LEASE AGREEMENT (FREMONT/BUILDING #2) BETWEEN LAM RESEARCH CORPORATION (“LRC”) AND BNP PARIBAS LEASING CORPORATION (“BNPPLC”) December 21, 2007
Exhibit 10.121
LEASE AGREEMENT
(FREMONT/BUILDING #2)
(FREMONT/BUILDING #2)
BETWEEN
XXX RESEARCH CORPORATION
(“LRC”)
(“LRC”)
AND
BNP PARIBAS LEASING CORPORATION
(“BNPPLC”)
BNP PARIBAS LEASING CORPORATION
(“BNPPLC”)
December 21, 2007
TABLE OF CONTENTS
Page | ||||||||||
1 | Term | 3 | ||||||||
(A) | Scheduled Term | 3 | ||||||||
(B) | Extension of the Term | 3 | ||||||||
2 | Use and Condition of the Property | 4 | ||||||||
(A) | Use | 4 | ||||||||
(B) | Condition of the Property | 4 | ||||||||
(C) | Consideration for and Scope of Waiver | 5 | ||||||||
3 | Rent | 5 | ||||||||
(A) | Base Rent Generally | 5 | ||||||||
(B) | Calculation of and Due Dates for Base Rent | 5 | ||||||||
(1) | Determination of Payment Due Dates Generally | 5 | ||||||||
(2) | Special Adjustments to Base Rent Payment Dates and Periods | 5 | ||||||||
(3) | Base Rent Formula | 5 | ||||||||
(C) | Additional Rent | 7 | ||||||||
(D) | Arrangement Fee | 7 | ||||||||
(E) | Administrative Fees | 7 | ||||||||
(F) | No Demand or Setoff | 7 | ||||||||
(G) | Default Interest and Order of Application | 7 | ||||||||
4 | Nature of this Agreement | 7 | ||||||||
(A) | “Net” Lease Generally | 7 | ||||||||
(B) | No Termination | 8 | ||||||||
(C) | Characterization of this Lease | 8 | ||||||||
5 | Payment of Executory Costs and Losses Related to the Property | 10 | ||||||||
(A) | Local Impositions | 10 | ||||||||
(B) | Increased Costs; Capital Adequacy Charges | 10 | ||||||||
(C) | LRC’s Payment of Other Losses; General Indemnification | 12 | ||||||||
(D) | Exceptions and Qualifications to Indemnities | 15 | ||||||||
(E) | Collection on Behalf of Participants | 18 | ||||||||
6 | Items Included in the Property | 18 | ||||||||
7 | Environmental | 19 | ||||||||
(A) | Environmental Covenants by LRC | 19 | ||||||||
(B) | Right of BNPPLC to do Remedial Work Not Performed by LRC | 19 | ||||||||
(C) | Environmental Inspections and Reviews | 20 | ||||||||
(D) | Communications Regarding Environmental Matters | 20 | ||||||||
8 | Insurance Required and Condemnation | 21 | ||||||||
(A) | Liability Insurance | 21 | ||||||||
(B) | Property Insurance | 22 | ||||||||
(C) | Failure to Obtain Insurance | 22 | ||||||||
(D) | Condemnation | 23 | ||||||||
(E) | Waiver of Subrogation | 23 | ||||||||
9 | Application of Insurance and Condemnation Proceeds | 23 | ||||||||
(A) | Collection and Application of Insurance and Condemnation Proceeds Generally | 23 |
TABLE OF CONTENTS
(Continued)
(Continued)
Page | ||||||||||
(B) | Advances of Escrowed Proceeds to LRC | 24 | ||||||||
(C) | Right of LRC to Receive and Apply Remaining Proceeds Below a Certain Xxxxx | 00 | ||||||||
(X) | Special Provisions Applicable After the Term Expires or an Event of Default | 25 | ||||||||
(E) | LRC’s Obligation to Restore | 25 | ||||||||
(F) | Takings of All or Substantially All of the Property | 25 | ||||||||
10 | Additional Representations, Warranties and Covenants of LRC Concerning the Property | 26 | ||||||||
(A) | Operation and Maintenance | 26 | ||||||||
(B) | Debts for Construction, Maintenance, Operation or Development | 26 | ||||||||
(C) | Repair, Maintenance, Alterations and Additions | 26 | ||||||||
(D) | Permitted Encumbrances | 27 | ||||||||
(E) | Books and Records Concerning the Property | 27 | ||||||||
11 | Assignment and Subletting by XXX | 00 | ||||||||
(A) | BNPPLC’s Consent Required | 27 | ||||||||
(B) | Standard for BNPPLC’s Consent to Assignments and Certain Other Matters | 28 | ||||||||
(C) | Consent Not a Waiver | 28 | ||||||||
12 | Assignment by BNPPLC | 28 | ||||||||
(A) | Restrictions on Transfers | 28 | ||||||||
(B) | Effect of Permitted Transfer or other Assignment by BNPPLC | 29 | ||||||||
13 | BNPPLC’s Right to Enter and to Perform for LRC | 29 | ||||||||
(A) | Right to Enter | 29 | ||||||||
(B) | Performance for XXX | 00 | ||||||||
00 | Xxxxxxxx | 00 | ||||||||
(X) | Traditional Lease Remedies | 29 | ||||||||
(B) | Foreclosure Remedies | 32 | ||||||||
(C) | Enforceability | 32 | ||||||||
(D) | Remedies Cumulative | 32 | ||||||||
15 | Default by BNPPLC | 33 | ||||||||
16 | Quiet Enjoyment | 33 | ||||||||
17 | Surrender Upon Termination | 33 | ||||||||
18 | Holding Over by LRC | 33 | ||||||||
19 | Proprietary Information and Confidentiality | 34 | ||||||||
(A) | Proprietary Information | 34 | ||||||||
(B) | Confidentiality | 34 | ||||||||
20 | Recording Memorandum | 35 | ||||||||
21 | Independent Obligations Evidenced by Other Operative Documents | 35 |
(ii)
TABLE OF CONTENTS
(Continued)
(Continued)
Page | ||||
Exhibits and Schedules |
||||
Exhibit A
|
Legal Description | |||
Exhibit B
|
California Lien and Foreclosure Provisions |
(iii)
LEASE AGREEMENT
(FREMONT/BUILDING #2)
(FREMONT/BUILDING #2)
This LEASE AGREEMENT (FREMONT/BUILDING #2) (this “Lease”), dated as of December 21, 2007 (the
“Effective Date”), is made by and between BNP PARIBAS LEASING CORPORATION (“BNPPLC”), a Delaware
corporation, and XXX RESEARCH CORPORATION (“LRC”), a Delaware corporation.
RECITALS
Contemporaneously with the execution of this Lease, BNPPLC and LRC are executing a Common
Definitions and Provisions Agreement (Fremont/Building #2) dated as of the Effective Date (the
“Common Definitions and Provisions Agreement”), which by this reference is incorporated into and
made a part of this Lease for all purposes. As used in this Lease, capitalized terms defined in the
Common Definitions and Provisions Agreement and not otherwise defined in this Lease are intended to
have the respective meanings assigned to them in the Common Definitions and Provisions Agreement.
At the request of LRC and to facilitate the transactions contemplated in the other Operative
Documents, BNPPLC is acquiring the Land described in Exhibit A and improvements on the Land
from SELCO Service Corporation, an Ohio corporation doing business in California as “Ohio SELCO
Service Corporation”, (the “Prior Owner”) contemporaneously with the execution of this Lease.
Pursuant to an existing lease dated as of March 25, 2003, originally between the Prior Owner,
as lessor, and LRC, as lessee, (“LRC’s Prior Lease”) LRC is already in possession of the Land.
In anticipation of BNPPLC’s acquisition of the Land and other property described below, BNPPLC
and LRC have reached agreement as to the terms and conditions upon which BNPPLC is willing to
continue to lease to LRC the Land and the Improvements, and by this Lease BNPPLC and LRC desire to
evidence such agreement. As provided in the Closing Certificate, this Lease and the other
Operative Documents are intended to amend, restate and replace entirely LRC’s Prior Lease.
GRANTING CLAUSES
BNPPLC does hereby LEASE, DEMISE and LET unto LRC for the Term (as hereinafter defined) all
right, title and interest of BNPPLC, now owned or hereafter acquired, in and to:
(1) the Land, including all interests in the Land acquired by BNPPLC from the Prior
Owner;
(2) any and all Improvements;
(3) all easements and other rights appurtenant to the Land or to the Improvements; and
(4) (A) any land lying within the right-of-way of any street, open or proposed, adjoining
the Land, (B) any sidewalks and alleys adjacent to the Land, and (C) any strips and gores
between the Land and any abutting land that is not owned or being acquired by BNPPLC.
BNPPLC’s interest in all property described in clauses (1) through (4) above is hereinafter
referred to collectively as the “Real Property”.
To the extent, but only to the extent, that assignable rights or interests in, to or under the
following have been or will be acquired by BNPPLC from the Prior Owner or as described in Paragraph
6 below, BNPPLC also hereby grants and assigns to LRC for the term of this Lease the right to use
and enjoy (and, in the case of contract rights, to enforce) such rights or interests of BNPPLC:
(a) any goods, equipment, furnishings, furniture and other tangible personal property of
whatever nature that are owned by BNPPLC and located on the Real Property from time to time and
all renewals or replacements of or substitutions for any of the foregoing;
(b) the benefits, if any, conferred upon the owner of the Real Property by the Permitted
Encumbrances; and
(c) any permits, licenses, franchises, certificates, and other rights and privileges
against third parties related to the Real Property.
Such rights and interests of BNPPLC, whether now existing or hereafter arising, are hereinafter
collectively called the “Personal Property”. The Real Property and the Personal Property (including
any property described in Paragraph 6 below) are hereinafter sometimes collectively called the
“Property.”
However, the leasehold estate conveyed by this Lease and LRC’s rights hereunder are expressly
made subject and subordinate to the terms and conditions of this Lease, to the matters listed in
Exhibit B to the Closing Certificate and all other Permitted Encumbrances, and to any other
claims or encumbrances not constituting Liens Removable by BNPPLC.
Without limiting the foregoing, it is understood that so long as LRC continues to be
entitled to possession of the Property pursuant to this Lease, LRC’s possession will extend to and
include (to the exclusion of BNPPLC) not only the Improvements, but also the Land (subject
only to BNPPLC’s limited right of entry on and subject to the terms and conditions set forth
in this Lease), and LRC will be entitled to any benefits conferred upon the owner of the Property
by Permitted Encumbrances. Accordingly, it is the intent of the parties that BNPPLC will not
assume or retain responsibility for the condition of the Land or the Improvements or for any
obligations undertaken by LRC under the Permitted Encumbrances.
GENERAL TERMS AND CONDITIONS
The Property is leased by BNPPLC to LRC and is accepted and is to be used and possessed by LRC
upon and subject to the following terms and conditions:
1 Term.
(A) Scheduled Term. The term of this Lease (the “Term”) will commence on the Effective
Date and will end on the first Business Day of January, 2015, unless extended as provided in
subparagraph 1(B) or sooner terminated as expressly provided in other provisions of this Lease.
(B) Extension of the Term. The Term may be extended at the option of LRC for up
to two successive periods of five years each; provided, however, that prior to each such extension
the following conditions must have been satisfied: (i) LRC must have delivered a notice of its
election to exercise the option at least one hundred eighty days prior to the end of the Term, and
prior to the commencement of any such extension BNPPLC and LRC must have agreed in writing upon,
and received the written consent and approval of BNPPLC’s Parent and all Participants to, (a) a
corresponding extension of the date specified in clause (1) of the definition of Designated Sale
Date in the Common Definitions and Provisions Agreement, and (b) an adjustment to the Rent that LRC
will be required to pay during the extension, it being expected that the Rent for the extension may
be different than the Rent required for the original Term or any prior extension, and it being
understood that the Rent for any extension must in all events be satisfactory to both BNPPLC and
LRC, each in its sole and absolute discretion; (ii) at the time of LRC’s exercise of its option to
extend, no Default has occurred and is continuing and no Default will result from the extension;
(iii) immediately prior to any such extension, this Lease must then remain in effect; and (iv) if
this Lease has been assigned by LRC, then LRC must have executed a guaranty (or confirmed an
existing guaranty, if applicable), guaranteeing LRC’s assignee’s obligations under the Operative
Documents throughout such extended Term. With respect to the condition that BNPPLC and LRC must
have agreed upon the Rent required for any extension of the Term, neither LRC nor BNPPLC is willing
to submit itself to a risk of liability or loss of rights hereunder for being judged unreasonable.
Accordingly, LRC and BNPPLC will each have
sole and absolute discretion in making its determination, and both LRC and BNPPLC hereby disclaim
any obligation express or implied to be reasonable in negotiating the Rent for any such extension.
Similarly, it is understood that BNPPLC’s Parent and all Participants will each have
sole and
absolute discretion to give, or decline to give, consents and approvals required for any extension
of the Term, and none of them will have any obligation express or implied to be reasonable in
deciding whether to give such consents and approvals. Subject to the changes to the Rent and
satisfaction of the other conditions listed in this subparagraph, if LRC exercises its option to
extend the Term as provided in this subparagraph, this Lease will continue in full force and
effect, and the leasehold estate hereby granted to LRC will continue without interruption and
without any loss of priority over other interests in or claims against the Property that may be
created or arise after the Effective Date and before the extension.
2 Use and Condition of the Property.
(A) Use. Subject to the Permitted Encumbrances, LRC may use and occupy the Property
during the Term, but only for the following purposes and other lawful purposes incidental thereto:
(1) uses and operations related to LRC’s business as conducted as of the Effective Date,
including office, manufacturing and research and development; and
(2) other lawful purposes approved from time to time by BNPPLC, which approval will not be
unreasonably withheld (it being understood, however, that BNPPLC’s withholding of such approval
will be reasonable if BNPPLC determines in good faith that giving the approval may materially
increase BNPPLC’s risk of liability for any existing or future environmental problem).
(B) Condition of the Property. LRC acknowledges that it has carefully and fully
inspected the Property and accepts the Property in its present state, AS IS, and without
any representation or warranty, express or implied, as to the condition of such property or as to
the use which may be made thereof. LRC also accepts the Property without any covenant,
representation or warranty, express or implied, by BNPPLC or its Affiliates regarding the title
thereto or the rights of any parties in possession of any part thereof, except as expressly set
forth in Paragraph 16. BNPPLC will not be responsible for any latent or other defect or change of
condition in the Land, Improvements or other Property or for any violations with respect thereto of Applicable Laws. Further, BNPPLC will
not be required to furnish to LRC any facilities or services of any kind, including water, phone,
sewer, steam, heat, gas, air conditioning, electricity, light or power.
(C) Consideration for and Scope of Waiver. The provisions of subparagraph 2(B)
have been negotiated by BNPPLC and LRC as being consistent with the Rent payable under this
Lease, and such provisions are intended to be a complete exclusion and negation of any
representations or warranties of BNPPLC or its Affiliates, express or implied, with respect to the
Property that may arise pursuant to any law now or hereafter in effect or otherwise, except as
expressly set forth herein.
3 Rent.
(A) Base Rent Generally. On each Base Rent Date through the end of the Term, LRC must
pay BNPPLC rent (“Base Rent”), calculated as provided below. Each payment of Base Rent must be
received by BNPPLC no later than 11:00 a.m. (Central time) on the date it becomes due; if received
after 11:00 a.m. (Central time) it will be considered for purposes of this Lease as received on the
next following Business Day.
(B) Calculation of and Due Dates for Base Rent. Payments of Base Rent will be
calculated and become due as follows:
(1) Determination of Payment Due Dates Generally. For Base Rent Periods subject to
a LIBOR Election of six months, Base Rent will be payable in two installments, with the first
installment becoming due on the Base Rent Date that occurs on the first Business Day of the
third calendar month following the commencement of such Base Rent Period, and with the second
installment becoming due on the Base Rent Date upon which the Base Rent Period ends. For all
other Base Rent Periods, Base Rent will be due in one installment on the Base Rent Date upon
which the Base Rent Period ends.
(2) Special Adjustments to Base Rent Payment Dates and Periods. Notwithstanding
the foregoing, if LRC or any Applicable Purchaser purchases BNPPLC’s interest in the Property
pursuant to the Purchase Agreement, any accrued unpaid Base Rent and all outstanding Additional
Rent will be due on the date of purchase in addition to the purchase price and other sums due to
BNPPLC under the Purchase Agreement.
(3) Base Rent Formula. Each installment of Base Rent payable for any Base Rent
Period will equal the sum of:
(a) the product of:
• | the Lease Balance on the first day of such Base Rent Period, times | ||
• | the Collateral Percentage for such Base Rent Period (which is expected to be 100% unless the parties agree to a reduction by a written amendment of the Pledge Agreement), times |
• | the sum of (a) the Secured Spread for such Base Rent Period, plus (b) LIBOR for such Base Rent Period, times | ||
• | the number of days in such Base Rent Period from the preceding Base Rent Date (or if there was no previous Base Rent Date, from the Effective Date) to the Base Rent Date upon which such installment becomes due, divided by | ||
• | three hundred sixty, plus |
(b) the product of:
• | the Lease Balance on the first day of such Base Rent Period, times | ||
• | 100% minus the Collateral Percentage for such Base Rent Period, times | ||
• | the sum of (a) the Unsecured Spread for such Base Rent Period, plus (b) LIBOR for such Base Rent Period, times | ||
• | the number of days in such Base Rent Period from the preceding Base Rent Date (or if there was no previous Base Rent Date, from the Effective Date) to the Base Rent Date upon which such installment becomes due, divided by | ||
• | three hundred sixty. |
Assume, only for the purpose of illustration: that as of the first day of a Base Rent
Period the Lease Balance is $10,000,000; that LIBOR for such Base Rent Period equals 4%;
that the Secured Spread for such period is forty basis points (40/100 of 1%); that the
Unsecured Spread for such period is one hundred basis points (100/100 of 1%); that the
Collateral Percentage is 100%; and that such Base Rent Period contains exactly thirty days.
Under such assumptions, Base Rent for the hypothetical Base Rent Period will equal:
{$10,000,000 x (100% x [0.40% + 4%]) x 30/360} +
{$10,000,000 x ( [100% - 100%] x [1% + 4%]) x 30/360} =
$36,666
{$10,000,000 x ( [100% - 100%] x [1% + 4%]) x 30/360} =
$36,666
(C) Additional Rent. All amounts which LRC is required to pay to or on behalf of
BNPPLC pursuant to this Lease, together with every charge, premium, interest and cost set forth
herein which may be added for nonpayment or late payment thereof, will constitute rent (all such
amounts, other than Base Rent, are herein called “Additional Rent”; and, collectively, Base Rent
and Additional Rent are herein sometimes called “Rent”). It is understood, however, that neither
“Additional Rent” nor “Rent,” as such terms are used in this Lease, will include any Supplemental
Payment required by the Purchase Agreement.
(D) Arrangement Fee. In addition to other amounts payable by LRC hereunder,
contemporaneously with the execution of this Lease LRC must pay BNPPLC an arrangement fee (the
“Arrangement Fee”) as provided in the Closing Letter. The Arrangement Fee will represent
Additional Rent for the first Base Rent Period.
(E) Administrative Fees. In addition to other amounts payable by LRC hereunder,
contemporaneously with the execution of this Lease and on the first Base Rent Date that follows
each anniversary of the Effective Date prior to the Designated Sale Date, LRC must pay BNPPLC an
annual administrative fee (an “Administrative Fee”) in the amount confirmed by the Closing Letter.
Each payment of an Administrative Fee will represent Additional Rent for the first Base Rent Period
during which it first becomes due.
(F) No Demand or Setoff. Except as expressly provided herein, LRC must pay all Rent
without notice or demand and without counterclaim, deduction, setoff or defense.
(G) Default Interest and Order of Application. All Rent will bear interest, if not
paid when first due, at the Default Rate in effect from time to time from the date due until paid;
provided, that nothing herein contained will be construed as permitting the charging or collection
of interest at a rate exceeding the maximum rate permitted under Applicable Laws. BNPPLC may apply
any amounts paid by or on behalf of LRC against any Rent then past due in the order the same became
due or in such other order as BNPPLC elects.
4 Nature of this Agreement.
(A) “Net” Lease Generally. Subject only to the exceptions listed in
subparagraph 5(D) below, it is the intention of BNPPLC and LRC that Base Rent and other payments
herein specified will be absolutely net to BNPPLC and that LRC must pay all costs, expenses and
obligations of every kind relating to the Property or this Lease which may arise or become due.
Further, it is understood that all amounts payable by LRC to BNPPLC under this Lease and the other
Operative Documents are expressed as minimum payments to be made net of any deduction or
withholding required under any Applicable Laws.
(B) No Termination. Except as expressly provided in this Lease itself, this Lease will
not terminate, nor will LRC have any right to terminate this Lease, nor will LRC be entitled to any
abatement of or setoff against the Rent, nor will the obligations of LRC under this Lease be
excused, for any reason whatsoever, including any of the following: (i) any damage to or the
destruction of all or any part of the Property from whatever cause, (ii) the taking of the Property
or any portion thereof by eminent domain or otherwise for any reason, (iii) the prohibition,
limitation or restriction of LRC’s use or development of all or any portion of the Property or any
interference with such use by governmental action or otherwise, (iv) any eviction of LRC or of
anyone claiming through or under LRC, (v) any default or breach on the part of BNPPLC under this
Lease or any of the other Operative Documents or any other agreement to which BNPPLC and LRC are
parties, (vi) the inadequacy in any way whatsoever of the design, construction, assembly or
installation of any improvements, fixtures or tangible personal property included in the Property
(it being understood that BNPPLC has not made, does not make and will not make any representation
express or implied as to the adequacy thereof), (vii) any latent or other defect in the Property or
any change in the condition thereof or the existence with respect to the
Property of any violations of Applicable Laws, (viii) LRC’s ownership of any interest in the
Property, or (ix) any other cause, whether similar or dissimilar to the foregoing, any existing or
future law to the contrary notwithstanding. It is the intention of the parties hereto that the
obligations of LRC hereunder be separate and independent of the covenants and agreements of BNPPLC,
that Base Rent and all other sums payable by LRC hereunder continue to be payable in all events and
that the obligations of LRC hereunder continue unaffected, unless the requirement to pay or perform
the same have been terminated or limited pursuant to an express provision of this Lease. Without
limiting the foregoing, LRC waives to the extent permitted by Applicable Laws, except as otherwise
expressly provided herein, all rights to which LRC may now or hereafter be entitled by law
(including any such rights arising because of any “warranty of suitability” or other warranties
implied as a matter of law) (i) to quit, terminate or surrender this Lease or the Property or any
part thereof or (ii) to any abatement, suspension, deferment or reduction of the Rent.
(C) Characterization of this Lease.
(1) Both LRC and BNPPLC intend that (a) for the purposes of determining the
proper accounting for this Lease by LRC, BNPPLC will be treated as the owner and landlord of
the Property and LRC will be treated as the tenant of the Property, and (b) for income tax
purposes and real estate, commercial law (including bankruptcy) and regulatory purposes, (i)
this Lease and the other Operative Documents will be treated as a financing arrangement,
(ii) BNPPLC will be deemed a lender making loans to LRC in the principal amount equal to the
Lease Balance, which loans are secured by the Property, and (iii) LRC will be treated as the
owner of the Property and will be entitled to all tax benefits available to the owner of the
Property. Consistent with such intent, by the provisions set forth in the attached
Exhibit B, LRC is granting to BNPPLC a lien upon and mortgaging and warranting title
to the Land and the Improvements and all rights,
titles and interests of LRC in and to other Property, WITH POWER OF SALE, to secure all
obligations (monetary or otherwise) of LRC arising under or in connection with any of the
Operative Documents. Without limiting the generality of the foregoing, LRC and BNPPLC
desire that their intent as set forth in this subparagraph be given effect both in the
context of any bankruptcy, insolvency or receivership proceedings concerning LRC or BNPPLC
and in other contexts. Accordingly, LRC and BNPPLC expect that in the event of any
bankruptcy, insolvency or receivership proceedings affecting LRC or BNPPLC or any
enforcement or collection actions arising out of such proceedings, the transactions
evidenced by this Lease and the other Operative Documents will be
characterized and treated as loans made to LRC by BNPPLC, secured by the Property.
(2) Notwithstanding the foregoing, LRC acknowledges and agrees that none of BNPPLC or
the other Interested Parties has made, or will be deemed to have made, in the Operative
Documents or otherwise, any representations or warranties concerning how this Lease and the
other Operative Documents will be characterized or treated under applicable accounting
rules, income tax, regulatory, commercial or real estate law, bankruptcy, insolvency or
receivership law or any other rules or requirements concerning the tax, accounting or legal
characteristics of the Operative Documents. LRC further acknowledges and agrees that it is
sophisticated and knowledgeable regarding all such matters and that it has, as it deemed
appropriate, obtained from and relied upon its own professional accountants, counsel and
other advisors for such tax, accounting and legal advice concerning the Operative Documents.
(3) In any event, LRC will be required by subparagraph 5(C) below to indemnify
and hold harmless BNPPLC and other Interested Parties from and against all additional taxes
that may arise or become due because of any refusal of taxing authorities to recognize and
give effect to the intention of the parties as set forth in subparagraph 4(C)(1)
(“Unexpected Recharacterization Taxes”), including any additional income or capital gain tax
that may become due because of payments to BNPPLC of the purchase price upon any sale under
the Purchase Agreement resulting from any insistence of such taxing authorities that BNPPLC
be treated as the “true owner” of the Property for tax purposes (a “Forced
Recharacterization”); provided, however, LRC will not be required to pay or reimburse
Unexpected Recharacterization Taxes to the extent that they are, in any given tax year,
eliminated or offset by actual savings to BNPPLC because of additional depreciation
deductions or other tax benefits available to BNPPLC in the same year only by reason of the
Forced Recharacterization.
