COMMERCIAL LEASE NO. 03-824 ARIZONA STATE LAND DEPARTMENT
EXHIBIT
10.55
COMMERCIAL
LEASE NO. 03-824
ARIZONA
STATE LAND DEPARTMENT
THIS COMMERCIAL LEASE is entered into
by and between the State of Arizona as “Lessor” by and through the Arizona State
Land Department and
ARTICLE
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a convenience store, gift shop,
gas station, restaurant and employee housing (consisting of four mobile home
units)
ARTICLE
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Years 1 and 2:
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$32,000.00
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Years 3 and 4:
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$36,000.00
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Years 5 and 6:
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$38,000.00
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Years 7 and 8:
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$42,000.00
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Years 9 and 10:
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$45,000.00
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3.3 Lessee
shall pay the annual base rent as defined in paragraph 3.1, or the percentage
rate defined in paragraph 3.2, whichever is greater.
3.6 Penalty; Interest;
Lien. Lessee shall pay a penalty of five percent (5%)
plus interest on any amount of delinquent rent. Interest shall accrue
daily on the delinquent amount an on the penalty at the rate set by the Arizona
State Treasurer under A.R.S. § 37-241(D)(3) until paid. The
delinquent rent, penalty and interest shall be a lien on the Improvements and
other property on the Parcel.
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ARTICLE
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(a) Pursuant
to A.R.S §§ 41-841 and 41-842, Lessee, Lessee’s employees, and Lessee’s guests
shall not excavate or collect any prehistoric or historic archaeological
specimens on the Parcel without a permit from the Director of the Arizona State
Museum and written approval of Lessor pursuant to the terms of this
Lease. Lessee shall immediately report any unpermitted excavation or
collection of archaeological specimens on the Parcel to the Arizona State Museum
and Lessor.
(b) Pursuant
to A.R.S § 00-000, Xxxxxx shall report to the Director of the Arizona State
Museum and Lessor any prehistoric or historic archaeological site, or
paleontological site, that is discovered on the Parcel by Lessee, Lessee’s
employees, or Lessee’s guests, and shall, in consultation with the Director of
the Arizona State Museum and Lessor, immediately take all reasonable steps to
secure the preservation of the discovery.
4.4 Native
Plants. Lessee shall not move, use, destroy, cut or
remove or permit to be moved, used, destroyed, cut or removed any timber,
cactus, protected native plants, standing trees or products of the land except
that which is necessary for the use of the Parcel, and then only with the prior
written approval of Lessor. If the removal or destruction of plants
protected under the Arizona Native Plant Law is necessary to the use of the
Parcel, Lessee shall also obtain the prior written approval of the Arizona
Department of Agriculture.
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(a) Lessee
shall meter the well(s) on the Premises, record water use on a monthly basis,
and report annually to Lessor the amount of water pumped on the form provided by
Lessor and within the time period specified therein.
(b) Lessee
shall pay an assessment to Lessor, assessed each year for the amount of
groundwater used I conjunction with this Lease.
(c) ADWR
requires an annual report of groundwater pumped from non-exempt well(s) within
both Active Management Areas and Irrigation Non-Expansion Areas. If
applicable, the Annual Water Withdrawal and Use Report as well as the associated
fees shall be submitted to the ADWR within the time period specified
therein.
(d) If
Lessee desires to move groundwater from well(s) located on the Premises off
State Trust land, or to use groundwater for purpose(s) different from those
stated in this Lease, Lessee shall file an application with Lessor for a public
auction water sale. Movement of groundwater from the Premises prior
to a public auction is prohibited.
(e) Lessor,
by issuing this Lease, makes no guarantee with respect to groundwater
availability or groundwater quality.
(f) Lessor’s
personnel will have access to well(s) on the Premises during reasonable
hours.
