Preview
FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023
NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023
Exhibit “B”
FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023
NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023
LEASE AGREEMENT
"Lease"
This Lease Agreement (the or "Agreement") is made as of the 2022
___ day of May, by and
between Greenport/Hudson Associates, LLC, a New York limited a principal
liability company, having
place of business at 40 Office ("Landlord"
Parkway, Pittsford, NY 14534 or "Lessor") and Crazy Beer
World, Inc., a New York corporation, having a principal place of business at 70 Coons Troy, New
Road,
("Tenant"
York 12180 or "Lessee").
WiTNESSETH:
PREMISES:
For and in consideration of the rents and covenants herein stipulated to be paid and performed, the
Lessor hereby leases to the Lessee and the Lessee leases from the Lessor approximately 17,000
hereby
square feet of ground floor space located in the commercial owned by the Lessor known as the
building
"Plaza"
Greenport Hudson Plaza (the or "Shopping Center") located at 300 Fairview Avenue, Hudson,
("Premises"
New York 12534 or "Leased Premises"), and made a part hereof, together with the right to
use in common with others the parking lot as provided by the Lessor for the parking of automobiles by
customers and subject to the rules and regulations now or hereafter adopted by the Lessor.
TERM:
The Term shall be for eight (8) years running from the Lease Commencement Date (set forth below) with
four (4) five-year renewal options.
LICENSING CONTINGENCY:
Upon full execution of this Lease, Tenant shall have 120 days to move its existing New York State SLA
license to the Premises. (This also requiresTTB approval which is part of this 120-day period). The
reporting of the satisfaction of the date of this contingency will be promptly reported by Tenant to
Landlord when obtained.
LANDLORD'S LENDER APPROVAL:
This Lease shall be subject to and contingent on approval from Landlord's mortgage lender, expected
within a month of submission. The reporting of the satisfaction of this contingency will be reported
to Tenant when obtained. The 120 period in the Tenant's
promptly by Landlord day Licensing
above shall not begin until after the Landlord has obtained approval from Landlord's
Contingency
mortgage lender.
ANTICIPATED POSSESSION DATE:
Upon Tenant's receipt of Licensing Approval or waiver of the Licensing Contingency, but not sooner than
July 1,2022.
TENANT IMPROVEMENTS:
TENANT BUILDOUT PERIOD:
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FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023
NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023
Tenant shall have 120 days from possession to complete Tenants Improvements. Tenant shall, at its sole
cost and expense, perform all work, necessary for Tenant to ready the Leased Premises for the operation
of its business.
TENANT IMPROVEMENTS:
Tenant shall have the right to remodel the interior of the Premises without Landlord's approval for
projects under $80,000 in value and nonstructural in nature. For projects greater than $80,000, or
structural in nature, written plans must be presented with such
and approved in writing by Landlord
approval to not be unreasonably withheld. Any plans that affects the exterior of the building must be
approved by Landlord in writing to be granted at Landlor s absolute discretion. All Tenants Work shall
be in conformance with any and all applicable government regulations and codes and shall be
rules,
performed by contractors that are fully licensed and insured in the State of New York and the respective
municipality, and any improvements will not place a burden upon the Landlord.
Regardless of whether the anticipated budget for Tenants Work is less than or greater than $80,000, all
Tenants Work shall be performed and completed: (1) in a good, workmanlike, first-class and prompt
manner; (2) using new materials only; (3) by a contractor, and in accordance with the Plans approved in
writing by Landlord if over $80,000. (all Tenants Work's plans and invoices shall be presented to
Landlord for any dollar size renovation to confirm extent of renovation and for purposes of
understanding changes to space); (4) in accordance with all legal requirements (including, without
limitation, the obtaining of all necessary permits and licenses which shall be supplied to Landlord upon
request); (5) after obtaining a certificate of a pAv Worker's Compensation insurance from Tenants
contractors and delivering same to Lanew ·wn r equest; (6) after delivering to Landlord certificates of
insurance from Tenants contractors eviances mmprehensive general liability coverage in an amount
not less than $1,000,000 per occurrence and 52,000,000 aggregate naming Landlord and Tenant as
additional insured's thereunder and otherwise acceptable to Landlord in Landlor s reasonable
discretion, and (7) in compliance with such other reasonable requirements as Landlord might impose.