5 Payment of Executory Costs and Losses Related to the Property.
(A) Local Impositions. Subject only to the exceptions listed in
subparagraph 5(D) below, LRC must pay or cause to be paid prior to delinquency all
Local Impositions. If requested
by BNPPLC from time to time, LRC must furnish BNPPLC with receipts or other appropriate
evidence showing payment of all Local Impositions at least ten days prior to the applicable
delinquency date therefor.
Notwithstanding the foregoing, LRC may in good faith, by appropriate proceedings, contest the
validity, applicability or amount of any asserted Local Imposition, and pending such contest LRC
will not be deemed in default under any of the provisions of this Lease because of the Local
Imposition if (1) LRC diligently prosecutes such contest to completion in a manner reasonably
satisfactory to BNPPLC, and (2) LRC causes to be paid any amount adjudged by a court of competent
jurisdiction to be due, with all costs, penalties and interest thereon, promptly after such
judgment becomes final; provided, however, in any event each such contest must be concluded and the
contested Local Impositions must be paid by LRC prior to the earliest of (i) the date that any
criminal prosecution is instituted or overtly threatened against BNPPLC or its directors, officers
or employees because of the nonpayment thereof or (ii) the date any writ or order is issued under
which any property owned or leased by BNPPLC (including the Property) may be seized or sold or any
other action is taken or overtly threatened against BNPPLC or against any property owned or leased
by BNPPLC because of the nonpayment thereof, or (iii) any Designated Sale Date upon which, for any
reason, LRC or an Affiliate of LRC or any Applicable Purchaser does not purchase BNPPLC’s interest
in the Property pursuant to the Purchase Agreement for a price (when taken together with any
Supplemental Payment paid by LRC pursuant to the Purchase Agreement, in the case of a purchase by
an Applicable Purchaser) equal to the Break Even Price.
(B) Increased Costs; Capital Adequacy Charges. Subject only to the exceptions listed
in subparagraph 5(D) below:
(1) If there is any increase in the cost to BNPPLC’s Parent or any Participant
(or their respective Affiliates) of agreeing to make or making, funding or maintaining
advances to BNPPLC in connection with the Property because of any Banking Rules Change, then
LRC must from time to time (after receipt of a request from BNPPLC’s Parent or the
Participant as provided below) pay to BNPPLC for the account of BNPPLC’s Parent or the
Participant, as the case may be, additional amounts sufficient to compensate BNPPLC’s Parent
or the Participant (or their respective Affiliates) for such increased cost. A certificate
as to the amount of such increased cost, submitted to BNPPLC and LRC by BNPPLC’s Parent or
the Participant, will be conclusive and binding upon LRC, absent clear and demonstrable
error.
(2) BNPPLC’s Parent or any Participant may demand additional payments (“Capital
Adequacy Charges”) if BNPPLC’s Parent or the Participant determines that any Banking Rules
Change affects the amount of capital to be maintained by it or its Affiliates and that the
amount of such capital is increased by or based upon the existence
of advances made or to be made to or for BNPPLC to permit BNPPLC to maintain BNPPLC’s
investment in the Property. To the extent that BNPPLC’s Parent or such Participant, as the
case may be, provides a certificate or notice to BNPPLC and to LRC demanding Capital
Adequacy Charges as compensation for the additional capital requirements reasonably
allocable to such investment or advances, LRC must pay to BNPPLC for the account of BNPPLC’s
Parent or such Participant the amount so demanded; provided, however, such certificate or
notice must set forth the nature of the occurrence giving rise to such demand, the amount of
the Capital Adequacy Charge to be paid, and the method by which such amount was determined.
Any such certificate or notice will conclusive and binding upon LRC, absent clear and
demonstrable error. In determining the amount of any Capital Adequacy Charges, BNPPLC’s
Parent or any Participant may use any reasonable averaging and attribution method, applied
on a non-discriminatory basis.
(3) Notwithstanding the foregoing provisions of this subparagraph 5(B), LRC will not be
obligated to pay any claim for compensation pursuant to this subparagraph 5(B) that arises
or accrues (a) as a result of any change in the rating assigned to BNPPLC’s Parent or any
Participant (or their respective Affiliates) making the claim by rating agencies or bank
regulators in regard to BNPPLC’s Parent’s or such Participant’s (or their respective
Affiliates’) creditworthiness, record keeping or failure to comply with Applicable
Laws(including U.S. banking regulations applicable to subsidiaries of a bank holding
company), or (b) more than nine months prior to the date LRC is notified of the intent of
BNPPLC’s Parent or such Participant to make a claim for such charges; provided, that if the
Banking Rules Change which results in a claim for compensation is retroactive, then the nine
month period will be extended to include the period of the retroactive effect of such
Banking Rules Change. Further, BNPPLC will cause BNPPLC’s Parent to use, and will ask any
Participant to use, commercially reasonable efforts to reduce or eliminate any claim for
compensation pursuant to this subparagraph 5(B), including a change in the office of
BNPPLC’s Parent or the Participant, as the case may be, through which it provides and
maintains Funding Advances if such change will avoid the need for, or reduce the amount of,
such compensation and will not, in the reasonable judgment of BNPPLC’s Parent or such
Participant, be otherwise disadvantageous to it. Nothing in this subparagraph will be
construed to require BNPPLC’s Parent or any Participant to create any new office through
which to make or maintain Funding Advances.
(4) Any amount required to be paid by LRC under this subparagraph 5(B) will be
due ten Business Days after a notice requesting such payment is received by LRC from
BNPPLC’s Parent or a Participant, as applicable.
(C) LRC’s Payment of Other Losses; General Indemnification. Subject only to the
exceptions listed in subparagraph 5(D) below:
(1) Agreement to Indemnify. As directed by BNPPLC, LRC must pay, reimburse, indemnify,
defend, protect and hold harmless BNPPLC and all other Interested Parties from and against
all Losses (including Environmental Losses) asserted against or incurred or suffered by any
of them at any time and from time to time by reason of, in connection with, arising out of,
or in any way related to the following:
• | the ownership or alleged ownership of any interest in the Property or the Rent; | ||
• | the purchase, design, construction, preparation, installation, inspection, delivery, non-delivery, acceptance, rejection, possession, use, operation, maintenance, management, rental, lease, sublease, repossession, condition (including defects, whether or not discoverable), destruction, repair, alteration, modification, restoration, addition or substitution, storage, transfer of title, redelivery, return, sale or other disposition of all or any part of or interest in the Property; | ||
• | the imposition of any Lien (or incurring of any liability to refund or pay over any amount as a result of any Lien) against all or any part of or interest in the Property; | ||
• | any failure of the Property or LRC itself to comply with Applicable Laws; | ||
• | Permitted Encumbrances or any violation thereof; | ||
• | Hazardous Substance Activities, including those occurring prior to the Term; | ||
• | the enforcement of the Operative Documents; | ||
• | the making or maintenance of Funding Advances; | ||
• | the breach by LRC of this Lease, any other Operative Document or any other document executed by LRC pursuant to or in connection with any Operative Document; or | ||
• | any bodily or personal injury or death or property damage occurring in or upon or in the vicinity of the Property through any |
cause whatsoever. |
LRC’s obligations under this indemnity will apply whether or not any Interested Party is
also indemnified as to the applicable Loss by another Interested Party and whether or not
the Loss arises or accrues because of any condition of the Property or other circumstance
concerning the Property prior to the Effective Date.
Further, in the event, for income tax purposes, an Interested Party must include in its
taxable income any payment or reimbursement from LRC which is required by this indemnity (in
this provision, the “Original Indemnity Payment”), and yet the Interested Party is not
entitled during the same taxable year to a corresponding and equal deduction from its
taxable income for the Loss paid or reimbursed by such Original Indemnity Payment (in this
provision, the “Corresponding Loss”), then LRC must also pay to such Interested Party on
demand the additional amount (in this provision, the “Additional Indemnity Payment”) needed
to gross up the Original Indemnity Payment for any and all resulting additional income
taxes. That is, LRC must pay the minimum Additional Indemnity Payment needed so that the
Corresponding Loss (computed net of the reduction, if any, of the Interested Party’s income
taxes because of credits or deductions that are attributable to the Interested Party’s
payment or deemed payment of the Corresponding Loss and that are recognized for tax purposes
in the same taxable year during which the Interested Party must recognize the Original
Indemnity Payment as income) will not exceed the difference computed by subtracting (i) all
income taxes (determined for this purpose based on the highest marginal income tax rates
charged to corporations by federal, state and local tax authorities, as applicable, for the
relevant period or periods) imposed because of the receipt or constructive receipt of the
Original Indemnity Payment and the Additional Indemnity Payment, from (ii) the sum of the
Original Indemnity Payment and the Additional Indemnity Payment. (With regard to any payment
or reimbursement of an Original Indemnity Payment, “After Tax Basis” means that such payment
or reimbursement is or will be made together with the additional amount needed to gross up
such Original Indemnity Payment as described in this provision.)
(2) Scope of Indemnities and Releases. Every indemnity and release provided
in this Lease and the other Operative Documents for the benefit of BNPPLC or other
Interested Parties, including the indemnity set forth in subparagraph 5(C)(1), will apply
even if and when the subject matter of the indemnity or release arises out of or results
from the negligence or strict liability of BNPPLC or any other Interested Party.
Further, all such indemnities and releases will apply even if
insurance obtained by LRC or required of LRC by this Lease or the other Operative Documents
is not adequate to cover Losses against or for which the indemnities and releases are
provided. (However, LRC’s liability for any failure to obtain insurance required by this
Lease or the other Operative Documents will not be limited to Losses against which
indemnities are provided, it being understood that the parties have agreed upon insurance
requirements for reasons that extend beyond providing a source of payment for Losses against
which BNPPLC and other Interested Parties may be indemnified by LRC.)
(3) Nonexclusive List of Costs Covered by Indemnity. Costs and expenses for which LRC
is responsible on an After Tax Basis pursuant to this subparagraph 5(C) will include all of
the following, except to the extent that the following are included in the Initial Advance
or in the calculation of any Break Even Price or Make Whole Amount paid to BNPPLC pursuant
to the Purchase Agreement:
• | appraisal fees; | ||
• | Uniform Commercial Code search fees; | ||
• | filing and recording fees; | ||
• | inspection fees and expenses; | ||
• | brokerage fees and commissions; | ||
• | survey fees; | ||
• | title policy premiums and escrow fees; | ||
• | any Breakage Costs; | ||
• | Attorneys’ Fees incurred by BNPPLC with respect to the drafting, negotiation, administration or enforcement of this Lease or the other Operative Documents; and | ||
• | all taxes (except Excluded Taxes) related to the Property or to the transactions contemplated in the Operative Documents. |
(4) Defense and Settlement of Indemnified Claims.
(a) By notice to LRC BNPPLC may direct LRC to assume on behalf
of BNPPLC or any other Interested Party and to conduct with due diligence and in
good faith the defense of and the response to any claim, proceeding or investigation
included in or concerning any Loss for which LRC is responsible pursuant to
subparagraph 5(C)(1). LRC must promptly comply with any such direction using
counsel selected by LRC and reasonably satisfactory to BNPPLC to represent BNPPLC or
the applicable Interested Party. In the event LRC fails to promptly comply with any
such direction from BNPPLC, BNPPLC or any other affected Interested Party may
contest or settle the claim, proceeding or investigation using counsel of its own
selection at LRC’s expense.
(b) Also, although subparagraph 5(D)(3) will apply to tort claims asserted
against any Interested Party related to the Property, the right of an Interested
Party to be indemnified pursuant to this subparagraph 5(C) for taxes or other
payments made to satisfy governmental requirements (“Government Mandated Payments”)
will not be conditioned in any way upon LRC having consented to or approved of, or
having been provided with an opportunity to defend against or contest, such
Government Mandated Payments.
(5) Payments Due. Any amount to be paid by LRC under this subparagraph
5(C) will be due ten Business Days after a notice requesting such payment is given to
LRC, subject to any applicable contest rights expressly granted to LRC by other provisions
of this Lease.
(6) Survival. LRC’s obligations under this subparagraph 5(C) will survive the
termination or expiration of this Lease with respect to Losses suffered by any Interested
Party on or prior to, or by reason of any actual or alleged occurrence or circumstances on
or prior to, the later of the dates upon which (a) this Lease terminates or expires, or (b)
LRC surrenders possession and control of the Property.
(D) Exceptions and Qualifications to Indemnities.
(1) Exceptions. BNPPLC acknowledges and agrees that nothing in Paragraph 4 or the
preceding subparagraphs of this Paragraph 5 will be construed to require LRC to pay or
reimburse:
• | Excluded Taxes; or | ||
• | Losses incurred or suffered by any Interested Party to the extent proximately caused by (and attributed by any applicable principles of comparative fault to) the Established Misconduct of that Interested Party; or |
• | Losses that result from any Liens Removable by BNPPLC; or | ||
• | Local Impositions or other Losses contested, if and so long as they are contested, by LRC in accordance with any of the provisions of this Lease or other Operative Documents which expressly authorize such contests; or | ||
• | Losses incurred or suffered by any of the Participants in connection with the negotiation or execution of the Participation Agreement (or supplements making them parties thereto) or in connection with any due diligence Participants may undertake before entering into the Participation Agreement; or | ||
• | transaction expenses or other Losses caused by or necessary to accomplish any conveyance by BNPPLC to BNPPLC’s Parent or a Qualified Affiliate which constitutes a Permitted Transfer only by reason of clause (4) of the definition of Permitted Transfer in the Common Definitions and Provisions Agreement. |
(2) Notice of Claims. If an Interested Party receives a written notice of a
claim for taxes or a claim alleging a tort or other unlawful conduct that the Interested
Party believes is covered by the indemnity in subparagraph 5(C)(1), then such Interested
Party will be expected to promptly furnish a copy of such notice to LRC. The failure to so
provide a copy of the notice will not excuse LRC from its obligations under subparagraph
5(C)(1); except that if such failure continues for more than fifteen Business Days after the
notice is received by such Interested Party and LRC is unaware of the matters described in
the notice, with the result that LRC is unable to assert defenses or to take other actions
which could minimize its obligations, then LRC will be excused from its obligation to
indemnify such Interested Party (and any Affiliate of such Interested Party) against Losses,
if any, which would not have been incurred or suffered but for such failure. For example,
if BNPPLC fails to provide LRC with a copy of a notice of an overdue tax obligation covered
by the indemnity set out in subparagraph 5(C)(1) and LRC is not otherwise already aware of
such obligation, and if as a result of such failure BNPPLC becomes liable for penalties,
interest and other additional costs covered by the indemnity in excess of the penalties,
interest and costs that would have accrued if LRC had been promptly provided with a copy of
the notice, then LRC will be excused from any obligation to BNPPLC (or any Affiliate of
BNPPLC) to pay such excess penalties, interest or other costs attributable to such delay.
(3) Settlements Without the Prior Consent of LRC.
(a) Except as otherwise provided in subparagraph 5(D)(3)(b), if any
Interested Party settles any tort claim for which it is entitled to be indemnified
by LRC without LRC’s consent (which consent will not be unreasonably withheld), then
LRC may, by notice given to the Interested Party no later than ten Business Days
after LRC is notified of the settlement, elect to pay Reasonable Settlement Costs to
the Interested Party in lieu of a payment or reimbursement of actual settlement
costs. (With respect to any tort claim asserted against an Interested Party,
“Reasonable Settlement Costs” means the maximum amount that a prudent Person in the
position of the Interested Party, but able to pay any amount, might reasonably agree
to pay to settle the tort claim, taking into account the nature and amount of the
claim, the relevant facts and circumstances known to
such Interested Party at the time of settlement and the additional Attorneys Fees’
and other costs of defending the claim which could be anticipated but for the
settlement.) After making an election to pay Reasonable Settlement Costs with
regard to a particular tort claim and a particular Interested Party, LRC will have
no right to rescind or revoke the election, despite any subsequent determination
that Reasonable Settlement Costs exceed actual settlement costs.
(b) Notwithstanding the foregoing, LRC will have no right to elect to pay
Reasonable Settlement Costs in lieu of actual settlement costs if an Interested
Party settles claims without LRC’s consent at any time when an Event of Default has
occurred and is continuing or after a failure by LRC to conduct with due diligence
and in good faith the defense of and the response to any claim, proceeding or
investigation as provided in subparagraph 5(C)(4)(a).
(c) Except as provided in this subparagraph 5(D)(3), no settlement by any
Interested Party of any claim made against it will excuse LRC from any obligation to
indemnify the Interested Party against the settlement costs or other Losses suffered
by reason of, in connection with, arising out of, or in any way related to such
claim.
(4) Defense of Tax Claims. This Lease does not grant to LRC any right to
control the defense of or contest any tax claim for which an Interested Party may have a
right to indemnity under subparagraph 5(C), other than the right to contest Local
Impositions as provided in subparagraph 5(A), nor does this Lease grant to LRC the right to
inspect the income tax returns, books or records of any Interested Party. Nevertheless, if
a tax claim is asserted against BNPPLC for which it is entitled to be indemnified pursuant
to subparagraph 5(C), BNPPLC will consider in good faith any defenses and strategies
proposed by LRC with regard to such claim. Further, if any such tax claim is asserted
against BNPPLC which involves assertions that apply not only to the transactions
contemplated by this Lease, but also to other similar transactions in which BNPPLC has
participated, then BNPPLC will not settle the claim on a basis that results
in a disproportionately greater tax burden with respect to the transactions contemplated
herein than with respect to such other similar transactions. For example, if taxing
authorities assert that both this Lease and other comparable lease agreements made by BNPPLC
are not financing arrangements as intended by the parties thereto, and on the basis of such
assertions the taxing authorities claim that BNPPLC owes income taxes
which are not Excluded Taxes, then BNPPLC will not settle the claim in a manner that would
cause LRC’s liability under subparagraph 5(C) to be disproportionately greater than the
indemnity obligation of another similarly situated tenant of BNPPLC under another lease
agreement with an indemnity provision comparable to subparagraph 5(C). Also, BNPPLC will
not grant to another tenant the right to dictate to BNPPLC the tax position BNPPLC must take
in regard to the Property or the Operative Documents, except that BNPPLC may include
provisions comparable to the foregoing in other leases to assure other tenants against a
disproportionately greater burden than LRC will bear in regard to any settlement of a tax
claim by BNPPLC.
(E) Collection on Behalf of Participants. BNPPLC may, on behalf of any Participant or
its Affiliates, collect any amount that becomes due from LRC to such Participant or its Affiliates
pursuant to subparagraph 5(B) or 5(C), in which case BNPPLC will be obligated to such Participant
in respect of the collected amount as provided in the Participation Agreement. Alternatively, as
provided in the Participation Agreement, BNPPLC may assign the right to collect any such amount to
such Participant, in which case the Participant will be entitled to collect the same directly from
LRC without in any way impairing or affecting BNPPLC’s rights to collect other amounts from LRC
under this Lease or the other Operative Documents.
6 Items Included in the Property. The Land and all Improvements on the Land from
time to time will be included in the “Property” covered by this Lease. Further, to the extent, if
any, acquired by LRC (in whole or in part) with funds advanced by or on behalf of the Prior Owner
(or any predecessor in interest to the Prior Owner with respect to any property covered by the
Prior Lease) under or in connection with the Prior Lease (or any prior lease agreement amended and
restated by the Prior Lease) or with other funds for which LRC received reimbursement from such
funds advanced by or on behalf of the Prior Owner (or a predecessor in interest), all furnishings,
furniture, chattels, permits, licenses, franchises, certificates and other personal property of
whatever nature will be deemed to have been acquired on behalf of the Prior Owner and transferred
by it to BNPPLC and will constitute “Property” covered by this Lease, as will all renewals or
replacements of or substitutions for any such Property. Upon request of BNPPLC, LRC will deliver to
BNPPLC an inventory describing all significant items of Personal Property (and, in the case of
tangible personal property, showing the make, model, serial number and location thereof), with a
certification by LRC that such inventory is true and complete and that all items specified in the
inventory are covered by this Lease free and clear of any Lien other than the Permitted
Encumbrances or Liens Removable by BNPPLC.
7 Environmental.
(A) Environmental Covenants by LRC.
(1) LRC will not conduct or permit others to conduct Hazardous Substance Activities on
the Property, except Permitted Hazardous Substance Use and Remedial Work.
(2) LRC will not discharge or permit the discharge of anything (including Permitted
Hazardous Substances) on or from the Property that would require any permit under applicable
Environmental Laws, other than (i) storm water runoff, (ii) waste water discharges through a
publicly owned treatment works, (iii) discharges that are a necessary part of any Remedial
Work, and (iv) other similar discharges consistent with the definition of Permitted
Hazardous Substance Use which do not significantly increase the risk of Environmental Losses
to BNPPLC, in each case in compliance with Environmental Laws.
(3) Following any discovery that Remedial Work is required by Environmental Laws or is
otherwise reasonably believed by BNPPLC to be required, LRC must promptly perform and
diligently and continuously pursue such Remedial Work.
(4) If requested by BNPPLC in connection with any Remedial Work required by this
subparagraph, LRC must retain environmental consultants reasonably acceptable to BNPPLC to
evaluate any significant new information generated during LRC’s implementation of the
Remedial Work and to discuss with LRC whether such new information indicates the need for
any additional measures that LRC should take to protect the health and safety of persons
(including employees, contractors and subcontractors and their employees) or to protect the
environment. LRC must implement any such additional measures to the extent required with
respect to the Property by Environmental Laws or otherwise reasonably believed by BNPPLC to
be required.
(B) Right of BNPPLC to do Remedial Work Not Performed by LRC. If LRC’s failure
to perform any Remedial Work required as provided in subparagraph 7(A) continues beyond the
Environmental Cure Period (as defined below), BNPPLC may, in addition to any other remedies
available to it, conduct all or any part of the Remedial Work. To the extent that Remedial Work is
done by BNPPLC pursuant to the preceding sentence (including any removal of Hazardous Substances),
the cost thereof will be a demand obligation owing by LRC to BNPPLC. As used in this subparagraph,
“Environmental Cure Period” means the period ending on the earliest of: (1) ninety days after LRC
is notified of the breach which must be cured within such period, (2) the date that any writ or
order is issued for the levy or sale of any property owned by BNPPLC
(including the Property) because of such breach, (3) the date that any criminal action is
instituted or overtly threatened against BNPPLC or any of its directors, officers or employees
because of such breach, or (4) any Designated Sale Date upon which, for any reason, LRC or an
Affiliate of LRC or any Applicable Purchaser does not purchase BNPPLC’s interest in the Property
pursuant to the Purchase Agreement for a net price to BNPPLC (when taken together with any
Supplemental Payment paid by LRC pursuant to the Purchase Agreement, in the case of a purchase by
an Applicable Purchaser) equal to the Break Even Price.
(C) Environmental Inspections and Reviews. BNPPLC reserves the right to retain
environmental consultants to review any report prepared by LRC or to conduct BNPPLC’s own
investigation to confirm whether LRC is complying with the requirements of this Paragraph 7. LRC
grants to BNPPLC and to BNPPLC’s agents, employees, consultants and contractors the right to enter
upon the Property during reasonable hours and after reasonable notice to inspect the Property and
to perform such tests as BNPPLC deems reasonably necessary or appropriate to review or investigate
Hazardous Substances in, on, under or about the Property or any discharge or reasonably suspected
discharge of Hazardous Substances into groundwater or surface water from the Property. LRC must
promptly reimburse BNPPLC for the fees of its environmental consultants and the costs of any such
inspections and tests. Without limiting the foregoing, BNPPLC will be entitled to reimbursement
for the fees of any consultant engaged as provided in this subparagraph or for the costs of any
inspections or test undertaken as provided in this subparagraph if BNPPLC engages the consultant or
orders the inspections or tests in any of the following circumstances: (1) an Event of Default has
occurred and is continuing at the time of such engagement, tests or inspections; (2) LRC has not
exercised the Purchase Option and BNPPLC has retained the consultant to establish the condition of
the Property prior to any conveyance thereof pursuant to the Purchase Agreement or to the
expiration of this Lease; (3) BNPPLC has retained the consultant to satisfy any regulatory
requirements applicable to BNPPLC or its Affiliates; (4) BNPPLC has retained the consultant because
it has reason to believe, and does in good faith believe, that a significant violation of
Environmental Laws concerning the Property has occurred; or (5) BNPPLC has retained the consultant
because BNPPLC has been notified of a possible violation of Environmental Laws concerning the
Property by any Governmental Authority having jurisdiction.
(D) Communications Regarding Environmental Matters.
(1) LRC must promptly advise BNPPLC of (i) any discovery known to LRC of any
event or circumstance which would render any representations of LRC in any of the Operative
Documents concerning environmental matters materially inaccurate or misleading if made at
the time of such discovery, (ii) any Remedial Work (or change in Remedial Work) required or
undertaken by LRC or its Affiliates in response to any (A)
discovery of any Hazardous Substances on, under or about the Property other than
Permitted Hazardous Substances or (B) any claim for damages resulting from Hazardous
Substance Activities, (iii) any discovery known to LRC of any occurrence or condition on any
real property adjoining or in the vicinity of the Property which would or could reasonably
be expected to cause the Property or any part thereof to be subject to any ownership,
occupancy, transferability or use restrictions under Environmental Laws, or (iv) any
investigation or inquiry known to LRC of any failure or alleged failure by LRC to comply
with Environmental Laws affecting the Property by any Governmental Authority responsible for
enforcing Environmental Laws. In such event, LRC will deliver to BNPPLC within thirty days
after BNPPLC’s request, a preliminary written environmental plan setting forth a general
description of the action that LRC proposes to take with respect thereto, if any, to bring
the Property into compliance with Environmental Laws or to correct any breach by LRC of this
Paragraph 7, including any proposed Remedial Work, the estimated cost and time of
completion, the name of the contractor and a copy of the construction contract, if any, and
such additional data, instruments, documents, agreements or other materials or information
as BNPPLC may reasonably request.
(2) LRC will provide BNPPLC with copies of all material written communications with
Governmental Authorities relating to the matters listed in the preceding clause (1). LRC
will also provide BNPPLC with copies of any correspondence from third Persons which threaten
litigation over any significant failure or alleged significant failure of LRC to maintain or
operate the Property in accordance with Environmental Laws.
