INDUSTRIAL BUILDING
LEASE
This
Section 1 contains the Basic Terms of this Lease between
Landlord and Tenant, named below. Other Sections of the Lease
referred to in this Section 1 explain and define the Basic
Terms and are to be read in conjunction with the Basic
Terms.
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1.1
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Date of Lease: October 01,
2006
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1.2
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Landlord: CRI Corporate Center, LLC,
a Florida limited liability company
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1.3
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Tenant: SED International,
Inc.
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1.4
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Premises: Approximately 2,400
rentable square feet included in the Improvements (as defined in
Exhibit “A” hereto).
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1.5
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Property: See Exhibit
“A”.
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1.6
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Lease Term: NINETEEN ( 19 ) months
(“Term”), commencing October 1, 2006
(“Commencement Date”) and ending April 30, 2008,
subject to Section 2.3 below (“Expiration
Date”).
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1.7
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Permitted Uses: Computers ELECTRONIC
EQUIP. SALES AND DISTRIBUTION
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1.8
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Tenant’s Guarantor: (if none,
so state): None
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1.9
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Brokers: (See Section 23; if
none, so state)
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(A)
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Tenant’s Broker:
None
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(B)
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Landlord’s Broker: PRLM, Inc.
— Pauline A. Pappas
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1.10
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Security/Damage Deposit: (See
Section 4.4) $2,500.00
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1.11
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Vehicle Parking Ratio Allocated
Tenant: (See Section 4) 2.2 spaces: 1,000 square feet
leased.
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1.12
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Initial year, monthly base rent (Sec
Section 2.2): $ 1,500.00
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1.13
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Initial Estimated Additional Rent
Payable by Tenant (Sec Section 3): $556.00 per
month
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1.14
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Tenant’s Proportionate Share:
2.23%
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1.15
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Exhibits to Lease: The following
exhibits are attached to and made a part of this Lease.
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(1)
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Exhibit “A,” Description
of Property.
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(2)
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Exhibit “B,”
Landlord’s Repairs and Improvements
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(3)
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Exhibit “C,” Broom Clean
Condition and Repair Requirements
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(4)
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Exhibit “D,” Notice
Regarding Mechanic Liens
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2.
Lease Of Premises;
Rent.
2.1
Lease of Premises for Lease Term. Landlord hereby leases the
Premises to Tenant, and Tenant hereby rents the Premises from
Landlord, for the Term and subject to the conditions of this
Lease.
2.2
Types of Rental Payments. Tenant shall pay net base rent to
Landlord in monthly installments, in advance, on the first
(1 st
) day of each and every calendar
month during the Term of this Lease (the “Base Rent”)
in the amounts and for the periods set forth below:
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Lease Period
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Monthly Base Rent
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October 1, 2006 — October 31,
2006
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$-0- Additional rent due and payable
($2.78 sf)
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November 1, 2006 — September 30,
2007
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$
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1,500.00
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The Base Rent
escalates $0.50 per square foot for every twelve-consecutive month
period during the Term over the Base Rent prevailing in the
immediately preceding twelve-consecutive month period as
follows:
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Lease Period
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Monthly Base Rent
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October 1, 2007 — April 30,
2008
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$
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1,600.00
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Tenant shall also
pay Tenant’s Proportionate Share (as set forth in
Section 1.14) of Operating Expenses (as hereinafter defined
under Section 3) and any other amounts owed by Tenant
hereunder (collectively, “Additional Rent”). In the
event any monthly installment of Base Rent or Additional Rent, or
both, is not paid within five (5) days of the date when due, a
late charge in an amount equal to five percent (5%) of the
then-delinquent installment of Base Rent and/or Additional Rent
(the “Late Charge”), [the Late Charge, Default Rate (as
defined in Section 22.3 below). Base Rent and Additional Rent
shall collectively be referred to as “Rent”)] to
Landlord, c/o PRLM. Inc. P.O. Box 48547, St. Petersburg, Florida
33743-8547 (or such other entity designated as Landlord’s
management agent (the “Agent”), or pursuant to such
other directions as Landlord shall designate in this Lease or
otherwise in writing.
