LIMITED PARTNERSHIP, )
)
)
)
)
)
)
)
)
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
CIVll.. DIVISION
Plaintiff,
No. or -403f C,'u~tT~
v.
Defendant.
AFFIDAVIT OF NON-MILITARY SERVICE
STATE OF PENNSYLVANIA
SS.
COUNTY OF CUMBERLAND
Donald Smith, being duly sworn in accordance with the law, hereby deposes and says:
I.
Plaintiff.
He is an employee of Plaintiff and is authorized to make this affidavit on behalf of
2. Through such employment, he has gained personal knOwledge of the occupation
of Defendants 1. Philip Knobloch and Nancy L. Knobloch t/a Knobloch's Deli & Lottery.
3. On the basis of the aforesaid knowledge, or upon information and belief, he can
confirm that Defendants, 1. Philip Knobloch and Nancy L. Knobloch, are not in the military
service of the United States or of any state of territory thereof or of its allies, as defined in the
Soldiers' and Sailors' Civil Relief Act of 1940 and in the amendments thereto.
Dated: '? J f)
,2005
PREIT SERVICES, LLC,
Agent for PR CAPITAL CITY LIMITED PARTNERSHIP
~~
Donald Smith
Manager of Capital City Mall
Sworn to and 'Wbed
before me this day
mL.L': ~L
Notary Public
My Commission Expires:
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IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PR CAPITAL CITY LIMITED PARTNERSHIP, )
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
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)
)
)
)
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)
)
)
)
)
Plaintiff,
v.
J. PHILIP KNOBLOCH and NANCY L.
KNOBLOCH tJa KNOBLOCH'S DELI &
LOTTERY,
Defendant.
CIVIL ACTION - LAW
No. 05-4038
AFFIDAVIT OF SERVICE OF
NOTICE UNDER RULE 2958,1 OF
JUDGMENT AND EXECUTION
THEREON, NOTICE OF
DEFENDANT'S RIGHTS AND
NOTICE TO DEFENDANT
PURSUANT TO 42 PA. CONS,
STAT. ANN. ~2737.1
Filed on Behalf of the Plaintiff,
PR Capital City Limited Partnership
Counsel of Record for this Party:
Stephen S. Zubrow
PAID No. 43523
Dana L. Munhall
PA1ONo.82583
MARCUS & SHAPIRA, LLP
Finn No. 145
One Oxford Centre, 35th Floor
301 Grant Street
Pittsburgh, PA 15219
(412) 471-3490
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PR CAPITAL CITY LIMITED PARTNERSHIP, )
)
)
)
)
)
)
)
)
)
)
CIVIL DIVISION
Plaintiff,
No. 05-4038
v.
J. PHILIP KNOBLOCH and NANCY L
KNOBLOCH tla KNOBLOCH'S DELI &
LOTTERY,
Defendant.
AFFIDAVIT OF SERVICE OF NOTICE UNDER RULE 2958.1 OF JUDGMENT
AND EXECUTION THEREON AND NOTICE OF DEFENDANT'S RIGHTS, NOTICE
TO DEFENDANT PURSUANT TO 42 PA. CONS. STAT. ANN. ~2737.1
I, Dana 1. Munhall, being duIy sworn according to law, hereby certify that:
I. I served upon J. Philip Knobloch and Nancy 1. Knobloch tla Knobloch's Deli &
Lotterj, Defendant in the within action, an original Notice Undtlr RuIe 2958.1 of Judgment and
Execution Thereon, Notice of Defendant's Rights, and an original Notice to Defendant Pursuant
to 42 P A. Cons. Stat. Ann. ~2737.1 by United States Certified Mail, Return Receipt Requested
on the 11 th day of August, 2005. True and correct copies of said Notices are attached hereto as
Exhibits A and B, respectively; and
7. Attached hereto as Exhibit C is the original certified return receipt issued by the
United States Post Office and a tracking number confirmation sheet, providing proof of service
of the Notice Under Rule 2958.1 ofJudgment and Execution Thereon, Notice of Defendant's
Rights and Notice to Defendant Pursuant to 42 PA. Cons. Stat. Ann. ~2737.l on August 15,
2005.