(3) Prior to LRC’s submission of a communication to any regulatory agency or third
party which causes, or potentially could cause (whether by implementation of or response to
said communication), a material change in the scope, duration, or nature of any Remedial
Work, LRC must, to the extent practicable, deliver to BNPPLC a draft of the proposed
submission (together with the proposed date of submission), and in good faith assess and
consider any comments of BNPPLC regarding the same. Promptly after BNPPLC’s request, LRC
will meet with BNPPLC to discuss the submission, will provide any additional information
reasonably requested by BNPPLC and will provide a written explanation to BNPPLC addressing
the issues raised by comments (if any) of BNPPLC regarding the submission.
8 Insurance Required and Condemnation.
(A) Liability Insurance. Throughout the Term LRC must maintain commercial
general liability insurance against claims for bodily and personal injury, death and property
damage occurring in or upon or resulting from any occurrence in or upon the Property under one or
more insurance policies that satisfy the Minimum Insurance Requirements. LRC must deliver and
maintain with BNPPLC for each liability insurance policy required by this Lease written
confirmation of the policy and the scope of the coverage provided thereby issued by the applicable
insurer or its authorized agent, which confirmation must also satisfy the Minimum Insurance
Requirements.
(B) Property Insurance.
(1) Throughout the Term LRC must keep all Improvements (including all alterations,
additions and changes made to the Improvements) insured against fire and other casualty
under one or more property insurance policies that satisfy the Minimum Insurance
Requirements. LRC must deliver and maintain with BNPPLC for each property insurance policy
required by this Lease written confirmation of the policy and the scope of the coverage
provided thereby issued by the applicable insurer or its authorized agent, which
confirmation must also satisfy the Minimum Insurance Requirements.
(2) If any of the Property is destroyed or damaged by fire, explosion, windstorm, hail
or by any other casualty against which insurance is required hereunder, (a) BNPPLC may, but
will not be obligated to, make proof of loss if not made promptly by LRC after notice from
BNPPLC, (b) each insurance company concerned is hereby authorized and directed to make
payment for such loss directly to BNPPLC (or, if so instructed by BNPPLC, to LRC) for
application as required by Paragraph 9, and (c) BNPPLC will be entitled, in its own name or
in the name of LRC or in the name of both, to settle, adjust or compromise any and all
claims for loss, damage or destruction under any policy or policies of insurance; except
that, if any such claim is for less than $500,000 and no Event of Default has occurred and
is continuing, during the Term LRC alone will have the right to settle, adjust or compromise
the claim as LRC deems appropriate; and, except that, during the Term, so long as no Event
of Default has occurred and is continuing, BNPPLC must provide LRC with at least forty-five
days notice of BNPPLC’s intention to settle any such claim before settling it unless LRC has
already approved of the settlement by BNPPLC.
(3) BNPPLC will not in any event or circumstances be liable or responsible for failure
to collect, or to exercise diligence in the collection of, any insurance proceeds.
(4) If any casualty results in damage to or loss or destruction of the Property, LRC
must give prompt notice thereof to BNPPLC and Paragraph 9 will apply.
(C) Failure to Obtain Insurance. If LRC fails to obtain any insurance or to
provide confirmation of any such insurance as required by this Lease, BNPPLC will be entitled (but
not required) to obtain the insurance that LRC has failed to obtain or for which LRC has not
provided the required confirmation and, without limiting BNPPLC’s other remedies under the
circumstances, BNPPLC may require LRC to reimburse BNPPLC for the cost of such insurance and to pay
interest thereon computed at the Default Rate from the date such cost was paid by BNPPLC until the
date of reimbursement by LRC.
(D) Condemnation. Immediately upon obtaining knowledge of the institution of any
proceedings for the condemnation of the Property or any portion thereof, or any other similar
governmental or quasi-governmental proceedings arising out of injury or damage to the Property or
any portion thereof, each party will promptly notify the other (provided, however, BNPPLC will have
no liability for its failure to provide such notice) of the pendency of such proceedings. LRC
must, at its expense, diligently prosecute any such proceedings and must consult with BNPPLC, its
attorneys and experts and cooperate with them as reasonably requested in the carrying on or defense
of any such proceedings. BNPPLC is hereby authorized, in its own name or in the name of LRC or in
the name of both, at any time after the Term expires or when an Event of Default has occurred and
is continuing, but not otherwise without LRC’s prior consent, to execute and deliver valid
acquittances for, and to appeal from, any such judgment, decree or award concerning condemnation of
any of the Property. BNPPLC will not in any event or circumstances be liable or responsible for
failure to collect, or to exercise diligence in the collection of, any such proceeds, judgments,
decrees or awards.
Notwithstanding the foregoing provisions of this subparagraph, if condemnation proceeds
totaling not more than $500,000 are to be recovered as a result of a taking of less than all or
substantially all of the Property, LRC may directly receive and hold such proceeds during the Term,
so long as no Event of Default has occurred and is continuing and LRC applies such proceeds as
required herein.
(E) Waiver of Subrogation. LRC, for itself and for any Person claiming through it
(including any insurance company claiming by way of subrogation), waives any and every claim
which arises or may arise in its favor against BNPPLC or any other Interested Party to recover
Losses for which LRC is compensated by insurance or would be compensated by the insurance
contemplated in this Lease, but for any deductible or self-insured retention maintained under such
insurance or but for a failure of LRC to maintain the insurance as required by this Lease. LRC
agrees to have such insurance policies properly endorsed so as to make them valid notwithstanding
this waiver, if such endorsement is required to prevent a loss of insurance.
9 Application of Insurance and Condemnation Proceeds.
(A) Collection and Application of Insurance and Condemnation Proceeds
Generally. This Paragraph 9 will govern the application of proceeds received by BNPPLC or LRC
during the Term from any third party (1) under any property insurance policy as a result of damage
to the Property (including proceeds payable under any insurance policy covering the Property which
is maintained by LRC), (2) as compensation for any restriction placed upon the use or
development of the Property or for the condemnation of the Property or any portion thereof, or (3)
because of any judgment, decree or award for injury or damage to the Property (e.g.,damage
resulting from a third party’s release of Hazardous Materials onto the Property); excluding,
however, any funds paid to BNPPLC by BNPPLC’s Parent, by another Affiliate of BNPPLC or by any
Participant that is made to compensate BNPPLC for any Losses BNPPLC may suffer or incur in
connection with this Lease or the Property. Except as provided in subparagraph 9(C), LRC must
promptly pay over to BNPPLC any insurance, condemnation or other proceeds covered by this Paragraph
9 which LRC may receive from any insurer, condemning authority or other third party. Except as
provided in subparagraph 9(C), all proceeds covered by this Paragraph 9, including those received
by BNPPLC from LRC or third parties, will be applied as follows:
(1) First, proceeds covered by this Paragraph 9 will be used to reimburse BNPPLC for
any Attorneys’ Fees or other reasonable costs and expenses that BNPPLC incurred to collect
the proceeds.
(2) Second, the proceeds remaining after such reimbursement to BNPPLC (hereinafter, the
“Remaining Proceeds”) will be applied, as hereinafter more particularly provided, either as
a Qualified Prepayment or to reimburse LRC or BNPPLC for the actual out-of-pocket costs of
repairing or restoring the Property. Until, however, any Remaining Proceeds received by
BNPPLC are applied by BNPPLC as a Qualified Prepayment or applied by BNPPLC to reimburse
costs of repairs to or restoration of the
Property pursuant to this Paragraph 9, BNPPLC will hold and maintain such Remaining
Proceeds as Escrowed Proceeds in an interest bearing account, and all interest earned on
such account will be added to and made a part of such Escrowed Proceeds.
(B) Advances of Escrowed Proceeds to LRC. Except as otherwise provided below in this
Paragraph 9, BNPPLC will advance all Remaining Proceeds held by it as Escrowed Proceeds to
reimburse LRC for the actual out-of-pocket cost to LRC of repairing or restoring the Property in
accordance with the requirements of this Lease and the other Operative Documents as the applicable
repair or restoration, progresses. So long as any Lease Balance remains outstanding, however,
BNPPLC will not be required to pay Escrowed Proceeds to LRC in excess of the actual out-of-pocket
cost to LRC of the applicable repair or restoration, as evidenced by invoices or other
documentation reasonably satisfactory to BNPPLC, it being understood that BNPPLC may retain and,
after LRC has completed the applicable repair or restoration and been reimbursed for the
out-of-pocket cost thereof, apply any such excess (or so much thereof as is needed to reduce the
Lease Balance to zero) as a Qualified Prepayment.
(C) Right of LRC to Receive and Apply Remaining Proceeds Below a Certain Level.
If, during the Term, any condemnation of any portion of the Property or any casualty resulting in
the diminution, destruction, demolition or damage to any portion of the Property reduces the then
current “AS IS” market value of the Property by less than $2,000,000 and is not expected to result
in condemnation or insurance proceeds of more than $2,000,000, and if no Event of Default has
occurred and is continuing, then BNPPLC will, upon LRC’s request, instruct the condemning authority
or insurer, as applicable, to pay the insurance or condemnation proceeds resulting therefrom
directly to LRC. LRC must apply any such proceeds as follows: (i) first, to reimburse BNPPLC for
any Attorneys’ Fees or other reasonable costs and expenses that BNPPLC incurred in connection with
the condemnation or casualty that resulted in such proceeds or the pursuit of claims related
thereto; (ii) second, to the repair or restoration of the Property to a safe and secure condition
and to a value of no less than the value before the taking or casualty; and (iii) if any such
proceeds remain after application as provided in the preceding clauses (i) and (ii), then to make a
Qualified Prepayment to BNPPLC.
(D) Special Provisions Applicable After the Term Expires or an Event of Default.
Notwithstanding the foregoing, after the Term expires or when any Event of Default has occurred and
is continuing, BNPPLC will be entitled to receive and collect all insurance, condemnation or other
proceeds governed by this Paragraph 9 and to apply all Remaining Proceeds, when and to the extent
deemed appropriate by BNPPLC in its sole discretion, either (A) to the reimbursement
of LRC or BNPPLC for the out-of-pocket cost of repairing or restoring the Property, or (B) as
Qualified Prepayments. Further, if the Remaining Proceeds paid to BNPPLC with respect to any
damage or destruction of the Property are reduced by reason of any insurance deductible or
self-insured retention, LRC must pay to BNPPLC upon demand an additional amount equal to the full
amount of such deductible or self insured retention, whereupon the additional amount paid will be
added to the Remaining Proceeds and applied as such by BNPPLC in accordance with the provisions of
this Lease.
(E) LRC’s Obligation to Restore. Regardless of the adequacy of any Remaining Proceeds
available to LRC hereunder, if the Property is damaged by fire or other casualty or less than all
or substantially all of the Property is taken by condemnation, LRC must promptly (and in any event,
prior to the Designated Sale Date) restore or improve the Property or the remainder thereof to a
condition that is safe and sightly and as near to the same condition as existed prior to such event
as is possible and in any event to a value no less than the Lease Balance.
(F) Takings of All or Substantially All of the Property. In the event of any
taking of all or substantially all of the Property, BNPPLC will be entitled to apply all Remaining
Proceeds (or so much thereof as is required to reduce the Lease Balance to zero) as a Qualified
Prepayment. Any taking of so much of the Property as, in BNPPLC’s good faith judgment, makes it
impracticable to restore or improve the remainder thereof as required by part (1) of the preceding
subparagraph will be considered a taking of substantially all the Property for purposes of this
Paragraph 9.
10 Additional Representations, Warranties and Covenants of LRC
Concerning the Property. LRC represents, warrants and covenants as follows:
(A) Operation and Maintenance. LRC must operate and maintain the Property in a good
and workmanlike manner and in compliance with Applicable Laws in all material respects and pay or
cause to be paid all fees or charges of any kind due in connection therewith. (If LRC does not
promptly correct any failure of the Property to comply with Applicable Laws that is the subject of
a written complaint or demand for corrective action given by any Governmental Authority to LRC, or
to BNPPLC and forwarded by it to LRC, then for purposes of the preceding sentence, LRC will be
considered not to have maintained the Property “in compliance with all Applicable Laws in all
material respects” whether or not the noncompliance would be material in the absence of the
complaint or demand.) LRC will not use or occupy, or allow the use or occupancy of, the Property
in any manner which violates any Applicable Laws or which
constitutes a public or private nuisance or which makes void, voidable or cancelable any
insurance then in force with respect to the Property. To the extent that any of the following
would, individually or in the aggregate, materially and adversely affect the value of the Property
or the use of the Property for purposes permitted by this Lease, LRC will not, without BNPPLC’s
prior consent: (i) initiate or permit any zoning reclassification of the Property; (ii) seek any
variance under existing zoning ordinances applicable to the Property; (iii) use or permit the use
of the Property in a manner that would result in such use becoming a nonconforming use under
applicable zoning ordinances or similar laws, rules or regulations; (iv) execute or file any
subdivision plat affecting the Property; or (v) consent to the annexation of the Property to any
municipality. LRC will not cause or permit any drilling or exploration for, or extraction, removal
or production of, minerals from the surface or subsurface of the Property, and LRC will not do
anything that could reasonably be expected to significantly reduce the market value of the
Property. If LRC receives a notice or claim from any Governmental Authority that the Property is
not in compliance with any Applicable Law, or that any action may be taken against BNPPLC because
the Property does not comply with any Applicable Law, LRC must promptly furnish a copy of such
notice or claim to BNPPLC.
(B) Debts for Construction, Maintenance, Operation or Development. LRC must cause all
debts and liabilities incurred in the construction, maintenance, operation or development of the
Property, including invoices for labor, material and equipment and all debts and charges for
utilities servicing the Property, to be promptly paid.
(C) Repair, Maintenance, Alterations and Additions. LRC must keep the Property
in good order, operating condition and appearance and must cause all necessary repairs, renewals
and replacements to be promptly made. LRC will not allow any of the Property to be materially
misused, abused or wasted. Further, LRC will not, without the prior consent of BNPPLC, make new
Improvements or alter Improvements in any way that could have a material, adverse impact on the
value of the Property.
Without limiting the foregoing, LRC must notify BNPPLC before making any significant
alterations to the Improvements, regardless of the impact on the value of the Property expected to
result from such alterations.
(D) Permitted Encumbrances. LRC must comply with and will cause to be performed all of
the covenants, agreements and obligations imposed upon the owner of any interest in the Property by
the Permitted Encumbrances. Without limiting the foregoing, LRC must cause all amounts to be paid
when due, the payment of which is secured by any Lien against the Property
created by the Permitted Encumbrances. Without the prior consent of BNPPLC, LRC will not
enter into, initiate, approve or consent to any modification of any Permitted Encumbrance that
would create or expand or purport to create or expand obligations or restrictions which would
encumber BNPPLC’s interest in the Property or be binding upon BNPPLC itself.
(E) Books and Records Concerning the Property. LRC must keep books and records that
are accurate and complete in all material respects for the Property and, subject to Paragraph 19,
must permit all such books and records (including all contracts, statements, invoices, bills and
claims for labor, materials and services supplied for the construction and operation of any
Improvements) to be inspected and copied by BNPPLC during reasonable business hours.
11 Assignment and Subletting by LRC.
(A) BNPPLC’s Consent Required. Without the prior consent of BNPPLC, LRC will not
assign, transfer, mortgage, pledge or hypothecate this Lease or any interest of LRC hereunder and
will not sublet all or any part of the Property, by operation of law or otherwise, except as
follows:
(1) During the Term, so long as no Event of Default has occurred and is continuing, LRC
may sublet (a) to Affiliates of LRC, or (b) any useable space in then existing and completed
building Improvements to Persons who are not LRC’s Affiliates, subject to the conditions
that (i) any such sublease by LRC must be made expressly subject and subordinate to the
terms hereof, (ii) the sublease must have a term equal to or less than the remainder of the
then effective Term of this Lease, and (iii) the use permitted by the sublease must be
expressly limited to uses consistent with subparagraph 2(A) or other uses approved in
advance by BNPPLC as uses that will not present any extraordinary risk of uninsured
environmental or other liability.
(2) During the Term, so long as no Event of Default has occurred and is
continuing, LRC may assign all of its rights under this Lease and the other Operative
Documents to an Affiliate of LRC, subject to the conditions that (a) the assignment must be
in writing and must unconditionally provide that the Affiliate assumes all of LRC’s
obligations hereunder and thereunder, and (b) LRC must execute an unconditional guaranty of
the obligations assumed by the Affiliate in form satisfactory to BNPPLC, confirming (x) that
notwithstanding the assignment LRC will remain primarily liable for all of the obligations
undertaken by LRC under the Operative Documents, (y) that such
guaranty is a guaranty of payment and performance and not merely of collection, and (z) that
LRC waives to the extent permitted by Applicable Law all defenses otherwise available to
guarantors or sureties.
(B) Standard for BNPPLC’s Consent to Assignments and Certain Other Matters. Consents
and approvals of BNPPLC which are required by this Paragraph 11 will not be unreasonably withheld,
but LRC acknowledges that BNPPLC’s withholding of such consent or approval will be reasonable if
BNPPLC determines in good faith that (1) giving the approval may increase BNPPLC’s risk of
liability for any existing or future environmental problem, (2) giving the approval is likely to
substantially increase BNPPLC’s administrative burden of complying with or monitoring LRC’s
compliance with the requirements of this Lease, or (3) any transaction for which LRC has requested
the consent or approval would negate LRC’s representations in the Operative Documents regarding
ERISA or cause any of the Operative Documents (or any exercise of BNPPLC’s rights thereunder) to
constitute a violation of any provision of ERISA. Further, LRC acknowledges that BNPPLC may
reasonably require, as a condition to giving its consent to any assignment by LRC, that LRC execute
an unconditional guaranty providing that LRC will remain primarily liable for all of the tenant’s
obligations hereunder and under other Operative Documents. Any such guaranty must be a guaranty of
payment and not merely of collection, must provide that LRC waives to the extent permitted by
Applicable Law all defenses otherwise available to guarantors or sureties, and must otherwise be in
a form satisfactory to BNPPLC.
(C) Consent Not a Waiver. No consent by BNPPLC to a sale, assignment, transfer,
mortgage, pledge or hypothecation of this Lease or LRC’s interest hereunder, and no assignment or
subletting of the Property or any part thereof in accordance with this Lease or otherwise with
BNPPLC’s consent, will release LRC from liability hereunder; and any such consent will apply only
to the specific transaction thereby authorized and will not relieve LRC from any requirement of
obtaining the prior consent of BNPPLC to any further sale, assignment, transfer, mortgage, pledge
or hypothecation of this Lease or any interest of LRC hereunder.
12 Assignment by BNPPLC.
(A) Restrictions on Transfers. Except by a Permitted Transfer, BNPPLC will not
assign, transfer, mortgage, pledge, encumber or hypothecate this Lease or the other Operative
Documents or any interest of BNPPLC in and to the Property during the Term without the prior
consent of LRC, which consent LRC may withhold in its sole discretion.
(B) Effect of Permitted Transfer or other Assignment by BNPPLC. If by a Permitted
Transfer BNPPLC sells or otherwise transfers the Property and assigns to the transferee all of
BNPPLC’s rights under this Lease and under the other Operative Documents, and if the transferee
expressly assumes all of BNPPLC’s obligations under this Lease and under the other Operative
Documents, then BNPPLC will thereby be released from any obligations arising after such assumption
under this Lease or under the other Operative Documents, and LRC must look solely to each successor
in interest of BNPPLC for performance of such obligations.
13 BNPPLC’s Right to Enter and to Perform for LRC.
(A) Right to Enter. BNPPLC and BNPPLC’s representatives may enter the Property for
the purpose of making inspections or performing any work BNPPLC is authorized to undertake by the
next subparagraph or for the purpose of confirming whether LRC has complied with the requirements
of this Lease or the other Operative Documents.
(B) Performance for LRC. If LRC fails to perform any act or to take any action
required of it by this Lease or the Closing Certificate, or to pay any money which LRC is required
by this Lease or the Closing Certificate to pay, then in addition to any other remedies specified
herein or otherwise available, BNPPLC may, perform or cause to be performed such act or take such
action or pay such money. Any expenses so incurred by BNPPLC, and any money so paid by BNPPLC, will
be a demand obligation owing by LRC to BNPPLC. Further, upon making such payment, BNPPLC will be
subrogated to all of the rights of the person, corporation or body politic receiving such payment.
But nothing herein will imply any duty upon the part of BNPPLC to do any work which under any
provision of this Lease LRC may be required to perform, and the performance thereof by BNPPLC will
not constitute a waiver of LRC’s default. BNPPLC may during the progress of any such work by BNPPLC
keep and store upon the Property all necessary materials, tools, and equipment. BNPPLC will not in
any event be liable for inconvenience, annoyance, disturbance, loss of business, or other damage to
LRC or the subtenants or invitees of LRC by reason of the performance of any such work, or on
account of bringing materials, supplies and equipment into or through the Property during the
course of such work, and the obligations of LRC under this Lease will not thereby be excused in any
manner.
14 Remedies.
(A) Traditional Lease Remedies. At any time after an Event of Default, BNPPLC will be
entitled at BNPPLC’s option (and without limiting BNPPLC in the exercise of any other right or
remedy BNPPLC may have, and without any further demand or notice except as expressly described in
this subparagraph 14(A)), to exercise any one or more of the following remedies:
(1) By notice to LRC, BNPPLC may terminate LRC’s right to possession of the
Property. However, only a notice clearly and unequivocally confirming that BNPPLC
has elected to terminate LRC’s right of possession will be effective for purposes of this
provision.
(2) Upon termination of LRC’s right to possession as provided in the immediately
preceding subsection (1) and without further demand or notice, BNPPLC may re-enter the
Property in any manner not prohibited by Applicable Laws and take possession of all
improvements, additions, alterations, equipment and fixtures thereon and remove any persons
in possession thereof. Any personal property on the Land may be removed and stored in a
warehouse or elsewhere, and in such event the cost of any such removal and storage will be
at the expense and risk of and for the account of LRC.
(3) Upon termination of LRC’s right to possession as provided in the immediately
preceding subsection (1), this Lease will terminate and BNPPLC may recover from LRC damages
which include the following:
(a) the worth at the time of award of the unpaid Rent which had been earned at
the time of termination;
(b) costs and expenses actually incurred by BNPPLC to repair damage to the
Property that LRC was obligated to (but failed to) repair prior to the termination;
(c) the sum of the following (“Lease Termination Damages”):
1) the worth at the time of award of the amount by which the unpaid
Rent which would have been earned after termination until the time of award
exceeds the amount of such rental loss that LRC proves could have been
reasonably avoided;
2) the worth at the time of award of the amount by which the unpaid
Rent for the balance of the scheduled Term after the time of award exceeds
the amount of such rental loss that LRC proves could be reasonably avoided;
3) any other amount necessary to compensate BNPPLC for all the
detriment proximately caused by the early termination of this Lease or which
in the ordinary course of things would be likely to result therefrom,
including the costs and expenses of preparing and altering the Property
for reletting and all other costs and expenses of reletting (including
Attorneys’ Fees, advertising costs and brokers’ commissions), and
(d) such other amounts in addition to or in lieu of the foregoing as may be
permitted from time to time by applicable California law.
The “worth at the time of award” of the amounts referred to in subparagraph 14(A)(3)(a) and
subparagraph 14(A)(3)(c)1) will be computed by allowing interest at the Default Rate. The
“worth at the time of award” of the amount referred to in subparagraph 14(A)(3)(c)2) will be
computed by discounting such amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of award plus one percent (1%).
Notwithstanding the foregoing, the total Lease Termination Damages which BNPPLC may recover
from LRC will be limited in amount to the extent required, if any, to prevent the sum of
recoverable Lease Termination Damages, plus any Supplemental Payment that BNPPLC has
received or remains entitled to recover pursuant to the Purchase Agreement, from being more
than the Maximum Remarketing Obligation; provided, however, if a Supplemental Payment is
owed to BNPPLC according to the Purchase Agreement, but LRC fails to pay it, this limitation
upon BNPPLC’s right to recover Lease Termination Damages will be of no effect. For
purposes of this provision, “Maximum Remarketing Obligation” is intended to mean the Maximum
Remarketing Obligation (as defined in the Purchase Agreement) and is intended to be computed
as of the date any award of Lease Termination Damages to BNPPLC as if such date was the
Designated Sale Date.
(4) Even after a breach of this Lease or abandonment of the Property by LRC, BNPPLC may
continue this Lease in force and recover Rent as it becomes due. Accordingly, despite any
breach or abandonment by LRC, this Lease will continue in effect for so long as BNPPLC does
not terminate LRC’s right to possession, and BNPPLC may enforce all of BNPPLC’s rights and
remedies under this Lease, including the right to recover the Rent as it becomes due under
this Lease. LRC’s right to possession will not be deemed to have been terminated by BNPPLC
except pursuant to subparagraph 14(A)(1) hereof. The following will not constitute a
termination of LRC’s right to possession:
(a) acts of maintenance or preservation or efforts to relet the Property;
(b) the appointment of a receiver upon the initiative of BNPPLC to protect
BNPPLC’s interest under this Lease; or
(c) reasonable withholding of consent to an assignment or subletting, or
terminating a subletting or assignment by LRC.
(B) Foreclosure Remedies. At any time after an Event of Default, BNPPLC may
pursue remedies described in Exhibit B, regardless of whether the Event of Default is
continuing, if LRC has not already purchased the Property or caused an Applicable Purchaser to
purchase the Property pursuant to the Purchase Agreement. Without limiting the foregoing, (i)
BNPPLC will have the power and authority, to the extent provided by law, after proper notice and
lapse of such time as may be required by law, to sell or arrange for a nonjudicial sale to
foreclose the deed of trust with power of sale, lien and security interest granted in Exhibit
B (the “Deed of Trust”) for the recovery of the Lease Balance and any other amounts owed by LRC
under the Operative Documents, and (ii) BNPPLC, in lieu of or in addition to exercising any power
of sale granted in Exhibit B, may proceed by a suit or suits in equity or at law, whether
for a judicial foreclosure or sale of the Property, or against LRC for the Lease Balance and any
other amounts owed by LRC under the Operative Documents, or for the specific performance of any
covenant or agreement herein contained or in aid of the execution of any power herein granted, or
for the appointment of a receiver pending any foreclosure or sale of the Property, or for the
enforcement of any other appropriate legal or equitable remedy.