2.3
Covenants Concerning Rental Payments. Tenant shall pay all
Rent promptly when due, without notice or demand, and without any
abatement, deduction or setoff, except as may otherwise be
expressly and specifically provided in this Lease. No payment by
Tenant, or receipt or acceptance by Agent or Landlord, of a lesser
amount than the correct Rent shall be deemed to be other than a
payment on account, nor shall any endorsement or statement on any
check or letter accompanying any payment be deemed an accord or
satisfaction, and Agent or Landlord may accept such payment without
prejudice to its rights or remedies. If the Commencement Date
occurs on a day other than the first (1 st )
day of a calendar month, the Rent due for the first (1
st ) calendar month of the Term shall be prorated
on a per diem basis and paid to Landlord on the Commencement Date,
and the Term will be extended to terminate on the last day of the
calendar month in which the Expiration Date stated in
Section 1.6 occurs.
3.1
Definitional Terms Relating to Additional Rent. For purposes
of this Section and other relevant provisions of the
Lease:
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3.1.1
Operating Expenses. The term “Operating
Expenses” shall mean all costs and expenses paid or incurred
with respect to the ownership, repair, replacement, restoration,
maintenance and operation of the Property, including, without
limitation, the following: (i) services provided directly by
employees of Landlord or Agent in connection with the operation,
maintenance or rendition of other services to or for the Property;
(ii) to the extent not separately metered, billed or
furnished, all charges for utilities and services furnished to
either or both of the Property and the Premises (including, without
limitation, the Common Areas [as hereinafter defined]), together
with any taxes on such utilities; (iii) all premiums for
casualty, workers’ compensation, liability, boiler,
terrorism, flood and all other types of insurance provided by
Landlord and relating to the Property, all third-party
administrative costs incurred in connection with the procurement
and implementation of such insurance policies, and all deductibles
paid by Landlord pursuant to insurance policies required to be
maintained by Landlord under this Lease; (iv) the cost of all
supplies, tools, materials and equipment utilized in the ownership
and operation of the Property, and sales and other taxes thereon:
(v) amounts charged (including, without limitation, those
costs and expenses set forth in Section 13.2(i) below) by any
or all of contractors, materialmen and suppliers for services,
materials and supplies furnished to Landlord in connection with any
or all of the operation, repair and maintenance of any part of the
Property (together with a reasonable overhead and administrative
fee to Landlord), including, without limitation, the structural
elements of the Property and the Common Areas: (vi) management fees
to Landlord or Agent or other persons or management entities
actually involved in the management and operation of the Property;
(vii) any capital improvements made by, or on behalf of,
Landlord to the Property that are either or both (a) designed
to reduce Operating Expenses and (b) required to keep the
Property in compliance with all governmental laws, rules and
regulations applicable thereto, from time to time, the cost of
which capital improvements shall be reasonably amortized by
Landlord over the useful life of the improvement, in accordance
with generally accepted accounting principles: (viii) all
professional fees incurred in connection with the operation,
management and maintenance of the Property; and (ix) Taxes, as
hereinafter defined in Section 3.1.2.
3.1.2
Taxes. The term “Taxes”, as referred to in
Section 3.1.1 (ix) above shall mean (i) all
governmental taxes, assessments, fees and charges of every kind or
nature (other than Landlord’s income taxes), whether general,
special, ordinary or extraordinary, due at any time or from time to
time, during the Term and any extensions thereof, in connection
with the ownership, leasing or operation of the Property, or of the
personal property and equipment located therein or used in
connection therewith: and (ii) any reasonable expenses
incurred by Landlord in contesting such taxes or assessments and/or
the assessed value of the Property. For purposes hereof, Taxes for
any year shall be Taxes that are due for payment or paid in that
year rather than Taxes that are assessed, become a lien, or accrue
during such year.
3.1.3
Operating Year. The term “Operating Year” shall
mean the calendar year commencing January 1
st of each year (including the calendar year within
which the Commencement Date occurs) during the Term.
3.2
Payment of Additional Rent. Landlord shall have the right to
reasonably estimate the Operating Expenses for each Operating Year.
Upon Landlord’s or Agent’s notice to Tenant of such
estimated amount. Tenant shall pay, on the first (1
st ) day of each month during that Operating Year,
an amount (the “Estimated Additional Rent”) equal to
the estimate of the Tenant’s Proportionate Share of Operating
Expenses divided by twelve (12) (or the fractional portion of the
Operating Year remaining at the time Landlord delivers its notice
of the estimated amounts due from Tenant for that Operating Year).