The Tenant shall indemnify and hold the Landlord harmless from all causes of action, suits, claims,
demands and judgements and expenses of any nature whatsoever caused solely by Tenant or Tenants
contractors, agents, employees, or any subcontractors or materialmen arising out of or in connection
with Tenants Work.
USE:
The Leased Premises are to be solely used by the Tenant for a Beer Universe establishment selling
alcoholic beverages, tobacco-based products and smoking accessories and the operation of a bottle
redemption center and/or as allowed under the Assignment/Sublease provision(s) of this Lease
Agreement. The Tenant, in the use, occupation, operation, possession and control of the Leased
Premises at its expense, comply with all requirements of all applicable laws, orders, ordinances,
shall,
rules and regulations of the federal, state, county and municipal authorities and with any
codes,
direction pursuant to law, of any public officer and with the requirements of any Board of Fire
Underwriters or similar body with respect to the use, occupation, operations, possession and controt of
Leased Premises, including, without limitation, at all time keeping the interior and exterior of the
the
Leased Premises in compliance with all laws, orders, ordinances, codes, rules and regulations.
LANDLORD'S WORK:
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FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023
NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023
Landlord to ensure that all mechanicals and buildings systems are in good, order at the
Tenant working time of
possession. Other than the above, the Premises to be delivered is"
in "as condition. Landlord
use best will
efforts efforts to work with Aldi's and Tenant to satisfy Tenant's desire for and all shelving
and any
racking units, refrigeration equipment and the compactor/bailer to remain Check-
in the Premises.
out lane furniture and 'bend-over'
equipment and freee
standing coolers to be removed.
RENT:
Lessee hereby covenants and agrees to pay the Lessor at the above address or at such other place as the
Lessor Rent"
may designate the "Base for said Premises during the Initial Term of eight
- (8) years and the
four 5 year Renewal Terms as follows:
Initial Eight Year Term:
Year 1: $0
Years 2 through 8: $51,000/year ($3.00 per sq. ft.) plus CAM, Real Estate and
Taxes, Insurance.
First Five-Year Renewal Option Term:
Years 9 through 13: $58,650 ($3.45 per sq. ft.) plus CAM, Real Estate Taxes, and insurance.
Second Five-Year Renewal Option Term:
Years 14 through 18; $67,490 ($3.97 pir m- plus
ft.) CAM, Real Estate Taxes,and Insurance.
Third and Fourth Five Year Renewal Option Terms:
The Base Rent during the third and fourth option periods shall be based on the then current
market rent by utilizing market comparable reports supplied by Landlord and Tenant. If mutual
agreement cannot be reached by the between Landlord
foregoing and Tenant, then each party
is to agree on a third-party appraiser or commercial broker to determine the current market
rate. In no event shall the Base Rent increase exceed 25% from the prior option period. At the
start of third and fourth option periods, the CAM expenses "reset"
shall to the then current CAM
rate for the Shopping Center.
Rent Commencement:
Payment of both the Base Rent and CAM, Real Estate Taxes,and Insurance expenses (collectively, the
"Rent") shall commence 365 days from the earlier of the either (i) expiration of the Tenant's Buildout
Period, or (ii) Tenant opening for business. Notice will be sent to memorialize rent commencement
date, to be confirmed by both parties.
Base Rent shall be paid in equal monthly instaliments on or before the first of each
day month, in
advance. If the Commencement Date shall be a day other than the first day of a month, then Base Rent
shall be pro-rated for the balance of such month on a per diem basis.
There shall be no offset, deduction or counterclaim with respect to Base Rent or any Additional
Rent,
except as otherwise specifically set forth in this Lease.
3
FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023
NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023
Rent is due on the first day of the month. Rent postmarked 5*
after the day of the month will be
charged interest at the rate of 2% a month until paid. Late Additional
charges are considered Rent.
Rent is to be paid by check, direct deposit or bill pay from Tenant's bank to be received by first of
month. Landlord will supply account information at Lease execution.
Additional Rent:
1. Common Area Maintenance Expenses Real Estate insurance and other share
("CAM"), Taxes,
prorations shall be based off of the approximate square footage of the Premises as a percentage of the
leasable area of the Shopping Center. The Premises is approximately 17,000 square feet. The leasable
space of the Shopping Center is approximately 118,336 sq. ft. The proportionate percentage is 14.37%.
