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<br />200605277 <br /> <br />2. Non-Disturbance and Attornment. If Lender or any other subsequent <br />purchaser of the Properties shall become the owner of the Properties by reason of the foreclosure <br />of the Security Instrument or the acceptance of a deed or assignment in lieu of foreclosure or by <br />reason of any other enforcement of the Security Instrument (Lender or such other purchaser <br />being hereinafter referred as "Purchaser"), provided no event of default exists under the Lease, <br />(a) Purchaser shall not (i) disturb Tenant's possession of the Properties nor (ii) name Tenant as a <br />party to any foreclosure or other proceeding to enforce the terms of the Security Instrument and <br />(b) any sale or other transfer of the Properties or of Borrower's interest in the Lease, pursuant to <br />foreclosure of the Security Instrument or the acceptance of a deed or assignment in lieu of <br />foreclosure or by reason of any other enforcement of the Security Instrument, will be subject and <br />subordinate to Tenant's possession and rights under the Lease; and (c) the Lease shall not be <br />terminated or affected thereby but shall continue in full force and effect as a direct lease between <br />Purchaser and Tenant upon all of the terms, covenants and conditions set forth in the Lease and <br />in that event, Tenant agrees to attorn to Purchaser and Purchaser by virtue of such acquisition of <br />the Properties shall be deemed to have agreed to accept such attornment, provided, however, that <br />Purchaser shall not be (i) liable for the failure of any prior landlord (any such prior landlord, <br />including Borrower and any successor landlord, being hereinafter referred to as a "Prior <br />Landlord") to perform any of its obligations under the Lease which have accrued prior to the <br />date on which Purchaser shall become the owner of the Properties; (ii) subject to any offsets, <br />defenses, abatements or counterclaims which shall have accrued in favor of Tenant against any <br />Prior Landlord prior to the date upon which Purchaser shall become the owner of the Properties; <br />(iii) liable for the return of rental security deposits, if any, paid by Tenant to any Prior Landlord <br />in accordance with the Lease unless such sums are actually received by Purchaser; (iv) bound by <br />any payment of rents, additional rents or other sums which Tenant may have paid more than one <br />(1) month in advance to any Prior Landlord unless such sums are actually received by Purchaser; <br />(v) bound by any modification or amendment of the Lease, or any waiver of the terms of the <br />Lease, made without Lender's written consent; or (vi) any consensual or negotiated surrender, <br />cancellation, or termination of the Lease, in whole or in part, agreed upon between Borrower and <br />Tenant, unless effected unilaterally by Tenant pursuant to the express terms of the Lease. <br />Notwithstanding anything to the contrary contained in this Agreement, in the case of clauses (i) <br />and (ii) herein, the foregoing shall not limit either (1) Tenant's right to exercise any offsets, <br />defenses, claims, reductions, deductions or abatements otherwise available to Tenant because of <br />events occurring before or after the date of attornment to the extent Lender has received notice <br />thereof and the opportunity to cure within the time periods set forth in this Agreement (it being <br />further agreed that offsets, reductions, deductions or abatements under the Lease that were <br />deducted by Tenant prior to the date upon which Purchaser succeeds to the interest of Prior <br />Landlord shall not be subject to challenge), or (2) Purchaser's liability for any defaults that <br />continue after the date of attornment that violate Purchaser's obligations as landlord under the <br />Lease. In the event that any liability of Purchaser does arise pursuant to this Agreement, such <br />liability shall be limited and restricted to Purchaser's interest in the Properties and shall in no <br />event exceed such interest. <br /> <br />3. Notices. All notices required or permitted hereunder shall be given and <br />become effective as provided in Loan Agreement. Notices to the Tenant shall be addressed as <br />follows: <br /> <br />ShopKo Stores Operating Co., LLC <br />3 <br /> <br />(ShopKo - Grand Island, NE (#38)) <br />PHll..1 680988-1 <br />