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Exhibit
10.6
LEASE
AGREEMENT
By and Between
COLONNADE DEVELOPMENT
LLC,
Landlord,
- by -
SPECTRUM
PROPERTIES
MANAGEMENT
COMPANY,
Managing Agent,
- and -
VOYAGER PHARMACEUTICAL
CORP.,
Tenant.
The Colonnade
8540 Colonnade Center Drive,
Suite 407
Raleigh, North Carolina
27615
Dated:1/2/02
Table of Contents
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ARTICLE I - REFERENCE DATA
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1 |
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1.1
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References
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1 |
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1.2
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Exhibits
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4 |
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1.3
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Special Provisions
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4 |
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ARTICLE II - PREMISES AND
TERM
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5 |
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2.1
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Premises
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5 |
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2.2
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Term
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5 |
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ARTICLE III - CONSTRUCTION
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6 |
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3.1
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Tenant’s Interior
Construction
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6 |
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3.2
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Preparation of Premises for
Occupancy
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6 |
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3.3
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General Provisions Applicable to
Construction
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7 |
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3.4
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Representatives
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7 |
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ARTICLE IV - RENT
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7 |
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4.1
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Rent
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7 |
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4.2
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Operating Cost Escalation
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8 |
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4.3
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Payments
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10 |
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ARTICLE V - LANDLORD’S
COVENANTS
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11 |
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5.1
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Landlord’s Covenants During the
Term
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11 |
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5.2
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Interruptions
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11 |
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ARTICLE VI - TENANT’S
COVENANTS
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12 |
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6.1
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Tenant’s Covenants During
Term
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12 |
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ARTICLE VII - CASUALTY AND
TAKING
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18 |
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7.1
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Casualty to Premises
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18 |
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7.2
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Condemnation
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19 |
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ARTICLE VIII - RIGHTS OF
MORTGAGEE
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19 |
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8.1
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Rights of Mortgage Holders; Limitation
of Mortgagee’s Liability
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19 |
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8.2
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No Prepayment or Modification
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20 |
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8.3
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Subordination
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20 |
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8.4
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Mortgagee Protection
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20 |
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ARTICLE IX - DEFAULT
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21 |
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9.1
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Events of Default
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21 |
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9.2
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Landlord’s Rights After
Default
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21 |
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9.3
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Tenant’s Obligations After
Default
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22 |
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9.4
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General Provisions
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23 |
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ARTICLE X - MISCELLANEOUS
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24 |
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10.1
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Titles
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24 |
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10.2
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Notice of Lease
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24 |
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10.3
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Relocation
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24 |
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10.4
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Notice
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24 |
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10.5
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Bind and Inure
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24 |
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10.6
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No Surrender
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24 |
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10.7
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No Waiver, Etc.
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24 |
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10.8
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No Accord and Satisfaction
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25 |
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10.9
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Cumulative Remedies
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25 |
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10.10
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Partial Invalidity
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25 |
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10.11
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Landlord’s Right to
Cure
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25 |
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10.12
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Estoppel Certificates
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25 |
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10.13
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Waiver of Subrogation
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26 |
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10.14
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Brokerage
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26 |
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10.15
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Evidence of Authority
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26 |
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10.16
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Lease Review; Date of
Execution
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26 |
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10.17
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Choice of Law
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26 |
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10.18
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Time is of the Essence
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26 |
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10.19
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Limitation of Liability
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27 |
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10.20
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Landlord’s Consent or
Approval
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27 |
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ARTICLE XI - SECURITY DEPOSIT
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27 |
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11.1
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Security Deposit
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27 |
ii
DATE OF EXECUTION:
1/2/02
ARTICLE I - REFERENCE
DATA
1.1 References . Each
reference in this Lease to any of the following subjects shall be
construed to incorporate the data stated for that subject in this
Section 1.1 :
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| LANDLORD: |
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Colonnade
Development LLC |
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| MANAGEMENT
AGENT: |
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Spectrum
Properties Management Company |
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| LANDLORD’S & MANAGING AGENT’S
ADDRESS: |
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150 Fayetteville Street Mall
Suite 1300
Raleigh, North Carolina 27601
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| LANDLORD’S REPRESENTATIVE |
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Spectrum
Properties Management Company |
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| TENANT’S SPACE: |
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Suite 407,
being the area(s) outlined by broad lines on Exhibit B
attached |
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| BUILDING: |
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That certain
office building located at the Building Address set forth below and
commonly known as The Colonnade - Building One. |
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| BUILDING
ADDRESS: |
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8540 Colonnade Center Drive
Raleigh, North Carolina 27615
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| PROJECT: |
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Those
certain office buildings, together with all entrance drives,
parking areas, landscaping improvements and other improvements
located on that certain tract of land described on Exhibit A-1
attached hereto (the “Project Tract”) |
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| NAME &
ADDRESS FOR RENTAL REMITTANCE: |
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John Boylan
c/o Spectrum Properties
150 Fayetteville Street Mall
Suite 1300
Raleigh, North Carolina 27601
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| TENANT: |