(C) Enforceability. This Paragraph 14 will be enforceable to the maximum extent not
prohibited by Applicable Laws, and the unenforceability of any provision in this Paragraph will not
render any other provision unenforceable.
(D) Remedies Cumulative. No right or remedy herein conferred upon or reserved to
BNPPLC is intended to be exclusive of any other right or remedy, and each and every such right and
remedy will be cumulative and in addition to any other right or remedy given to BNPPLC under this
Lease or other Operative Documents or now or hereafter existing in favor of BNPPLC under Applicable
Laws, except as otherwise expressly provided in the last provision of subparagraph 14(A)(3) above.
In addition to other remedies provided in this Lease, BNPPLC will be entitled, to the extent
permitted by Applicable Law or in equity, to injunctive relief in case of the violation, or
attempted or threatened violation, of any of the covenants, agreements, conditions or provisions of
this Lease, or to a decree compelling performance of any of the other covenants, agreements,
conditions or provisions of this Lease to be performed by LRC, or to any
other remedy allowed to BNPPLC at law or in equity. Nothing contained in this Lease will limit
or prejudice the right of BNPPLC to prove for and obtain in proceedings for bankruptcy or
insolvency of LRC by reason of the termination of this Lease, an amount equal to the maximum
allowed by any statute or rule of law in effect at the time when, and governing the proceedings in
which, the damages are to be proved, whether or not the amount be greater, equal to, or less than
the amount of the loss or damages referred to above. Without limiting the generality of the
foregoing, nothing contained herein will modify, limit or impair any of the rights and remedies of
BNPPLC under the Purchase Agreement. However, to prevent a double recovery, BNPPLC acknowledges
that BNPPLC’s right to recover Lease Termination Damages may be limited by the last provision of
subparagraph 14(A)(3) above in the event BNPPLC collects or remains entitled to collect a
Supplemental Payment as provided in the Purchase Agreement.
15 Default by BNPPLC. If BNPPLC should default in the performance of any of its
obligations under this Lease, BNPPLC will have the time reasonably required, but in no event less
than thirty days, to cure such default after receipt of notice from LRC specifying such default and
specifying what action LRC believes is necessary to cure the default. BNPPLC’s failure to cure any
such default within such time permitted for cure may render BNPPLC liable to LRC for any monetary
damages proximately caused thereby, but as more specifically provided in subparagraph 4(B) above,
no such default will entitle LRC to terminate this Lease or excuse LRC from its obligation to pay
Rent.
16 Quiet Enjoyment. Provided LRC pays Base Rent and all Additional Rent payable hereunder
as and when due and payable and keeps and fulfills all of the terms, covenants, agreements and
conditions to be performed by LRC, BNPPLC will not during the Term disturb LRC’s peaceable and
quiet enjoyment of the Property; however, such enjoyment will be subject to the terms and
conditions of this Lease, to Permitted Encumbrances and to any other claims not constituting Liens
Removable by BNPPLC. Any breach by BNPPLC of this Paragraph will render BNPPLC liable to LRC for
any monetary damages proximately caused thereby, but as more specifically provided in subparagraph
4(B) above, no such breach will entitle LRC to terminate this Lease or excuse LRC from its
obligation to pay Rent.
17 Surrender Upon Termination. Unless LRC or an Applicable Purchaser is purchasing or has
purchased BNPPLC’s entire interest in the Property pursuant to the terms of the Purchase Agreement,
LRC must, upon the termination of LRC’s right to occupancy or expiration of the Term, surrender to
BNPPLC the Property, including Improvements constructed by LRC and fixtures and furnishings
included in the Property, free of all deferred maintenance, Hazardous Substances (including
Permitted Hazardous Substances) and tenancies and with all Improvements
in substantially the same condition as of the date the same were initially completed. Any movable
furniture or movable personal property belonging to LRC or any party claiming under LRC, if not
removed at the time of such termination and if BNPPLC so elects, will be deemed abandoned and
become the property of BNPPLC without any payment or offset therefor. If BNPPLC does not so elect,
BNPPLC may remove such property from the Property and store it at LRC’s risk and expense. LRC must
bear the expense of repairing any damage to the Property caused by such removal by BNPPLC or LRC.
18 Holding Over by LRC. Should LRC not purchase BNPPLC’s right, title and interest
in the Property as provided in the Purchase Agreement, but nonetheless continue to hold the
Property after the termination of this Lease without objection by BNPPLC, whether such termination
occurs by lapse of time or otherwise, such holding over will constitute and be construed as a
tenancy from day to day only on and subject to all of the terms, provisions, covenants and
agreements on the part of LRC hereunder. No payments of money by LRC to BNPPLC after the
termination of this Lease will reinstate, continue or extend the Term of this
Lease and no extension of this Lease after the termination thereof will be valid unless and until
the same is reduced to writing and signed by both BNPPLC and LRC.
19 Proprietary Information and Confidentiality.
(A) Proprietary Information. LRC will have no obligation to provide proprietary
information (as defined in the next sentence) to BNPPLC, except and to the extent (1) expressly
required by other terms and conditions of the Operative Documents, or (2) requested by BNPPLC in
connection with any inspection of the Property pursuant to the various provisions hereof and, in
BNPPLC’s reasonable determination, required to allow BNPPLC to accomplish the purposes of such
inspection. (Before LRC delivers any such proprietary information in connection with any inspection
of the Property, LRC may require that BNPPLC confirm and ratify the confidentiality agreements
covering such proprietary information set forth herein.) For purposes of this Lease and the other
Operative Documents, “proprietary information” means LRC’s intellectual property, trade secrets and
other confidential information of value to LRC (including, among other things, information about
LRC’s manufacturing processes, products, marketing and corporate strategies) that (1) is received
by any representative of BNPPLC at the time of any on-site visit to the Property or (2) otherwise
delivered to BNPPLC by or on behalf of LRC and labeled “proprietary” or “confidential” or by some
other similar designation to identify it as information which LRC considers to be proprietary or
confidential.
(B) Confidentiality. BNPPLC will endeavor in good faith to use
reasonable precautions to keep confidential any proprietary information that
BNPPLC may receive from LRC or otherwise discover with respect to LRC or
LRC’s business in connection with the administration of this Lease or any
investigation by BNPPLC hereunder. This provision will not, however, render
BNPPLC liable for any disclosures of proprietary information made by it or
its employees or representatives, unless the disclosure is intentional and
made for no reason other than to damage LRC’s business. Also, this provision
will not apply to disclosures: (i) specifically and previously authorized in
writing by LRC; (ii) to any assignee of BNPPLC as to any interest in the
Property so long as such assignee has agreed in writing to use its
reasonable efforts to keep such information confidential in accordance with
the terms of this paragraph; (iii) to legal counsel, accountants, auditors,
environmental consultants and other professional advisors to BNPPLC so long
as BNPPLC informs such persons in writing (if practicable) of the
confidential nature of such information and directs them to treat such
information confidentially; (iv) to regulatory officials having jurisdiction
over BNPPLC or BNPPLC’s Parent (although the disclosing party will request
confidential treatment of the disclosed information, if practicable); (v) as
required by legal process (although the disclosing party will request
confidential treatment of the disclosed information, if practicable); (vi)
of information which has previously become publicly available through the
actions or inactions of a person other than BNPPLC not, to BNPPLC’s
knowledge, in breach of an obligation of confidentiality to LRC; (vii) to
any Participant so long as the Participant is bound by and has not
repudiated a confidentiality
provision concerning LRC’s proprietary information set forth in the Participation Agreement;
or (vii) that are reasonably believed by BNPPLC to be necessary or helpful to the
determination or enforcement of any contractual or other rights which BNPPLC has or may have
against LRC or its Affiliates or which BNPPLC has or may have concerning the Property
(provided, that BNPPLC must cooperate with LRC as LRC may reasonably request to mitigate any
risk that such disclosures will result in subsequent disclosures of proprietary information
which are not necessary or helpful to any such determination or enforcement; such
cooperation to include, for example, BNPPLC’s agreement not to oppose a motion by LRC to
seal records containing proprietary information in any court proceeding initiated because of
a dispute between the parties over the Property or the
Operative Documents).
Notwithstanding any other contrary provision contained in this Agreement or any related agreements
between BNPPLC and LRC, they may each (and each of their respective employees, representatives or
other agents) may disclose, without limitation of any kind, the tax treatment and tax structure of
the transactions contemplated by this Agreement or the other Operative Documents and all materials
of any kind (including opinions or other tax analyses) that are provided to such party relating to
such tax treatment and tax structure, other than any information for which non-disclosure is
reasonably necessary in order to comply with applicable securities laws.
20 Recording Memorandum. Contemporaneously with the execution of this Lease, the parties
will execute and record a memorandum of this Lease for purposes of effecting constructive notice to
all Persons of LRC’s rights hereunder.
21 Independent Obligations Evidenced by Other Operative Documents. LRC acknowledges and
agrees that nothing contained in this Lease will limit, modify or otherwise affect any of LRC’s
obligations under the other Operative Documents, which obligations are intended to be separate,
independent and in addition to, and not in lieu of, the obligations set forth herein. Further, in
the event of any inconsistency between the express terms and provisions of the Purchase Agreement
and the express terms and provisions of this Lease, the express terms and provisions of the
Purchase Agreement will control.
[The signature pages follow.]
IN WITNESS WHEREOF, this Lease Agreement (Fremont/Building #2) is executed to be effective as
of December 21, 2007.
BNP PARIBAS LEASING CORPORATION, a Delaware corporation |
||||
By: | /s/ Xxxxx X. Xxx | |||
Xxxxx X. Xxx, Managing Director |
[Continuation of signature pages for Lease Agreement (Fremont/Building #2) dated as of December 21,
2007]
XXX RESEARCH CORPORATION, a Delaware corporation |
||||
By: | /s/ Xxxx XxXxxxx | |||
Xxxx XxXxxxx, Treasurer | ||||
Exhibit A
Legal Description
BEING ALL OF LOT 3 AND A PORTION OF XXX 0, XX XXXXX XX XXX XXXXXX XXX 0000 FILED IN BOOK 168 OF
MAPS, AT PAGES 24 THROUGH 26, ALAMEDA COUNTY RECORDS, DESCRIBED AS FOLLOWS:
BEGINNING ON THE SOUTHERLY LINE OF XXXXXXX PARKWAY AT THE MOST WESTERLY CORNER OF SAID LOT 3;
THENCE FROM SAID POINT OF BEGINNING, ALONG SAID SOUTHERLY LINE OF XXXXXXX PARKWAY, NORTH 82°
48’ 27” EAST, 541.20 FEET TO THE BEGINNING OF A CURVE TO THE LEFT;
THENCE CONTINUING ALONG SAID SOUTHERLY LINE OF XXXXXXX PARKWAY, ALONG SAID CURVE, THROUGH A CENTRAL
ANGLE OF 1° 25’ 35”, HAVING A RADIUS OF 2044.00 FEET AND AN ARC DISTANCE OF 50.89 FEET;
THENCE LEAVING SAID SOUTHERLY LINE OF XXXXXXX PARKWAY, THE FOLLOWING THREE (3) COURSES:
SOUTH 7° 11’ 33” EAST, 245.00 FEET;
NORTH 82° 48’ 27” EAST, 31.00 FEET; AND
SOUTH 7° 11’ 33” EAST, 353.79 FEET TO THE SOUTHERLY LINE OF SAID LOT 4;
NORTH 82° 48’ 27” EAST, 31.00 FEET; AND
SOUTH 7° 11’ 33” EAST, 353.79 FEET TO THE SOUTHERLY LINE OF SAID LOT 4;
THENCE ALONG THE SOUTHERLY LINE OF SAID XXX 0 XXX XXX 0, XXXXX 00x 00’ 33” WEST, 624.04 FEET
TO THE WESTERLY LINE OF SAID LOT 3;
THENCE ALONG SAID WESTERLY LINE, NORTH 7° 11’ 33” WEST, 563.66 FEET TO THE POINT OF
BEGINNING.
A.P.N. 000-0000-000 and 000-0000-000-00
Exhibit B
California Deed of Trust With Power of Sale,
Lien and Foreclosure Provisions
Lien and Foreclosure Provisions
Without limiting any of the provisions set forth in the body of this Lease or other attachments to
this Lease, the following provisions are included in and made a part of this Lease for all
purposes:
GRANT OF LIEN AND SECURITY INTEREST.
For and in consideration of the sum of Ten Dollars ($10.00) to LRC in hand paid and
other good and valuable consideration, in order to secure the recovery of the Lease Balance by
BNPPLC and the payment and performance of all of the other obligations, covenants, agreements and
undertakings of LRC under this Lease, the Purchase Agreement or other Operative Documents (in this
Exhibit called the “Secured Obligations”), LRC does hereby irrevocably GRANT, BARGAIN, SELL,
CONVEY, TRANSFER, ASSIGN and SET OVER to First American Title Insurance Company (in this Exhibit
called the “Trustee”), IN TRUST WITH POWER OF SALE, for the benefit of BNPPLC, the Land and all
rights, titles and interests of any kind whatsoever of LRC in and to the Land, together with,
together with (i) all the buildings and other improvements now on or hereafter located thereon;
(ii) any equipment, fixture or other property whatsoever now or hereafter attached or affixed to or
installed in said buildings and other improvements in a manner that causes it to be part of, or
integral and necessary to the operation of, the real property, including, but not limited to, all
heating, plumbing, lighting, water heating, refrigerating, incinerating, ventilating and air
conditioning equipment, utility lines and equipment (whether owned individually or jointly with
others), sprinkler systems, fire extinguishing apparatus and equipment, water tanks, engines,
machines, elevators, motors, cabinets, shades, blinds, partitions, window screens, screen doors,
storm windows, awnings, drapes, and floor coverings, and all fixtures, accessions and appurtenances
thereto, and all renewals or replacements of or substitutions for any of the foregoing, all of
which are hereby declared to be permanent fixtures and accessions to the freehold and part of the
realty conveyed herein as security for the obligations mentioned hereinabove; (iii) all easements
and rights of way now and at any time hereafter used in connection with any of the foregoing
property or as a means of ingress to or egress from the Land or for utilities to said property;
(iv) all interests of LRC in and to any streets, ways, alleys and/or strips of land adjoining said
land or any part thereof; (v) all rents, issues, profits, royalties, bonuses, income and other
benefits derived from or produced by the Land or Improvements; (vi) all leases or subleases of the
Land or Improvements or any part thereof now or hereafter in effect, including all security or
other deposits, advance or prepaid rents, and deposits or payments of similar nature; (vii) all
options to purchase or lease the Land or Improvements or any part thereof or interest therein, and
any greater estate in the Land or Improvements now owned or hereafter acquired by LRC; (viii) all
right, title, estate and interest of every kind and nature, at law or in equity, which LRC now has
or may hereafter acquire in the Land or Improvements; and (ix) all other claims and demands
with respect to the Land or Improvements or the Collateral (as hereinafter defined), including all
claims or demands to all proceeds of all insurance now or hereafter in effect with respect to the Land,
Improvements or Collateral, all awards made for the taking by condemnation or the power of eminent
domain, or by any proceeding or purchase in lieu thereof, of the Land, Improvements or Collateral,
or any part thereof, or any damage or injury thereto, all awards resulting from a change of grade
of streets, and all awards for severance damages; and (vi) all rights, estates, powers and
privileges appurtenant or incident to the foregoing.
TO HAVE AND TO HOLD the foregoing property (in this Exhibit called the “Mortgaged Property”)
unto the Trustee, IN TRUST, and his successors or substitutes in this trust and to his or their
successors and assigns upon the terms, provisions and conditions herein set forth for the benefit
of BNPPLC.
In order to secure the Secured Obligations, LRC also hereby grants to BNPPLC a security
interest in: all components of the Property which constitute personalty, whether owned by LRC now
or hereafter, and all fixtures, accessions and appurtenances thereto now or hereafter attached to
or affixed to or installed in the Mortgaged Property in a manner that causes it to be part of, or
integral and necessary to the operation of, the real property, and all renewals or replacements of
or substitutions for any of the foregoing (including all building materials and equipment now or
hereafter delivered to said premises and intended to be installed or in or incorporated as part of
the Improvements); all rents and other amounts from and under leases of all or any part of the
Property; all issues, profits and proceeds from all or any part of the Property; all proceeds
(including premium refunds) of each policy of insurance relating to the Property; all proceeds from
the taking of the Property or any part thereof or any interest therein or right or estate
appurtenant thereto by eminent domain or by purchase in lieu thereof; all permits, licenses,
franchises, certificates, and other rights and privileges obtained in connection with the Property;
all plans, specifications, maps, surveys, reports, architectural, engineering and construction
contracts, books of account, insurance policies and other documents, of whatever kind or character,
relating to the use, construction upon, occupancy, leasing, sale or operation of the Property; all
proceeds and other amounts paid or owing to LRC under or pursuant to any and all contracts and
bonds relating to the construction, erection or renovation of the Property; and all oil, gas and
other hydrocarbons and other minerals produced from or allocated to the Property and all products
processed or obtained therefrom, the proceeds thereof, and all accounts and general intangibles
under which such proceeds may arise, together with any sums of money that may now or at any time
hereafter become due and payable to LRC by virtue of any and all royalties, overriding royalties,
bonuses, delay rentals and any other amount of any kind or character arising under any and all
present and future oil, gas and mining leases covering the Property or any part thereof (all of the
property described in this section are collectively called the “Collateral” in this Exhibit) and
all proceeds of the Collateral. (The Mortgaged Property and the Collateral are in this Exhibit
sometimes collectively called the “Security”.)
FORECLOSURE BY POWER OF SALE
Upon the occurrence of any Event of Default, the Trustee, its successor or
substitute, and/or BNPPLC is authorized and empowered to execute all written notices then required
by law to cause the Security to be sold under power of sale to satisfy the Secured Obligations.
Trustee will give and record such notices as the law then requires as a condition precedent to a
trustee’s sale. When the minimum period of time required by law after giving all required notices
has elapsed, Trustee, without notice to or demand upon LRC except as otherwise required by law,
will sell the Security at the time and place of sale fixed by it in the notice of sale, at one or
several sales, either as a whole or in separate parcels and in such manner and order, all as BNPPLC
or Trustee in its sole discretion may determine, at public auction to the highest bidder for cash,
in lawful money of the United States, payable at the time of sale (the obligations hereby secured
being the equivalent of cash for purposes of said sale). LRC will have no right to direct the
order in which the Security is sold or to require that the Security be sold in separate lots or
parcels or items. The sale by the Trustee of less than the whole of the Mortgaged Property will
not exhaust the power of sale herein granted, and the Trustee is specifically empowered to make
successive sale or sales under such power until the whole of the Mortgaged Property is sold; and,
if the proceeds of such sale of less than the whole of the Mortgaged Property is less than the
aggregate of the indebtedness secured hereby and the expense of executing this trust as provided
herein, the rights and remedies of BNPPLC hereunder and the lien hereof will remain in full force
and effect as to the unsold portion of the Mortgaged Property just as though no sale or sales had
been made; provided, however, that LRC will never have any right to require the sale of less than
the whole of the Mortgaged Property but BNPPLC will have the right, at its sole election, to
request the Trustee to sell less than the whole of the Mortgaged Property. Subject to requirements
and limits imposed by law, including California Civil Code § 2924g, Trustee may postpone sale of
all or any portion of the Security by public announcement at such time and place of sale and from
time to time may postpone the sale by public announcement at the time and place fixed by the
preceding postponement. Any person or entity, including Trustee, LRC or BNPPLC, may purchase at
the sale, and LRC hereby covenants to warrant and defend the title of such purchaser or purchasers.
Trustee will deliver to the purchaser at such sale a deed conveying the Security or portion
thereof so sold, but without any covenant or warranty, express or implied. At any such sale (i)
LRC hereby agrees, in its behalf and in behalf of its heirs, executors, administrators, successors,
personal representatives and assigns, that any and all recitals made in any deed of conveyance
given by Trustee of any matters or facts stated therein, including without limitation, the identity
of BNPPLC, the occurrence or existence of any default, the acceleration of the maturity of any of
the Secured Obligations, the request to sell, the notice of sale, the giving of notice to all
debtors legally entitled thereto, the time, place, terms, and manner of sale, and receipt,
distribution and application of the money realized therefrom, and the due and proper appointment of
a substitute Trustee and any other act or thing duly done by BNPPLC or by Trustee hereunder, will
be taken by all courts of law and equity as prima facie evidence that the statement or recitals
state facts and are without further question to be so accepted as conclusive proof of the truthfulness
thereof, and LRC hereby ratifies and confirms every act that
Trustee or any substitute Trustee hereunder may lawfully do in the premises by virtue hereof; and
(ii) the purchaser may disaffirm any easement granted, or rental, lease or other contract made, in
violation of any provision of any of the Operative Documents, and may take immediate possession of
the Security free from, and despite the terms, of, such grant of easement and rental or lease
contract.
BNPPLC may elect to cause the Security or any part thereof to be sold under the power of
sale herein granted in any manner permitted by applicable law. In connection with any sale or
sales hereunder, BNPPLC may elect to treat any portion of the Security which consists of a right in
action or which is property that can be severed from the Security without causing structural damage
thereto as if the same were personal property, and dispose of the same in accordance with
applicable law, separate and apart from the sale of the real property. Any sale of any personal
property hereunder will be conducted in any manner permitted by the California Uniform Commercial
Code (in this Exhibit called the “UCC”). Where any portion of the Security consists of real
property and personal property or fixtures, whether or not such personal property is located on or
within the real property, BNPPLC may elect in its discretion to exercise its rights and remedies
against any or all of the real property, personal property and fixtures, in such order and manner
as is now or hereafter permitted by applicable law. Without limiting the generality of the
foregoing, BNPPLC may, in its sole and absolute discretion and without regard to the adequacy of
its security, elect to proceed against any or all of the real property, personal property and
fixtures in any manner permitted by the UCC; and if BNPPLC elects to sell both personal property
and real property together as permitted by the UCC, the power of sale herein granted will be
exercisable with respect to all or any of the real property, personal property and fixtures covered
hereby, as designated by BNPPLC, and Trustee is hereby authorized and empowered to conduct any such
sale of any real property, personal property and fixtures in accordance with the procedures
applicable to real property. Where any portion of the Security consists of real property and
personal property, any reinstatement of the Secured Obligations, following default and an election
by BNPPLC to accelerate the maturity of said obligations, which is made by LRC or any other person
or entity permitted to exercise the right of reinstatement under § 2924c of the California Civil
Code or any successor statute, will, in accordance with the terms of UCC, not prohibit BNPPLC or
Trustee from conducting a sale or other disposition of any personal property or fixtures or from
otherwise proceeding against or continuing to proceed against any personal property or fixtures in
any manner permitted by the UCC, nor will any such reinstatement invalidate, rescind or otherwise
affect any sale, disposition or other proceeding held, conducted or instituted with respect to any
personal property or fixtures prior to such reinstatement or pending at the time of such
reinstatement. Any sums paid to BNPPLC in effecting any reinstatement
pursuant to § 2924c of the California Civil Code will be applied to the indebtedness secured
hereby, and to BNPPLC’s reasonable costs and expenses in the manner required by § 2924c. Should
BNPPLC elect to sell any portion of the Security which is real property, or which is personal
property or fixtures that BNPPLC has elected to sell together with the real property in accordance
with the laws governing a sale of real property, BNPPLC or Trustee will give such notice of default
and election to sell as may then be required
by law, and without the necessity of any demand on LRC, Trustee, at the time(s) and place(s)
specified in the notice of sale, will sell said real property, and all estate, right, title,
interest, claim and demand therein, and equity and right of redemption thereof, at such times and
places as required or permitted by law, upon such terms as BNPPLC or Trustee may fix and specify in
the notice of sale or as may be required by law. If the Security consists of several lots, parcels
or items of property, BNPPLC may: (i) designate the order in which such lots, parcels or items
will be offered for sale or sold, or (ii) elect to sell such lots, parcels or items through a
single sale, or through two or more successive sales, or in any other manner BNPPLC deems in its
best interest. Should BNPPLC desire that more than one sale or other disposition of the Mortgaged
Property be conducted, BNPPLC may, at its option, cause the same to be conducted simultaneously, or
successively, on the same day, or on such different days or times and in such order as BNPPLC may
deem to be in its best interests, and no such sale will exhaust the power of sale herein granted or
terminate or otherwise affect the lien granted by LRC herein on, or the security interests of
BNPPLC in, any part of the Security not sold, until all of the indebtedness secured hereby has been
fully paid and satisfied. In the event BNPPLC elects to dispose of the Security through more than
one sale, LRC agrees to pay the costs and expenses of each such sale and of any judicial
proceedings wherein the same may be made, including reasonable compensation to BNPPLC and Trustee,
their agents and counsel, and to pay all expenses, liabilities and advances made or incurred by
BNPPLC and Trustee (or either of them) in connection with such sale or sale, together with interest
on all such advances made by BNPPLC and Trustee (or either of them) at the Default Rate.
JUDICIAL FORECLOSURE
This instrument will be effective as a mortgage as well as a deed of trust and upon the
occurrence of an Event of Default may be foreclosed as to any of the Security in any manner
permitted by the laws of the State of California or of any other state in which any part of the
Security is situated, and any foreclosure suit may be brought by the Trustee or by BNPPLC. In the
event a foreclosure hereunder is commenced by the Trustee, or his substitute or successor, BNPPLC
may at any time before the sale of the Security direct the said Trustee to abandon the sale, and
may then institute suit for the collection of the Secured Obligations and for the judicial
foreclosure of this instrument. It is agreed that if BNPPLC should institute a suit for the
collection of the Secured Obligations and for the foreclosure of this instrument, BNPPLC may
at any time before the entry of a final judgment in said suit dismiss the same, and require the
Trustee, his substitute or successor to exercise the power of sale granted herein to sell the
Security in accordance with the provisions of this instrument.
