EXHIBIT C-3 FORM OF GROUND LEASE DEED OF LEASE between FAIRFAX COUNTY REDEVELOPMENT AND HOUSING AUTHORITY, as Landlord and ONE UNIVERSITY SENIOR, LLC as Tenant [__________], 20__ KH 567092.4 1 TABLE OF CONTENTS Page RECITALS ..................................................................................................................................... 1 ARTICLE 1 DEFINITIONS .......................................................................................................... 1 ARTICLE 2 PREMISES AND TERM OF LEASE ...................................................................... 9 Section 2.01. Premises. ............................................................................................................... 9 Section 2.02. Term ...................................................................................................................... 9 Section 2.03. Use. During the Term ........................................................................................... 9 Section 2.04. Ownership of the Improvements. .......................................................................... 9 Section 2.05. Landlord’s Right to Terminate.............................................................................. 9 ARTICLE 3 RENT ...................................................................................................................... 10 Section 3.01. Base Rent. ........................................................................................................... 10 Section 3.02. Proration of Impositions and Additional Costs. .................................................. 10 Section 3.03. Net Lease. ........................................................................................................... 10 Section 3.04. Base Rent and Additional Costs. ........................................................................ 10 Section 3.05. Reimbursement of Expenses. .............................................................................. 10 ARTICLE 4 IMPOSITIONS ....................................................................................................... 10 Section 4.01. Impositions. ......................................................................................................... 11 Section 4.02. Receipts. .............................................................................................................. 11 Section 4.03. Landlord’s Taxes. ............................................................................................... 11 Section 4.04. Impositions Beyond Term................................................................................... 11 Section 4.05. Tenant’s Contest. ................................................................................................ 12 Section 4.06. Contest Not Postpone Tenant’s Obligation......................................................... 12 Section 4.07. Landlord Cooperation in Proceedings. ............................................................... 13 Section 4.08. Tax Bills. ............................................................................................................. 13 ARTICLE 5 DEPOSITS FOR IMPOSITIONS ........................................................................... 13 Section 5.01. Impositions Subject to Deposit. .......................................................................... 13 Section 5.02. Deposit of Impositions. ....................................................................................... 13 Section 5.03. Rights of Mortgagee. .......................................................................................... 14 Section 5.04. Changes to Deposits to Impositions Account. .................................................... 14 Section 5.05. Landlord’s Rights During an Event of Default. .................................................. 14 Section 5.06. Interest on Impositions Account. ........................................................................ 15 ARTICLE 6 LATE CHARGES ................................................................................................... 15 KH 567092.4 i ARTICLE 7 INSURANCE .......................................................................................................... 15 Section 7.01. Required Insurance. ............................................................................................ 15 Section 7.02. Additional Insurance Requirements. ................................................................... 15 Section 7.03. Deposit of Insurance Premiums. ......................................................................... 16 Section 7.04. Delivery of Certificates and Declaration Pages. ................................................. 16 Section 7.05. Landlord’s Right to Procure Insurance. .............................................................. 17 ARTICLE 8 USE OF INSURANCE PROCEEDS ...................................................................... 17 Section 8.01. Tenant’s Obligation to Restore. .......................................................................... 17 Section 8.02. Restoration Approvals. ....................................................................................... 18 Section 8.03. Control of Proceeds............................................................................................. 19 Section 8.04. Conditions Precedent to Disbursements. ............................................................ 19 Section 8.05. Major Casualty. ................................................................................................... 21 Section 8.06. Deposit of Proceeds. ........................................................................................... 22 Section 8.07. No Abatement. .................................................................................................... 22 Section 8.08. As-Built Plans. .................................................................................................... 22 Section 8.09. Casualty Where Restoration is Impossible or at End of Term. ........................... 22 ARTICLE 9 CONDEMNATION ................................................................................................ 23 Section 9.01. Taking of All or Substantially All of Premises. .................................................. 23 Section 9.02. Date of Taking. ................................................................................................... 24 Section 9.03. Partial Taking: Tenant’s Obligation to Restore. ................................................. 24 Section 9.04. Condemnation Award. ........................................................................................ 24 Section 9.05. Temporary Taking. ............................................................................................. 25 Section 9.06. Sale in Lieu of Condemnation. ........................................................................... 26 Section 9.07. Participation in Proceedings. .............................................................................. 26 Section 9.08. Claims for Personal Property. ............................................................................. 26 ARTICLE 10 ASSIGNMENT, SUBLETTING, MORTGAGES, ETC. ..................................... 26 Section 10.01. Assignment; Subletting; Transfers. ................................................................... 26 Section 10.02. Consent Limited to Transaction. ....................................................................... 30 Section 10.03. Landlord’s Right of First Offer. ........................................................................ 30 Section 10.04. Leasehold Mortgages. ....................................................................................... 31 Section 10.05. Additional Mortgagee Requirements. ............................................................... 35 Section 10.06. New Lease. ........................................................................................................ 35 ARTICLE 11 INITIAL CONSTRUCTION OF THE PROJECT; RESTORATION; CAPITAL IMPROVEMENTS ....................................................................................................................... 36 KH 567092.4 ii Section 11.01. Initial Construction Work. ................................................................................ 36 Section 11.02. Restoration - Construction Work in Excess of Ten Percent (10%) of the Replacement Value or That Would Affect the Exterior of any Building. ................................ 36 Section 11.03. Standards of Construction and Maintenance during Lease Term. .................... 37 Section 11.04. Payment for Construction Work; Contested Matters. ....................................... 37 Section 11.05. Landlord’s Right to Use Field Personnel. ......................................................... 37 Section 11.06. Commencement and Completion of all Construction Work. ............................ 37 Section 11.07. Supervision of Architect. .................................................................................. 37 Section 11.08. Capital Improvements. ...................................................................................... 38 Section 11.09. Submissions to Landlord for Capital Improvements. ....................................... 38 Section 11.10. Construction Agreements.................................................................................. 39 Section 11.11. Demolition of the Project. ................................................................................