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Voyager Pharmaceutical Corp.,
a Delaware corporation
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TENANT’S ADDRESS
(for notice and billing)
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8540 Colonnade Center Drive
Suite 407
Raleigh, N.C. 27615
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| TENANT’S REPRESENTATIVE: |
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Patrick S. Smith |
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| RENTABLE
FLOOR AREA OF TENANT’S SPACE: |
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Approximately 8,246 SF |
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| TOTAL
RENTABLE FLOOR AREA OF THE BUILDING: |
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126,925 SF |
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| SCHEDULED
COMMENCEMENT DATE: |
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March 1, 2002 |
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| SCHEDULED
EXPIRATION DATE: |
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February 28, 2007 |
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| RENT: |
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Base Rent (to be adjusted for actual area of Tenant’s
Space): |
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For the first lease year, beginning on the Commencement Date,
Base Rent shall be $22.00 per rentable square foot within
Tenant’s Space. For each lease year thereafter, upon each
successive anniversary of the Commencement Date, Base Rent shall
increase by the product of (i) three percent (3%) multiplied by
(ii) Base Rent less Landlord’s Operating Costs for Base Year
2002 expressed on a per square foot basis for the Building. For
example, if Tenant’s Space was measured to be 8,246 rentable
square feet, then Base Rent for the first lease year would be
calculated as follows: |
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Months
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$/SF
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Monthly
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Annually
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| 1 - 12 |
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$22.00 |
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$15,117.67 |
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$181,412.04 |
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For the second lease year, if Landlord’s Operating Costs
for Base Year 2002 were $5.40 per rentable square foot, Base Rent
would increase by $0.50 to $22.50 per rentable square foot on the
-first anniversary of the Commencement Date ($22.00 - $5.40 =
$16.60 x 0.03 = $0.50 + $22.00 = $22.50). Therefore, Base Rent for
the remainder of the term would be as follows: |
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Months
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$/SF
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Monthly
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Annually
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| 13 -
24 |
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$ |
22.50 |
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$ |
15,461.25 |
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$ |
185,535.00 |
| 25 -
36 |
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$ |
23.01 |
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$ |
15,811.71 |
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$ |
189,740.52 |
| 37 -
48 |
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$ |
23.54 |
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$ |
16,175.90 |
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$ |
194,110.80 |
| 49 -
60 |
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$ |
24.08 |
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$ |
16,546.97 |
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$ |
198,563.64 |
2
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Notwithstanding the foregoing example, and as more particularly
described in paragraph 2 of the Special Provisions contained in
Section 1.3 beginning on page 3-A, Tenant shall occupy and pay Base
Rent for only approximately 5,000 rentable square feet of
Tenant’s Space on the Commencement Date, and shall not pay
Base Rent for the remainder of Tenant’s Space until the
earlier of Tenant’s occupancy of any part of the remainder of
Tenant’s Space or the first (1st) anniversary of the
Commencement Date, at which time Tenant shall pay Base Rent for the
entire Tenant’s Space. Therefore, by way of illustration
only, if the portion of Tenant’s Space initially occupied by
Tenant measures 5,000 rentable square feet, and Tenant does not
occupy any portion of the remainder of Tenant’s Space until
the first (1st) anniversary of the Commencement Date, then Base
Rent for the first lease year would be as follows: |
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Months
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$/SF
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Monthly
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Annually
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| 1 - 12 |
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$22.00 |
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$9,166.67 |
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$110,000.04 |
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Additional Rent : Operating Cost Escalation pursuant to
Section 4.2 and other amounts designated in this Lease as
Additional Rent. |
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| BASE
YEAR: |
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Calendar
Year 2002. |
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| SECURITY
DEPOSIT: |
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Not
Applicable. See Special Provisions for Letter of Credit
Requirements. |
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| GUARANTOR(S): |
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None. |
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| PERMITTED
USES: |
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General
Office Use |
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| TENANT’S PUBLIC LIABILITY INSURANCE: |
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Commercial
General Liability insurance policies or Comprehensive General
Liability insurance policies with a Broad Form Comprehensive
Liability Endorsement including Contractual Insurance and with a
combined single limit of at least $1,000,000.00 per occurrence on a
per location basis and including: |
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| Bodily
Injury: |
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$1,000,000.00 |
| Property
Damage: |
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$1,000,000.00 |
3
1.2 Exhibits . The
following exhibits are attached to this Lease and made a part
hereof:
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| EXHIBIT
A |
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Legal
Description of the Lot |
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| EXHIBIT
A-1 |
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Legal
Description of the Project Tract |
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| EXHIBIT
B |
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Plan
Showing Tenant’s Space |
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| EXHIBIT
C |
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Landlord/Tenant Work Letter |
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| EXHIBIT
D |
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Landlord’s Services |
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| EXHIBIT
E |
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Rules and
Regulations |
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| EXHIBIT
F |
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Commencement/Expiration Date Agreement |
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| EXHIBIT
G |
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Architect’s Certificate |
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| EXHIBIT
H |
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Plan
Showing Temporary Space |
1.3 Special Provisions
. Any special terms or provisions of this Lease are attached
immediately following this page as page(s) 4-A. To the extent that
the Special Provisions conflict with any other teens of this Lease,
the Special Provisions shall control.
4
SPECIAL PROVISIONS
These Special Provisions are
hereby incorporated into this Lease and in the event that they
conflict with any provision of this Lease, these Special Provisions
shall control.
| 1. |
Tenant Improvements . Landlord will provide a turnkey
buildout based on mutually approved space plans as provided in the
Landlord/Tenant Work Letter attached as Exhibit C . Landlord
shall have no obligation to commence work until Tenant has provided
written evidence of the Funding as described in Paragraph 8 below,
and Tenant has provided the Letter of Credit described in Paragraph
6 below. |
| 2. |
Takedown of the Premises . Notwithstanding anything to
the contrary in this Lease, upon the Commencement Date, Tenant
shall occupy only approximately 5,000 rentable square feet within
the Premises, the dimensions of which shall be agreed upon by
Landlord and Tenant upon approval of the Plans (as defined in
Exhibit C ), and Tenant shall pay Rent only with respect to
such initial space as finally measured at the per square foot rates
stated in Article I. Tenant shall pay Rent on the remainder of the
Premises upon the earlier of (i) the date that Tenant occupies any
portion of the remainder of the Premises, or (ii) the first
(1 st ) anniversary of the Commencement
Date. |
| 3. |
Temporary Space for Tenant . Provided that Tenant is not
in default under any of the terms and conditions of this Lease,
Landlord shall provide a built-out suite located on the fourth
(4th) floor of the Building containing approximately 1,431 rentable
square feet of space as shown on Exhibit H (the “Temporary
Space”) in “as is” condition for use by Tenant
beginning on December 15, 2001 until the Commencement Date, at
which time Tenant shall vacate the Temporary Space in broom-clean
condition. All terms and conditions of this Lease concerning
Tenant’s obligations during occupancy of the Premises shall
apply during Tenant’s occupancy of the Temporary Space.
Tenant shall pay rent for the Temporary Space in the amount of
$2,623.50 per month, with the first payment due on December 15,
2001 (such first payment to be prorated to $1,311.75 to reflect a
partial month’s occupancy), and each successive payment shall
be due and payable in full on the first day of each calendar month
until the Commencement Date; provided, however, that upon delivery
of written evidence to Landlord that Tenant has received the
Funding (as described in Paragraph 8 below) and delivery of the
Letter of Credit to Landlord (as described in Paragraph 6 below),
Tenant shall not be required to pay rent on the Temporary Space,
and all Rent due under this Lease shall commence on the
Commencement Date with respect to the Premises. |
| 4. |
Renewal Option . Landlord agrees that, provided no event
of default by Tenant shall exist at the time of exercise, Tenant
shall have the right to renew this Lease for an additional period
of five (5) years following the Term upon the same teens and
conditions, except as hereinafter set forth, provided Tenant shall
have given Landlord at least twelve (12) months prior written
notice of exercise of this renewal option in advance of the end of
the Term. Rent during the renewal period shall be fair market rent
determined by Landlord by reference to the market for space in the
Building and also for space in comparable first-class office
buildings in the Raleigh-Durham area, and adjusted annually but in
no event shall Rent be less than the Rent paid during the last year
of the Term. |
4-A
| 5. |
Right of First Offer . |
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(a) |
So long as Tenant is not in default under the Lease, Landlord
hereby grants Tenant during the Term of this Lease a continuing
Right of First Offer to lease additional space located on the
fourth (4th) floor of the Building (“Fourth Floor
Space”) should any such space become available for leasing,
such right to be governed by the following provisions: |
(i) Landlord and Tenant
hereby acknowledge that the Fourth Floor Space may be subdivided
into separate suites (each a “Fourth Floor Suite”) and
leased to multiple tenants.