ARTICLE
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ARTICLE
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General Aggregate:
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$2,000,000.00
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Personal Injury:
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$1,000,000.00
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Each Occurrence:
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$1,000,000.00
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Blanket Contractual Liability – Written and
Oral:
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$1,000,000.00
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Fire Damage (Any on fire):
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$ 500,000.00
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in
combined single limit and each liability policy or policies shall be written on
an occurrence basis; provided, however, that the minimum amount of coverage for
the above shall be adjusted upward on Lessor’s reasonable request to be made no
more frequently than once every two (2) years so that such respective minimum
amounts of coverage shall not be less than the amounts then required by statute
or generally carried on similarly improved real estate in the County herein
described, whichever is greater, If at any time Lessee fails,
neglects or refuses to cause such insurance to be provided and maintained, then
Lessor may, at its election, procure or renew such insurance and any amounts
paid thereof by Lessor shall be an additional amount due at the next date Rent
is due and payable.
11.4 Blanket
Policy. Notwithstanding anything to the contrary in this
Article, Lessee’s obligations to carry the insurance provided for herein may be
brought within the coverage of a so-called blanket policy or policies of
insurance maintained by Lessee, provided, however, that the coverage afforded
Lessor will not be reduced by reason of the use of such blanket policy of
insurance.
ARTICLE
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DAMAGE
12.1 Lessee’s
Obligations. If the Parcel or any building or other
Improvement located thereon are damaged or destroyed during the term of this
Lease, Lessee may arrange at its expense for the repair, restoration and
reconstruction of the same substantially to its former condition, but such
damage or destruction shall not terminate this Lease or relieve Lessee from its
duties and liabilities hereunder.
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ARTICLE
13
TRADE FIXTURES AND PERSONAL
PROPERTY
13.1 Lessee’s
Property. Any trade fixtures, signs, store
equipment, and other personal property installed in or on the Parcel by Lessee
or any sublessee shall remain its property subject to the provisions of this
Lease. Lessee shall have the right, provided it is not then in breach
hereunder, at any time to remove any and all of the same, subject to the
restriction of Article 6.5 (Ownership; Removal).
ARTICLE
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14.1 Prior Approval
Required. Lessee shall not assign this Lease or any
interest therein, nor shall Lessee sublease any portion or all of the Premises
without obtaining Lessor’s prior written approval. In no event may
this Lease or nay interest therein be assigned or sublet unless Lessee is in
full compliance with this Lease. Lessor may require additional rent
in consideration for approval of any sublease. Lessee shall not enter
into a contract of sale, mortgage, lien or other encumbrance affecting this
Lease unless a copy is filed with Lessor.
14.2 Consent
Required. As assignment of this Lease shall not be made
without the consent of all the parties. Lessee may assign all or a
portion of the Premises as allowed by the terms of this Article provided Lessee
shall assign Lessee’s entire interest in that portion of the
Premises.
14.3 Purpose. There
shall be no assignment or sublease made except to an assignee or sublessee that
will use the Premises for the purposes(s) described herein.
14.4 Lessee Primarily
Responsible. Notwithstanding any sublease, Lessee shall
remain responsible to Lessor for the performance of the provisions of this
Lease.
14.5 Percentage Rent
Due. Assignment shall not be approved unless all
accrued percentage rent has been paid as of the date of the application for
assignment.
14.6 Entire
Interest. The assignment of Lessee’s entire
interest in a portion of the Premises shall not relive Lessee of its
responsibility to Lessor for the performance of the provisions of this Lease as
it relates to that portion of the Premises not transferred by the
assignment.
ARTICLE
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15.2 Partial Taking; Damages;
Rent. In the event of a partial taking and if Lessor
determines that it is in the best interest of the Trust, the Lease may continue
in full force and effect for that portion of the Parcel not taken. As
against Lessor, Lessee and any sublessee shall not have a compensable right or
interest in the real property being taken and shall have no compensable right or
interest in the severance damages which may accrue to the remainder of the
Parcel not taken, nor shall lessee or any sublessee have any compensable right
or interest in the remaining term of this Leasehold or any
renewal. Rent shall be apportioned as of the day of such
taking. Lessor shall be entitled to and shall receive any awards,
including severance damage to remaining state lands, that my be made for any
taking concerning the Parcel.