If the aggregate amount of Estimated Additional Rent actually paid
by Tenant during any Operating Year is less than Tenant’s
actual ultimate liability for Operating Expenses for that
particular Operating Year, Tenant shall pay the deficiency within
thirty (30) days of Landlord’s written demand therefor.
If the aggregate amount of Estimated Additional Rent actually paid
by Tenant during a given Operating Year exceeds Tenant’s
actual liability for such Operating Year, the excess shall
be
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credited
against the Estimated Additional Rent next due from Tenant during
the immediately subsequent Operating Year, except that in the event
that such excess is paid by Tenant during the final Lease Year,
then upon the expiration of the Term, Landlord or Agent shall pay
Tenant the then-applicable excess promptly after determination
thereof.
4.
Use Of Premises And Common
Areas: Security/Damage Deposit.
4.1
Use of Premises and Property. The Premises shall be used
solely by the Tenant for the purpose(s) set forth in
Section 1.7 above and for no other purpose
whatsoever.
4.2
Use of Common Areas. As used herein, “Common
Areas” shall mean all areas within the Property that are
available for the common use of tenants of the Property and that
are not leased or held for the exclusive use of Tenant or other
tenants or licensees, including, but not limited to, parking areas,
driveways, sidewalks, loading areas, access roads, corridors,
landscaping and planted areas. Tenant shall have the nonexclusive
right to use the Common Areas for the purposes intended, subject to
such reasonable rules and regulations as Landlord may uniformly
establish from time to time. Tenant shall not interfere with the
rights of any or all of Landlord, other tenants or licensees, or
any other person entitled to use the Common Areas. Landlord, from
time to time, may change any or all of the size, location, nature
and use of any of the Common Areas so long as such changes do not
materially and adversely affect Tenant’s use of the Premises.
Landlord may, at any time, close or suspend access to any Common
Areas to perform any acts in the Common Areas as, in
Landlord’s reasonable judgment, desirable to improve,
maintain or repair either or both of the Premises and the
Property.
4.3
Signage. Tenant shall not affix any sign of any size or
character to any portion of the Property, without prior written
approval of Landlord. Tenant shall remove all signs of Tenant upon
the expiration or earlier termination of this Lease and immediately
repair any damage to either or both of the Property and the
Premises caused by, or resulting from, such removal.
4.4
Security/Damage Deposit. Simultaneously with the execution
and delivery of this Lease. Tenant shall deposit with Landlord or
Agent the sum set forth in Section 1.10 above, in cash (the
“Security”), representing security for the performance
by Tenant of the covenants and obligations hereunder. The Security
shall be held by Landlord or Agent, without interest, in favor of
Tenant; provided, however, that no trust relationship shall be
deemed created thereby and the Security may be commingled with
other assets of Landlord. If Tenant defaults in the performance of
any of its covenants hereunder. Landlord or Agent may, without
notice Tenant, apply all or any part of the Security, to the extent
required for the payment of any Rent or other sums due from Tenant
hereunder, in addition to any other remedies available to Landlord.
In the event the Security is so applied. Tenant shall, upon demand,
immediately deposit with Landlord or Agent a sum equal to the
amount so used. If Tenant fully and faithfully complies with all
the covenants and obligations hereunder, the Security (or any
balance thereof) shall be returned to Tenant within thirty
(30) days after the last to occur of (i) the date the
Term expires or terminates or (ii) delivery to Landlord of
possession of the Premises. Landlord may deliver the Security to
any purchaser of Landlord’s interest in the Premises [or any
Successor Landlord (defined below), if applicable], and thereupon
Landlord and Agent shall be discharged from any further liability
with respect to the Security.
4.5
Parking. Tenant and Tenant’s employees, agents and
invitees (hereinafter referred to as “Tenant’s
Affiliates”) shall be entitled to utilize only the amount of
parking spaces as is consistent with the size of the Premises and
the overall ratio of parking spaces to leasable space provided in
the Property, as given in Section 1.11. Neither Tenant nor
Tenant’s Affiliates shall with their vehicles block parking
areas or hinder normal traffic flow within the Property. Violation
of this paragraph by Tenant or Tenant’s Affiliates shall be a
default under this Lease. The Landlord reserves the right
to
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control the
method, manner and time of, however, Landlord shall not be
responsible for policing, such parking. Tenant hereby agrees and
acknowledges that the Vehicle Parking Ratio Allocated Tenant
pursuant to Section 1.11 hereof is not a guaranty that
specific spaces or the number of spaces will be available at all
times. Tenant acknowledges that the Property is a multi-use project
occupied by various tenants which share the parking spaces located
on the Property and is accessible by customers and invitees of all
tenants.