(ii) Tenant may exercise this
Right of First Offer only with respect to a Fourth Floor Suite if
it is to be vacated by its initial tenant if leased by
Landlord.
(iii) In the event that
Landlord wishes to offer any Fourth Floor Suite for lease, Landlord
shall notify Tenant of its availability and the terms upon which it
is available one hundred fifty (150) days in advance. Tenant then
shall have ten (10) business days to notify Landlord that Tenant
wishes to lease the Fourth Floor Suite on such terms and
conditions, whereupon the parties will enter into an amendment of
this Lease to include the Fourth Floor Space as part of the
Premises, which shall be conditioned in all respects upon the
vacation of the Floor Fourth Suite by its initial tenant. Tenant
shall be conclusively deemed to have declined to lease the Fourth
Floor Suite if Tenant shall fail to notify Landlord of its
intention to do so within ten (10) business days of
Landlord’s notice of the availability of the Fourth Floor
Suite, whereupon Tenant’s Right of First Offer shall be
terminated with respect to such Fourth Floor Suite without
prejudice to any other Fourth Floor Suite comprising the Fourth
Floor Space.
(iv) Notwithstanding anything
to the contrary herein, Tenant’s Right of First Offer shall
in all respects be subject and subordinate to all rights of
renewal, rights to expand, rights of first refusal and similar
rights of other tenants of the Building to whom such rights have
been granted prior to the date of this Lease.
| 6. |
Letter of
Credit/Net Worth Requirement . In lieu of a Security Deposit,
Tenant shall deliver a letter of credit in a form satisfactory to
Landlord within ten (10) business days of Landlord’s written
request in the amount of the sum of (i) the value of any
unamortized tenant improvements, (ii) the value of any unamortized
leasing commissions, as reasonably determined by Landlord, and
(iii) one year’s Rent, using a discount rate of eight and
one-half percent (8.5%) (the “Letter of Credit”). The
Letter of Credit shall either provide that it does not expire until
the end of the Term and any renewal of this Lease or, if it is for
less than the full Term of the Lease, shall be renewed by Tenant at
least 30 days prior to its expiration during the Term. The Letter
of Credit shall provide that it may be drawn down upon by Landlord
at any time Landlord delivers its site draft to the issuing
financial institution, and shall be issued by a financial
institution with a branch office located in Raleigh, North Carolina
at which a site draft
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4-B
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may be delivered and drawn
upon. If Landlord sells or conveys the Building or Premises, Tenant
shall, at Landlord’s request, cooperate in having the letter
of credit transferred to the purchaser. If the Letter of Credit is
ever drawn upon by Landlord pursuant to the terms of the Lease and
this paragraph, Tenant shall within ten (10) days thereafter cause
the Letter of Credit to be restored to its original
amount.
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During the Term of this
Lease, Tenant shall furnish Landlord with true and complete copies
of reviewed annual financial statements prepared by an outside firm
of certified public accountants and compiled quarterly financial
statements and, upon request by Landlord, any other financial
information or summaries that Tenant typically provides to its
lenders or shareholders accurately reflecting Tenant’s
financial condition. After the second anniversary of the
Commencement Date, the Letter of Credit will no longer be required
for the remainder of the Term, so long as Tenant has a net worth of
at least $500,000.00 and is not in default under the Lease.
Notwithstanding the foregoing, if Tenant’s net worth is less
than $500,000.00 at any time thereafter during the Term, Tenant
shall be required to deliver a new Letter of Credit on the terms
stated above in the amount of the above-described unamortized
tenant improvements and leasing commissions only.
| 7. |
Expansion . Should Tenant need additional space for
expansion, Landlord shall use all commercially reasonable efforts
to provide additional space contiguous to the Premises, or if
contiguous space is not available, elsewhere in the Building or The
Colonnade business park. |
| 8. |
Funding Contingency . Tenant acknowledges that Landlord
has entered into this Lease in reliance upon Tenant’s
expectation that it will receive funding of at least $10,000,000 in
a manner satisfactory to Landlord (the “Funding”) on or
before February 28, 2002. Landlord shall have the right to
terminate this Lease at any time prior to receipt of written
evidence of the Funding on thirty (30) days prior written notice to
Tenant. In the event that this Lease is terminated in the manner
described in this Paragraph 8, Tenant may continue to occupy the
Temporary Space on a month-to-month basis until Landlord provides
one month’s prior written notice that Tenant’s right to
occupy is terminated, whereupon Tenant shall vacate the Temporary
Space in broom-clean condition at the end of such one month
period. |
4-C
ARTICLE II - PREMISES AND
TERM
2.1 Premises .
Landlord hereby leases to Tenant, and Tenant leases from Landlord,
Tenant’s Space in the Building, excluding exterior faces of
exterior walls. Tenant’s Space, with such exclusion, is
hereinafter referred to as the “Premises”. Landlord and
Tenant acknowledge and agree that the rentable square footage of
the Premises has been determined, and the rentable square footage
of any additional space added to the Premises shall be determined,
by calculating the usable square feet of space in the Premises in
accordance with the “Standard Method of Measuring Floor Area
in Office Buildings,” provided by the Secretariat, Buildings
Owners and Managers Association International (ANSI Z65.1-1980),
approved July 31, 1980. The rentable square footage of the Premises
shall be determined by multiplying the usable square footage of the
Premises, as determined above, by a load factor determined by
Landlord.
Tenant shall have, as an
appurtenance to the Premises, the nonexclusive right to use in
common with others entitled thereto: (a) the common facilities
included in the Building or on the real property on which the
Building is located (the “Lot”), said Lot being
described more particularly in Exhibit A hereto, to the extent from
time to time designated by Landlord; (b) any entrance drives or
other private access drives located on the Project Tract which are
necessary for ingress and egress to and from the Building; and (c)
the building service fixtures and equipment serving the
Premises.
Landlord reserves the right
from time to time, without unreasonable interference with
Tenant’s use, (a) to install, repair, replace, use, maintain
and relocate for service to the Premises and to other parts of the
Building, or either, building service fixtures and equipment
wherever located in the Building and (b) to alter or relocate any
other common facility provided that substitutions are substantially
equivalent or better.
Landlord also reserves the
right to remeasure the Premises after the construction of the
Premises and adjust the amount of rentable square feet of space
contained therein for purposes of this Lease, including calculation
of Rent.