2. The Tenant will pay its proportionate share of the total expenses for the Real Estate Taxes, CAM, and
Insurance for the year. Controllable CAM charges only shall not exceed three percent (3%) cumulative
annual increase. The following CAM expenses shall be considered non-controllable: snow plowing, Real
Estate Taxes, Insurance, sprinkler inspection/repair, common expenses dictated by municipal or building
Code, parking lot sweeping, striping, pathole, repairs and parking lot lights repair, and sidewalk repairs.
CAM'
Base year from which to calculate cumulative 'controllable will be previous calendar year-end.
3. Common Area Maintenance Expenses shall not include any (1) reserve fund contributions; (11) any
costs not attributable to the normal operation and maintenance of the Common Areas, such as debt
service on the Shopping Center, (111) interest en the unamortized portion of the original cost of
depreciable property or equipment or o:-damment thereof; or (iv) all capital expenditures, as defined in
accordance with the Internal Revenue Sewa n·sulations by amortized over their useful life in
accordance with generally accepted accounting principles, with only the depreciated portion for a given
year to be included in Common Area Maintenance for such year.
4. Property management charges of an amount no greater than 5% of the overall revenue of the Plaza
shall be part of CAM.
5. Tenant may audit Landlor s books and records pertaining to any costs included in the CAM, Real
Estate Taxes, and insurance, with any excess charges to be reimbursed to Tenant and if the amount
charged Tenant is 5% or more than the actual costs, then Landlord shall pay the cost of the audit.
6. Real Estate Taxes payable by Tenant include only taxes on the real property which is a part of the
integrated Shopping Center and shall not include any; (1) inheritance or succession taxes; (11) franchise
levied upon any transfer or sale of any interest in any entity which owns the
fees or taxes; (111) taxes
taxes on any interest in any entity which owns the Shopping Center; or (V)
Shopping Center; (iv)
or interest which may be imposed upon Landlord's delinquent payment of taxes. Landlord
penalties
use its best efforts and undertake all appropriate legal actions to keep all real estate
shall continually
assessed against the Plaza as low as reasonably possible. Tenant shall pay its proportionate share
taxes
of all costs related to such real estate tax proceedings.
UTILITIES:
for the Premises will be moved by Lessee to Lessee's name coincident with Tenant's possession
Utilities
Premises. For any utility bills (water bills at the time of this Lease writing) for which the
of the
or utility charges the Lessor for Lessee's usage and for which the Lessor then
municipality company
4
FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023
NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023
rebills the Lessee, the reimbursement to the Lessor will be due at the next monthly rent due date after
bill has been received by Lessee. These sums due will be considered Additional Rent.
REPAIRS AND MAINTENANCE:
Throughout the Lease, Landlord shall be responsible for maintaining and repairing (including replacing
when necessary) all exterior portions of the exterior (if
Shopping Center including the roof, walls, canopy
any), gutters, downspouts; all structural portions of the both interior and and all
building exterior;
repairs to exterior plumbing and electrical but not to include items such as doors, dock
lines, loading
lifts, and/or other operational components of premises. interior structural deficits should be brought to
the attention of Landlord by Tenant occupancy.
during
Landlord shall provide HVAC in good order with Tenant responsible for regular maintenance
working
and repairs serviced by a licensed technician. Maintenance to be conducted semiannually, with record
of same forwarded to Landlord upon request. If regular maintenance is not confirmed within a month
after Landlord request for documentation of maintenance and servicing reports, model
showing
number, serial number and work done in each instance, Landlord may order service and rebill tenant
with a 10% surcharge until such time as new Tenant contract for this service is confirmed. Landlord
responsible for the first instance of any necessary unit replacements to the HVAC system(s), so long as
the replacement is not a result of Tenant's failure to maintain or a result of Tenant-made modifications
to the HVAC system. Any future HVAC replacements after the initial replacement(s), shall be the
responsibility of Tenant.
The Lessee shall keep the Leased Premises dean, neat, and in good order and shall be responsible for
any and all repairs to the Leased Premkemi tM H×tures and equipment therein, including but not
limited to the repair and maintenance & ri 9Rsmbing, heating, gas, sprinkler, ventilation, and electric
fixtures and equipment and doors, whkh repairs shall be made in quality and class equal to the original
work. Tenant will be responsible for any replacements related to the lighting inside the Premises,
including ballasts and bulbs and any interior improvements, or business specific requirements, required
to conform to building codes.