5.
Condition And Delivery Of
Premises.
5.1
Condition of Premises. Tenant agrees that Tenant is familiar
with the condition of both the Premises and the Property, and
Tenant hereby accepts the foregoing on an “AS-IS.”
“WHERE-IS” basis. Tenant acknowledges that neither
Landlord nor Agent, nor any representative of Landlord, has made
any representation as to the condition of the foregoing or the
suitability of the foregoing for Tenant’s intended use.
Tenant represents and warrants that Tenant has made its own
inspection of the foregoing. Neither Landlord nor Agent shall be
obligated to make any repairs, replacements or improvements
(whether structural or otherwise) of any kind or nature to the
foregoing in connection with, or in consideration of, this Lease,
except (a) as set forth in Sections 13.2 and 18 and
(b) with respect to all (if any) repairs and improvements
expressly and specifically described in Exhibit
“B” attached hereto (“Landlord Work
Items”).
5.2
Delay in Commencement. Landlord shall not be liable to
Tenant if Landlord does not deliver possession of the Premises to
Tenant on the Commencement Date. The obligations of Tenant under
the Lease shall not be affected thereby, except that the
Commencement Date shall be delayed until Landlord delivers
possession of the Premises to Tenant, and the Lease Term shall be
extended by a period equal to the number of days of delay in
delivery of possession of the Premises to Tenant, plus the number
of days necessary to end the Lease Term on the last day of a month.
In the event Landlord is required by local governmental authority
to obtain building permits to perform the Landlord Work Items, the
date of delivery of the Premises by Landlord shall be deemed the
day following the date upon which the Landlord receives from such
authority: (a) the Certificate of Occupancy (temporary or
permanent) for the Premises, or (b) all final inspections
pertaining to the Landlord Work Items, or (c) other consent as
deemed adequate by Landlord. Tenant shall not occupy the Premises
in any manner until one of such consents is obtained.
6.
Subordination: Notices To
Superior Lessors And Mortgagees; Attornment.
6.1
Subordination. This Lease shall be subject and subordinate
at all times to (a) any mortgage that may now exist or
hereafter be placed upon, and encumber, any or all of the Property.
Tenant shall execute and deliver, within seven (7) days after
delivery thereof by Landlord, and in the form requested by
Landlord, any additional documents evidencing the subordination of
this Lease with respect to any such mortgage or deed of trust.
Failure by Tenant to timely execute and deliver such documents
constitutes an acceptance of the terms of such documents, and
Tenant hereby appoints Landlord as its attorney-in-fact to execute
such documents on Tenant’s behalf.
6.2
Estoppel Certificate. Tenant agrees, from time to time and
within seven (7) days after request by Landlord, to deliver to
Landlord, or Landlord’s designee, an estoppel certificate
stating such matters pertaining to this Lease as may be requested
by Landlord. Failure by Tenant to timely execute and deliver such
certificate shall constitute an acceptance of the Premises and
acknowledgment by Tenant that the statements included therein are
true and correct without exception. Landlord and Tenant intend that
any statement delivered pursuant to this Section may be relied upon
by any prospective purchaser or mortgagee of the Property or of any
interest therein or any other Landlord designee.
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6.3
Transfer for Landlord. In the event of a sale or conveyance
by Landlord of the Property, the same shall operate to release
Landlord from any future liability for any of the covenants or
conditions, express or implied, herein contained in favor of
Tenant, and in such event Tenant agrees to look solely to
Landlord’s successor in interest with respect thereto and
agrees to attorn to such successor.