~~"' ~,~
ana 1. Munhall
MARCUS & SHAPlRA LLP
35th Floor, One Oxford Centre
301 Grant Street
Pittsburgh, PA 15219
(412) 471-3490
Sworn to and subscribed
before me this _ day of
August, 2005.
Notary Public
My Commission Expires:
CERTIFICATE OF SERVICE
The undersigned hereby certifies that a true and correct copy of the foregoing Affidavit of
Service of Notice Under Rule 2958.1 of Judgment and Execution Thereon, Notice of
Defendants' Rights and Notice to Defendant Pursuant to 42 PA. Cons. Stat. Ann. 92737.1 was
served upon the following by United States mail, first class service, postage prepaid, this 11'-
day of August, 2005:
J. Philip Knobloch
Nancy L. Knobloch
t/a Knobloch's Deli & Lottery
190 Black Rock Road
Hanover,PA 17331-4205
~~, ~-I~J\
ana L. Munhall v
, PR CAPITAL CITY LIMITED PARTNERSHIP, )
)
)
)
)
)
)
)
)
)
)
)
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION
Plaintiff,
No. 05-4038
v.
J. PHILIP KNOBLOCH and NANCY L.
KNOBLOCH t/a KNOBLOCH'S DELI &
LOTTERY,
Defendant.
NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON
NOTICE OF DEFENDANTS' RIGHTS
TO: J. PHILIP KNOBLOCH and NANCY L. KNOBLOCH t/a KNOBLOCH'S DELI &
LOTTERY
A judgment in the amount of $49,461.58 has been entered against you and in favor of the
Plaintiff without any prior notice or hearing based on a confession of judgment contained in a
written agreement or other paper allegedly signed by you. The sheriff may take your money or
other property to pay the judgment at any time after thirty (30) days after the date on which this
notice is served on you.
You may have legal rights to defeat the judgment or to prevent your money or property
from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE
JUDGMENT AND PRESENT IT TO A JUDGE WITHIN TillRTY (30) DAYS AFTER THE
DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR
RIGHTS.
YOU SHOULD TAKE TillS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO
NOT HA VB A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE
OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP.
Lawyer Referral Service
4th Floor, Cumberland County Courthouse
Carlisle, PA 17013
(800) 692-7375
Exhibit A
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYL VANIA
J. PHILIP KNOBLOCH and NANCY L.
KNOBLOCH t/a KNOBLOCH'S DELI &
LOTTERY,
PR CAPITAL CITY LIMITED PARTNERSHIP, )
)
)
)
)
)
)
)
)
CMLDNISION
Plaintiff,
No. 05-4038
v.
Defendant.
NOTICE TO DEFENDANT PURSUANT TO 42 PA. CONS. STAT. ANN. ~ 2737.1
TO: J. PHILIP KNOBLOCH and NANCY L. KNOBLOCH t/a KNOBLOCH'S DELI &
LOTTERY
Pursuant to 42 Pa.C.S. 92737.1, please take notice that the Plaintiff in this matter has
entered a judgment by confession against you in the amount of $49,461.58
You are entitled to file a petition to "strike" or "open" the judgment. In order to do so,
you must promptly file a petition with the Court of Common Pleas of Cumberland County,
Pennsylvania, as required by Rule 2959 of the Pennsylvania Rules of Civil Procedure. You file a
petition by leaving it with the clerk of courts or Prothonotary at the courthouse in Cumberland
County.
A petition is a fonnal statement of your reasons for challenging the judgment. You must
include the names of the parties at the top of the first page and the case number, which is shown
above. The petition must state your reasons for challenging the judgment in separate numbered
paragraphs. You have to sign the petition and include a sworn statement a1 the end of the
document verifYing that the facts you state in the petition are true and accurate. You will waive
any defenses and objections not included in your petition to strike or open. You must therefore
make every effort to raise all possible issues and defenses in your petition to strike or open in
order to avoid waiving any claims.
If you elect to file a petition, it must meet the requirements of Rule 2959 of the Rules of
Civil Procedure. A fully copy of Rule 2959 is attached to this Notice. You may also have to
comply with local rules of procedure in effect in the county where the judgment was entered.