The Lessee will be responsible for putting in place any system or effort required to ensure that smells
from bottle redemption activities, pests or any other by-product or consequence from this line of
business does not negatively impact other Plaza's tenants or customers or put an additional burden on
Plaza maintenance.
The Lessee shall replace all damaged or broken plate glass and other glass promptly with glass of equal
with that broken and shall keep all plate glass in the Leased Premises.
quality
Upon expiration or other termination of this Lease, the Lessee shall remove all personal property of the
Lessee and shall quit and surrender to the Lessor the Leased Premises, broom clean, in good order and
wear expected. Lessee will remove any equipment on the Premises including
condition, ordinary
refrigeration equipment at Lessor's request and repair any damage to structure from this removal.
EXTERIOR IVIAINTENANCE AND SIGNS:
The Lessor shall make available common areas such as parking areas, landscaped and planted areas. The
Lessor shall operate, manage, repair, and maintain these common areas for their intended purposes and
S
FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023
NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023
shall keep the parking areas and landscaped areas in a neat and condition the removal
orderly including
of snow, ice and rubbish from these areas and shall the area in repair and furnish lighting
keep parking
facilities to match current conditions.
Tenant shall have the right to install its standard signs on the Premises and a panel on the Shopping
Center's pylon sign in the position occupied per all municipal requirements and
currently by Aldi,
Landlord's written approval, which approval shall not be unreasonably withheld.
Tenant agrees to remove and update sign if Landlord undertakes cosmetic or structural Plaza update
and original tenant sign is eight from
years or older. Tenant agrees to remove any signs storefront,
pYion, or upon the on leaving Plaza, and repair surfaces as may be necessary after removal.
property
Lessee's rubbish shall be placed in spot is responsible for Code
designated by Lessor. Lessee meeting
requirements and covering costs as concerns garbage and storage, including enclosures as
pick-up
required. Tenant to keep back well area that services only their Premises free of debris.
ENTRYWAYS:
It is the Lessee's responsibility to keep sidewalk in front of Leased Premises free of snow, ice and debris.
Trash receptacles or cigarette receptacles will be provided and maintained by Tenant at Landlord's
request. Landlord must approve product arid pluement of these receptacles.
INSURANCE:
Lessor agrees to carry adequate fire and extended coverage insurance on the building of which the
Leased Premises are a part. Lessee shall maintain and keep in force public liability insurance in the
amounts of $1,000,000.00 per occurrence, $2,000,000 per year and $100,000 for property damage or
other amounts as Landlord may reasonably require in the future. Tenant will make Landlord a specific
named insured on their liability policies with notice of coverage to Landlord
Preview
FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023 Exhibit “B” FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023 LEASE AGREEMENT "Lease" This Lease Agreement (the or "Agreement") is made as of the 2022 ___ day of May, by and between Greenport/Hudson Associates, LLC, a New York limited a principal liability company, having place of business at 40 Office ("Landlord" Parkway, Pittsford, NY 14534 or "Lessor") and Crazy Beer World, Inc., a New York corporation, having a principal place of business at 70 Coons Troy, New Road, ("Tenant" York 12180 or "Lessee"). WiTNESSETH: PREMISES: For and in consideration of the rents and covenants herein stipulated to be paid and performed, the Lessor hereby leases to the Lessee and the Lessee leases from the Lessor approximately 17,000 hereby square feet of ground floor space located in the commercial owned by the Lessor known as the building "Plaza" Greenport Hudson Plaza (the or "Shopping Center") located at 300 Fairview Avenue, Hudson, ("Premises" New York 12534 or "Leased Premises"), and made a part hereof, together with the right to use in common with others the parking lot as provided by the Lessor for the parking of automobiles by customers and subject to the rules and regulations now or hereafter adopted by the Lessor. TERM: The Term shall be for eight (8) years running from the Lease Commencement Date (set forth below) with four (4) five-year renewal options. LICENSING CONTINGENCY: Upon full execution of this Lease, Tenant shall have 120 days to move its existing New York State SLA license to the Premises. (This also requiresTTB approval which is part of this 120-day period). The reporting of the satisfaction of the date of this contingency will be promptly reported by Tenant to Landlord when obtained. LANDLORD'S LENDER APPROVAL: This Lease shall be subject to and contingent on approval from Landlord's mortgage lender, expected within a month of submission. The reporting of the satisfaction of this contingency will be reported to Tenant when obtained. The 120 period in the Tenant's promptly by Landlord day Licensing