2.2 Term . To have and
to hold for a period (the “Term”) commencing when the
Premises are deemed ready for occupancy as provided in Section
3.2 or, if no work is to be performed by Landlord pursuant to
Article III, on the Scheduled Commencement Date (whichever of said
dates is appropriate being hereafter referred to as the
“Commencement Date”) and continuing until the Scheduled
Expiration Date, unless sooner terminated as provided herein below,
or if the Premises are not ready for occupancy by the Scheduled
Commencement Date, then continuing until five (5) years after the
Commencement Date (whichever of said expiration dates is
appropriate being hereinafter referred to as the “Expiration
Date”). In the event that the Commencement Date and
Expiration Date are different than, respectively, the Scheduled
Commencement Date and the Scheduled Expiration Date, Landlord and
Tenant agree to execute an agreement in the form of the
Commencement/Expiration Date Agreement which is attached hereto as
Exhibit F and by this reference made a part hereof certifying the
Commencement Date and the Expiration Date.
5
ARTICLE III -
CONSTRUCTION
3.1 Tenant’s
Interior Construction . Unless Landlord has expressly agreed in
this Lease to perform certain tenant improvement work in the
Premises, Tenant shall be deemed to have accepted the Premises on
the Commencement Date in their “AS IS”
condition.
Tenant’s interior
furnishings, ( i.e. , specification, coordination, supply
and installation of furniture, furnishings, telephones and movable
equipment) will be the responsibility of Tenant. All of
Tenant’s construction, installation of furnishings, and later
changes or additions shall be coordinated with any work being
performed by Landlord in such manner as to maintain harmonious
labor relations and not damage the Building or Lot or interfere
with Building operations. Except for installation of furnishings
and the installation of telephones which must be performed by the
local telephone company at Tenant’s direction and expense,
all such work shall be performed at Tenant’s expense by a
general contractor approved by Landlord. Tenant shall obtain
Landlord’s prior written approval of construction,
alterations, or additions requiring unusual expense to readapt the
Premises to normal office use on lease termination or increasing
the cost of construction, insurance or taxes on the Building or of
Landlord’s services called for by Section 5.1 . Such
readaptation will be made by Tenant prior to such termination
without expense to Landlord. Tenant shall also obtain
Landlord’s prior written approval of any alterations or
additions requested by Tenant which will delay completion of the
Premises and Landlord shall not be held accountable in any manner
for the delay(s). All changes and additions affixed to the Premises
shall be deemed part of the Building and the property of Landlord,
except such items designated by Landlord for removal at the time of
approval or otherwise designated by Landlord for removal upon
termination of this Lease, which items shall be removed by Tenant
upon termination of this Lease.
3.2 Preparation of
Premises for Occupancy . If Landlord has agreed to make any
improvement to the Premises, the provisions governing the planning,
construction, scope of work and terms of payment shall be set forth
in Exhibit C, which, if attached hereto, is incorporated herein by
this reference. If Landlord is obligated to perform construction
work pursuant to Exhibit C, Landlord agrees to use reasonable
efforts to have the Premises ready for occupancy on or before the
Scheduled Commencement Date, which shall, however, be extended for
a period equal to that of any delays due to governmental
regulations, unusual scarcity of, or inability to obtain, labor or
materials, labor difficulties, casualty or other causes reasonably
beyond Landlord’s control. The Premises shall be deemed ready
for occupancy on the earlier of:
| |
(a) |
the date on which Tenant occupies all or any part of the
Premises; or |
| |
(b) |
the date on which the tenant improvements, as specified in
Exhibit C, are substantially completed; |
provided, however, that if Landlord is
unable to complete construction due to delay in Tenant’s
compliance with the provisions of Section 3.1 of this Lease,
then the Premises shall be deemed ready for occupancy no later than
the Scheduled Commencement Date. If the Premises are not deemed
ready for occupancy on or before the date that is six (6) months
after Tenant provides written evidence to Landlord of the Funding
as described in the Special Provisions to this Lease (the
“Outside Delivery Date”) for whatever reason, other
than Tenant’s default, or causes over
6
which Landlord has no control (e.g.,
fire or other casualty and Acts of God or of the public enemy),
Tenant may elect to cancel this Lease at any time thereafter while
the Premises are not deemed ready for occupancy by giving written
notice to Landlord of such cancellation which shall be effective
when given, it being understood that said election shall be
Tenant’s sole remedy at law or in equity for Landlord’s
failure to have the Premises ready for occupancy.
Upon delivery of the Premises
by Landlord, Tenant shall be deemed to have accepted the Premises
in the then-existing condition except for any “punch
list” items (as that term is used in the construction
industry) noted by Tenant in writing to Landlord within the five
(5) day period following the date the Premises are deemed ready for
occupancy pursuant to any inspection of the Premises made by Tenant
within such five (5) day period. Landlord shall complete the punch
list items within a reasonable period following the expiration of
the five (5) day period. The existence of such punch list items
shall not postpone the Commencement Date of this Lease nor the
obligation of Tenant to pay Rent or any other charges due under
this Lease.
Landlord shall permit Tenant
access for installing equipment and furnishings in the Premises
prior to the Term when it can be done without material interference
with remaining work by Landlord.
3.3 General Provisions
Applicable to Construction . All construction work required or
permitted by this Lease, whether by Landlord or by Tenant, shall be
done in a good and workmanlike manner and in compliance with all
applicable laws and all lawful ordinances, regulations and orders
of governmental authorities and insurers of the Building. Either
party may inspect the work of the other at reasonable times and
shall promptly give written notice of observed defects. If Tenant
shall not have commenced to occupy the Premises after they are
deemed ready for occupancy as provided in Section 3.2 , a
certificate of completion by Landlord’s licensed architect or
registered engineer shall be conclusive evidence that Landlord has
performed all such obligations except for items stated in such
certificate to be incomplete or not in conformity with such
requirements.
3.4 Representatives .
Each party authorizes the other to rely in connection with their
respective rights and obligations under this Article III upon
approval and other actions on the party’s behalf by
Landlord’s Representative in the case of Landlord or
Tenant’s Representative in the case of Tenant or by any
person designated in substitution thereof or addition thereto by
notice to the party so relying.
ARTICLE IV - RENT
4.1 Rent . Starting on
the Commencement Date, Tenant agrees to pay, without any notice,
demand, offset or reduction whatsoever, to Landlord, the Rent in
equal monthly installments as set out in Section 1.1 in
advance on the first day of each calendar month included in the
Term; and for any portion of a calendar month at the beginning or
end of the Term, at the rate payable for such portion, in advance.
Rent shall consist of: (a) Base Rent (as it may increase pursuant
to Section 1.1 ) and (b) any Additional Rent identified in
this Lease, including but not limited to Operating Cost Escalation
as set forth in Section 4.2 and charges for additional
services under Section 5.1 .
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4.2 Operating Cost
Escalation .