If you do not file a petition challenging the judgment, the Plaintiff may take steps to
collect on the judgment by asking the Sheriff to seize your assets. Accordingly, you should
Exhibit B
immediately seek the advice of attorney. If you wish to discuss the matter with an attorney but
do not know how to fmd one, you may request a referral by contacting the following agency:
Lawyer Referral Service
4th Floor, Cumberland County Courthouse
Carlisle, P A 17013
(800) 692-7375
Corporations may be unable to represent themselves in court. If the defendants include a
corporation, the corporation must appear through an attorney if it intends to challenge the
judgment.
You may receive other papers and notices regarding the judgment. Those other papers do
not negate or override this Notice. Likewise, this Notice is not intended to and does not negate
any of the notices or information obtained in other papers that may be served upon you.
We reiterate that you are required to act promptly if you wish to seek relief from the
judgment. Under certain circumstances, you have only 30 days in which to file a petition after
papers are served on you. Even if the 30 day rule does not apply, you must act promptly in order
to protect your interests. Failing to act in a timely manner will render you unable to challenge
the judgment at a later time.
If you were incorrectly identified and the judgment was entered against you in error,
you may be entitled to collect costs and reasonable attorney's fees as determined by the Court.
Dated: August lL, 2005
BY~~
Step en S. Zubrow
Dana L. Munhall
MARCUS & SHAPIRA LLP
One Oxford Centre, 35th Floor
301 Grant Street
Pittsburgh, PA 15219
(412) 471-3490
Counsel for Plaintiff, PR Capital
City Limited Partnership
Rule 2959. Striking Off or Opening Judgment; Pleadings; Procedure
(a)(l) Relieffrom a judgment by confession shall be sought
by petition. Except as provided in subparagraph (2), all grounds for
relief whether to strike off the judgment or to open it must be
asserted in a single petition. The petition may be filed in the county
in which the judgment was originally entered, in any county to
which the judgment has been transferred or in any other county in
which the sheriff has received a writ of execution directed to the
sheriff to enforce the judgment.
(2) The ground that the waiver of the due process rights of
notice and hearing was not voluntary, intelligent and knowing shall
be raised only
(i) in support of a further request for a stay of execution
where the court has not stayed execution despite the timely
filing of a petition for relief from the judgment and the
presentation of prima facie evidence of a defense; and
(ii) as provided by Rille 2958.3 or Rille 2973.3.
(3) Ifwritten notice is served upon the petitioner pursuant
to Rule 2956.1 (c)(2) or Rule 2973.I(c), the petition shall be filed
within thirty days after such service. Unless the defendant can
demonstrate that there were compelling reasons for the delay, a
petition not timely filed shall be denied.
(b) If the petition states prima facie grounds for relief the
court shall issue a rule to show cause and may grant a stay of
proceedings. After being served with a copy of the petition the
plaintiff shall file an answer on or before the return day of the rule.
The return day of the rule shall be fixed by the court by local rule
or special order.
(c) A party waives all defenses and objections which are
not included in the petition or answer.
(d) The petition and the rule to show cause and the answer
shall be served as provided in Rule 440.
( e) The court shall dispose of the rule on petition and
answer, and on any testimony, depositions, admissions and other
evidence. The court for cause shown may stay proceedings on the
petition insofar as it seeks to open the judgment pending
disposition of the application to strike off the judgment. If
evidence is produced which in a jury trial would require the issues
to be submitted to the jury the court shall open the judgment.
(f) The lien of the judgment or of any levy or attachment
shall be preserved while the proceedings to strike off or open the
judgment are pending.
ilI.jllI!JM?~.
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1.__to:
B.
n YES. entar
1. Philip Knobloch
Nancy L. Knobloch
tlaKnobloch's Deli & Lottery
190 Black Rock Road
Hanover, PA 17331-4205
3. == Mall'
[J~
[J I_red Mall [J C.O.D.
4. __ 00Ilvuty'I (Exlra Fee) [J Yoo
2. _ Number
(Itansfer from -label)
PS Form 3811. February 2004
7005 11bO 0003 5843 8847
Domestic Return ReceIpt 102501! .. 1 _
Exhibit C
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