BNPPLC AS PURCHASER
BNPPLC will have the right to become the purchaser at any sale held by any Trustee or
substitute or successor or by any receiver or public officer, and any BNPPLC purchasing at any
such sale will have the right to credit upon the amount of the bid made therefor, to the
extent necessary to satisfy such bid, the outstanding Lease Balance and other Secured Obligations
owing to such BNPPLC.
UNIFORM COMMERCIAL CODE REMEDIES
Upon the occurrence of an Event of Default, BNPPLC may exercise its rights of enforcement with
respect to the Collateral under the California UCC, as amended, and in conjunction with, in
addition to or in substitution for those rights and remedies:
(a) BNPPLC may enter upon the Land to take possession of, assemble and collect the
Collateral or to render it unusable; and
(b) BNPPLC may require LRC to assemble the Collateral and make it available at a place
BNPPLC designates which is mutually convenient to allow BNPPLC to take possession or dispose
of the Collateral; and
(c) written notice mailed to LRC as provided herein ten (10) days prior to the date of
public sale of the Collateral or prior to the date after which private sale of the
Collateral will be made shall constitute reasonable notice; and
(d) any sale made pursuant to the provisions of this section will be deemed to have
been a public sale conducted in a commercially reasonable manner if held contemporaneously
with the sale of the Mortgaged Property under power of sale as provided herein upon giving
the same notice with respect to the sale of the Collateral hereunder as is required for such
sale of the Mortgaged Property under power of sale; and
(e) in the event of a foreclosure sale, whether made by the Trustee exercising the
power of sale granted herein, or under judgment of a court, the Collateral and the
Mortgaged Property may, at the option of BNPPLC, be sold as a whole; and
(f) it will not be necessary that BNPPLC take possession of the Collateral or any part
thereof prior to the time that any sale pursuant to the provisions of this section is
conducted and it will not be necessary that the Collateral or any part thereof be present at
the location of such sale; and
(g) prior to application of proceeds of disposition of the Collateral to the Secured
Obligations, such proceeds will be applied to the reasonable expenses of retaking, holding,
preparing for sale or lease, selling, leasing and the like and the reasonable attorney’s
fees and legal expenses incurred by BNPPLC; and
(h) any and all statements of fact or other recitals made in any xxxx of sale or
assignment or other instrument evidencing any foreclosure sale hereunder as to
nonpayment of the Secured Obligations or as to the occurrence of any Event of Default, or as
to BNPPLC having declared any of the Secured Obligations to be due and payable, or as to
notice of time, place and terms of sale and of the properties to be sold having been duly
given, or as to any other act or thing having been duly done by BNPPLC, will be taken as
prima facie evidence of the truth of the facts so stated and recited; and
(i) BNPPLC may appoint or delegate any one or more persons as agent to perform any act
or acts necessary or incident to any sale held by BNPPLC, including the sending of notices
and the conduct of the sale, but in the name and on behalf of BNPPLC.
APPOINTMENT OF A RECEIVER
In addition to all other remedies herein provided for, if any Event of Default occurs or
continues after the Designated Sale Date, BNPPLC will as a matter of right be entitled to the
appointment of a receiver or receivers for all or any part of the Security, whether such
receivership be incident to a proposed sale of such property or otherwise, and without regard to
the adequacy of the security or the value of the Security or the solvency of any person or persons
liable for the payment of the Secured Obligations, and LRC does hereby irrevocably consent to the
appointment of such receiver or receivers, waives any and all defenses to such appointment and
agrees not to oppose any application therefor by BNPPLC, but nothing herein is to be construed to
deprive BNPPLC of any other right, remedy or privilege it may now have under the law to have a
receiver appointed. Any such receiver or receivers will have all of the usual powers and duties of
receivers in like or similar cases and will continue as such and exercise all such powers until the
date of confirmation of sale of the Security unless such receivership is sooner
terminated. Any money advanced by BNPPLC in connection with any such receivership will be a
demand obligation owing by LRC to BNPPLC and will bear interest from the date of making such
advancement by BNPPLC until paid at the Default Rate and will be a part of the Secured Obligations
and will be secured by this lien and by any other instrument securing the Secured Obligations.
PROVISIONS CONCERNING THE TRUSTEE
Trustee accepts this trust when a Short Form Lease or memorandum referencing the provisions of
this Exhibit, duly executed and acknowledged, is made a public record as provided by law. The
trust hereby created will be irrevocable by LRC.
In the event the Trustee takes any action pursuant to the provisions of this Exhibit, LRC must
pay to Trustee reasonable compensation for services rendered in the administration of this trust,
which will be in addition to any required reimbursement for Attorney’s Fees or other expenses.
BNPPLC may appoint a substitute to replace and act as the Trustee hereunder in any
manner now or hereafter provided by law, or in lieu thereof, BNPPLC may from time to time, by an
instrument in writing, appoint substitutes as successor or successors to any Trustee named herein
or acting hereunder, which instrument, executed and acknowledged by BNPPLC and recorded in the
Office of the Recorder of the county in which the Property is located, will be conclusive proof of
proper substitution of such successor Trustee or Trustees, who will thereupon and without
conveyance from the predecessor Trustee, succeed to all its title, estate, rights, powers and
duties. Such instrument must contain the name of the original LRC, Trustee and BNPPLC hereunder,
the instrument number of this Deed of Trust, and the name and address of the successor Trustee. In
the event the Secured Obligations are at any time owned by more than one person or entity, the
holder or holders of not less than a majority in the amount of such Secured Obligations will have
the right and authority to make the appointment of a successor or substitute trustee provided for
in the preceding sentences. Such appointment and designation by BNPPLC or by the holder or holders
of not less than a majority of the Secured Obligations will be full evidence of the right and
authority to make the same and of all facts therein recited. If BNPPLC is a corporation and such
appointment is executed in its behalf by an officer of such corporation, such appointment will be
conclusively presumed to be executed with authority and will be valid and sufficient without proof
of any action by the board of directors or any superior officer of the corporation. Upon the
making of any such appointment and designation, all of the estate and title of the Trustee in the
Security will vest in the named successor or substitute trustee and he will thereupon succeed to
and will hold, possess and execute all the rights, powers, privileges, immunities and duties herein
conferred upon the Trustee; but nevertheless, upon the
written request of BNPPLC or of the successor or substitute Trustee, the Trustee ceasing to
act must execute and deliver an instrument transferring to such successor or substitute Trustee all
of the estate and title in the Security of the Trustee so ceasing to act, together with all the
rights, powers, privileges, immunities and duties herein conferred upon the Trustee, and must duly
assign, transfer and deliver any of the properties and moneys held by said Trustee hereunder to
said successor or substitute Trustee. All references herein to the Trustee will be deemed to refer
to the Trustee (including any successor or substitute appointed and designated as herein provided)
from time to time acting hereunder. LRC hereby ratifies and confirms any and all acts which the
herein named Trustee or his successor or successors, substitute or substitutes, in this trust, do
lawfully by virtue hereof.
THE TRUSTEE WILL NOT BE LIABLE FOR ANY ERROR OF JUDGMENT OR ACT DONE BY THE TRUSTEE IN
GOOD FAITH, OR BE OTHERWISE RESPONSIBLE OR ACCOUNTABLE UNDER ANY CIRCUMSTANCES WHATSOEVER
(INCLUDING THE TRUSTEE’S NEGLIGENCE), EXCEPT FOR THE TRUSTEE’S GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT. The Trustee will have the right to rely on any instrument, document or signature
authorizing or supporting any action taken or proposed to be taken by him hereunder, believed by
him in good faith to be genuine. All moneys received by the Trustee will, until used or applied as
herein provided, be held in trust for the purposes for which they
were received, but need not be segregated in any manner from any other moneys (except to the
extent required by law), and the Trustee will be under no liability for interest on any moneys
received by him hereunder. LRC WILL REIMBURSE THE TRUSTEE FOR, AND INDEMNIFY AND SAVE HIM HARMLESS
AGAINST, ANY AND ALL LIABILITY AND EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES) WHICH MAY BE
INCURRED BY HIM IN THE PERFORMANCE OF HER DUTIES HEREUNDER (INCLUDING ANY LIABILITY AND EXPENSES
RESULTING FROM THE TRUSTEE’S OWN NEGLIGENCE). The foregoing indemnity will not terminate upon
release, foreclosure or other termination of this instrument.
MISCELLANEOUS
BNPPLC may resort to any security given by this instrument or to any other security now
existing or hereafter given to secure the payment of the Secured Obligations, in whole or in part,
and in such portions and in such order as may seem best to BNPPLC in its sole and uncontrolled
discretion, and any such action will not in anywise be considered as a waiver of any of the rights,
benefits, liens or security interests evidenced by this instrument.
To the full extent LRC may do so, LRC agrees that LRC will not at any time insist upon, plead,
claim or take the benefit or advantage of any law now or hereafter in force pertaining to the
rights and remedies of sureties or redemption, and LRC, for LRC and LRC’s successors and
assigns, and for any and all persons ever claiming any interest in the Security, to the extent
permitted by law, hereby waives and releases all rights of redemption, valuation, appraisement,
stay of execution, notice of intention to mature or declare due the whole of the Secured
Obligations, notice of election to mature or declare due the whole of the Secured Obligations and
all rights to a marshaling of the assets of LRC, including the Security, or to a sale in inverse
order of alienation in the event of foreclosure of the liens and security interests hereby created.
LRC will not have or assert any right under any statute or rule of law pertaining to the
marshaling of assets, sale in inverse order of alienation, the exemption of homestead, the
administration of estates of decedents or other matters whatever to defeat, reduce or affect the
right of BNPPLC under the terms of this instrument to a sale of the Security for the collection of
the Secured Obligations without any prior or different resort for collection, or the right of
BNPPLC under the terms of this instrument to the payment of the Secured Obligations out of the
proceeds of sale of the Security in preference to every other claimant whatever. If any law
referred to in this section and now in force, of which LRC or LRC’s successors and assigns and such
other persons claiming any interest in the Security might take advantage despite this provision, is
hereafter repealed or ceases to be in force, such law shall not thereafter be deemed to preclude
the application of this provision.
In the event there is a foreclosure sale hereunder and at the time of such sale LRC or LRC’s
successors or assigns or any other persons claiming any interest in the Security by, through or
under LRC are occupying or using the Security, or any part thereof, each and all will
immediately become the tenant of the purchaser at such sale. Such tenancy will be a tenancy
from day-to-day, terminable at the will of either landlord or tenant, at a reasonable rental per
day based upon the value of the property occupied, such rental to be due daily to the purchaser.
In the event the tenant fails to surrender possession of said property upon demand, the purchaser
will be entitled to institute and maintain an action to obtain possession in any court of competent
jurisdiction in California.
LRC agrees to pay BNPPLC for each statement of BNPPLC (as beneficiary) regarding the
obligations secured hereby the maximum fee allowed by law or, if there is no maximum fee, such
reasonable fee as is then charged by BNPPLC for rendering such statement.
Notwithstanding any contrary provisions regarding the giving of notices in the Common
Definitions or Provisions Agreement or other Operative Documents, any service of a notice required
by California Civil Code § 2924 will be considered complete when the requirements of that statute
are met.
All rights of action under this Exhibit be enforced by BNPPLC or Trustee without the
possession of any instruments secured hereby and without the production thereof or of this Lease or
other Operative Documents at any trial or other proceeding relative thereto.
COMMON DEFINITIONS
AND PROVISIONS AGREEMENT
(FREMONT/BUILDING #2)
AND PROVISIONS AGREEMENT
(FREMONT/BUILDING #2)
between
BNP PARIBAS LEASING CORPORATION
and
XXX RESEARCH CORPORATION
Dated as of December 21, 2007
TABLE OF CONTENTS
Page | ||||
ARTICLE I — LIST OF DEFINED TERMS
|
1 | |||
Active Negligence
|
1 | |||
Additional Rent
|
2 | |||
Administrative Fees
|
2 | |||
Affiliate
|
2 | |||
After Tax Basis
|
2 | |||
Applicable Laws
|
2 | |||
Applicable Purchaser
|
2 | |||
Arrangement Fee
|
2 | |||
Attorneys’ Fees
|
2 | |||
Banking Rules Change
|
3 | |||
Base Rent
|
3 | |||
Base Rent Date
|
3 | |||
Base Rent Period
|
3 | |||
BNPPLC
|
4 | |||
BNPPLC’s Parent
|
4 | |||
Breakage Costs
|
4 | |||
Break Even Price
|
5 | |||
Business Day
|
5 | |||
Capital Adequacy Charges
|
5 | |||
Closing Certificate
|
5 | |||
Closing Letter
|
5 | |||
Code
|
5 | |||
Collateral Percentage
|
5 | |||
Common Definitions and Provisions Agreement
|
5 | |||
Constituent Documents
|
5 | |||
Default
|
6 | |||
Default Rate
|
6 | |||
Designated Sale Date
|
6 | |||
Effective Date
|
7 | |||
Eligible Financial Institution
|
7 | |||
Environmental Laws
|
7 | |||
Environmental Losses
|
7 | |||
Environmental Report
|
8 | |||
ERISA
|
8 | |||
ERISA Affiliate
|
8 | |||
ERISA Termination Event
|
8 | |||
Escrowed Proceeds
|
8 | |||
Established Misconduct
|
9 |
Page | ||||
Event of Default
|
10 | |||
Excluded Taxes
|
13 | |||
Fed Funds Rate
|
14 | |||
Funding Advances
|
14 | |||
GAAP
|
14 | |||
Hazardous Substance
|
15 | |||
Hazardous Substance Activity
|
15 | |||
Improvements
|
15 | |||
Indebtedness
|
16 | |||
Initial Advance
|
17 | |||
Interested Party
|
17 | |||
Land
|
18 | |||
Lease
|
18 | |||
Lease Balance
|
18 | |||
Lease Termination Damages
|
18 | |||
Liabilities
|
18 | |||
LIBID
|
18 | |||
LIBOR
|
18 | |||
LIBOR Election
|
19 | |||
LIBOR Period
|
20 | |||
Lien
|
20 | |||
Liens Removable by BNPPLC
|
20 | |||
Local Impositions
|
21 | |||
Losses
|
21 | |||
LRC
|
21 | |||
Minimum Insurance Requirements
|
21 | |||
Multiemployer Plan
|
22 | |||
Operative Documents
|
22 | |||
Participant
|
22 | |||
Participation Agreement
|
22 | |||
Permitted Encumbrances
|
22 | |||
Permitted Hazardous Substance Use
|
23 | |||
Permitted Hazardous Substances
|
23 | |||
Permitted Transfer
|
23 | |||
Person
|
24 | |||
Personal Property
|
24 | |||
Plan
|
24 | |||
Pledge Agreement
|
24 | |||
Prime Rate
|
24 | |||
Prior Owner
|
25 | |||
Property
|
25 | |||
Purchase Agreement
|
25 | |||
Purchase Option
|
25 |
TABLE OF CONTENTS
(Continued)
(Continued)
Page | ||||
Qualified Affiliate
|
25 | |||
Qualified Income Payments
|
25 | |||
Qualified Prepayments
|
25 | |||
Real Property
|
26 | |||
Remedial Work
|
26 | |||
Rent
|
26 | |||
Responsible Financial Officer
|
26 | |||
Royal Bank of Scotland
|
27 | |||
Secured Spread
|
27 | |||
Subsidiary
|
27 | |||
Supplemental Payment
|
27 | |||
Supplemental Payment Obligation
|
27 | |||
Term
|
27 | |||
Transaction Expenses
|
27 | |||
Unfunded Benefit Liabilities
|
27 | |||
Unsecured Spread
|
27 |
ARTICLE II — SHARED PROVISIONS | 27 | |||||
1.
|
Notices | 27 | ||||
2.
|
Severability | 30 | ||||
3.
|
No Merger | 30 | ||||
4.
|
No Implied Waiver | 30 | ||||
5.
|
Entire and Only Agreements | 30 | ||||
6.
|
Binding Effect | 30 | ||||
7.
|
Time is of the Essence | 31 | ||||
8.
|
Governing Law | 31 | ||||
9.
|
Paragraph Headings | 31 | ||||
10.
|
Negotiated Documents | 31 | ||||
11.
|
Terms Not Expressly Defined in an Operative Document | 31 | ||||
12.
|
Other Terms and References | 31 | ||||
13.
|
Execution in Counterparts | 32 | ||||
14.
|
Not a Partnership, Etc. | 32 | ||||
15.
|
No Fiduciary Relationship Intended | 32 |
(iii)
TABLE OF CONTENTS
(Continued)
(Continued)
Page | ||||
Annexes |
||||
Annex A
|
LIBOR Election Form | |||
Annex B
|
Minimum Insurance Requirements |
(iv)
COMMON DEFINITIONS
AND PROVISIONS AGREEMENT
(FREMONT/BUILDING #2)
AND PROVISIONS AGREEMENT
(FREMONT/BUILDING #2)
This COMMON DEFINITIONS AND PROVISIONS AGREEMENT (FREMONT/BUILDING #2) (this “Agreement”),
dated as of December 21, 2007 (the “Effective Date”), is made by and between BNP PARIBAS LEASING
CORPORATION (“BNPPLC”), a Delaware corporation, and XXX RESEARCH CORPORATION (“LRC”), a Delaware
corporation.
RECITALS
Contemporaneously with the execution of this Agreement, LRC and BNPPLC are executing the
Closing Certificate (as defined below), the Lease (as defined below), the Pledge Agreement (as
defined below) and the Purchase Agreement (as defined below), all of which concern LRC or the
Property (as defined below). Each of the Closing Certificate, the Lease, the Pledge Agreement and
the Purchase Agreement (together with this Agreement, the “Operative Documents”) are intended to
create separate and independent obligations upon the parties thereto. However, LRC and BNPPLC
intend that all of the Operative Documents share certain consistent definitions and other
miscellaneous provisions. To that end, the parties are executing this Agreement and incorporating
it by reference into each of the other Operative Documents.
AGREEMENTS
ARTICLE I — LIST OF DEFINED TERMS
Unless a clear contrary intention appears, the following terms will have the respective
indicated meanings as used herein and in the other Operative Documents:
“Active Negligence” of any Person means, and is limited to, the negligent conduct on the
Property (and not mere omissions) by such Person or by others acting and authorized to act on such
Person’s behalf (other than LRC) in a manner that proximately causes actual bodily injury or
property damage for which LRC does not carry (and is not obligated by the Lease to carry)
insurance. “Active Negligence” will not include (1) any negligent failure of BNPPLC to act when
the duty to act would not have been imposed but for BNPPLC’s status as owner of any interest in the
Land, the Improvements or any other Property or as a party to the transactions described in the
Lease or the other Operative Documents, (2) any negligent failure of any other Interested Party to
act when the duty to act would not have been imposed but for such party’s contractual or other
relationship to BNPPLC or participation or facilitation in any manner, directly or indirectly, of
the transactions described in the Lease or other Operative Documents, or (3) the exercise in a
lawful manner by BNPPLC (or any party lawfully claiming through or under BNPPLC) of any right or
remedy provided in or under the Lease or the other Operative Documents consistent with the terms
hereof.
“Additional Rent” has the meaning indicated in subparagraph 3(C) of the Lease. The
term “Additional Rent” does not include any Supplemental Payment required by the Purchase
Agreement.
“Administrative Fees” means the fees identified as such in subparagraph 3(E) of the
Lease.
“Affiliate” of any Person means any other Person controlling, controlled by or under common
control with such Person. For purposes of this definition, the term “control” when used with
respect to any Person means the power to direct the management of policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract or otherwise, and
the terms “controlling” and “controlled” have meanings correlative to the foregoing.
“After Tax Basis” has the meaning indicated in subparagraph 5(C)(1) of the Lease.
“Applicable Laws” means any or all of the following, to the extent applicable to BNPPLC, LRC,
the Property or the Operative Documents, after giving effect to the contractual choice of law
provisions in the Operative Documents: restrictive covenants; zoning ordinances and building codes;
flood disaster laws; health, safety and environmental laws and regulations; the Americans with
Disabilities Act and other laws pertaining to disabled persons; and other laws, statutes,
ordinances, rules, permits, regulations, orders, determinations and court decisions.
“Applicable Purchaser” means any third party designated to purchase BNPPLC’s interest in the
Property and in any Escrowed Proceeds as provided in the Purchase Agreement.
“Arrangement Fee” has the meaning indicated in subparagraph 3(D) of the Lease.
“Attorneys’ Fees” means the reasonable fees and reasonable out-of-pocket expenses of counsel
to the parties incurring the same, excluding costs or expenses of in-house counsel (whether or not
accounted for as general overhead or administrative expenses), but otherwise including printing,
photostating, duplicating and other expenses, air freight charges, and fees billed for law clerks,
paralegals, librarians and others not admitted to the bar but performing services under the
supervision of an attorney. Such terms will also include all such reasonable fees and expenses
incurred with respect to appeals, arbitrations and bankruptcy proceedings, and whether or not any
manner of proceeding is brought with respect to the matter for which such fees and expenses were
incurred.
“Banking Rules Change” means either: (1) the introduction of or any change after the
Effective Date in any law or regulation applicable to BNPPLC, BNPPLC’s Parent or any Participant,
or in the generally accepted interpretation by the institutional lending community of any such law
or regulation, or in the interpretation of any such law or regulation asserted by any regulator,
court or other governmental authority or (2) the compliance by BNPPLC or BNPPLC’s Parent or any
Participant with any new guideline or new request issued after the Effective Date from any central
bank or other governmental authority (whether or not having the force of law).
“Base Rent” means the rent payable by LRC pursuant to subparagraph 3(A) of the Lease.
“Base Rent Date” means a date upon which Base Rent must be paid under the Lease, all of which
dates will be the first Business Day of a calendar month. The first Base Rent Date will be the
first Business Day of the first calendar month following the Effective Date, which is consistent
with the understanding of the parties that the first Base Rent Period will be subject to a LIBOR
Election of one month. Each successive Base Rent Date after the first Base Rent Date will be the
first Business Day of the first or third calendar month following the calendar month which includes
the preceding Base Rent Date, determined as follows:
(1) If a LIBOR Election of one month is in effect on a Base Rent Date, then the first
Business Day of the first calendar month following such Base Rent Date will be the
next following Base Rent Date.
(2) If a LIBOR Election of two months is in effect on a Base Rent Date, then the first
Business Day of the second calendar month following such Base Rent Date will be the
next following Base Rent Date.
(3) If a LIBOR Election of three months or longer is in effect on a Base Rent Date,
then the first Business Day of the third calendar month following such Base Rent
Date will be the next following Base Rent Date.
Thus, for example, if a Base Rent Period commences on the first Business Day of
September, 2009 and
a LIBOR Election of three months applies to such Base Rent Period, then the next following Base
Rent Date will be the first Business Day of December, 2009.
“Base Rent Period” means a period for which Base Rent must be paid under the Lease, each of
which periods will correspond to the LIBOR Election for the period. The first Base Rent Period
will begin on the Effective Date, and each successive Base Rent Period will begin on the Base Rent
Date upon which the preceding Base Rent Period ends. Each Base Rent Period, including the first
Base Rent Period, will end on the first or second Base Rent Date after the Base Rent Date upon
which such period began, determined as follows:
(1) If a LIBOR Election of one month, two months or three months is in effect
for a Base Rent Period, then such Base Rent Period will end on the first Base Rent
Date after the Base Rent Date upon which such period began.
(2) If a LIBOR Election of six months is in effect for a Base Rent Period, then such
Base Rent Period will end on the second Base Rent Date after the Base Rent Date upon
which such period began.
The determination of Base Rent Periods can be illustrated by two examples:
1) If LRC makes a LIBOR Election of three months for a hypothetical Base Rent Period
beginning on the first Business Day in January, 2009, then such Base Rent Period will end on
the first Base Rent Date after it begins; that is, such Base Rent Period will end on the
first Business Day in April, 2009, the third calendar month after January, 2009.
2) If, however, LRC makes a LIBOR Election of six months for the hypothetical Base
Rent Period beginning on the first Business Day in January, 2009, then such Base Rent Period
will end on the second Base Rent Date after it begins; that is, the first Business Day in
July, 2009.
“BNPPLC” means BNPPLC Leasing Corporation, a Delaware corporation.
“BNPPLC’s Parent” means BNP Paribas, a bank organized and existing under the laws of France,
and any successors of such bank.
“Breakage Costs” means any and all costs, losses or expenses incurred or sustained by BNPPLC’s
Parent or any Participant, for which BNPPLC’s Parent or the Participant requests reimbursement from
BNPPLC, because of:
(1) the resulting liquidation or redeployment of deposits or other funds that were used
to make or maintain Funding Advances upon application of a Qualified
Prepayment or upon any
sale of the Property pursuant to the Purchase Agreement, if such application or sale occurs
on any day other than the last day of a Base Rent Period; or
(2) the resulting liquidation or redeployment of deposits or other
funds that were used to make or maintain Funding Advances upon the acceleration
of the end of any Base Rent Period because of an acceleration of the Designated
Sale Date as described in clauses (2) or (3) of the definition thereof.
Breakage Costs will include, for example, losses on Funding Advances maintained by BNPPLC’s
Parent or any Participant which are attributable to any decline in LIBOR as of the effective date
of any application described in the clause (1) preceding, as compared to LIBOR for the then current
Base Rent Period. Each determination of Breakage Costs by BNPPLC’s Parent or a Participant, as
applicable, will be conclusive and binding upon LRC in the absence of clear and demonstrable error.
“Break Even Price” has the meaning indicated in the Purchase Agreement.