4.2.1 Definition of
Landlord’s Operating Costs - “Landlord’s
Operating Costs” shall exclude the interest and amortization
on mortgages for the Building and Lot and the cost of special
services rendered to tenants (including Tenant) for which a special
charge is made, but include , without limitation: real
estate taxes on the Building and Lot; installments and interest on
assessments for public betterments or public improvements; expenses
of any proceedings for abatement of taxes and assessments with
respect to any fiscal year or fraction of a fiscal year; premiums
for insurance; compensation and all fringe benefits, worker’s
compensation insurance premiums and payroll taxes paid by Landlord
to, for or with respect to all persons engaged in the operating,
maintaining, or cleaning of the Building and Lot; steam, water,
sewer, electric, gas, telephone, and other utility charges for the
Building and Lot not billed directly to tenants by Landlord or the
utility; costs of building and cleaning supplies and equipment
(including rental); cost of maintenance, cleaning and repairs; cost
of snow plowing or removal, or both, and care of landscaping;
payments to independent contractors under service contracts for
cleaning, operating, managing, maintaining and repairing the
Building and Lot (which payments may be to affiliates of Landlord
or to Landlord’s representatives provided the same are at
reasonable rates consistent with the type of occupancy and the
services rendered); reasonable rental costs associated with
providing the managing agent space for an office in the Building or
in another building owned by Landlord or managed by
Landlord’s representative, which costs shall be prorated
accordingly if such office services building(s) in addition to the
Building; the cost of operating, maintaining and repairing the
common areas and facilities of the Building (such as, but not
limited to, snow plowing, landscaping, common area and street
lighting, repaving parking areas, security and management); the
Building’s proportionate share, as reasonably determined by
Landlord, of Landlord’s costs and expenses (as determined
consistent with the provisions of this Section 4.2.1 )
related to the operation, maintenance, repair and replacement of
any entrance drives, access drives, landscaping improvements and
other common area improvements on the Project Tract which do not
exclusively serve a particular Building; and all other reasonable
and necessary expenses paid in connection with the operation,
cleaning, maintenance and repair of the Building and Lot, or
either, and properly chargeable against income, it being agreed
that if Landlord installs a new or replacement capital item for the
purpose of reducing Landlord’s Operating Costs, the cost
thereof as reasonably amortized by Landlord with reasonable
interest on the unamortized amount shall be included in
Landlord’s Operating Costs.
In the event the average
occupancy level of the Building for the applicable calendar year
was not ninety-five (95%) or more of full occupancy, then the
Landlord’s Operating Costs for such year shall be adjusted
and apportioned among the tenants by the Landlord to reflect those
costs which would have occurred had the Building been ninety-five
percent (95%) occupied during such year.
The teen “real estate
taxes” as used above shall mean all taxes of every kind and
nature assessed by any governmental authority on the Lot, the
Building and related improvements, or both, which the Landlord
shall become obligated to pay because of or in connection with the
ownership, leasing and operation of the Lot, the Building and
related improvements, or both, subject to the following: There
shall be excluded from such taxes all income taxes, excess profits
taxes, excise taxes, franchise taxes, estate, succession,
inheritance and transfer taxes, provided,
8
however, that if at any time during the
Term the present system of ad valorem taxation of real property
shall be changed so that in lieu of the whole or any part of the ad
valorem tax on real property there shall be assessed on Landlord a
capital levy or other tax on the gross rents received with respect
to the Lot, Building and related improvements, or both, or a
federal, state, county, municipal or other local income, franchise,
excise or similar tax, assessment, levy or charge (distinct from
any now in effect) measured by or based, in whole or in part, upon
any such gross rents, then any and all of such taxes, assessments,
levies or charges, to the extent so measured or based, shall be
deemed to be included within the term “real estate
taxes”.
4.2.2 Statement of
Landlord’s Operating Costs - As soon as practicable
after the end of each calendar year ending during the Term and
after Lease termination, Landlord shall render a statement
(“Landlord’s Statement”) in reasonable detail and
according to generally accepted accounting principles certified by
Landlord’s Representative showing for the preceding calendar
year or fraction thereof, as the case may be, Landlord’s
Operating Costs.
4.2.3 Calculation of
Operating Cost Escalation - “Operating Cost
Escalation” shall be calculated as follows:
(Landlord’s Operating
Costs x Rentable Floor Area of Tenant’s Space - Rentable
Floor Area of the Building) - Tenant’s share of Operating
Costs during the Base Year, with all such amounts prorated
accordingly if any applicable period is a fraction of a calendar
year = Operating Cost Escalation. The Operating Cost Escalation
shall be prorated accordingly if the applicable period is a
fraction of a calendar year. In no event shall the Operating Cost
Escalation be less than zero.
In case of special services
which are not rendered to all areas on a comparable basis, the
proportion allocable to the Premises shall be the same proportion
which the Rentable Floor Area of Tenant’s Space bears to the
total rentable floor area to which such service is so rendered
(such latter area to be determined in the same manner as the Total
Rentable Floor Area of the Building).
4.2.4 Payment of
Operating Cost Escalation - Tenant shall pay as Additional
Rent the Operating Cost Escalation, if any, for each calendar year
or fraction thereof throughout the Term within thirty (30) days of
receipt of Landlord’s Statement reflecting the amount
due.
If during the Term, Landlord
estimates that Tenant will be obligated to pay Operating Cost
Escalation with respect to any calendar year, or fraction thereof,
then Tenant shall pay, as Additional Rent, on the first day of each
month of each such calendar year and each ensuing calendar year
thereafter, unless and until Landlord’s Statement for an
ensuing calendar year reflects that Tenant is not obligated to pay
Operating Cost Escalation, monthly payments equal to 1/12th of the
annualized Operating Cost Escalation for the ensuing calendar year
as such cost is estimated by Landlord. In the event Landlord, in
any calendar year, does not estimate the amount of Tenant’s
monthly Operating Cost Escalation payments until after one or more
installments of such payments are due, Tenant, pending receipt of
Landlord’s estimates, shall pay to Landlord each month the
monthly Operating Cost Escalation payment due during the previous
calendar year, and at such time as Tenant is advised in writing of
Landlord’s estimated Operating Cost Escalation for the then
current calendar year Tenant shall pay to Landlord, or Landlord
shall
9
credit to Tenant (as the case may be), a
sum equal to the difference between the total of the monthly
Operating Cost Escalation payments paid based on the rate for the
preceding calendar year and the estimated monthly Operating Cost
Escalation payments actually due during the then current calendar
year. In addition, all subsequent payments of monthly Operating
Cost Escalation during the then current calendar year shall be paid
using Landlord’s estimate of monthly Operating Cost
Escalation payments for the then current calendar year. When
Landlord’s Statement for each calendar year becomes available
the Operating Cost Escalation, if any, paid for that calendar year
or fraction thereof shall be adjusted retroactively such that
within thirty (30) days after Landlord’s Statement is
received by Tenant, Tenant will pay to Landlord, or Landlord will
credit to Tenant, the difference between the Operating Cost
Escalation which, according to Landlord’s Statement, Tenant
owed to Landlord for the preceding calendar year or fraction
thereof and the monthly Operating Cost Escalation payments made for
and during that year or fraction thereof.