Subject
to the provisions of this Lease, so long as Tenant pays all of the
Rent and performs all of its other obligations hereunder, Tenant
shall not be disturbed in its possession of the Premises by
Landlord. Agent or any other person lawfully claiming through or
under Landlord; provided, however, in addition to Landlord’s
rights under Section 16 and elsewhere in this Lease, Landlord
and Landlord’s agents, employees, contractors and
representatives shall be provided reasonable access to the Premises
such that Landlord and Landlord’s agents, employees,
contractors and representatives may perform the General Maintenance
Services (as hereinafter defined) without undue interruption, delay
or hindrance. This covenant shall be construed as a covenant
running with the Property and is not a personal covenant of
Landlord.
8.
Assignment, Subletting And
Mortgaging.
8.1
Prohibition. Tenant acknowledges that this Lease and the
Rent due under this Lease have been agreed to by Landlord in
reliance upon Tenant’s reputation and creditworthiness and
upon the continued operation of the Premises by Tenant for the
particular use described in Section 1.7 above; therefore,
Tenant shall not, whether voluntarily, or by operation of law, or
otherwise: (a) assign or otherwise transfer this Lease;
(b) sublet the Premises or any part thereof, or allow the same
to be used or occupied by anyone other than Tenant; or (c)
mortgage, pledge, encumber, or otherwise hypothecate this Lease or
the Premises, or any part thereof, in any manner whatsoever,
without in each instance obtaining the prior written consent of
Landlord, which consent may be given or withheld in
Landlord’s absolute and sole discretion. Any purported
assignment, mortgage, transfer, pledge or sublease made without the
prior written consent of Landlord, shall be absolutely null and
void. Any consent by Landlord to a particular assignment, sublease
or mortgage shall not constitute consent or approval of any
subsequent assignment, sublease or mortgage. No consent by Landlord
to any assignment or sublease shall be deemed to release Tenant
from its obligations hereunder and Tenant shall remain fully liable
for performance of all obligations under this Lease.
8.2
Rights of Landlord. If this Lease is assigned, or if the
Premises (or any part thereof) are sublet or used or occupied by
anyone other than Tenant, whether or not in violation of this
Lease, Landlord or Agent may (without prejudice to, or waiver of
its rights), collect Rent from the assignee, subtenant or occupant.
Landlord or Agent may apply the net amount collected to the Rent
herein reserved, but no such assignment, subletting, occupancy or
collection shall be deemed a waiver of any of the provisions of
this Section 8. With respect to the allocable portion of the
Premises sublet, in the event that the total rent and any other
considerations received under any sublease by Tenant is greater
than the total Rent required to be paid, from time to time, under
this Lease. Tenant shall pay to Landlord one hundred percent (100%)
of such excess as received from any subtenant and such amount shall
be deemed a component of the Additional Rent.
8.3
Transfers. The provisions of Section 8.1 (a) shall
apply to a transfer of a majority (i.e., greater than fifty percent
(50%) interest) of the voting stock of Tenant or to any other
change in voting control of Tenant (if Tenant is a corporation), or
to a transfer of a majority of the general partnership or
membership interests in Tenant (if Tenant is a partnership or a
limited liability company) or to a change in the managerial control
of Tenant, or to any comparable transaction involving any
other
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form of
business entity, whether effectuated in one or more transactions,
as if such transfer were an assignment of this Lease.
9.1
Compliance with Laws. Tenant shall, at its sole expense
(regardless of the cost thereof), comply with all local, state and
federal laws, rules, regulations and requirements now or hereafter
in force and all judicial and administrative decisions in
connection with the enforcement thereof (collectively.
“Laws”), pertaining to either or both of the Premises
and Tenant’s use and occupancy thereof. Tenant shall give
prompt notice to Landlord of any written notice it receives of the
alleged violation of any Law or requirement of any governmental or
administrative authority with respect to either or both of the
Premises and the use or occupation thereof.
9.2
Hazardous Materials. Tenant shall not generate, transport,
store, use, treat or dispose any Hazardous Material (defined below)
at, to, from, on or in either or both of the Premises and the
Property by, or as a result of any act or omission of, any or all
of Tenant and any or all of Tenant’s Parties (defined below).
