This excerpt taken from the SFLY 10-Q filed Oct 31, 2008.
Subordination; Mortgagee’s Rights.
(a) Tenant accepts this Lease subject and subordinate to any Mortgage now or in the future affecting the Premises, provided that Tenant’s right of possession of the Premises shall not be disturbed by the Mortgagee so long as Tenant is not in default under this Lease beyond the expiration of an applicable notice and cure period. This clause shall be self-operative, but within twenty (20) days after request, Tenant shall execute and deliver any further instruments confirming the subordination of this Lease and any further instruments of attornment that the Mortgagee may reasonably request and so long as the Mortgagee shall execute and deliver a non-disturbance agreement in the form reasonably requested by the Mortgagee. However, any Mortgagee may at any time subordinate its Mortgage to this Lease, without Tenant’s consent, by giving notice to Tenant, and this Lease shall then be deemed prior to such Mortgage without regard to their respective dates of execution and delivery; provided that such subordination shall not affect any Mortgagee’s rights with respect to condemnation awards, casualty insurance proceeds, intervening liens or any right which shall arise between the recording of such Mortgage and the execution of this Lease.
(b) No Mortgagee shall be (i) liable for any act or omission of a prior landlord, (ii) subject to any rental offsets or defenses against a prior landlord, (iii) bound by any amendment of this Lease made without its written consent, or (iv) bound by payment of Monthly Rent more than one month in advance or liable for any other funds paid by Tenant to Landlord unless such funds actually have been transferred to the Mortgagee by Landlord. Landlord represents and warrants that as of the Date of this Lease there is no Mortgage encumbering the Property. Landlord covenants that between the Date of this Lease and the Commencement Date, Landlord shall not encumber the Property with any Mortgage; provided, however, that Landlord shall have the right to so encumber the Property during such period so long as the Mortgagee agrees in writing that such Mortgagee shall be liable for Landlord’s obligations under the Lease to perform and complete the Tenant Improvements (as hereinafter defined) and to make available to Tenant the Tenant Improvements Allowance and Additional Allowance (each as hereinafter defined).
(c) The provisions of Sections 18 and 19 above notwithstanding, Landlord’s obligation to restore the Premises after a casualty or condemnation shall be subject to the consent and prior rights of any Mortgagee.