Notwithstanding any other
provision of this Section 4.2 , if the Term expires or is
terminated as of a date other than the last day of a calendar year,
then for such fraction of a calendar year at the end of the Term,
Tenant’s last payment to Landlord under this Section 4.2
shall be made on the basis of Landlord’s best estimate of the
items which are includable in Landlord’s Statement and shall
be made on or before the later of (a) ten (10) days after Landlord
delivers such estimate to Tenant or (b) the last day of the Teen,
with an appropriate payment or refund to be made upon submission of
Landlord’s Statement.
4.2.5 Accounting
Period - Landlord shall have the right from time to time to
change the periods of accounting under this Section 4.2 to any
annual period other than a calendar year, and upon any such change
all items referred to in this Section shall be appropriately
apportioned. In all Landlord’s Statements rendered under this
Section, amounts for periods partially within and partially without
the accounting periods shall be appropriately apportioned, and any
items which are not determinable at the time of a Landlord’s
Statement shall be included therein on the basis of
Landlord’s reasonable estimate, and with respect thereto
Landlord shall render promptly after determination a supplemental
Landlord’s Statement, and appropriate adjustment shall be
made according thereto. All Landlord’s Statements shall be
prepared on an accrual basis of accounting.
Notwithstanding any other
provision of this Section 4.2, if the Term expires or is terminated
as of a date other than the last day of a calendar year, then for
such fraction of a calendar year at the end of the Term,
Tenant’s last payment to Landlord under this Section 4.2
shall be made on the basis of Landlord’s best estimate of the
items which are includable in Landlord’s Statement and shall
be made on or before the later of (a) ten (10) days after Landlord
delivers such estimate to Tenant or (b) the last day of the Teen,
with an appropriate payment or refund to be made upon submission of
Landlord’s Statement.
4.3 Payments . All
payments of Rent and other sums due hereunder shall be made to
Managing Agent at its address, or to such other person as Landlord
may from time to time designate. Since late payment of Rent or
other sums due hereunder from Tenant to Landlord will result in
administrative expense to Landlord, the extent of which would be
extremely difficult and economically impractical to ascertain,
Tenant agrees that if Rent or any other payment due hereunder from
Tenant remains unpaid for more than five (5) days after said amount
is due, such
10
payment shall be increased by a late
charge payable by Tenant equal to five percent (5 %) of the amount
of the delinquent payment. The amount of the late charges for any
month shall be computed on the aggregate amount of all delinquent
payments, including all accrued late charges, then outstanding. The
provisions of this Section in no way relieve Tenant of the
obligation to make all required payments when due, nor do such
provisions in any way affect Landlord’s remedies under this
Lease.
ARTICLE V - LANDLORD’S
COVENANTS
5.1 Landlord’s
Covenants During the Term . Landlord covenants during the
Term:
5.1.1 Building
Services - To furnish, through Managing Agent or other
independent contractors, the services listed in Exhibit
D;
5.1.2 Additional
Building Services - To furnish, through Managing Agent or
other independent contractors, reasonable additional Building
operation services upon reasonable advance request of Tenant at
equitable rates from time to time established by Landlord to be
paid by Tenant;
5.1.3 Repairs -
Except as otherwise provided in Article VII, to make such repairs
to the roof, exterior walls, floor slabs and common facilities of
the Building as may be necessary to keep them in serviceable
condition; such repairs to be made by Landlord within a reasonable
time from Landlord’s receiving written notice from Tenant of
the need for such repairs; and
5.1.4 Quiet
Enjoyment - That Landlord has the right to enter into this
Lease and that Tenant on paying the Rent and performing its
obligations hereunder shall peacefully and quietly have, hold and
enjoy the Premises throughout the Term without any manner of
hindrance or molestation from Landlord or anyone claiming under
Landlord, subject however to all the terms and provisions
hereof.
5.2 Interruptions .
Landlord shall not be liable to Tenant for any compensation or
reduction of Rent by reason of inconvenience or annoyance or for
loss of business arising from power losses or shortages or from the
necessity of Landlord’s entering the Premises for any of the
purposes authorized in this Lease, or for repairing the Premises or
any portion of the Building or Lot. In case Landlord is prevented
or delayed from making any repairs, alterations or improvements, or
furnishing any service or performing any other covenant or duty to
be performed on Landlord’s part, by reason of any cause
reasonably beyond Landlord’s control, Landlord shall not be
liable to Tenant therefor, nor, except as expressly otherwise
provided in Article VII, shall Tenant be entitled to any abatement
or reduction of Rent by reason thereof, nor shall the same give
rise to a claim in Tenant’s favor that such failure
constitutes actual or constructive, or total or partial, eviction
from the Premises.
Landlord reserves the right
to stop any service or utility system when necessary by reason of
accident or emergency or until necessary repairs have been
completed. Except in case of emergency repairs, Landlord will give
Tenant reasonable advance notice of any contemplated stoppage and
will use reasonable efforts to avoid unnecessary inconvenience to
Tenant by reason thereof.