Tenant shall, at its own cost, at all times comply (and cause all
others to comply) with all laws (federal, state or local) relating
to Hazardous Materials, including, but not limited to, all
Environmental Laws (defined below). Tenant shall promptly provide
Landlord or Agent with complete copies of all communications,
permits or agreements with, from or issued by any governmental
authority or agency (federal, state or local) or any private entity
relating in any way to the presence, release, threat of release, or
placement of Hazardous Materials on or in the Premises or any
portion of the Property, or the generation, transportation,
storage, use, treatment, or disposal at, on, in or from the
Premises, of any Hazardous Materials. Landlord, Agent and their
respective agents and employees shall have the right to either or
both (x) enter the Premises and (y) conduct appropriate
tests for the purposes of ascertaining Tenant’s compliance
with all applicable laws (including Environmental Laws), rules or
permits relating in any way to the generation, transport, storage,
use, treatment, disposal or presence of Hazardous Materials on, at,
in or from all or any portion of either or both of the Premises and
the Property. Upon written request by Landlord or Agent. Tenant
shall provide Landlord with the results of reasonably appropriate
tests of air, water or soil to demonstrate that Tenant complies
with all applicable laws, rules or permits relating in any way to
the generation, transport, storage, use, treatment, disposal or
presence of Hazardous Materials on, at, in or from all or any
portion of either or both of the Premises and the Property. Tenant
covenants to investigate, clean up and otherwise remediate, at
Tenant’s sole expense, any release of Hazardous Materials
caused, contributed to, or created by any or all of (A) Tenant
and (B) any or all of Tenant’s officers, directors,
members, managers, partners, invitees, agents, employees,
contractors or representatives (“Tenant Parties”)
during the Term. Such investigation and remediation shall be
performed only after Tenant has obtained Landlord’s prior
written consent; provided, however, that Tenant shall be entitled
to respond immediately to an emergency without first obtaining such
consent. All remediation shall be performed in strict compliance
with Environmental Laws and to the reasonable satisfaction of
Landlord. Tenant shall be liable for any and all conditions covered
hereby, and for all costs relating thereto, that are caused or
created by any or all of Tenant and any or all of Tenant’s
Parties. Tenant shall not enter into any settlement agreement,
consent decree or other compromise with respect to any claims
relating to any Hazardous Materials in any way connected to the
Premises without first obtaining Landlord’s written consent
(which consent may be given or withheld in Landlord’s sole
discretion and affording Landlord the reasonable opportunity to
participate in any such proceedings.) As used herein, the term (x)
“Environmental Laws” shall mean any and all laws
pertaining to Hazardous Materials or that otherwise deal with, or
relate to, air or water quality, air emissions, soil or ground
conditions or other environmental matters of any kind: and (y)
“Hazardous Materials” shall mean any waste, material or
substance (whether in the form of liquids, solids or gases, and
whether or not airborne) that is or may be deemed to be or include
a pesticide, petroleum, asbestos, polychlorinated biphenyl,
radioactive material, area formaldehyde or any other pollutant or
contaminant that is or may be deemed to
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be hazardous,
toxic, ignitable, reactive, corrosive, dangerous, harmful or
injurious, or that presents a risk to public health or to the
environment, and that is or becomes regulated by any Environmental
Law. The undertakings, covenants and obligations imposed on Tenant
under this Section 9.2 shall survive the termination or
expiration of this Lease.
10.1
Insurance to be Maintained by Landlord. Landlord shall
maintain (a) “all-risk” property insurance policy
covering the Property (at its full replacement cost), but excluding
Tenant’s Property (defined below), and (b) commercial
general public liability insurance covering Landlord for claims
arising out of liability for bodily injury, death, personal injury,
advertising injury and property damage occurring in and about the
Property and otherwise resulting from any acts and operations of
Landlord, its agents and employees, (c) rent loss insurance,
and (d) any and all other insurance required by any lender(s)
of Landlord, all of the above with limits that are required by any
lender(s) of Landlord, or as are otherwise reasonably determined by
Landlord.
10.2
Insurance to be Maintained by Tenant. Tenant shall purchase,
at its own expense, and keep in force at all times during this
Lease the policies of insurance set forth below in
Sections 10.2.1 and 10.2.2 (collectively,
“Tenant’s Policies”). All Tenant’s Policies
shall (a) be issued by an insurance company with a Best rating of
A-X or better and otherwise reasonably acceptable to Landlord and
shall be licensed to do business in the state in which the Property
is located; (b) provide that said insurance shall not be
cancelled or materially modified unless thirty
(30) days’ prior written notice shall have been given to
Landlord; and (c) otherwise be in such form, and include such
coverages, as Landlord may reasonably require. All Tenant’s
Policies (or, at Landlord’s option, Certificates of
Insurance, in a form reasonably acceptable to Landlord, evidencing
said Tenant’s Policies), shall be delivered to Landlord by
Tenant prior to commencement of the Lease and renewals thereof
shall be delivered at least thirty (30) days prior to the
expiration of each Tenant’s Policy. Tenant shall give prompt
notice to Landlord and Agent of any bodily injury, death, personal
injury, advertising injury or property damage occurring in and
about the Property.