“Business Day” means any day that is (1) not a Saturday, Sunday or day on which commercial
banks are generally closed or required to be closed in New York City, New York, and (2) a day on
which dealings in deposits of dollars are transacted in the London interbank market; provided, that
if such dealings are suspended indefinitely for any reason, “Business Day” will mean any day
described in clause (1).
“Capital Adequacy Charges” means any additional amounts BNPPLC’s Parent or any Participant
requests BNPPLC to pay as compensation for an increase in required capital as provided in
subparagraph 5(B)(2) of the Lease.
“Closing Certificate” means the Closing Certificate and Agreement (Fremont/Building #2) dated
as of the Effective Date executed by LRC and BNPPLC, as such Closing Certificate and Agreement may
be extended, supplemented, amended, restated or otherwise modified from time to time in accordance
with its terms.
“Closing Letter” means the letter agreement dated as of the Effective Date between BNPPLC and
LRC confirming the amount of the Initial Advance and the Transaction Expenses paid from the Initial
Advance.
“Code” means the Internal Revenue Code of 1986, as amended.
“Collateral Percentage” means, for each Base Rent Period or portion thereof, a percentage
equal to the lesser of (1) one hundred percent (100%) or (2) a fraction, the numerator of which
equals the Value of Cash Collateral subject to a Qualified Pledge under the Pledge Agreement on the
first day of such Base Rent Period, and the denominator of which equals the
Lease Balance on the
first day of such Base Rent Period. (As used in this definition, the terms “Value” and “Cash
Collateral” and “Qualified Pledge” are intended to have the respective meanings assigned to them in
the Pledge Agreement.)
“Common Definitions and Provisions Agreement” means this Agreement, which is incorporated by
reference into each of the other Operative Documents, as this Agreement may be extended,
supplemented, amended, restated or otherwise modified from time to time in accordance with its
terms.
“Constituent Documents” of any entity means the organizational documents pursuant to
which such entity was created and is governed, such as the articles of incorporation and bylaws of
a corporation, the articles of organization and regulations of a limited liability company or the
partnership agreement of a partnership.
“Default” means any event or circumstance which constitutes, or which would with the passage
of time or the giving of notice or both (if not cured within any applicable cure period)
constitute, an Event of Default.
“Default Rate” means (1) for purpose of computing any interest that accrues at such rate on
the Designated Sale Date or any day prior to the Designated Sale Date, a per annum rate equal to
two percent (2%) above LIBOR in effect on such day; and (2) for purpose of computing any interest
that accrues at such rate on any day after the Designated Sale Date, a per annum rate equal to two
percent (2%) above the Prime Rate in effect on such day; except that for purposes of computing
interest accruing for any period that commences thirty or more days after the Designated Sale Date
on any Base Rent or Supplemental Payment that has become due, but remains to be paid to BNPPLC by
LRC, the Default Rate will mean a floating per annum rate equal to five percent (5%) above the
Prime Rate. Notwithstanding the foregoing, in no event will the “Default Rate” at any time exceed
the maximum interest rate permitted by Applicable Laws.
“Designated Sale Date” means the earliest of:
(1) the first Business Day of January, 2015; or
(2) any Business Day designated as the “Designated Sale Date” for purposes of this
Agreement and the other Operative Documents in an irrevocable, unconditional notice
given by LRC to BNPPLC; provided, that if the Business Day so designated by LRC as the
Designated Sale Date is not at least twenty days after the date of such notice, the notice
will be of no effect for purposes of this definition; and provided, further, that to be
effective, any such notice must include an irrevocable exercise by LRC of the Purchase
Option under subparagraph 2(A)(1) of the Purchase Agreement and thereby obligate LRC
to tender payment of the full Break Even Price to BNPPLC on the Business
Day so designated; or
(3) any Business Day designated as the “Designated Sale Date” for purposes of this
Agreement and the other Operative Documents in a notice given by BNPPLC to LRC:
• | when an Event of Default has occurred and is continuing; or | ||
• | following any change in the zoning or other Applicable Laws affecting the permitted use or development of the Property that, in BNPPLC’s good faith judgment, materially reduces the value of the Property; or | ||
• | following any discovery of conditions or circumstances on or about the Property, such as the presence of an endangered species, which are likely to substantially impede the use or development of the Property and thereby, in BNPPLC’s good faith judgment, materially reduce the value of the Property; |
provided, however, that if the Business Day so designated by BNPPLC as the Designated Sale Date is
not at least thirty days after the date of such notice, the notice will be of no effect for
purposes of this definition.
“Effective Date” means December 21, 2007.
“Eligible Financial Institution” means (a) a commercial bank organized under the laws of the
United States, or any State thereof or the District of Columbia, and having total assets in excess
of $5,000,000,000; (b) a commercial bank organized under the laws of any other country which is a
member of the Organization for Economic Cooperation and Development (“OECD”) or has concluded
special lending arrangements with the International Monetary Fund associated with its General
Arrangements to Borrow, or a political subdivision of any such country, and having total assets in
excess of $5,000,000,000; provided, that such bank is acting through a branch or agency located in
the United States; (c) the central bank of any country which is a member of the OECD; and (d) a
finance company, insurance company or other financial institution (whether a corporation,
partnership or other entity, but excluding any savings and loan
association) which is engaged in making, purchasing or otherwise investing in commercial loans
in the ordinary course of its business, and having total assets in excess of $5,000,000,000;
provided, however, that in no event shall any bank or other Person qualify as an Eligible Financial
Institution at any time when it or its parent company has outstanding obligations with a credit
rating less than investment grade from Standard & Poor’s, a division of the XxXxxx-Xxxx Companies,
or Xxxxx’x Investors Service, Inc. or another nationally recognized rating service.
“Environmental Laws” means any and all existing and future Applicable Laws
pertaining to
safety, health or the environment, or to Hazardous Substances or Hazardous Substance Activities,
including the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as
amended by the Superfund Amendments and Reauthorization Act of 1986, and the Resource Conservation
and Recovery Act of 1976, as amended by the Used Oil Recycling Act of 1980, the Solid Waste
Disposal Act Amendments of 1980, and the Hazardous and Solid Waste Amendments of 1984.
“Environmental Losses” means Losses suffered or incurred by BNPPLC or any other
Interested Party, directly or indirectly, relating to or arising out of, based on or as a result of
any of the following: (i) any Hazardous Substance Activity; (ii) any violation of any applicable
Environmental Laws relating to the Property or to the ownership, use, occupancy or operation
thereof; (iii) any investigation, inquiry, order, hearing, action, or other proceeding by or before
any governmental or quasi-governmental agency or authority in connection with any Hazardous
Substance Activity; or (iv) any claim, demand, cause of action or investigation, or any action or
other proceeding, whether meritorious or not, brought or asserted against any Interested Party
which directly or indirectly relates to, arises from, is based on, or results from any of the
matters described in clauses (i), (ii), or (iii) of this definition or any allegation of any such
matters.
“Environmental Report” means the following report: November 2007 Phase I Environmental Site
Assessment by Environmental Resources Management, ERM, of XXX Campus 4650, 4540, 4400 and 0000
Xxxxxxx Xxxxxxx Xxxxxxx, XX.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, together with all rules and regulations promulgated with respect thereto.
“ERISA Affiliate” means any Person who for purposes of Title IV of ERISA is a member of LRC’s
controlled group, or under common control with LRC, within the meaning of Section 414 of the
Internal Revenue Code, and the regulations promulgated and rulings issued thereunder.
“ERISA Termination Event” means (a) the occurrence with respect to any Plan of (1) a
reportable event described in Sections 4043(b)(5) or (6) of ERISA or (2) any other reportable event
described in Section 4043(b) of ERISA other than a reportable event not subject to the provision
for thirty-day notice to the Pension Benefit Guaranty Corporation pursuant to a waiver by such
corporation under Section 4043(a) of ERISA, or (b) the withdrawal of LRC or any
ERISA Affiliate from a Plan during a plan year in which it was a “substantial employer” as
defined in Section 4001(a)(2) of ERISA, or (c) the filing of a notice of intent to terminate any
Plan or the treatment of any Plan amendment as a termination under Section 4041 of ERISA, or (d)
the institution of proceedings to terminate any Plan by the Pension Benefit Guaranty Corporation
under Section 4042 of ERISA, or (e) any other event or condition which might constitute grounds
under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer,
any Plan.
“Escrowed Proceeds” means, subject to the exclusions specified in the next sentence,
any money that is received by BNPPLC from time to time during the Term (and any interest earned
thereon) from any party (1) under any property insurance policy as a result of damage to the
Property, (2) as compensation for any restriction imposed by any Governmental Authority upon the
use or development of the Property or for the condemnation of the Property or any portion thereof,
(3) because of any judgment, decree or award for physical damage to the Property or (4) as
compensation under any title insurance policy or otherwise as a result of any title defect or
claimed title defect with respect to the Property; provided, however, in determining the amount of
“Escrowed Proceeds” there will be deducted all expenses and costs of every type, kind and nature
(including Attorneys’ Fees) incurred by BNPPLC to collect such proceeds. Notwithstanding the
foregoing, “Escrowed Proceeds” will not include (A) any payment to BNPPLC by any Participant or by
an Affiliate of BNPPLC that is made to compensate BNPPLC for the Participant’s or Affiliate’s share
of any Losses BNPPLC may incur as a result of any of the events described in the preceding clauses
(1) through (4), (B) any money or proceeds that have been applied as a Qualified Prepayment or to
pay any Breakage Costs or other costs incurred in connection with a Qualified Prepayment, (C) any
money or proceeds that, after no less than ten days notice to LRC, BNPPLC returns or pays to a
third party because of BNPPLC’s good faith belief that such return or payment is required by law,
(D) any money or proceeds paid by BNPPLC to LRC or offset against any amount owed by LRC, or (E)
any money or proceeds used by BNPPLC in accordance with the Lease for repairs or the restoration of
the Property or to obtain development rights or the release of restrictions that will inure to the
benefit of future owners or occupants of the Property. Until Escrowed Proceeds are paid to LRC
pursuant to Paragraph 9 of the Lease, transferred to a purchaser under the Purchase
Agreement as therein provided or applied as a Qualified Prepayment or as otherwise described in the
preceding sentence, BNPPLC will keep the same deposited in one or more interest bearing accounts,
and all interest earned on such account will be added to and made a part of Escrowed Proceeds.
“Established Misconduct” of a Person means, and is limited to:
(1) if the Person is bound by the Operative Documents or the Participation Agreement,
conduct of such Person that constitutes a breach by it of the express provisions of the
Operative Documents or the Participation Agreement, as applicable, and that continues beyond
any period for cure provided therein, as determined in or as a necessary element of a final
judgment rendered against such Person by a court with
jurisdiction to make such determination, and
(2) conduct of such Person or its Affiliates that has been determined to constitute
willful misconduct or Active Negligence in or as a necessary element of a final judgment
rendered against such Person by a court with jurisdiction to make such determination.
In no event, however, will Established Misconduct include actions of any Person undertaken in good
faith to mitigate Losses that such Person may suffer because of a breach or repudiation by LRC of
any of the Operative Documents. Further, negligence other than Active Negligence will not in any
event constitute Established Misconduct. For purposes of this definition, “conduct of a Person”
will consist of (1) the conduct of any employee of that Person, and (2) the conduct of an agent of
that Person (such as an independent environmental consultant engaged by that Person), but only to
the extent that the agent is (a) acting within the scope of the authority granted to him by such
Person, and (b) neither LRC nor acting with the consent or approval of or at the request of or
under the direction of LRC or LRC’s Affiliates, employees or agents. Established Misconduct of one
Interested Party will not be attributed to a second Interested Party unless the second Interested
Party is an Affiliate of the first, and it is understood that BNPPLC has not been authorized, and
nothing in the Participation Agreement will be construed as authorizing BNPPLC, to act as an
“agent” for any Participant as the term is used in this definition.
“Event of Default” means any of the following:
(A) LRC fails to pay when due any installment of Base Rent or Administrative Fees required by
the Lease, and such failure continues for three Business Days after LRC is notified in writing
thereof.
(B) LRC fails to pay the full amount of any Supplemental Payment as provided in the Purchase
Agreement on the Designated Sale Date.
(C) LRC fails to pay when first due any amount required by the Operative Documents (other than
Base Rent or Administrative Fees required as provided in the Lease or any Supplemental Payment
required as provided in the Purchase Agreement) and such failure continues for ten Business Days
after LRC is notified in writing thereof.
(D) Any representation or warranty of LRC contained in any of the Operative Documents or in
any certificate or other document delivered by LRC pursuant to the Operative Documents is
determined by BNPPLC to have been false or misleading in any material respect when made, and LRC
fails to cause such representation or warranty to be made true and not misleading within ten
Business Days after LRC is notified in writing of such determination by BNPPLC.
(E) LRC fails to comply with any provision of the Operative Documents (other than as
described in the other clauses of this definition) and does not cure such failure prior to the
earliest of (1) thirty days after notice thereof is given to LRC, or (2) the date any writ or order
is issued for the levy or sale of any property owned by BNPPLC (including the Property) because of
such failure, or (3) the date any third party claim or criminal prosecution is instituted or
overtly threatened against any Interested Party or any of its directors, officers or employees
because of such failure; provided, however, that so long as no such writ or order is issued and no
such third party claim or criminal prosecution is instituted or overtly threatened, the period
within which such failure may be cured by LRC will be extended for a further period (not to exceed
an additional one hundred eighty days) as is necessary for the curing thereof with diligence, if
(but only if) (x) such failure is susceptible of cure but cannot with reasonable diligence be cured
within such thirty day period, (y) LRC promptly commences to cure such failure and thereafter
continuously prosecutes the curing thereof with reasonable diligence and (z) the extension of the
period for cure will not, in any event, cause the period for cure to extend to or beyond the
Designated Sale Date.
(F) LRC abandons any material part of the Property.
(G) Any event occurs or circumstance exists that constitutes an “Event of Default” as defined
in the Pledge Agreement.
(H) LRC or any Subsidiary of LRC fails to pay any principal of or premium or interest
on any of its Indebtedness which is outstanding in a principal amount of at least $25,000,000 when
the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise), and such failure continues after the applicable grace period, if any,
specified in the agreement or instrument relating to such Indebtedness; or any other event occurs
or condition exists under any agreement or instrument relating to any such Indebtedness and
continues after the applicable grace period, if any, specified in such agreement or instrument, if
the effect of such event or condition is to accelerate the maturity of such Indebtedness; or any
such Indebtedness is declared by the creditor to be due and payable, or required to be prepaid
(other than by a regularly scheduled required prepayment), redeemed, purchased or defeased, or an
offer to prepay, redeem, purchase or defease such Indebtedness is required to be made, in each case
prior to the stated maturity thereof.
(I) LRC or any material Subsidiary of LRC is generally not paying its debts as such debts
become due, or admits in writing its inability to pay its debts generally, or makes a general
assignment for the benefit of creditors; or any proceeding is instituted by or against LRC or any
material Subsidiary of LRC seeking to adjudicate it a bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or
composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization
or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part of its property
and, in the case of any such proceeding instituted against it (but not instituted by it), either
such
proceeding remains undismissed or unstayed for a period of sixty consecutive days, or any of
the actions sought in such proceeding (including the entry of an order for relief against, or the
appointment of a receiver, trustee, custodian or other similar official for, it or for any
substantial part of its property) occurs; or LRC or any material Subsidiary of LRC takes any
corporate action to authorize any of the actions set forth above in this clause.
(J) Any order, judgment or decree is entered in any proceedings against LRC or any of LRC’s
material Subsidiaries decreeing its dissolution and such order, judgment or decree remains unstayed
and in effect for more than sixty days.
(K) Any order, judgment or decree is entered in any proceedings against LRC or any of LRC’s
material Subsidiaries decreeing a divestiture of any of assets that represent a substantial part,
or the divestiture of the stock of any of LRC’s Subsidiaries whose assets represent a substantial
part, of the total assets of LRC and its Subsidiaries (determined on a consolidated basis in
accordance with GAAP) or which requires the divestiture of assets, or stock of any of LRC’s
Subsidiaries, which have contributed a substantial part of the net income of LRC and its
Subsidiaries (determined on a consolidated basis in accordance with GAAP) for any of the three
fiscal years then most recently ended, and such order, judgment or decree remains unstayed and in
effect for more than sixty days.
(L) A judgment or order for the payment of money in an amount (not covered by
insurance) which exceeds $25,000,000 is rendered against LRC or any of LRC’s Subsidiaries and
either (i) enforcement proceedings is commenced by any creditor upon such judgment, or (ii) within
thirty days after the entry thereof, such judgment or order is not discharged or execution thereof
stayed pending appeal, or within thirty days after the expiration of any such stay, such judgment
is not discharged.
(M) Any ERISA Termination Event occurs that BNPPLC determines in good faith would constitute
grounds for a termination of any Plan or for the appointment by the appropriate United States
district court of a trustee to administer any Plan and such ERISA Termination Event is continuing
thirty days after notice to such effect is given to LRC by BNPPLC, or any Plan is terminated, or a
trustee is appointed by a United States district court to administer any Plan, or the Pension
Benefit Guaranty Corporation institutes proceedings to terminate any Plan or to appoint a trustee
to administer any Plan.
(N) LRC enters into any transaction which would cause any of the Operative Documents or any
other document executed in connection herewith (or any exercise of BNPPLC’s rights hereunder or
thereunder) to constitute a non-exempt prohibited transaction under ERISA.
(O) Any event or circumstance having a Material Adverse Effect occurs and is not rectified
before the end of thirty Business Days after LRC is notified in writing thereof.
(P) LRC shall fail to comply with subparagraph 3(A) of the Closing Certificate, which requires
that LRC and its Subsidiaries maintain a minimum amount of unrestricted cash, unencumbered cash
investments and unencumbered marketable securities classified as short term or long term
investments according to GAAP.
(Q) Any of the following shall occur: (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities
Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in
effect on the date hereof), of Equity Interests (as defined below) representing more than 40% of
the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of
LRC; or (b) occupation of a majority of the seats (other than vacant seats) on the board of
directors of LRC by Persons who were neither (i) nominated by the board of directors of LRC nor
(ii) appointed by directors so nominated. (As used in this paragraph, “Equity Interests” means
shares of capital stock, partnership interests, membership interests in a limited liability
company, beneficial interests in a trust or other equity ownership interests in a Person, and any
warrants, options or other rights entitling the holder thereof to purchase or acquire any such
equity interest.)
(R) Any “Event of Default” shall occur as defined in any other Common Definitions and
Provisions Agreement executed by LRC and BNPPLC, it being understood that the parties are executing
and may in the future execute such other agreements in connection with arrangements that are
similar to those contemplated by the Operative Documents, but that cover properties other than the
Property.
(S) LRC shall in writing or in any legal proceedings repudiate any of the Operative Documents
or assert that any of the Operative Documents are not valid or enforceable as written or that
BNPPLC does not own or have a lien or security interest in the Property by reason of the Operative
Documents.
“Excluded Taxes” means:
(1) taxes upon or measured by net income to the extent such taxes are (A) payable in
respect of Base Rent or other Qualified Income Payments, or (B) (i) payable by BNPPLC in
respect of any Qualified Prepayment or any net sales proceeds paid to BNPPLC upon a sale of
the Property because of a refusal of tax authorities to accept the intended characterization
of the Lease and other Operative Documents as a financing arrangement for tax purposes, and
(ii) offset in the same taxable period by a reduction in the taxes of BNPPLC which are not
indemnified by LRC because of depreciation deductions or other tax benefits available to
BNPPLC only because of the refusal of the tax authorities to treat the Lease and other
Operative Documents as a financing arrangement; and
(2) any transfer or change of ownership taxes assessed because of BNPPLC’s transfer or
conveyance to any third party of any rights or interest in the Operative Documents or the
Property; save and except, however, any such taxes assessed because of (i) any Permitted
Transfer under clauses (1) or (2) of the definition of Permitted Transfer in this Agreement,
or (ii) any sale of the Property by BNPPLC required by the
Purchase Agreement or with
respect to which the Purchase Agreement governs the distribution and allocation of sales
proceeds; and
(3) taxes that result solely from an act or event, or are attributable solely to any
period of time, that occurs after the latest of:
(i) the expiration of the Term with respect to the Property and, if the Lease
or other Operative Documents require the return of the Property to BNPPLC, such
return;
(ii) any sale or Deemed Sale (as defined in the Purchase Agreement) of the
Property pursuant to the Purchase Agreement; or
(iii) the discharge in full of LRC’s obligation to pay or do anything to
cause or assure the payment of the Lease Balance, or any amount determined by
reference thereto, and all other amounts due under the Operative Documents;
except any such taxes that are imposed on or with respect to payments that become due under
the Operative Documents after such expiration, sale or discharge, and in any event excluding
taxes that relate to acts, events, or matters occurring at or prior to the latest of any
such expiration, sale or discharge.
It is understood that if tax rates used to calculate income taxes which constitute Excluded Taxes
under clause (1) of this definition are increased, the resulting increase will not be subject to
reimbursement or indemnification by LRC. If, however, a change in Applicable Laws after the
Effective Date, as applied to the transactions contemplated by the Operative Documents on a
stand-alone basis, results in an increase in such income taxes for any reason other than an
increase in the applicable tax rates (e.g., a disallowance of deductions that would otherwise be
available against payments described in clause (1) of this definition), then for purposes of the
Operative Documents, the term “Excluded Taxes” will not include the actual increase in such taxes
attributable to the change. Accordingly, BNPPLC, BNPPLC’s Parent and any Participant may recover
any such net increase from LRC pursuant to subparagraph 5(B) of the Lease.
It is also understood that nothing in this definition of “Excluded Taxes” will prevent any Original
Indemnity Payment (as defined in subparagraph 5(C)(1) of the Lease) from being paid on an After Tax
Basis.
“Fed Funds Rate” means, for any period, a fluctuating interest rate (expressed as a per annum
rate and rounded upwards, if necessary, to the next 1/16 of 1%) equal on each day during such
period to the weighted average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if
such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of
New York, or, if such rates are not so published for any day which is a Business Day, the average
of the quotations for each day during such period on such transactions received by BNPPLC’s Parent
from three Federal funds brokers of recognized standing selected by BNPPLC’s Parent.
“Funding Advances” means all advances made by BNPPLC’s Parent or any Participant to or on
behalf of BNPPLC to allow BNPPLC to make the Initial Advance and to maintain its investment in the
Property.
“GAAP” means generally accepted accounting principles in the United States of America as in
effect from time to time, applied on a basis consistent with those used in the preparation of the
financial statements delivered by LRC to BNPPLC prior to the Effective Date, which are the subject
of representations in subparagraph 2(A)(4) of the Closing Certificate.
“Governmental Authority” means (1) the United States, the state, the county, the
municipality, and any other political subdivision in which the Land is located, and (2) any other
nation, state or other political subdivision or agency or instrumentality thereof having or
asserting jurisdiction over LRC or the Property.
“Hazardous Substance” means (i) any chemical, compound, material, mixture or substance that is
now or hereafter defined or listed in, regulated under, or otherwise classified pursuant to, any
Environmental Laws as a “hazardous substance,” “hazardous material,” “hazardous waste,” “extremely
hazardous waste or substance,” “infectious waste,” “toxic substance,” “toxic pollutant,” or any
other formulation intended to define, list or classify substances by reason of deleterious
properties, including ignitability, corrosiveness, reactivity, carcinogenicity, toxicity or
reproductive toxicity; (ii) petroleum, any fraction of petroleum, natural gas, natural gas liquids,
liquified natural gas, synthetic gas usable for fuel (or mixtures of natural gas and such synthetic
gas), and ash produced by a resource recovery facility utilizing a municipal solid waste stream,
and drilling fluids, produced waters and other wastes associated with the exploration, development
or production of crude oil, natural gas or geothermal resources; (iii) asbestos and any asbestos
containing material; and (iv) any other material that, because of its quantity, concentration or
physical or chemical characteristics, is the subject of regulation under Applicable Law or poses a
significant present or potential hazard to human health or safety or to the environment if released
into the workplace or the environment.
“Hazardous Substance Activity” means any actual, proposed or threatened use, storage,
holding, release (including any spilling, leaking, leaching, pumping, pouring, emitting,
emptying, dumping, disposing into the environment, and the continuing migration into or through
soil, surface water, groundwater or any body of water), discharge, deposit, placement, generation,
processing, construction, treatment, abatement, removal, disposal, disposition, handling or
transportation of any Hazardous Substance from, under, in, into or on the Property, including the
movement or migration of any Hazardous Substance from surrounding property,
surface water,
groundwater or any body of water under, in, into or onto the Property and any resulting residual
Hazardous Substance contamination in, on or under the Property. “Hazardous Substance Activity” also
means any existence of Hazardous Substances on the Property that would cause the Property or the
owner or operator thereof to be in violation of, or that would subject the Property to any remedial
obligations under, any Environmental Laws, assuming disclosure to the applicable Governmental
Authorities of all relevant facts, conditions and circumstances pertaining to the Property.
“Improvements” means any and all (1) buildings and other real property improvements previously
or hereafter erected on the Land, and (2) equipment (e.g., HVAC systems, elevators and plumbing
fixtures) attached to the buildings or other real property improvements, the removal of which would
cause structural or other material damage to the buildings or other real property improvements or
would materially and adversely affect the value or use of the buildings or other real property
improvements.