11
ARTICLE VI - TENANT’S
COVENANTS
6.1 Tenant’s
Covenants During Term . Tenant covenants during the Term and
such further time as Tenant occupies any part of the
Premises:
6.1.1 Tenant’s
Payments - To pay when due (a) all Rent, late charges and
other sums due hereunder, (b) all taxes which may be imposed on
Tenant’s personal property in the Premises (including without
limitation, Tenant’s fixtures and equipment), regardless to
whomever assessed, (c) all charges by public utilities for
telephone and other utility services (including service inspections
therefor) rendered to the Premises not otherwise required hereunder
to be furnished by Landlord without charge and not consumed in
connection with any services required to be furnished by Landlord
without charge, and (d) as Additional Rent, all charges of Landlord
for services-rendered pursuant to Section 5.1.2
hereof;
6.1.2 Repairs and
Surrender of Premises - Except as otherwise provided in
Article VII and Section 5.1.3 , to keep the Premises in good
order, repair and condition, reasonable wear and tear only
excepted; and at the expiration or termination of this Lease
peaceably to surrender the Premises and all changes and additions
therein in as good order, repair and condition as they were when
received, reasonable wear and tear only excepted, first removing
all goods and effects of Tenant and any items, the removal of which
is required by agreement or specified herein to be removed at
Landlord’s election, and repairing all damage caused by such
removal and restoring the Premises and leaving them clean and
neat;
6.1.3 Occupancy and
Use - Continuously from the Commencement Date, to use and
occupy the Premises only for the Permitted Uses; and not to injure
or deface the Premises, Building, or Lot; and not to permit in the
Premises or common facilities (insofar as use of the common
facilities is in control of Tenant) any auction sale, nuisance, or
the emission from the Premises (or common facilities) of any
objectionable noise or odor; nor any use thereof which is improper,
offensive, contrary to law or ordinances, or liable to invalidate
or increase the premiums for any insurance on the Building or its
contents or liable to render necessary any alteration or addition
to the Building;
6.1.4 Rules and
Regulations - To comply with the Rules and Regulations set
forth in Exhibit E, as the same may be amended by Landlord from
time to time, and all other reasonable Rules and Regulations
hereafter made by Landlord, of which Tenant has been given notice,
for the care and use of the Building and Lot and their facilities
and approaches, it being understood that Landlord shall not be
liable to Tenant for the failure of other tenants of the Building
to conform to such Rules and Regulations;
6.1.5 Safety
Appliances - To keep the Premises equipped with all safety
appliances required by law or ordinance or any other regulation of
any public or private authority having jurisdiction over the
Premises (including insurance underwriters or rating bureaus)
because of any use made by Tenant and to procure all licenses and
permits so required because of such use and, if requested by
Landlord, to do any work so required because of such use, it being
understood that the foregoing provisions shall not be construed to
broaden in any way Tenant’s Permitted Uses;
12
6.1.6 Assignment and
Subletting - Not to assign this Lease, or sublease all or
any part of the Premises, or permit the use of the Premises by any
party other than Tenant, without the prior written consent of
Landlord. This prohibition includes, without limitation, (i) any
subletting or assignment which would otherwise occur by operation
of law, merger, consolidation, reorganization, transfer or other
change of Tenant’s corporate or proprietary structure; (ii)
an assignment or subletting to or by a receiver or trustee in any
Federal or State bankruptcy, insolvency, or other proceedings;
(iii) the sale, assignment or transfer of all or substantially all
of the assets of Tenant, with or without specific assignment of
this Lease; (iv) the change in control of a partnership; or (v)
conversion of Tenant to a limited liability entity. If Tenant
converts to a limited liability entity without obtaining the prior
written consent of Landlord: (i) the conversion shall be null and
void for purposes of the Lease, including the determination of all
obligations and liabilities of Tenant and its partners to Landlord;
(ii) all partners of Tenant immediately prior to its conversion to
a limited liability entity shall be fully liable, jointly and
severally, for obligations of Tenant accruing under the Lease
pre-conversion and post-conversion, and all members and other
equity holders in Tenant post-conversion shall be fully liable for
all obligations and liabilities of Tenant accruing under the Lease
after the date such members and other equity holders are admitted
to the limited liability entity as if such person or entity had
become a general partner in a partnership; and (iii) Landlord shall
have the option of declaring Tenant in default under the Lease.
When Tenant requests Landlord’s consent to an assignment or
sublease, it shall notify Landlord in writing of (i) the name and
address of the proposed assignee or subtenant; (ii) the nature and
character of the business of the proposed assignee or subtenant;
(iii) financial information including financial statements of the
proposed assignee or subtenant; and (iv) a copy of the proposed
sublet or assignment agreement. Tenant shall thereafter immediately
provide to Landlord any and all other information and documents
reasonably requested by Landlord in order to assist Landlord with
its consideration of Tenant’s request hereunder. Landlord
shall have the option (to be exercised within thirty (30) days from
the submission of Tenant’s request and receipt of all other
information requested hereunder) to cancel this Lease as it affects
the portion of the Premises to be subleased or assigned as of the
commencement date stated in the proposed sublease or
assignment.
If Landlord approves an
assignment or sublease as herein provided, Tenant shall pay to
Landlord, as Additional Rent due under this Lease, as applicable,
(i) in the case of a sublease, an overage amount equal to the
difference, if any, between the Rent allocable to that part of the
Premises affected by such sublease pursuant to this Lease and the
rent paid by the subtenant to Tenant, less any reasonable and
customary expenses incurred by the Tenant in connection with the
sublease which are approved by the Landlord in its sole and
absolute discretion, and (ii) in the case of an assignment, an
overage amount equal to the consideration, if any, received by
Tenant for such assignment. Such overage amounts shall be due and
payable by Tenant to Landlord within five (5) days of
Tenant’s receipt of payment from the subtenant or assignee.
Overage amounts in the case of a sublease shall be calculated and
adjusted (if necessary) on a lease year (or partial lease year)
basis, and there shall be no cumulative adjustment for the Term. No
consent to any assignment or sublease shall constitute a further
waiver of the provisions of this Section, and all subsequent
assignments or subleases may be made only with the prior written
consent of Landlord. An assignee of Tenant, at the option of
Landlord, shall become directly liable to Landlord for all
obligations of Tenant hereunder and shall assume all such
obligations in writing in a form satisfactory to Landlord in its
sole and absolute discretion, but no sublease or assignment by
Tenant shall relieve Tenant of any liability hereunder.
Any
13
assignment or sublease without
Landlord’s consent shall be void, and shall, at the option of
the Landlord, constitute a default under this Lease. In the event
that Tenant requests that Landlord consider a sublease or
assignment hereunder, Tenant shall pay (i) Landlord’s
reasonable fees, not to exceed Five Hundred and 00/100 Dollars
($500.00) per transaction, incurred in connection with the
consideration of such request, and (ii) all attorneys’ fees
and costs incurred by Landlord in connection with the consideration
of such request or such sublease or assignment. Notwithstanding any
term or provision herein to the contrary, Tenant shall not
advertise all or any part of the Premises for assignment,
subletting or other transfer at a rental rate lower than the rental
schedule established from time to time by Landlord for comparable
space for a comparable term in the Building or in any other
building owned by Landlord in The Colonnade development (a
“Colonnade Building”). Further, no assignment,
subletting or other transfer shall be made: (i) to any person or
entity who has dealt with Landlord or Landlord’s agent
(directly or through a broker) with respect to space in the
Building or in another Colonnade Building during the six (6) months
immediately preceding Tenant’s request for Landlord’s
consent to such transaction; (ii) to any person or entity for the
conduct of business which is not in keeping with the standards and
general character of the Building; or (iii) which would require the
demolition or reconfiguration of any portion of the Premises or
which would result in the Premises being subdivided. All rights and
options of Tenant hereunder, if any, to expand the Premises,
contract the Premises, extend or renew the Term, and/or shorten the
Term, and any right(s) of first refusal, first offer or first
option hereunder in favor of Tenant shall automatically terminate
upon the assignment of this Lease or upon the subletting of all or
any part of the Premises, unless Landlord specifically agrees in
writing that such rights and options shall continue. Tenant
acknowledges that the restrictions on assignments and subleases
described herein are a material inducement for Landlord entering
into this Lease and shall be enforceable by Landlord against Tenant
and against any assignee or subtenant or any other party acquiring
an interest in this Lease.