above shall not begin until after the Landlord has obtained approval from Landlord's Contingency mortgage lender. ANTICIPATED POSSESSION DATE: Upon Tenant's receipt of Licensing Approval or waiver of the Licensing Contingency, but not sooner than July 1,2022. TENANT IMPROVEMENTS: TENANT BUILDOUT PERIOD: 1 FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023 Tenant shall have 120 days from possession to complete Tenants Improvements. Tenant shall, at its sole cost and expense, perform all work, necessary for Tenant to ready the Leased Premises for the operation of its business. TENANT IMPROVEMENTS: Tenant shall have the right to remodel the interior of the Premises without Landlord's approval for projects under $80,000 in value and nonstructural in nature. For projects greater than $80,000, or structural in nature, written plans must be presented with such and approved in writing by Landlord approval to not be unreasonably withheld. Any plans that affects the exterior of the building must be approved by Landlord in writing to be granted at Landlor s absolute discretion. All Tenants Work shall be in conformance with any and all applicable government regulations and codes and shall be rules, performed by contractors that are fully licensed and insured in the State of New York and the respective municipality, and any improvements will not place a burden upon the Landlord. Regardless of whether the anticipated budget for Tenants Work is less than or greater than $80,000, all Tenants Work shall be performed and completed: (1) in a good, workmanlike, first-class and prompt manner; (2) using new materials only; (3) by a contractor, and in accordance with the Plans approved in writing by Landlord if over $80,000. (all Tenants Work's plans and invoices shall be presented to Landlord for any dollar size renovation to confirm extent of renovation and for purposes of understanding changes to space); (4) in accordance with all legal requirements (including, without limitation, the obtaining of all necessary permits and licenses which shall be supplied to Landlord upon request); (5) after obtaining a certificate of a pAv Worker's Compensation insurance from Tenants contractors and delivering same to Lanew ·wn r equest; (6) after delivering to Landlord certificates of insurance from Tenants contractors eviances mmprehensive general liability coverage in an amount not less than $1,000,000 per occurrence and 52,000,000 aggregate naming Landlord and Tenant as additional insured's thereunder and otherwise acceptable to Landlord in Landlor s reasonable discretion, and (7) in compliance with such other reasonable requirements as Landlord might impose. The Tenant shall indemnify and hold the Landlord harmless from all causes of action, suits, claims, demands and judgements and expenses of any nature whatsoever caused solely by Tenant or Tenants contractors, agents, employees, or any subcontractors or materialmen arising out of or in connection with Tenants Work. USE: The Leased Premises are to be solely used by the Tenant for a Beer Universe establishment selling alcoholic beverages, tobacco-based products and smoking accessories and the operation of a bottle redemption center and/or as allowed under the Assignment/Sublease provision(s) of this Lease Agreement. The Tenant, in the use, occupation, operation, possession and control of the Leased Premises at its expense, comply with all requirements of all applicable laws, orders, ordinances, shall, rules and regulations of the federal, state, county and municipal authorities and with any codes, direction pursuant to law, of any public officer and with the requirements of any Board of Fire Underwriters or similar body with respect to the use, occupation, operations, possession and controt of Leased Premises, including, without limitation, at all time keeping the interior and exterior of the the Leased Premises in compliance with all laws, orders, ordinances, codes, rules and regulations. LANDLORD'S WORK: 2 FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023 Landlord to ensure that all mechanicals and buildings systems are in good, order at the Tenant working time of possession. Other than the above, the Premises to be delivered is" in "as condition. Landlord use best will efforts efforts to work with Aldi's and Tenant to satisfy Tenant's desire for and all shelving and any racking units, refrigeration equipment and the compactor/bailer to remain Check- in the Premises. out lane furniture and 'bend-over' equipment and freee standing coolers to be removed. RENT: Lessee hereby covenants and agrees to pay the Lessor at the above address or at such other place as the Lessor Rent" may designate the "Base for said Premises during the Initial Term of eight - (8) years and the four 5 year Renewal Terms as follows: Initial Eight Year Term: Year 1: $0 Years 2 through 8: $51,000/year ($3.00 per sq. ft.) plus CAM, Real Estate and Taxes, Insurance. First Five-Year Renewal Option Term: Years 9 through 13: $58,650 ($3.45 per sq. ft.) plus CAM, Real Estate Taxes, and insurance. Second Five-Year Renewal Option Term: Years 14 through 18; $67,490 ($3.97 pir m- plus ft.) CAM, Real Estate Taxes,and Insurance. Third and Fourth Five Year Renewal Option Terms: The Base