“Indebtedness” of any Person means (without duplication of any item) Liabilities of
such Person in any of the following categories:
(A) Liabilities for borrowed money;
(B) Liabilities constituting an obligation to pay the deferred purchase price of
property or services;
(C) Liabilities evidenced by a bond, debenture, note or similar instrument;
(D) Liabilities which (1) would under GAAP be shown on such Person’s balance sheet as a
liability, and (2) are payable more than one year from the date of creation thereof (other
than reserves for taxes and reserves for contingent obligations);
(E) Liabilities constituting principal under leases capitalized in accordance with
GAAP;
(F) Liabilities arising under conditional sales or other title retention agreements;
(G) Liabilities owing under direct or indirect guaranties of Liabilities of any other
Person or otherwise constituting obligations to purchase or acquire or to otherwise
protect or insure a creditor against loss in respect of Liabilities of any other Person
(such as obligations under working capital maintenance agreements, agreements to keep-well,
or agreements to purchase Liabilities, assets, goods, securities or services), but excluding
endorsements in the ordinary course of business of negotiable instruments in the course of
collection;
(H) Liabilities (for example, repurchase agreements, mandatorily redeemable preferred
stock and sale/leaseback agreements) consisting of an obligation to purchase or redeem
securities or other property, if such Liabilities arises out of or in connection with the
sale or issuance of the same or similar securities or property;
(I) Liabilities with respect to letters of credit or applications or reimbursement
agreements therefor;
(J) Liabilities with respect to payments received in consideration of oil, gas, or
other commodities yet to be acquired or produced at the time of payment (including
obligations under “take-or-pay” contracts to deliver gas in return for payments already
received and the undischarged balance of any production payment created by such Person or
for the creation of which such Person directly or indirectly received payment);
(K) Liabilities with respect to other obligations to deliver goods or services
in consideration of advance payments therefor; or
(L) Liabilities under any “synthetic” or other lease of property or related documents
(including a separate purchase agreement) which obligate such Person or any of its
Affiliates (whether by purchasing or causing another Person to purchase any interest in the
leased property or otherwise) to guarantee a minimum residual value of the leased property
to the lessor.
For purposes of this definition, the amount of Liabilities described in the last clause of the
preceding sentence with respect to any lease classified according to GAAP as an “operating lease,”
will equal the sum of (1) the present value of rentals and other minimum lease payments required in
connection with such lease (calculated in accordance with SFAS 13 and other GAAP relevant to the
determination of the whether such lease must be accounted for as an operating lease or capital
lease), plus (2) the fair value of the property covered by the lease; except that such amount will
not exceed the price, as of the date a determination of Indebtedness is required hereunder, for
which the lessee can purchase the leased property pursuant to any valid ongoing purchase option if,
upon such a purchase, the lessee will be excused from paying rentals or other minimum lease
payments that would otherwise accrue after the purchase.
Notwithstanding the foregoing, the “Indebtedness” of any Person will not include Liabilities that
were incurred by such Person on ordinary trade terms to vendors, suppliers, or other Persons
providing goods and services for use by such Person in the ordinary course of its business, unless
and until such Liabilities are outstanding more than 90 days past the original invoice or billing
date therefor.
“Initial Advance” means, collectively, all advances made by BNPPLC’s Parent (directly or
through one or more of its Affiliates) or any Participants to or on behalf of BNPPLC on or
prior to
the Effective Date to cover the purchase price payable by BNPPLC to the Prior Owner for its
interest in the Land and Improvements and other Property and to cover the cost to BNPPLC of certain
Transaction Expenses and other amounts confirmed in the Closing Letter.
“Interested Party” means each of following Persons and their Affiliates: (1) BNPPLC and
its successors and permitted assigns as to the Property or any part thereof or any interest
therein, (2) BNPPLC’s Parent, and (3) the Participants; provided, however, none of the following
Persons will constitute an Interested Party: (a) any Person to whom BNPPLC may transfer an interest
in the Property by a conveyance that is not a Permitted Transfer and others that cannot lawfully
claim an interest in the Property except through or under a transfer by such a Person, (b) LRC and
its Affiliates, (c) any Person claiming through or under a conveyance made by LRC after any
purchase by LRC of BNPPLC’s interest in the Property pursuant to the Purchase Agreement, or (d) any
Applicable Purchaser designated by LRC under the Purchase Agreement who purchases the Property
pursuant to a sale arranged by LRC and any Person that cannot lawfully claim an interest in the
Property except through or under a conveyance from such an Applicable Purchaser.
“Land” means the land described in Exhibit A attached to the Closing Certificate, the
Lease and the Purchase Agreement.
“Lease” means the Lease Agreement (Fremont/Building #2) dated as of the Effective Date between
BNPPLC, as landlord, and LRC, as tenant, pursuant to which LRC has agreed to lease BNPPLC’s
interest in the Property, as such Lease Agreement may be extended, supplemented, amended, restated
or otherwise modified from time to time in accordance with its terms.
“Lease Balance” means, as of any date, the amount equal to the sum of the Initial Advance,
minus all funds actually received by BNPPLC and applied as Qualified Prepayments on or prior to
such date. Under no circumstances will any payment of Base Rent or other Qualified Income Payments
reduce the Lease Balance.
“Lease Termination Damages” has the meaning indicated in subparagraph 14(A)(3)(c) of
the Lease.
“Liabilities” means, as to any Person, all indebtedness, liabilities and obligations of such
Person, whether matured or unmatured, liquidated or unliquidated, primary or secondary, direct or
indirect, absolute, fixed or contingent, and whether or not required to be considered pursuant to
GAAP.
“LIBID” means (1) for any period that is included in or coincides with a Base Rent Period, the
per annum rate equal to LIBOR for such Base Rent Period, minus twelve and one-half basis points
(12.5/100 of 1%); and (2) for each day after the last Base Rent Period, a per
annum rate equal to
LIBOR for the LIBOR Period that includes such day, less twelve and one-half basis points (12.5/100
of 1%).
“LIBOR” means, for any LIBOR Period, the per annum rate equal to:
(a) the offered rate for deposits in U.S. dollars as of approximately 11:00 a.m.,
London time, on the day that is two London Banking Days (hereinafter defined) prior to the
day upon which such LIBOR Period begins (the “Reset Date”), as reported:
(1) on Reuters Screen LIBOR01 page (or any replacement page or pages on which
London interbank rates of major banks for U.S. dollars are displayed) by the Reuters
service; or
(2) on Moneyline Telerate Page 3750, British Bankers Association
Interest Settlement Rates, or another news page selected by BNPPLC’s Parent if the
Reuters Screen LIBOR01 page is removed from the Reuters system or changed such that,
in the opinion of BNPPLC’s Parent, the interest rates shown on it no longer
represent the same kind of interest rates as when the Operative Documents were
executed; or
(b) if such offered rate is for any reason unavailable, the rate per annum determined
by BNPPLC’s Parent on the basis of rates offered for deposits in U.S. dollars by four major
banks in the London interbank market selected by BNPPLC’s Parent (“Reference Banks”) at
approximately 11:00 a.m., London time, on the day that is two London Banking Days preceding
the Reset Date to prime banks in the London interbank market for a period corresponding as
nearly as possible to the applicable LIBOR Period. (If this clause (b) applies, BNPPLC’s
Parent will request the principal London office of each of the Reference Banks to provide a
quotation of its rate. If at least two quotations are provided, “LIBOR” will be the
arithmetic mean of the quotations. If, however, fewer than two quotations are provided,
“LIBOR” will be the arithmetic mean of the rates quoted by major banks in New York selected
by BNPPLC’s Parent, at approximately 11:00 a.m., New York time, on the Reset Date for loans
in U.S. dollars to leading U.S. banks for a period corresponding as nearly as possible to
the applicable LIBOR Period.)
As used in this definition, “London Banking Day” means any day on which commercial banks are open
for general business (including dealings in foreign exchange and foreign currency deposits) in
London, England.
If for any reason BNPPLC determines that it is impossible or unreasonably difficult to determine
LIBOR for any given LIBOR Period in accordance with the foregoing, then the “LIBOR” for that period
will equal any published index or per annum interest rate determined in good faith by BNPPLC to be
comparable to LIBOR at the beginning of the first day of that period. A
comparable interest rate might be, for example, the then existing yield on short term United States Treasury obligations (as
compiled by and published in the then most recently published United States Federal Reserve
Statistical Release H.15(519) or its successor publication), plus or minus a fixed adjustment based
on BNPPLC’s comparison of past eurodollar market rates to past yields on such Treasury obligations.
“LIBOR Election” means an election to have any Base Rent Period extend for
approximately one month, two months, three months or six months. Subject to the limitations and
qualifications set forth in this definition, LRC may make any Base Rent Period subject to a LIBOR
Election by a notice given to BNPPLC in the form attached as Annex 1 at least five Business
Days prior to the commencement of such Base Rent Period. After a LIBOR Election becomes effective,
it will remain in effect for all subsequent Base Rent Periods until a different election is made in
accordance with the provisions of this definition. (For purposes of the definition of Base Rent
Periods above, a LIBOR Election for any Base Rent Period will also be considered the LIBOR Election
in effect on the Effective Date or Base Rent Date upon which such Base Rent Period begins.)
Notwithstanding the foregoing:
• | No LIBOR Election made by LRC will be effective or continue if it would cause a Base Rent Period to extend beyond the end of the scheduled Term. | ||
• | Changes in any LIBOR Election initiated by LRC will become effective only upon the commencement of a new Base Rent Period. | ||
• | If for any reason (including BNPPLC’s receipt of a notice from LRC purporting to make a LIBOR Election that is contrary to the foregoing provisions), BNPPLC is unable to determine with certainty whether a particular Base Rent Period is subject to a specific LIBOR Election of one month, two months, three months or six months, the LIBOR Period Election for that particular Base Rent Period will be one month. | ||
• | If any Event of Default has occurred and is continuing on the third Business Day preceding the commencement of a particular Base Rent Period, then BNPPLC shall be entitled (but not required) to make a LIBOR Election for that Base Rent Period of one month, absent which the LIBOR Election for that Base Rent Period will be determined in accordance with the foregoing provisions. |
“LIBOR Period” means any Base Rent Period. It also means, for purposes of computing any
interest that accrues after the last Base Rent Period as provided in subparagraph 3(D)(3) of the
Purchase Agreement, any successive period that begins on the last day of a preceding LIBOR
Period ends and ends on the first Business Day of the next following calendar month.
“Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind
(including any agreement to give any of the foregoing, any conditional sale or other title
retention agreement, any lease in the nature thereof, any agreement to sell receivables with
recourse, and the filing of or agreement to give any financing statement under the Uniform
Commercial Code of any jurisdiction).
“Liens Removable by BNPPLC” means, and is limited to, Liens encumbering the Property
that are asserted (1) other than as contemplated in the Operative Documents, by BNPPLC itself or by
BNPPLC’s Parent, (2) by third parties lawfully claiming through or under BNPPLC, or (3) by third
parties claiming under a deed or other instrument duly executed by BNPPLC; provided, however, Liens
Removable by BNPPLC will not include (A) any Permitted Encumbrances (regardless of whether claimed
through or under BNPPLC), (B) the Operative Documents or any other document executed by BNPPLC with
the knowledge of (and without objection by) LRC or LRC’s counsel contemporaneously with the
execution and delivery of the Operative Documents, (C) Liens which are neither lawfully claimed
through or under BNPPLC (as described above) nor claimed under a deed or other instrument duly
executed by BNPPLC, (D) Liens claimed by LRC or claimed through or under a conveyance made by LRC,
(E) Liens arising because of BNPPLC’s compliance with Applicable Law, the Operative Documents,
Permitted Encumbrances or any request made by LRC, (F) Liens securing the payment of property taxes
or other amounts assessed against the Property by any Governmental Authority, (G) Liens resulting
from or arising or asserted in connection with any breach by LRC of the Operative Documents; or (H)
Liens resulting from or arising in connection with any Permitted Transfer that occurs after any
Designated Sale Date upon which, for any reason, LRC or any Applicable Purchaser does not purchase
BNPPLC’s interest in the Property pursuant to the Purchase Agreement for a price (when taken
together with any Supplemental Payment paid by LRC pursuant to the Purchase Agreement, in the case
of a purchase by an Applicable Purchaser) equal to the Break Even Price.
“Local Impositions” means all sales, excise, ad valorem, gross receipts, business, transfer,
stamp, occupancy, rental and other taxes (other than taxes on net income and corporate franchise
taxes), levies, fees, charges, surcharges, assessments, interest, additions to tax, or penalties
imposed by the State of California or any agency or political subdivision thereof upon BNPPLC or
any owner of the Property or any part of or interest in the Property because of (i) the Lease or
other Operative Documents, (ii) the status of record title to the Property, (iii) the ownership,
leasing, occupancy, sale or operation of the Property or any part thereof or interest therein, or
(iv) the Permitted Encumbrances; excluding, however, Excluded Taxes. “Local Impositions” will
include any real estate taxes imposed because of a change of use or ownership of the Property
resulting from, or occurring on or prior to the date of, any sale by BNPPLC pursuant to the
Purchase Agreement.
“Losses” means the following: any and all losses, liabilities, damages (whether actual,
consequential, punitive or otherwise denominated), demands, claims, administrative or legal
proceedings, actions, judgments, causes of action, assessments, fines, penalties, costs of
settlement and other costs and expenses (including Attorneys’ Fees and the fees of outside
accountants and environmental consultants), of any and every kind or character, foreseeable and
unforeseeable, liquidated and contingent, proximate and remote, known and unknown.
“LRC” means Xxx Research Corporation, a Delaware corporation.
“Material Adverse Effect” means a material adverse effect on (a) the assets, operations,
financial condition or businesses of LRC, (b) the ability of LRC to perform any of its obligations
under the Operative Documents, (c) the rights of or benefits available to BNPPLC or BNPPLC’s Parent
or the Participants under the Operative Documents, (d) the value, utility or useful life of the
Property or (e) the priority, perfection or status of any of BNPPLC’s interests in the Property or
in any of the Operative Documents.
“Minimum Insurance Requirements” means the insurance requirements outlined in Annex
2 attached to this Agreement.
“Multiemployer Plan” means a multiemployer plan as defined in Section 3(37) of ERISA to which
contributions have been made by LRC or any ERISA Affiliate during the preceding six years and which
is covered by Title IV of ERISA.
“Operative Documents” means the following documents executed by LRC and BNPPLC: (1) Closing
Certificate, (2) the Lease, (3) the Pledge Agreement, (4) the Purchase Agreement, (5) this Common
Definitions and Provisions Agreement, (6) the Closing Letter, (7) the Memorandum (Short Form) of
Lease (Fremont/Building #2) dated as of the Effective Date, (8) the Memorandum of Agreement
Regarding Purchase and Remarketing Options (Fremont/Building #2) dated as of the Effective Date,
(9) financing statements filed to give notice of or perfect BNPPLC’s rights or interests under any
of the foregoing Operative Documents, and (10) all Deposit Taker’s Agreement executed by LRC and
BNPPLC as provided in the Pledge Agreement.
“Participant” means any Person other than BNPPLC that from time to time, by executing the
Participation Agreement or supplements as contemplated therein, becomes a party to the
Participation Agreement and thereby agrees to participate in all or some of the risks and rewards
to BNPPLC of the Operative Documents; provided, however, no such Person will qualify as a
Participant for purposes of the Operative Documents unless such Person is approved to be a
Participant by LRC. As of the Effective Date, the only Participant is ABN AMRO BANK, N.V., which
has been approved by LRC and is executing the Participation Agreement contemporaneously with the
execution of the Operative Documents. LRC has also approved Royal Bank of Scotland as bank who may
become a Participant. In addition to ABN AMRO
BANK, N.V. and Royal Bank of Scotland, others Persons approved by LRC may from time to time
agree with BNPPLC to share in the risks and rewards of the Operative Documents by executing
supplements to the Participation Agreement. LRC will not unreasonably withhold or delay any
approval required for any prospective Participant which is an Eligible Financial
Institution.
However, as to any prospective Participant (other than Royal Bank of Scotland) that is not an
Eligible Financial Institution, LRC may withhold such approval in its sole discretion. Further, it
is understood that if giving such approval will increase LRC’s liability for withholding taxes or
other taxes not constituting Excluded Taxes under tax laws or regulations then in effect, LRC may
reasonably refuse to give such approval.
“Participation Agreement” means the Participation Agreement (Fremont/Building #2) between
BNPPLC and ABN AMRO BANK, N.V. dated as of the Effective Date, pursuant to which ABN AMRO BANK,
N.V. has agreed to participate in the risks and rewards to BNPPLC of the Operative Documents, as
such Participation Agreement may be extended, supplemented, amended, restated or otherwise modified
from time to time in accordance with its terms.
“Permitted Encumbrances” means (i) the encumbrances and other matters affecting the
Property that are set forth in Exhibit B attached to the Closing Certificate, (ii) any
easement agreement or other document affecting title to the Property executed by BNPPLC at the
request of or with the consent of LRC, (iii) any Liens securing the payment of Local Impositions
which are not delinquent or claimed to be delinquent or which are being contested in accordance
with subparagraph 5(A) of the Lease, (iv) statutory liens, if any, in the nature of
contractors’, mechanics’ or materialmen’s liens for amounts not past due or claimed to be past due
for more than thirty days.
“Permitted Hazardous Substance Use” means the use, generation, storage and offsite disposal of
Permitted Hazardous Substances in strict accordance with applicable Environmental Laws and with due
care given the nature of the Hazardous Substances involved; provided, the scope and nature of such
use, generation, storage and disposal will not:
(1) exceed that reasonably required for the use and operation of the Property for the
purposes expressly permitted under subparagraph 2(A) of the Lease; or
(2) include any disposal, discharge or other release of Hazardous Substances from the
Property in any manner that might allow such substances to reach surface water or
groundwater, except (i) through a lawful and properly authorized discharge (A) to a publicly
owned treatment works or (B) with rainwater or storm water runoff in accordance with
Applicable Laws and any permits obtained by LRC that govern such runoff; or (ii) any such
disposal, discharge or other release of Hazardous Substances for which no permits are
required and which are not otherwise regulated under applicable Environmental Laws.
Further, notwithstanding anything to the contrary herein contained, Permitted Hazardous Substance
Use will not include any use of the Property (including as a landfill, incinerator or other waste
disposal facility) in a manner that requires a treatment, storage or disposal permit under the
Resource Conservation and Recovery Act of 1976, as amended by the Used Oil
Recycling Act of 1980, the Solid Waste Disposal Act Amendments of 1980, and the Hazardous and Solid Waste Amendments of
1984.
“Permitted Hazardous Substances” means Hazardous Substances used and reasonably required for
the use and operation of the Property by LRC and its permitted subtenants and assigns for the
purposes expressly permitted by subparagraph 2(A) of the Lease, in either case in
compliance with all Environmental Laws and with due care given the nature of the Hazardous
Substances involved. Without limiting the generality of the foregoing, Permitted Hazardous
Substances will include usual and customary office and janitorial products.
“Permitted Transfer” means any of the following:
(1) any assignment or conveyance by BNPPLC requested by LRC or required by any
Permitted Encumbrance, by the Purchase Agreement or by Applicable Laws;
(2) the creation or conveyance by BNPPLC of rights and interests in favor of
Participants pursuant to the Participation Agreement;
(3) any lien, security interest or assignment covering the Property or the Rents which
is granted by BNPPLC in favor of Participants or an agent appointed for them to secure their
rights under the Participation Agreement, and any subsequent assignment or conveyance made
to accomplish a foreclosure of such lien or security interest; provided, however, that in
each case such lien, security interest or assignment and such subsequent assignment or
conveyance made to accomplish a foreclosure must be expressly subject and subordinate to the
Operative Documents and all rights of LRC under the Operative Documents, including its
Purchase Option under the Purchase Agreement;
(4) any conveyance to BNPPLC’s Parent or to any Qualified Affiliate of BNPPLC of all or
any interest in or rights with respect to the Property or any portion thereof; provided,
however, that any such conveyance must be expressly subject and subordinate to the Operative
Documents and all rights of LRC under the Operative Documents, including its Purchase Option
under the Purchase Agreement; and
(5) any assignment or conveyance after a Designated Sale Date on which LRC does not
purchase or cause an Applicable Purchaser to purchase BNPPLC’s interest in the Property.
“Person” means an individual, a corporation, a partnership, a limited liability company, an
unincorporated organization, an association, a joint stock company, a joint venture, a trust,
an estate, a government or agency or political subdivision thereof or other entity, whether acting
in an individual, fiduciary or other capacity.
“Personal Property” has the meaning indicated on page 2 of the Lease.
“Plan” means any employee benefit or other plan established or maintained, or to which
contributions have been made, by LRC or any ERISA Affiliate during the preceding six years and
which is covered by Title IV of ERISA, including any Multiemployer Plan.
“Pledge Agreement” means the Pledge Agreement (Fremont/Building #2) dated as of the Effective
Date executed by LRC and BNPPLC, as such Pledge Agreement may be extended, supplemented, amended,
restated or otherwise modified from time to time in accordance with its terms.
“Prime Rate” means the prime interest rate or equivalent charged by BNPPLC’s Parent in
the United States of America as announced or published by BNPPLC’s Parent from time to time, which
need not be the lowest interest rate charged by BNPPLC’s Parent. If for any reason BNPPLC’s Parent
does not announce or publish a prime rate or equivalent, the prime rate or equivalent announced or
published by either CitiBank, N.A. or any New York branch or office of Credit Commercial de France
as selected by BNPPLC will be used to compute the rate describe in the preceding sentence. The
prime rate or equivalent announced or published by such bank need not be the lowest rate charged by
it. The Prime Rate may change from time to time after the Effective Date without notice to LRC as
of the effective time of each change in rates described in this definition.
“Prior Owner” means SELCO Service Corporation, an Ohio corporation doing business in
California as “Ohio SELCO Service Corporation”, which is at the request and direction of LRC
conveying the Property to BNPPLC contemporaneously with the execution of the Operative Documents.
“Property” means the Personal Property and the Real Property, collectively.
“Purchase Agreement” means the Agreement Regarding Purchase and Remarketing Options
(Fremont/Building #2) dated as of the Effective Date between BNPPLC and LRC, as such agreement may
be extended, supplemented, amended, restated or otherwise modified from time to time in accordance
with its terms.
“Purchase Option” has the meaning indicated in the Purchase Agreement.
“Qualified Affiliate” means any Person that, like BNPPLC, (i) is one hundred percent (100%)
owned, directly or indirectly, by BNPPLC’s Parent or any successor of such bank, (ii) can
make (and has in writing made) the same representations to LRC that BNPPLC has made in
subparagraphs 4(A) and 4(B) of the Closing Certificate (excluding subparagraph
4(B)(1) of the Closing Certificate), and (iii) is an entity organized under the laws of the
State of Delaware or another state within the United States of America.
“Qualified Income Payments” means: (A) Base Rent; (B) payments of the following made to BNPPLC
to satisfy the Lease: the Arrangement Fee, Administrative Fees, Increased Cost Charges and Capital
Adequacy Charges; (C) any interest paid to BNPPLC or any Participant pursuant to subparagraph
3(G) of the Lease; and (D) payments by BNPPLC to Participants required under the Participation
Agreements because of BNPPLC’s receipt of payments described in the preceding clauses (A) through
(C).
“Qualified Prepayments” means any payments received by BNPPLC from time to time during the
Term (1) under any property insurance policy as a result of damage to the Property, (2) as
compensation for any restriction placed upon the use or development of the Property or for the
condemnation of the Property or any portion thereof, (3) because of any judgment, decree or award
for injury or damage to the Property, or (4) under any title insurance policy or otherwise as a
result of any title defect or claimed title defect with respect to the Property. For the purposes
of determining the amount of any Qualified Prepayment and other amounts dependent upon Qualified
Prepayments (e.g., the Lease Balance and the Break Even Price):
(i) there will be deducted all expenses and costs of every kind, type and nature
(including taxes and Attorneys’ Fees) incurred by BNPPLC with respect to the collection or
application of such payments;
(ii) Qualified Prepayments will not include any payment to BNPPLC by any Participant or
Affiliate of BNPPLC that is made to compensate BNPPLC for the Participant’s or Affiliate’s
share of any Losses BNPPLC may incur as a result of any of the events described in the
preceding clauses (1) through (4);
(iii) Qualified Prepayments will not include any payments received by BNPPLC that
BNPPLC has paid or is obligated to pay to LRC for the repair, restoration or replacement of
the Property or that BNPPLC is holding as Escrowed Proceeds in accordance with Paragraph 9
of the Lease or other provisions of the Operative Documents; and
(iv) in no event will interest that accrues under the Purchase Agreement on a past due
Supplemental Payment constitute a Qualified Prepayment.
For purposes of computing the total Qualified Prepayments (and other amounts dependent upon
Qualified Prepayments, such as the Lease Balance and the Break Even Price) paid to or received by
BNPPLC as of any date, payments described in the preceding clauses (1) through (4) will be
considered as Escrowed Proceeds, not Qualified Prepayments, until they are actually applied as
Qualified Prepayments by BNPPLC as provided in Paragraph 9 of the Lease.
“Real Property” has the meaning indicated on page 2 of the Lease.
“Remedial Work” means any investigation, monitoring, clean-up, containment, remediation,
removal, payment of response costs, or restoration work and the preparation and implementation of
any closure or other required remedial plans that any governmental agency or political subdivision
requires or approves (or could reasonably be expected to require if it was aware of all relevant
circumstances concerning the Property), whether by judicial order or otherwise, because of the
presence of or suspected presence of Hazardous Substances in, on, under or about the Property or
because of any prior Hazardous Substance Activity.
“Rent” means Base Rent and Additional Rent. The term “Rent” does not include any Supplemental
Payment required by the Purchase Agreement.
“Responsible Financial Officer” means the chief financial officer, the controller, the
treasurer or the assistant treasurer of LRC.
“Royal Bank of Scotland” means The Royal Bank of Scotland Group plc or any of its Affiliates.
“Secured Spread” means forty basis points (40/100 of 1%).
“Subsidiary” means, with respect to any Person, any Affiliate of which at least a majority of
the securities or other ownership interests having ordinary voting power then exercisable for the
election of directors or other persons performing similar functions are at the time owned directly
or indirectly by such Person.
“Supplemental Payment” has the meaning indicated in the Purchase Agreement.
“Supplemental Payment Obligation” has the meaning indicated in the Purchase Agreement.
“Term” has the meaning indicated in subparagraph 1(A) of the Lease.
“Transaction Expenses” means costs incurred in connection with the preparation and negotiation
of the Operative Documents and related documents and the consummation of the transactions
contemplated therein.
