Preview | Lease Agreement |

LEASE AGREEMENT

BETWEEN

HCRI WILBURN GARDENS PROPERTIES, LLC

AND

EMERITUS CORPORATION

March 31, 2005

SECTION	TABLE OF CONTENTS	PAGE
ARTICLE 1:	LEASED PROPERTY, TERM AND DEFINITIONS	1
1.1	Leased Property	1
1.2	Term	1
1.3	Definitions	1
1.4	Landlord As Agent	10
ARTICLE 2:	RENT	10
2.1	Base Rent	10
2.2	Base Rent Adjustments	10
2.2.1	Annual Increase of Base Rent	10
2.2.2	Additional Landlord Payments	11
2.3	Additional Rent	11
2.4	Place of Payment of Rent	11
2.5	Net Lease	11
2.6	No Termination, Abatement, Etc.	11
2.7	Transaction Fee	12
ARTICLE 3:	IMPOSITIONS AND UTILITIES	12
3.1	Payment of Impositions	12
3.2	Definition of Impositions	13
3.3	Escrow of Impositions	13
3.4	Utilities	14
3.5	Discontinuance of Utilities	14
3.6	Business Expenses	14
3.7	Permitted Contests	14
ARTICLE 4:	INSURANCE	15
4.1	Property Insurance	15
4.2	Liability Insurance	16
4.3	Builders Risk Insurance	17
4.4	Insurance Requirements	17
4.5	Replacement Value	18
4.6	Blanket Policy	18
4.7	No Separate Insurance	18
4.8	Waiver of Subrogation	18
4.9	Mortgages	18
4.1	Escrows	19
ARTICLE 5:	INDEMNITY	19
5.1	Tenants Indemnification	19
5.1.1	Notice of Claim	19

SECTION	TABLE OF CONTENTS	PAGE
5.1.2	Survival of Covenants	20
5.1.3	Reimbursement of Expenses	20
5.2	Environmental Indemnity; Audits	20
5.3	Limitation of Landlords Liability	20
ARTICLE 6:	USE AND ACCEPTANCE OF PREMISES	21
6.1	Use of Leased Property	21
6.2	Acceptance of Leased Property	21
6.3	Conditions of Use and Occupancy	21
ARTICLE 7:	MAINTENANCE AND MECHANICS LIENS	22
7.1	Maintenance	22
7.2	Required Alterations	22
7.3	Mechanics Liens	23
7.4	Replacements of Fixtures and Landlords Personal Property	23
7.5	Lender Maintenance Reserve Escrow	23
ARTICLE 8:	DEFAULTS AND REMEDIES	24
8.1	Events of Default	24
8.2	Remedies	25
8.3	Right of Setoff	29
8.4	Performance of Tenants Covenants	29
8.5	Late Payment Charge	29
8.6	Default Rent	29
8.7	Attorneys Fees	29
8.8	Escrows and Application of Payments	30
8.9	Remedies Cumulative	30
8.10	Waivers	30
8.11	Obligations Under the Bankruptcy Code	30
ARTICLE 9:	DAMAGE AND DESTRUCTION	31
9.1	Notice of Casualty	31
9.2	Substantial Destruction	31
9.3	Partial Destruction	32
9.4	Restoration	32
9.5	Insufficient Proceeds	33
9.6	Not Trust Funds	33
9.7	Landlords Inspection	33
9.8	Landlords Costs	33
9.9	No Rent Abatement	33

SECTION	TABLE OF CONTENTS	PAGE
ARTICLE 10:	CONDEMNATION	33
10.1	Total Taking	33
10.2	Partial Taking	34
10.3	Condemnation Proceeds Not Trust Funds	34
ARTICLE 11:	TENANTS PROPERTY	34
11.1	Tenants Property	34
11.2	Requirements for Tenants Property	34
ARTICLE 12:	RENEWAL OPTIONS	36
12.1	Renewal Options	36
12.2	Effect of Renewal	36
ARTICLE 13:	RIGHT OF FIRST OPPORTUNITY	37
13.1	Right of First Opportunity	37
13.2	Fair Market Value	38
13.3	Closing	40
ARTICLE 14:	NEGATIVE COVENANTS	40
14.1	No Debt	40
14.2	No Liens	40
14.3	No Guaranties	40
14.4	No Transfer	40
14.5	No Dissolution	40
14.6	Subordination of Payments to Affiliates	40
14.7	Change of Location or Name	41
ARTICLE 15:	AFFIRMATIVE COVENANTS	41
15.1	Perform Obligations	41
15.2	Proceedings to Enjoin or Prevent Construction	41
15.3	Documents and Information	41
15.3.1	Furnish Documents	41
15.3.2	Furnish Information	42
15.3.3	Further Assurances and Information	42
15.3.4	Material Communications	42
15.3.5	Requirements for Financial Statements