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15.3 Lessee’s Rights to
Award. In the event of any taking, Lessee shall have the
right to receive any and all awards or payments made for nay building or other
Improvements on the lands fully placed on the Parcel by Lessee with Lessor’s
prior written approval.
ARTICLE
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BANKRUPTCY AND
INSOLVENCY
16.1 Lessor’s
Rights. If (i) all or substantially all of Lessee’s
assets are placed in the hands of a receiver, and such receivership continues
for a period of thirty (30) days; or (ii) should Lessee make an assignment for
the benefit of creditors; or (iii) should Lessee institute any proceedings under
any present or future provisions of the Bankruptcy Code or under a similar law
wherein Lessee seeks to be adjudicated as bankrupt, or to be discharged of its
debts. Or to effect a plan of liquidation, composition or reorganization; or
(iv) should any involuntary proceedings be filed against Lessee under such
bankruptcy laws not be dismissed or otherwise removed within ninety (90) days
after its filing, then this Lease shall not become an asset in any of such
proceeding or assignment. In addition to all other rights and
remedies of Lessor provided hereunder or by law. Lessor shall have the right to
declare the term of this Lease at an end and to re-enter the Premises, take
possession and remove all persons, and Lessee shall have no further claim on the
Parcel under this Lease.
ARTICLE
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17.1 Conditions. All
of the provisions of this Lease are conditions. Breach of any one of
these conditions by Lessee or any sublessee shall be sufficient grounds for
cancellation of this Lease by Lessor, subject to the other provisions of t his
Article.
17.2 Cancellation. If
Lessee fails to keep any provision of this Lease, Lessor may cancel this Lease
and declare Lessee’s interest forfeited, and if it appears that this Lease was
procured through fraud, deceit or willful misrepresentation, the Improvements
shall be forfeited to the State. Lessor shall be forever wholly
absolved from liability for damages which might result to Lessee or any
sublessee on account of this Lease having been canceled or forfeited prior to
the expiration of the full term, subject to the other provisions of the
Article.
17.3 Breach. In
the event of a breach of this Lease which is not curable or remains uncured
after thirty (30) days notice by Lessor of failure to pay rent, taxes or other
assessments, and forty-five (45) days from the receipt of the notice to cure any
other curable default, to Lessee of the breach, Lessor may, in addition to all
other remedies which may be available to Lessor in law or in equity, (i) enter
and repossess the Premises or any part thereof, expelling and removing therefrom
all persons and property (either holding such property pursuant to Lessor’s
landlord’s lien, or storing at Lessee’s risk and expense, or otherwise disposing
thereof), as to which Lessor shall not be liable to Lessee or any sublessee for
any claim for damage or loss which may thereby occur, and (ii) either (a)
terminate this Lease, holding Lessee liable for damages for its breach or (b)
treat the Lease as having been breached anticipatorily and the Premises
abandoned by Lessee without thereby altering Lessee’s continuing obligations for
the payment of rent and the performance of those Lease provisions to be
performed by Lessee during the Lease term.
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17.6 Remedies not
Exclusive. The remedies herein granted to Lessor shall
not be exclusive or mutually exclusive and Lessor shall have such other
additional remedies against Lessee as may be permitted in law or in equity at
any time; provided, however, Lessor shall not be relieved of any obligation
imposed by law for mitigation of damages, nor shall Lessor recover any
duplicative damages, and Lessee shall be reimbursed by any subsequent Lessee or
purchaser of the Premises for any amount by which the value of Lessee’s
Improvements exceed Lessor’s damages, notwithstanding nay other provision in
this Lease to the contrary. In particular, any exercise of a right of
termination by Lessor shall not be construed to end or discharge any right of
Lessor to damages on account of Lessee’s breach.
17.7 No
Waiver. No waiver of breach of any provision of this
Lease shall be construed as a waiver of succeeding breach of the same or other
provisions.