6.1.7 Indemnity
- To defend, indemnify and hold harmless Landlord, its agents,
employees, officers, directors, partners and shareholders from and
against any and all liabilities, judgments, demands, causes of
action, claims, losses, damages, costs and expenses, including
reasonable attorneys’ fees and costs, arising out of the use,
occupancy, conduct, operation, or management of the Premises by, or
the willful misconduct or negligence of Tenant, its officers,
contractors, licensees, agents, servants, employees, guests,
invitees, or visitors in or about the Building or Premises or
arising from any breach or default under this Lease by Tenant, or
arising from any accident, injury, or damage, howsoever and by
whomsoever caused, to any person or property, occurring in or about
the Building or Premises. This indemnification shall survive
termination of this Lease. This provision shall not be construed to
make Tenant responsible for loss, damage, liability or expense
resulting from injuries to third parties caused by the sole
negligence or willful misconduct of Landlord, or its officers,
contractors, licensees, agents, employees, or invitees;
6.1.8 Tenant’s
Liability, Property and Business Interruption Insurance -
To maintain with insurance companies satisfactory to
Landlord:
(a) Public liability
insurance on the Premises in amounts which shall, at the beginning
of the Term, be at least equal to the limits set forth in
Section 1.1 and from time to time during the Term, shall be
for such higher limits, if any, as are customarily carried in the
area in which the Premises are located on property similar to the
Premises and used for similar
14
purposes and to furnish
Landlord with the certificates thereof. Fire and casualty insurance
with extended coverage in an amount of not less than Fifty Thousand
and 00/100 Dollars ($50,000.00) shall also be obtained and kept in
force during the Term of this Lease at Tenant’s expense. The
limit of any of such insurance shall not limit the liability of
Tenant hereunder. If Tenant fails to procure and maintain such
insurance, Landlord may, but shall not be required to, procure and
maintain the same, at Tenant’s expense to be reimbursed by
Tenant as additional rent within ten (10) days of written demand.
All insurance required to be obtained by Tenant hereunder shall be
issued by companies acceptable to Landlord. Thirty (30) days prior
to the Commencement Date, Tenant shall deliver to Landlord
certificates of liability insurance required herein with loss
payable clauses satisfactory to Landlord. Any deductible under such
insurance policy in excess of One Thousand and 00/100 Dollars
($1,000.00) must be approved by Landlord in writing prior to
issuance of such policy. No policy shall be cancelable, allowed to
lapse and/or expire and/or be subject to reduction of coverage
except upon thirty (30) days prior written notice to Landlord. All
such policies shall name Landlord and Landlord’s
Representative as additional insureds and shall be written as
primary policies not contributing with and not in excess of
coverage which Landlord may carry. The policy limits set forth
herein shall be subject to periodic review, and Landlord reserves
the right to require that Tenant increase the liability coverage
limits if, in the reasonable opinion of Landlord, the coverage
becomes inadequate and is less than commonly maintained by tenants
making similar uses in similar buildings. Tenant shall obtain any
revised or increased coverage required by Landlord within thirty
(30) days of any such notification from Landlord;
(b) Property insurance on all
Tenant’s trade fixtures, equipment and personal property on
the Premises, being a policy of all risk property insurance
covering the full replacement value of such property. During the
Term of this Lease, the proceeds from any such policy of insurance
shall be used for the repair or replacement of the fixtures and
equipment so insured. Landlord shall have no interest in the
insurance upon Tenant’s equipment and fixtures and will sign
all documents reasonably necessary or proper in connection with the
settlement of any claim or loss by Tenant. Landlord will not carry
insurance on Tenant’s possessions. Tenant shall furnish
Landlord with a certificate of insurance evidencing that the
requirements set forth herein are in full force and effect. Any
deductible in excess of Two Thousand Five Hundred and 00/100
Dollars ($2,500.00) under such insurance must be approved in
writing by Landlord prior to issuance of such policy. Upon demand,
Tenant shall provide Landlord, at Tenant’s expense, with such
increased amount of existing insurance, and such other insurance as
Landlord or Landlord’s lender may reasonably require, to
afford Landlord and Landlord’s lender adequate protection.
Tenant shall provide Landlord with notice of loss or damage to
property immediately after such loss or damage occurs;
and
(c) Business interruption
and/or loss of rental insurance in an amount equivalent to twelve
(12) months Rent which shall not contain a deductible greater than
One Thousand Dollars ($1,000.00). Tenant shall furnish Landlord
with certificates of insurance naming Landlord as an additional
insured. No policy shall be cancelable, allowed to lapse and/or
expire and/or be subject to reduction of coverage except upon
thirty (30) days prior written notice to Landlord.
6.1.9 Employer’s
Liability Insurance - To purchase and maintain
employer’s liability insurance with minimum liability limits
of $100,000.00 per accident for bodily injury,
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$100,000.00 per employee for
bodily injury due to disease with a $500,000.00 policy limit.
Tenant shall provide Landlord with a certificate of insurance for
insurance required herein;
6.1.10 Tenant’s
Workers’ Compensation Insurance - To keep all
Tenant’s employees working in the Premises covered by
worker’s compensation insurance in amounts required by and
otherwise in accordance with all applicable legal requirements, and
to furnish Landlord with the certificates thereof upon
request;
6.1.11 Landlord’s
Right of Entry - To permit Landlord and Landlord’s
agents entry: to examine the Premises at reasonable times and, if
Landlord shall so elect, to make repairs or replacements; to
remove, at Tenant’s expense, any changes, additions, signs,
curtains, blinds, shades, awnings, aerials, flagpoles, or the like
not consented to in writing by Landlord; and to show the Premises
to prospective tenants during the six months preceding expiration
of the Term and to show the Premises to prospective purchasers and
mortgagees at all reasonable times;
6.1.12 Loading
- Not to place any extreme or unusual load upon the Premises
without Landlord’s prior written consent; and not to move any
safe, vault or other heavy equipment in, about or out of the
Premises except in such manner and at such times as Landlord shall
in each instance approve. Tenant’s business machines and
mechanical equipment which cause vibration or noise that may be
transmitted to the Building structure or to any other leased space
in the Building shall be placed and maintained by Tenant in
settings of cork, rubber, spring, or other types of vibration
and/or noise eliminators sufficient to eliminate such vibration or
noise;
6.1.13 Landlord’s
Costs - In case Landlord shall, without any fault on its
part, be made party to any litigation commenced by or against
Tenant or by or against any parties in possession of the Premises
or any part thereof claiming under Tenant, to pay, as Additional
Rent, all costs, including, without limitation, reasonable counsel
fees incurred by or imposed upon Landlord, in connection with such
litigation and, as Additional Rent, also to pay all such costs and
reasonable counsel fees incurred by Landlord in connection with the
successful enforcement by Landlord of any obligations of Tenant
under this Lease;
6.1.14 Tenant’s
Property - That all the furnishings, fixtures, equipment,
effects and property of every kind, nature and description of
Tenant and of all persons claiming by, through or under Tenant
which, during the continuance of this Lease or any occupancy of the
Premises by Tenant or anyone claiming under Tenant, may be on the
Premises or elsewhere in the Building or on the Lot shall be at the
sole
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