10.2.1
General Liability and Auto Insurance. Tenant shall purchase
and maintain, throughout the Term, a Tenant’s Policy(ies) of
(i) commercial general or excess liability insurance,
including personal injury and property damage, in the amount of not
less than $2,000,000,00 per occurrence, and $5,000,000,00 annual
general aggregate, per location: (ii) comprehensive automobile
liability insurance covering Tenant against any losses arising out
of liability for personal injuries or deaths of persons and
property damage occurring in or about the Premises in the amount of
not less than $1,000,000, combined single limit. The Tenant’s
Policies required by this Section 10.2.1 shall (a) name
Landlord, Agent, and any party holding an interest to which this
Lease may be subordinated as additional insureds: (b) provide
coverage on an occurrence basis; (c) provide coverage for the
indemnity obligations of Tenant under this Lease: (d) contain
a severability of insured parties provision and/or a cross
liability endorsement: (e) be primary, not contributing with, and
not in excess of, coverage that Landlord may carry; and (f) provide
coverage with no exclusion for a pollution incident arising from a
hostile fire.
10.2.2
Property and Workers’ Compensation Insurance. Tenant
shall purchase and maintain, throughout the Term, a Tenant’s
Policy or Policies of (i) “all-risk” property insurance
covering Tenant’s Property (at its full replacement cost),
and damage to other property resulting from any acts or operations
of Tenant, and (ii) workers” compensation insurance per
the applicable state statutes covering all employees of
Tenant.
10.3
Waiver of Subrogation. To the extent permitted by law, and
without affecting the coverage provided by insurance required to be
maintained hereunder. Landlord and Tenant each
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waive any right
to recover against the other for (a) damages to property,
(b) damages to all or any portion of either or both of the
Premises and the Property, (c) claims arising by reason of the
foregoing, to the extent such damages and claims are insured
against, or required to be insured against, by Landlord or Tenant
under this Lease, or (d) claims paid by Tenant’s
workers’ compensation carrier. This provision is intended to
waive, fully and for the benefit of each party, any rights and/or
claims which might give rise to a right of subrogation by any
insurance carrier. The coverage obtained by each party pursuant to
this Lease shall include, without limitation, a waiver of
subrogation by the carrier which conforms to the provisions of this
section.
11.1
Procedural Requirements. Tenant may, from time to time, at
is expense, make alterations or improvements in and to the Premises
(hereinafter collectively referred to as
“Alterations”), provided that Tenant first obtains the
written consent of Landlord in each instance which may be withheld
in Landlord’s sole and absolute discretion. Before proceeding
with any Alterations, Tenant shall (i) at Tenant’s
expense, obtain all necessary governmental permits and certificates
for the commencement and prosecution of Alterations;
(ii) submit to Agent, for Landlord’s written approval,
working drawings, plans and specifications and all permits for the
work to be done and Tenant shall not proceed with such Alterations
until it has received said approval; and (iii) cause those
contractors, materialmen and suppliers engage to perform the
Alterations to deliver to Landlord certificates of insurance (in a
form reasonably acceptable to Landlord) evidencing policies of
commercial general liability insurance (providing the same
coverages as required in Section 10.2.1 above) and
workers’ compensation insurance. After obtaining
Landlord’s approval to the Alterations, Tenant shall give
Landlord at least five (5) days’ prior written notice of the
commencement of any Alterations at the Premises, and Landlord may
elect to record and post notices of non-responsibility at the
Premises.
11.2
Performance of Alterations. Tenant shall cause the
Alterations to be performed in compliance with all applicable
permits, laws and requirements of public authorities, and with
Landlord’s reasonable rules and regulations or any other
restrictions that Landlord or Agent may impose on the Alterations.