ARTICLE
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ARTICLE
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(a) Lessor,
upon giving Lessee any notice of default, or any other notice under the
provisions of or with respect to this Lease, shall also give a copy of such
notice to the registered holder of a mortgage/deed of trust on this
Lease.
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(b) Any
holder of such mortgage/deed of trust, in case Lessee shall have a monetary
default hereunder, shall, within thirty (30) days from the receipt of notice
have the right to cure such default, or cause the same to be cured, and Lessor
shall accept such performance by or at the instance of such holder as if the
same had been made by Lessee, all as provided in A.R.S. § 37-289
(A)(2).
(c) Nothing
herein contained shall preclude Lessor, subject to the provisions of this
Article, from exercising any rights or remedies under this Lease with respect to
any other default by Lessee during the pendency of any foreclosure or trustee’s
sale proceedings.
(d) Any
holder of such mortgage/deed of trust, in case Lessee shall have a default other
than a default involving failure to pay rent, taxes or other assessments, shall
have fort-five (45) days from the receipt of notice to cure any curable
default.
(e) No
failure on the part of Lessor to give the required notice of default to the
holder of a mortgage/deed of trust shall be deemed a waiver of Lessor’s
continuing right to give notice of the default.
(f) Upon
foreclosure of the mortgage or deed of trust, Lessor shall assign this Lease to
the holder of the mortgage or deed or trust if all taxes, rent and assessment
payment are current. Nothing herein contained shall be deemed to
obligate the Lessor to deliver physical possession of the demised Premises to
the assignee under any assignment entered into pursuant to this
paragraph.
(g) No
agreement between Lessor and Lessee modifying, canceling or surrendering this
Lease shall be effective without the prior written consent of the registered
mortgagees and lienholders.
(h) No
union of the interest of Lessor and Lessee shall result in a merger of this
Lease in the fee interest.
(i) If
a default is not cured within the applicable time period, Lessor may issue an
order canceling the Lease. If a cancellation order is issued, the
order shall not become final until any foreclosure action by a mortgagee or
other lienholder, registered with Lessor pursuant to the Article, is finally
resolved, if the mortgagee or lienholder does both of the
following:
(1) Within
thirty (30) days of the date of issuance of a Notice of Default, files written
notice with Lessor of its intent to proceed with a foreclosure action,
and:
(2) Within
one hundred twenty (120) days of the date of issuance of a Notice of Default,
has commenced either a foreclosure action in court or a nonjudicial foreclosure
of a deed of trust, and has provided Lessor with a certified copy of the
complaint or other document that officially commences the foreclosure process,
and thereafter prosecutes the foreclosure with reasonable
diligence.
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TO
Lessor:
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Arizona
State Land Department
0000 Xxxx Xxxxx Xxxxxx – First
Floor
Xxxxxxx, Xxxxxxx
00000
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TO Lessee:
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Address
of Record
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Lessee
must notify Lessor by written notice of any change in address within thirty (30)
days. Lessor may, by written notice to Lessee, designate a different
address.
21.11
Cancellation. Pursuant
to A.R.S. § 38-511 this Lease may be canceled within three years after its
execution, if any person significantly involved in initiating, negotiating,
securing, drafting, or creating the contract on behalf of the state, its
political subdivisions or any of the departments or agencies of either is, at
any time while the contract or any extension of the contract is in effect, an
employee or agent of any other party to the contract in any capacity or a
consultant to any other party of the contract with respect to the subject matter
of the contract.
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XXXXXX TRAVEL CENTERS, INC. | |||
Lessee | |||
By:
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/s/ Xxxxxxx X. XxXxxx |
3/24/08
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Authorized Signature |
Date
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Senior Vice-President – MIS | |||
Title | |||
000 Xxxxxxxxx, XX | |||
Address | |||
Albuquerque, New Mexico 87108 | |||
City State |
Zip
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STATE
OF ARIZONA, LESSOR
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Arizona
State Land Commissioner
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By:
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/s/ Xxxxxxx Xxxxxx |
4/1/08
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Date
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