“Unfunded Benefit Liabilities” means, with respect to any Plan, the amount (if any) by which
the present value of all benefit liabilities (within the meaning of Section 4001(a)(16) of
ERISA) under the Plan exceeds the market value of all Plan assets allocable to such benefit
liabilities, as determined on the most recent valuation date of the Plan and in accordance with the
provisions of ERISA for calculating the potential liability of LRC or any ERISA Affiliate under
Title IV of ERISA.
“Unsecured Spread” means one hundred basis points (1%).
ARTICLE II — SHARED PROVISIONS
The following provisions will apply to and govern the construction of this Agreement and the
other Operative Documents (including attachments), except to the extent (if any) a clear, contrary
intent is expressed herein or therein:
1. Notices. Any provision of (1) any of the Operative Documents, (2) any other
document which references this provision for purposes of establishing notice requirements (in this
provision, a “Related Document”), or (3) any Applicable Law, that makes reference to any required
payment from LRC to BNPPLC or that makes reference to the sending, mailing or delivery of any
notice or demand will be subject to the following provisions (except that any notice given by
BNPPLC to satisfy any statutory requirement, including any notice of eviction or foreclosure, will
be considered sufficient if it satisfies the statutory requirements applicable to the notice,
regardless of whether the notice or payment satisfies the following provisions):
(i) All Rent and other amounts required to be paid by LRC to BNPPLC must be paid to
BNPPLC in immediately available funds by wire transfer to:
Federal Reserve Bank of New York
ABA 000000000 BNP Paribas
/BNP/ BNP New York
/AC/ 0020-517000-070-78
/Ref/ Xxx Research Corporation/Building #2 Lease
ABA 000000000 BNP Paribas
/BNP/ BNP New York
/AC/ 0020-517000-070-78
/Ref/ Xxx Research Corporation/Building #2 Lease
or at such other place and in such other manner as BNPPLC may designate in a notice to LRC.
(ii) All notices, demands, approvals, consents and other communications to be made
under any Operative Document or Related Document to or by the parties thereto must, to be
effective for purposes thereof, be in writing. Notices, demands and other communications
required or permitted under any Operative Document or Related Document must be given by any
of the following means: (A) personal service (including local and overnight courier), with
proof of delivery or attempted delivery retained; (B) electronic communication, whether by
electronic mail or telecopying (if confirmed in writing sent by United States first class
mail, return receipt requested); or (C) registered or certified first class mail, return
receipt requested. Such addresses may be changed by notice to the other parties given in the
same manner as provided above. Any notice or other communication sent pursuant to clause
(A) or (B) hereof will be deemed received upon such personal service or upon dispatch by
electronic means, and, if sent pursuant to clause (C) will be deemed received five days
following deposit in the mail. Notices, demands and other communications required or
permitted by any Related Document are to be sent to the addresses set forth therein; and
notices, demands and other communications required or permitted by under any Operative
Document are to be sent to the following addresses (or in the case of communications to
Participants, at the addresses set forth in Schedule 1 to the Participation
Agreement):
Address of BNPPLC:
BNP Paribas Leasing Corporation
00000 Xxxxx Xxxxx, Xxxxx 000
Xxxxxx, Xxxxx 00000
Attention: Xxxxx X. Xxx, Managing Director
00000 Xxxxx Xxxxx, Xxxxx 000
Xxxxxx, Xxxxx 00000
Attention: Xxxxx X. Xxx, Managing Director
Telecopy: (000) 000-0000
Email: xxxxx.xxx@xxxxxxxx.xxxxxxxxxx.xxx
Email: xxxxx.xxx@xxxxxxxx.xxxxxxxxxx.xxx
Address of LRC:
Xxx Research Corporation
0000 Xxxxxxx Xxxxxxx
Xxxxxxx, Xxxxxxxxxx 00000
Attention: Xxxx XxXxxxx, Treasurer
0000 Xxxxxxx Xxxxxxx
Xxxxxxx, Xxxxxxxxxx 00000
Attention: Xxxx XxXxxxx, Treasurer
Telecopy: (000) 000-0000
Email: Xxxx.Xxxxxxx@xxxxx.xxx
Email: Xxxx.Xxxxxxx@xxxxx.xxx
with a copy to:
Xxx Research Corporation
0000 Xxxxxxx Xxxxxxx
Xxxxxxx, Xxxxxxxxxx 00000
Attention: Xxxxxx Xxxxxxxx, Director of General Legal Services
0000 Xxxxxxx Xxxxxxx
Xxxxxxx, Xxxxxxxxxx 00000
Attention: Xxxxxx Xxxxxxxx, Director of General Legal Services
Telecopy: (000) 000-0000
Email: Xxxxxx.Xxxxxxxx@xxxxx.xxx
Email: Xxxxxx.Xxxxxxxx@xxxxx.xxx
However, any party to any Operative Document or Related Document may change its address above or in
the Related Document, as applicable, by written notice to the other parties to such Operative
Document or Related Document given in accordance with this provision.
2. Severability. If any term or provision of any Operative Document
or the application thereof is to any extent held by a court of competent jurisdiction to be invalid
and unenforceable, the remainder of such document, or the application of such term or provision
other than to the extent to which it is invalid or unenforceable, will not be affected thereby.
3. No Merger. There will be no merger of the Lease or of the leasehold
estate created by the Lease or of the mortgage and security interest granted in subparagraph
4(C)(1) of the Lease with any other interest in the Property by reason of the fact that the same
person may acquire or hold, directly or indirectly, the Lease or the leasehold estate created
thereby or such mortgage and security interest and any other interest in the Property, unless all
Persons with an interest in the Property that would be adversely affected by any such merger
specifically agree in writing that such a merger has occurred. There will be no merger of the
Purchase Agreement or of the purchase options or obligations created by the Purchase Agreement with
any other interest in the Property by reason of the fact that the same person may acquire or hold,
directly or indirectly, the rights and options granted by the Purchase Agreement and any other
interest in the Property, unless all Persons with an interest in the Property that would be
adversely affected by any such merger specifically agree in writing that such a merger has
occurred.
4. No Implied Waiver. The failure of any party to any Operative Document to
insist at any time upon the strict performance of any covenant or agreement therein or to exercise
any option, right, power or remedy contained therein will not be construed as a waiver or a
relinquishment thereof for the future. The waiver of or redress for any breach of any Operative
Document by any party thereto will not prevent a similar subsequent act from constituting a
violation. Any express waiver of any provision of any Operative Document will affect only the term
or condition specified in such waiver and only for the time and in the manner specifically stated
therein. No waiver by any party to any Operative Document of any provision therein will be deemed
to have been made unless expressed in writing and signed by the party to be bound by the waiver. A
receipt by any party to any Operative Document of any payment thereunder (including the receipt by
BNPPLC of any Rent paid under the Lease) with knowledge of the
breach by
another party of any covenant or agreement contained in that or any other Operative Document
will not be deemed a waiver of such breach.
5. Entire and Only Agreements. The Operative Documents supersede any prior
negotiations and agreements between BNPPLC and LRC concerning the Property, and no amendment or
modification of any Operative Document will be binding or valid unless expressed in a writing
executed by all parties to such Operative Document.
6. Binding Effect. Except to the extent, if any, expressly provided to the
contrary in any Operative Document with respect to assignments thereof, all of the covenants,
agreements, terms and conditions to be observed and performed by the parties to the Operative
Documents will be applicable to and binding upon their respective successors and, to the extent
assignment is permitted thereunder, their respective assigns.
7. Time is of the Essence. Time is of the essence as to all
obligations created by the Operative Documents and as to all notices expressly required by the
Operative Documents.
8. Governing Law. Each Operative Document will be governed by and
construed in accordance with the laws of the State of California without regard to conflict or
choice of laws principles that might require the application of the laws of another jurisdiction.
9. Paragraph Headings. The paragraph and section headings contained in the
Operative Documents are for convenience only and will in no way enlarge or limit the scope or
meaning of the various and several provisions thereof.
10. Negotiated Documents. All parties to each Operative Document and their
counsel have reviewed and revised or requested revisions to such Operative Document, and the usual
rule of construction that any ambiguities are to be resolved against the drafting party will not
apply to the construction or interpretation of any Operative Documents or any amendments thereof.
11. Terms Not Expressly Defined in an Operative Document. As used in any
Operative Document, a capitalized term that is not defined therein or in this Agreement, but is
defined in another Operative Document, will have the meaning ascribed to it in the other Operative
Document.
12. Other Terms and References. Words of any gender used in each
Operative Document will be held and construed to include any other gender, and words in the
singular number will be held to include the plural and vice versa, unless the context otherwise
requires. References in any Operative Document to Paragraphs, subparagraphs, Sections, subsections
or other subdivisions refer to the corresponding Paragraphs, subparagraphs, Sections, subsections
or subdivisions of that Operative Document, unless specific reference is made to another document
or instrument. References in any Operative Document to any Schedule or Exhibit refer
to the corresponding Schedule or Exhibit attached to that Operative Document, which are made a part
thereof by such reference. All capitalized terms used in each Operative Document which refer to
other documents will be deemed to refer to such other documents as they may be renewed, extended,
supplemented, amended or otherwise modified from time to time, provided such documents are not
renewed, extended or modified in breach of any provision contained in the Operative Documents or,
in the case of any other document to which BNPPLC or LRC is a party or intended beneficiary,
without its consent. All accounting terms used but not specifically defined in any Operative
Document will be construed in accordance with GAAP. The words “this [Agreement]”, “herein”,
“hereof”, “hereby”, “hereunder” and words of similar import when used in each Operative Document
refer to that Operative Document as a whole and not to any particular subdivision unless expressly
so limited. The phrases “this Paragraph”, “this subparagraph”, “this Section”, “this subsection”
and similar phrases used in any Operative Document refer only to the Paragraph, subparagraph,
Section, subsection or other subdivision described in which the phrase occurs. As used in the
Operative Documents the word “or” is not exclusive, and the words “include”, “including” and
similar terms will be construed as if followed by “without limitation to”. Relative to the
determination of the beginning and end of any time period for which any payment may be required or
accrue, the word “from” means “from and including”, and the word “to” means “to but excluding”.
Similarly, relative to any such determination, the words “begin on” means “begin on and include”,
and the words “end on” means “end on but not include”. The rule of ejusdem generis will not be
applied to limit the generality of a term in any of the Operative Documents when followed by
specific examples. When used to qualify any representation or warranty made by a Person, the
phrases “to the knowledge of [such Person]” or “to the best knowledge of [such Person]” are
intended to mean only that such Person does not have knowledge of facts or circumstances which make
the representation or warranty false or misleading in some material respect; such phrases are not
intended to suggest that the Person does indeed know the representation or warranty is true.
13. Execution in Counterparts. To facilitate execution, each of the
Operative Documents may be executed in multiple identical counterparts. It will not be necessary
that the signature of, or on behalf of, each party, or that the signature of all persons required
to bind any party, appear on each counterpart. All counterparts, taken together, will collectively
constitute a single instrument. But it will not be necessary in making proof of any of the
Operative Documents to produce or account for more than a single counterpart containing the
respective signatures of, or on behalf of, each of the parties to such document. Any signature page
may be detached from one counterpart and then attached to a second counterpart with identical
provisions without impairing the legal effect of the signatures on the signature page. Signing and
sending a counterpart (or a signature page detached from the counterpart) by facsimile or other
electronic means to another party will have the same legal effect as signing and delivering an
original counterpart to the other party. A copy (including a copy produced by facsimile or other
electronic means) of any signature page that has been signed by or on behalf of a party to any of
the Operative Documents will be as effective as the original signature page for the purpose of
proving such party’s agreement to be bound.
14. Not a Partnership, Etc. Nothing in any Operative Document is intended to
create any partnership, joint venture, or other joint enterprise between BNPPLC and LRC.
15. No Fiduciary Relationship Intended. Neither the execution of the
Operative Documents or other documents referenced in this Agreement nor the administration thereof
by BNPPLC will create any fiduciary obligations of BNPPLC or any other Interested Party to LRC.
Moreover, BNPPLC and LRC disclaim any intent to create any fiduciary or special relationship
between themselves under or by reason of the Operative Documents or the transactions described
therein or any other documents or agreements referenced therein.
[The signature pages follow.]
IN WITNESS WHEREOF, this Common Definitions and Provisions Agreement (Fremont/Building #2) is
executed to be effective as of December 21, 2007.
BNP PARIBAS LEASING CORPORATION, a Delaware corporation |
||||
By: | /s/ Xxxxx X. Xxx | |||
Xxxxx X. Xxx, Managing Director | ||||
[Continuation of signature pages for Common Definitions and Provisions Agreement (Fremont/Building
#2) dated as of December 21, 2007]
XXX RESEARCH CORPORATION, a Delaware corporation |
||||
By: | /s/ Xxxx XxXxxxx | |||
Xxxx XxXxxxx, Treasurer | ||||
Annex 1
Notice of LIBOR Election
[Date]
BNP Paribas Leasing Corporation
00000 Xxxxx Xxxxx, Xxxxx 000
Xxxxxx, Xxxxx 00000
Attention: Xxxxx X. Xxx, Managing Director
00000 Xxxxx Xxxxx, Xxxxx 000
Xxxxxx, Xxxxx 00000
Attention: Xxxxx X. Xxx, Managing Director
Gentlemen:
Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Common Definitions and Provisions Agreement (Fremont/Building #2) dated as of December 21,
2007, between you, BNP Paribas Leasing Corporation, and the undersigned, Xxx Research Corporation
(the “Common Definitions and Provisions Agreement”). This letter constitutes notice of our
election to make the first Base Rent Period beginning on or after , 200___ subject to a
LIBOR Election of month(s).
We understand that until a different election becomes effective as provided in definition of
“LIBOR Election” in the Common Definitions and Provisions Agreement, all subsequent Base Rent
Periods will also be subject to the same LIBOR Election.
NOTE: YOU ARE ENTITLED TO DISREGARD THIS NOTICE IF THE NUMBER OF MONTHS SPECIFIED ABOVE IS
NOT A PERMITTED NUMBER UNDER THE DEFINITION OF “LIBOR ELECTION” IN THE COMMON DEFINITIONS AND
PROVISIONS AGREEMENT, OR IF THE DATE SPECIFIED ABOVE CONCERNING THE COMMENCEMENT OF THE LIBOR
ELECTION IS LESS THAN FIVE BUSINESS DAYS AFTER YOUR RECEIPT OF THIS NOTICE. HOWEVER, WE ASK THAT
YOU NOTIFY US IMMEDIATELY IF FOR ANY REASON YOU BELIEVE THIS NOTICE IS DEFECTIVE.
XXX RESEARCH CORPORATION, a Delaware corporation |
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By: | ||||
Name: | ||||
Title: |
Annex 2
Minimum Insurance Requirements
1. Definitions. For purposes of this Annex and the Agreement to which it is attached
AISO@ means Insurance Services Office.
2. Basic Understandings Regarding Insurance. LRC represents, acknowledges and agrees that:
The insurance coverages required herein represent minimum requirements of BNPPLC and other
Interested Parties and are not to be construed to void or limit LRC’s indemnities or other
agreements in the Agreement to which this Annex is attached or in any other Operative
Document, nor do the coverages required herein represent in any manner a determination of
the insurance coverages LRC should or should not maintain for its own protection.
3. Conditions Affecting All Insurance Required Herein.
A. | Maintenance of Insurance. All insurance coverage will be maintained in effect with limits not less than those set forth below at all times during the term of the Agreement to which this Annex is attached, and the policies under which such coverage is provided will contain no endorsements that limit or exclude coverages in any manner which is inconsistent with these requirements. | ||
B. | Status and Rating of Insurance Company. All insurance coverage will be written through insurance companies admitted to do business in the State of California and rated upon each renewal no less than A-: VII in the then most current edition of A. M. Best’s Key Rating Guide. | ||
C. | Limits of Liability. The limits of liability may be provided by a single policy of insurance or by a combination of primary and umbrella/excess policies, but in no event will the total limits of liability available for any one occurrence or accident be less than the amount required herein. | ||
D. | Claims Against Aggregate. BNPPLC must be notified in writing by LRC at BNPPLC’s address set forth herein immediately upon knowledge of possible damage claims that might cause a reduction below seventy-five percent (75%) of any aggregate limit of any policy required herein. |
Annex 2 — Page 1
E. | Notice of Cancellation, Nonrenewal, or Material Reduction in Coverage. LRC will not cancel, fail to renew, or make or permit any material reduction in any of the policies or certificates described herein without the prior written consent of BNPPLC. | ||
All insurance policies under which BNPPLC is required to be an additional insured or loss payee must include the following express provision or words of like effect: |
In the event of cancellation, non-renewal or material reduction in coverage affecting the [the additional insured/loss payee], thirty days’ prior written notice will be given to the [the additional insured/loss payee]. |
F. | Additional Insured Status. Additional insured status will be provided in favor of BNPPLC and other Interested Parties on all insurance required herein except workers’ compensation and employer’s liability. Additional insured status on the general liability insurance will be provided by a form of policy endorsement that does not limit the coverage provided thereunder to BNPPLC (or any party required by the Operative Documents to be an additional insured) by reason of its negligent acts or omissions (sole or otherwise) on or about the Property or by reason of other insurance available to it. Further, such endorsement must not limit coverage in favor of any additional insured to claims for which a primary insured has agreed to indemnify the additional insured. | ||
G. | Waiver of Subrogation. All insurance coverage carried by LRC with respect to the Property, whether required herein or not, will provide a waiver of subrogation in favor of BNPPLC and other Interested Parties in regard to all occurrences on or about the Property. | ||
H. | Primary Liability. All insurance coverage required herein will be primary to all other insurance available to BNPPLC and other Interested Parties, collectively or individually, with BNPPLC and other Interested Parties’ insurance being excess, secondary and non-contributing. Where necessary, coverage will be endorsed to provide such primary liability. | ||
I. | Deductible/Retention. No insurance required herein will contain a deductible or self-insured retention in excess of the amounts outlined in Part 7.E below, unless BNPPLC has given its prior written approval of a higher deductible or self-insured retention. All deductibles and/or retentions will be paid by, assumed by, for the account of, and at LRC’s sole risk. |
Annex 2 — Page 2
4. Commercial General Liability Insurance.
A. | Coverage: Commercial general liability insurance will cover liability arising from any occurrence on or about the Land or from any operations conducted on or about the Land, including but not limited to tort liability assumed under any of the Operative Documents. Further, defense will be provided as an additional benefit and not included within the limit of liability. | ||
B. | Form: Commercial General Liability Occurrence form (ISO CG 0001 dated 12 04, or an equivalent substitute form providing the same or greater coverage, and in any case written to provide primary coverage to BNPPLC as provided in Part 3.H. above). | ||
C. | Amount of Insurance: Coverage will be provided with limits of not less than: |
i. | Each Occurrence Limit | $ | 1,000,000 | ||
ii. | General Aggregate Limit | $ | 2,000,000 | ||
iii. | Product-Completed Operations Aggregate Limit | $ | 2,000,000 | ||
iv. | Personal and Advertising Injury Limit | $ | 1,000,000 |
D. | Required Endorsements: |
i. | Additional Insured. | status as required in 3.F., above. | ||||
ii. | [intentionally deleted] | |||||
iii. | [intentionally deleted] | |||||
iv. | Notice of Cancellation, Nonrenewal or | |||||
v. | Reduction in Coverage: [intentionally deleted] |
as required in 3.E., above. | ||||
vi. | Primary Liability: | as required in 3.H., above. | ||||
vii. | Waiver of Subrogation: | as required in 3.G., above. |
5. Workers’ Compensation/Employer’s Liability Insurance.
A. | Coverage: Such insurance will cover liability arising out of LRC’s employment of workers and anyone for whom LRC may be liable for workers’ compensation claims. | ||
B. | Amount of Insurance: Coverage will be provided with a limit of not less than: |
i. | Workers’ Compensation: | Statutory limits. | ||||
ii. | Employer’s Liability: | $1,000,000 each accident and each disease. |
Annex 2 — Page 3
6. Umbrella/Excess Liability Insurance.
A. Coverage: Such insurance will be excess over and be no less broad than all
coverages described above and will include a drop-down provision if commercially available.
B. Form: This policy will have the same inception and expiration dates as the
commercial general liability insurance required above or a nonconcurrency endorsement.
C. Amount of Insurance: Coverage will be provided with a limit of not less than
$20,000,000.
7. Property Insurance.
A Insureds: Property insurance protection will extend to BNPPLC as a Named Insured or
as the loss payee; and the policy will be modified if necessary so that the protection afforded to
BNPPLC not be reduced or impaired by acts or omissions of LRC or any other beneficiary or insured.
Such modification of the policy may be by endorsement comparable to a standard mortgagee clause;
not limited, however, by its terms to BNPPLC ‘s rights “as a mortgagee” and not conditioned upon
rights of the insurer to be subrogated to BNPPLC’s rights under the Operative Documents in the
event of a payment of insurance proceeds to BNPPLC.
B. Covered Property: Such insurance will cover all Improvements and any equipment
made or to be made a permanent part of the Property.
C. Form: Coverage will be in “special form” (with coverages at least comparable to
the forms of property insurance formerly called “all risk”) and will include theft and flood and
be provided on a completed-value basis with no co-insurance provision. No protective safeguard
warranty will be permitted. If required during any period of construction to prevent a loss or
impairment of coverage, coverage will be provided under a builder’s risk policy, with an
endorsement to the termination of coverage provision to permit occupancy of the covered property.
D. Amount of Insurance: Coverage will be provided in an amount equal at all times to
the full replacement value and debris removal exclusive of land, foundation, footings, excavations
and grading.
E. Deductibles. Deductibles will not exceed the following:
Annex 2 — Page 4
i. | All Risks of Direct Damage, Per Occurrence, except flood: | $500,000 | |||||||
ii. | Delayed Opening Waiting Period: | 15 Days | |||||||
iii. | Flood, Per Occurrence: | $500,000 or excess of NFIP if in Flood Zone A |
F. Termination of Coverage: The termination of coverage provision will be endorsed
to permit occupancy of the covered property being constructed. This insurance will be maintained
in effect, unless otherwise provided for the Operative Documents, until the earliest of the
following dates:
i. | the date on which all persons and organizations who are insureds under the policy agree that it is terminated; | ||
ii. | any termination or expiration of the Lease upon the Designated Sale Date, which is the date upon which final payment is expected under the Operative Documents; or | ||
iii. | the date on which the insurable interests in the Covered Property of all insureds other than LRC have ceased; |
G. Waiver of Subrogation: The waiver of subrogation provision will be endorsed as
follows:
Should a covered loss be subrogated, either in whole or in part, your rights to any recovery
will come first, and we will be entitled to a recovery only after you have been fully
compensated for the loss.
H. Required Endorsements and Minimum Sublimits. All property insurance policies must
include endorsements and minimum sublimits as necessary to provide coverages not significantly less
than the coverages maintained by LRC under policies covering other significant properties owned or
occupied by LRC. (Note: For purposes of comparing minimum sublimits required by the preceding
sentence, dollar amounts will be considered as percentages of the estimated value of the
improvements and other property insured. Thus, for example, LRC may, without violating this
requirement maintain a minimum sublimit applicable to the Improvements which is one-third the
amount of the same sublimit applicable to another building owned by LRC if the other building has
an estimated value that is three times higher than the estimated value of the Improvements.)
8. Evidence of Insurance.
A. | Provision of Evidence. Evidence of the insurance coverage required to be maintained by LRC, represented by certificates of insurance, evidence of insurance, and endorsements issued by the insurance company or its legal agent, |
Annex 2 — Page 5
must be furnished to BNPPLC prior to the Effective Date. New certificates of insurance, evidence of insurance, and endorsements will be provided to BNPPLC prior to or concurrent with the termination date of the current certificates of insurance, evidence of insurance, and endorsements. |
B. | Form: |
i | All property insurance required herein will be evidenced by XXXXX form 28, AEvidence of Property Insurance@, in each case completed and interlineated in a manner satisfactory to BNPPLC to show compliance with the requirements of this Annex. If requested by BNPPLC, copies of endorsements must be attached to such form. | ||
ii. | All liability insurance required herein will be evidenced by XXXXX form 25, ACertificate of Insurance@, in each case completed and interlineated in a manner satisfactory to BNPPLC to show compliance with the requirements of this Annex. If requested by BNPPLC, copies of endorsements must be attached to such form. |
C. | Specifications: Such certificates of insurance, evidence of insurance, and endorsements will specify: |
i. | BNPPLC as a certificate holder with correct mailing address as provided by BNPPLC. | ||
ii. | Insured’s name, which must match that on the Agreement to which this Annex is attached. | ||
iii. | Insurance companies affording each coverage, policy number of each coverage, policy dates of each coverage, all coverages and limits described herein, and signature of authorized representative of insurance company. | ||
iv. | Producer of the certificate with correct address and phone number listed. | ||
v. | Additional insured status required by this Annex. | ||
vi. | Aggregate limits (per project) required by this Annex. | ||
vii. | Amount of any deductibles and/or retentions. | ||
viii. | Cancellation, nonrenewal and reduction in coverage notification as required by this Annex. Additionally, the words Aendeavor to@ and Abut failure to mail such notice will impose no obligation or liability of any kind upon Company, it agents or representatives@ will be deleted from the cancellation provision of the XXXXX 25 certificate of insurance form; and changes to the same effect will be made in any other certificate or evidence of insurance provided to satisfy the requirements of this Annex. | ||
ix. | Primary status required by this Annex. |
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x. | Waivers of subrogation required by this Annex. |
Annex 2 — Page 6
D. | Failure to Obtain: Failure of BNPPLC to demand such certificate or other evidence of full compliance with these insurance requirements or failure of BNPPLC to identify a deficiency in the form of evidence that is provided will not be construed as a waiver of LRC’s obligation to maintain such insurance. |
E. | Certified Copies: LRC must provide to BNPPLC copies, certified as complete and correct by an authorized agent of the applicable insurer, of all insurance policies required herein within ten (10) days after receipt of a request for such copies from BNPPLC subject to availability from the insurance company. |
Annex 2 — Page 7