Rent during the third and fourth option periods shall be based on the then current market rent by utilizing market comparable reports supplied by Landlord and Tenant. If mutual agreement cannot be reached by the between Landlord foregoing and Tenant, then each party is to agree on a third-party appraiser or commercial broker to determine the current market rate. In no event shall the Base Rent increase exceed 25% from the prior option period. At the start of third and fourth option periods, the CAM expenses "reset" shall to the then current CAM rate for the Shopping Center. Rent Commencement: Payment of both the Base Rent and CAM, Real Estate Taxes,and Insurance expenses (collectively, the "Rent") shall commence 365 days from the earlier of the either (i) expiration of the Tenant's Buildout Period, or (ii) Tenant opening for business. Notice will be sent to memorialize rent commencement date, to be confirmed by both parties. Base Rent shall be paid in equal monthly instaliments on or before the first of each day month, in advance. If the Commencement Date shall be a day other than the first day of a month, then Base Rent shall be pro-rated for the balance of such month on a per diem basis. There shall be no offset, deduction or counterclaim with respect to Base Rent or any Additional Rent, except as otherwise specifically set forth in this Lease. 3 FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023 Rent is due on the first day of the month. Rent postmarked 5* after the day of the month will be charged interest at the rate of 2% a month until paid. Late Additional charges are considered Rent. Rent is to be paid by check, direct deposit or bill pay from Tenant's bank to be received by first of month. Landlord will supply account information at Lease execution. Additional Rent: 1. Common Area Maintenance Expenses Real Estate insurance and other share ("CAM"), Taxes, prorations shall be based off of the approximate square footage of the Premises as a percentage of the leasable area of the Shopping Center. The Premises is approximately 17,000 square feet. The leasable space of the Shopping Center is approximately 118,336 sq. ft. The proportionate percentage is 14.37%. 2. The Tenant will pay its proportionate share of the total expenses for the Real Estate Taxes, CAM, and Insurance for the year. Controllable CAM charges only shall not exceed three percent (3%) cumulative annual increase. The following CAM expenses shall be considered non-controllable: snow plowing, Real Estate Taxes, Insurance, sprinkler inspection/repair, common expenses dictated by municipal or building Code, parking lot sweeping, striping, pathole, repairs and parking lot lights repair, and sidewalk repairs. CAM' Base year from which to calculate cumulative 'controllable will be previous calendar year-end. 3. Common Area Maintenance Expenses shall not include any (1) reserve fund contributions; (11) any costs not attributable to the normal operation and maintenance of the Common Areas, such as debt service on the Shopping Center, (111) interest en the unamortized portion of the original cost of depreciable property or equipment or o:-damment thereof; or (iv) all capital expenditures, as defined in accordance with the Internal Revenue Sewa n·sulations by amortized over their useful life in accordance with generally accepted accounting principles, with only the depreciated portion for a given year to be included in Common Area Maintenance for such year. 4. Property management charges of an amount no greater than 5% of the overall revenue of the Plaza shall be part of CAM. 5. Tenant may audit Landlor s books and records pertaining to any costs included in the CAM, Real Estate Taxes, and insurance, with any excess charges to be reimbursed to Tenant and if the amount charged Tenant is 5% or more than the actual costs, then Landlord shall pay the cost of the audit. 6. Real Estate Taxes payable by Tenant include only taxes on the real property which is a part of the integrated Shopping Center and shall not include any; (1) inheritance or succession taxes; (11) franchise levied upon any transfer or sale of any interest in any entity which owns the fees or taxes; (111) taxes taxes on any interest in any entity which owns the Shopping Center; or (V) Shopping Center; (iv) or interest which may be imposed upon Landlord's delinquent payment of taxes. Landlord penalties use its best efforts and undertake all appropriate legal actions to keep all real estate shall continually assessed against the Plaza as low as reasonably possible. Tenant shall pay its proportionate share taxes of all costs related to such real estate tax proceedings. UTILITIES: for the Premises will be moved by Lessee to Lessee's name coincident with Tenant's possession Utilities Premises. For any utility bills (water bills at the time of this Lease writing) for which the of the or utility charges the Lessor for Lessee's usage and for which the Lessor then municipality company 4 FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023 rebills the Lessee, the reimbursement to the Lessor will be due at the next monthly rent due date after bill has been received by Lessee. These sums due will be considered Additional Rent. REPAIRS AND MAINTENANCE: Throughout