Fill and Sign the Lease Agreement for Office Space for City Hall Mrsc Form

- 1 - TENANT FINISH AND LEASING AGREEMENT THIS TENANT FINISH AND LEASING AGREEMENT (this "Agreement") i s made and entered into as of the _____ day of ________________, 20___, by and between ______________________________, a _____________ corporation (the "Lender"), and ______________________________, (the "Borrower"). WITNESSETH: WHEREAS, the Lender has agreed to make a loan to the Borrower in the original principal amount of up to ___________________________________ and No/100 Dollars ($____________) (the "Loan"), as evidenced by that certain Promissory Note, dated as of the dat e hereof (the "Note"), made by the Borrower to the order of the Lender and secured, inter alia, by that certa in Deed of Trust, Security Agreement and Assignment of Rents and Leases, dated as of the date hereof (the "Deed of Trust"), from the Borrower for the benefit of the Lender and encumbering all tha t tract or parcel of land described on Exhibit A attached hereto and the improvements situated thereon, including the ____________________ story, _________ square foot building situated thereon (the "Project"); and WHEREAS, as a condition to making the Loan, the Lender has required that ______________________________________ and No/100 Dollars ($_____________) of the proceeds of the Loan be placed in a certificate of deposit pledged to the Lende r as security for the Loan pending (i) completion of certain tenant improvements to be made with respect to the Project (the "Improvements"), and (ii) the leasing of the Project, including the improvements, so that the rentals will be sufficient to pay debt service and expenses related to the Project. NOW THEREFORE, in consideration of the premises and other good valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parti es hereto agree as follows: 1. ________________________________ and No/100 Dollars ($_________) of the proceeds of the Loan (the "Fund") shall be used to purchase a federally-insured certi ficate of deposit issued by a financial institution selected by the Borrower and reasonably satisfactory to the Lender having a term of not longer than thirty (30) days. Such certificate of deposit shall be automatically renewable for subsequent thirty-day terms until the proceeds of the certificate of deposit are disbursed in accordance with the terms of this Agreement. The certificate of deposit shall be in the name of the Borrower but shall be pledged to and controlled by the Lender pending disbursem ent of the funds evidenced thereby in accordance with the terms of this Agreement. 2. (a) The Lender shall cause the entire principal balance of the Fund, plus any earnings thereon, to be paid to the Borrower upon the satisfaction of the following condit ions: (i) all of the Improvements shall have been completed in a form and manner reasonably sa tisfactory to the - 2 - Lender and the Borrower shall have furnished to the Lender evidence satisfactory to the Lender of the completion of the Improvements, and (ii) the leasing of the Project, including the Improvements, by the Borrower shall have been completed and the Borrower shall have furnished to t he Lender evidence satisfactory to the Lender of such leasing. The leasing shall be de emed complete when the income from the leases of the Project equals or exceeds the debt service and operational costs with respect to the Project. (b) If (i) a period of one (1) year has expired since the date of this Agreement and (x) the Improvements have not been completed in a form and manner reasonably sati sfactory to the Lender, (y) the Borrower has not furnished to the Lender evidence satisfactory to t he Lender of the completion of the Improvements, and/or (z) the Borrower has not furnished to the Lender evidence satisfactory to the Lender of the leasing of the Project or (ii) a defa ult has occurred under the Note or an Event of Default (as defined therein) has occurred under the Deed of T rust, then the Lender shall be entitled to apply the Fund to the Loan. 3. The Borrower and the Lender agree that the construction and leasing of the Improvements must be completed to the satisfaction of the Lender in the Lende r's sole discretion prior to there arising any obligation on the part of the Lender to cause the releas e of any of the Fund held in the certificate of deposit. The Lender may, in the Lender's sole dis cretion, but shall have no obligation to, request and permit the disbursement of money from the Fund prior to the ti me the construction and leasing of the Improvements are completed (an "Interim Disburseme nt"). The Lender's approval of an Interim Disbursement in one instance shall not obligate the Lender to request any other or additional Interim Disbursement under the same, similar or di fferent circumstances. 4. In addition to any other requirements that may be imposed by the Lender in the Lender's sole discretion as a condition to the disbursement of funds from the Fund, i t is expressly understood and agreed that the Borrower shall provide to the Lender copies of all lea ses with respect to the Project, including the Improvements, satisfactory to the Lender, which leases shall be fully subordinate to the lien of the Deed of Trust, shall not be in default, shall be with tenants reasonably satisfactory to the Lender and shall reflect total rentals suffic ient to pay all debt service and operational costs with respect to the Project. 5. If the principal balance of the Fund is paid to the Lender pursuant to Section 3(b) above, the Lender agrees with the Borrower to apply the amount so paid to the Lende r against the outstanding principal balance of the Loan and then against accrued and unpaid interes t and other sums due and owing in connection with the Loan, if any, and, after so doing, to recompute the payments due in connection with the Loan. The amount of the payments as recompute d shall be such in amount as would be sufficient to amortize the new principal balance of the Loan over a period of _________________________ years, less the number of months elapsed since the Loan was made at the rate of interest provided for in the Note, it being understood tha t such payments shall be made for the remainder of the ___________-year term of the Loan, with the final pa yment being in the amount of the outstanding principal balance of the Loan plus all acc rued and unpaid interest. Nothing contained in this Section 5 shall be deemed to limit in any way the right of the - 3 - Lender to accelerate the Loan upon the occurrence of a default under the Note or an Event of Default (as defined therein) under the Deed of Trust. 6. As security for the payment of all indebtedness of the Borrower to the Lender evidenced by the Note and any and all other indebtedness of the Borrower to the Lende r whether now existing or hereafter incurred or arising, the Borrower does hereby pledge, hypothecate, deliver, transfer, sell, assign and convey to Lender, and grant to Lender a security i nterest in, all of Borrower's right, title and interest in and to the Fund, all certificates of deposit in which the Fund is at any time invested and any and all extensions and renewals thereof and all proceeds thereof or of any part thereof (the "Collateral"). Upon the occurrence of a default under the Note or an Event of Default (as defined therein) under the Deed of Trust, the Lender shall be entitled to exercise under the rights, powers and remedies of a secured creditor under the Uniform Commercial Code of __________________________ or otherwise for the protection and enforcement of the Lender's rights with respect to the Collateral. 7. The validity, enforcement and construction of this Agreement shall be governed by the laws of the State of _________________________. 8. This Agreement shall inure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns of the parties hereto. 9. This Agreement may be executed in several counterparts, each of which shall constitute an original but which when taken together shall constitute but one a nd the same instrument. IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above written. LENDER __________________________________ By: _______________________________ Its __________________ BORROWER ___________________________________ By: ______________________________ Its ________________________ - 4 - EXHIBIT A Legal Description See attached copy.