the Lease, Landlord shall be responsible for maintaining and repairing (including replacing when necessary) all exterior portions of the exterior (if Shopping Center including the roof, walls, canopy any), gutters, downspouts; all structural portions of the both interior and and all building exterior; repairs to exterior plumbing and electrical but not to include items such as doors, dock lines, loading lifts, and/or other operational components of premises. interior structural deficits should be brought to the attention of Landlord by Tenant occupancy. during Landlord shall provide HVAC in good order with Tenant responsible for regular maintenance working and repairs serviced by a licensed technician. Maintenance to be conducted semiannually, with record of same forwarded to Landlord upon request. If regular maintenance is not confirmed within a month after Landlord request for documentation of maintenance and servicing reports, model showing number, serial number and work done in each instance, Landlord may order service and rebill tenant with a 10% surcharge until such time as new Tenant contract for this service is confirmed. Landlord responsible for the first instance of any necessary unit replacements to the HVAC system(s), so long as the replacement is not a result of Tenant's failure to maintain or a result of Tenant-made modifications to the HVAC system. Any future HVAC replacements after the initial replacement(s), shall be the responsibility of Tenant. The Lessee shall keep the Leased Premises dean, neat, and in good order and shall be responsible for any and all repairs to the Leased Premkemi tM H×tures and equipment therein, including but not limited to the repair and maintenance & ri 9Rsmbing, heating, gas, sprinkler, ventilation, and electric fixtures and equipment and doors, whkh repairs shall be made in quality and class equal to the original work. Tenant will be responsible for any replacements related to the lighting inside the Premises, including ballasts and bulbs and any interior improvements, or business specific requirements, required to conform to building codes. The Lessee will be responsible for putting in place any system or effort required to ensure that smells from bottle redemption activities, pests or any other by-product or consequence from this line of business does not negatively impact other Plaza's tenants or customers or put an additional burden on Plaza maintenance. The Lessee shall replace all damaged or broken plate glass and other glass promptly with glass of equal with that broken and shall keep all plate glass in the Leased Premises. quality Upon expiration or other termination of this Lease, the Lessee shall remove all personal property of the Lessee and shall quit and surrender to the Lessor the Leased Premises, broom clean, in good order and wear expected. Lessee will remove any equipment on the Premises including condition, ordinary refrigeration equipment at Lessor's request and repair any damage to structure from this removal. EXTERIOR IVIAINTENANCE AND SIGNS: The Lessor shall make available common areas such as parking areas, landscaped and planted areas. The Lessor shall operate, manage, repair, and maintain these common areas for their intended purposes and S FILED: ROCKLAND COUNTY CLERK 02/10/2023 12:33 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/10/2023 shall keep the parking areas and landscaped areas in a neat and condition the removal orderly including of snow, ice and rubbish from these areas and shall the area in repair and furnish lighting keep parking facilities to match current conditions. Tenant shall have the right to install its standard signs on the Premises and a panel on the Shopping Center's pylon sign in the position occupied per all municipal requirements and currently by Aldi, Landlord's written approval, which approval shall not be unreasonably withheld. Tenant agrees to remove and update sign if Landlord undertakes cosmetic or structural Plaza update and original tenant sign is eight from years or older. Tenant agrees to remove any signs storefront, pYion, or upon the on leaving Plaza, and repair surfaces as may be necessary after removal. property Lessee's rubbish shall be placed in spot is responsible for Code designated by Lessor. Lessee meeting requirements and covering costs as concerns garbage and storage, including enclosures as pick-up required. Tenant to keep back well area that services only their Premises free of debris. ENTRYWAYS: It is the Lessee's responsibility to keep sidewalk in front of Leased Premises free of snow, ice and debris. Trash receptacles or cigarette receptacles will be provided and maintained by Tenant at Landlord's request. Landlord must approve product arid pluement of these receptacles. INSURANCE: Lessor agrees to carry adequate fire and extended coverage insurance on the building of which the Leased Premises are a part. Lessee shall maintain and keep in force public liability insurance in the amounts of $1,000,000.00 per occurrence, $2,000,000 per year and $100,000 for property damage or other amounts as Landlord may reasonably require in the future. Tenant will make Landlord a specific named insured on their liability policies with notice of coverage to Landlord