Tenant shall cause the Alterations to be diligently performed in a
good and workmanlike manner, using new materials and equipment at
least equal in quality and class to the standards for the Property
established by Landlord or Agent. Alterations shall be performed by
properly licensed contractors first approved by Landlord. Tenant
shall obtain all necessary permits and certificates for final
governmental approval of the Alterations and shall provide Landlord
with “as-built” plans, copies of all construction
contracts, governmental permits and certificates and proof of
payment for all labor and materials, including, without limitation,
copies of paid invoices and final lien waivers.
11.3
Lien Prohibition. Tenant shall pay when due all claims for
labor and material furnished to the Premises in connection with the
Alterations. Tenant shall not permit any mechanics or
materialmen’s liens to attach to the Premises or the
Property. Tenant at its expense, shall procure the satisfaction or
discharge of record of all such liens and encumbrances within
thirty (30) days after the filing thereof; or, within such
thirty (30) day period, Tenant shall provide Landlord, at
Tenant’s sole expense, with endorsements (satisfactory, both
in form and substance, to Landlord and the holder of any mortgage)
to the existing title insurance policies of Landlord and the holder
of any mortgage, insuring against the existence of, any attempted
enforcement of, such lien or encumbrance. In the event Tenant has
not so performed, Landlord may, at its option, pay and discharge
such liens and Tenant shall be responsible to reimburse Landlord,
on demand and as Additional Rent under this Lease, for all costs
and expenses incurred in connection therewith, together with
interest thereon at the rate set forth in Section 22.3, which
expenses shall include reasonable fees of attorneys of
Landlord’s choosing, and any costs in posting bond to effect
discharge or release of the lien as an encumbrance against the
Premises or the Property. Tenant agrees to and shall indemnify and
save Landlord free and harmless against liability.
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loss, damage,
costs or expense, including attorney’s fees and costs of
discovery and suit, on account of claims of liens of laborers or
materialmen or others for Alterations performed for, or materials
supplies furnished to, Tenant or persons claiming under
Tenant.
The
language of this provision shall be binding upon the Landlord, its
successors and assigns, and the heirs, assignees, administrators,
legal representatives, executors or successors of the
Tenant.
THE
INTEREST OF THE LANDLORD IN THE PREMISES AND THE PROPERTY SHALL
NOT, UNDER ANY CIRCUMSTANCES, BE SUBJECT TO LIENS FOR ALTERATIONS
MADE BY THE TENANT OR ANY OTHER ACT OF TENANT.
If
a memorandum of this Lease or a Notice of Commencement by Tenant is
recorded, a notice concerning this provision of this Lease will be
executed by Landlord and recorded with the clerk of the Court of
the County named in Section 1.3. This Notice reads as set
forth on Exhibit D.
12.
Landlord’s And
Tenant’s Property.
12.1
Landlord’s Property. Subject to Section 12.2, all
fixtures, machinery, equipment, improvements and appurtenances
attached to, or built into, the Premises at the commencement of, or
during the Term, whether or not placed there by or at the expense
of Tenant, shall become and remain a part of the Premises; shall be
deemed the property of Landlord (the “Landlord’s
Property”), without compensation or credit to Tenant; and
shall not be removed by Tenant at the Expiration Date unless
Landlord requests their removal. Further, any personal property in
the Premises on the Commencement Date, movable or otherwise, unless
installed and paid for by Tenant, shall be and shall remain the
property of Landlord and shall not be removed by Tenant. In no
event shall Tenant remove any of the following materials or
equipment without Landlord’s prior written consent (which
consent may be given or withheld in Landlord’s sole and
absolute discretion): any power wiring or power panels, lighting or
lighting fixtures, wall or window coverings, carpets or other floor
coverings, heaters, air conditioners or any other HVAC equipment,
fencing or security gates, or other similar building operating
equipment and decorations.
12.2
Tenant’s Property. All movable non-structural
partitions, business and trade fixtures, machinery and equipment,
communications equipment and office equipment, that are installed
in the Premises by, or for the account of, Tenant without expense
to Landlord and that can be removed without structural damage to
the Property, and all furniture, furnishings and other articles of
movable personal property owned by Tenant and located in the
Premises (collectively, the “Tenant’s Property”)
shall be and shall remain the property of Tenant and may be removed
by Tenant at any time during the Term, provided Tenant repairs or
pays the cost of repairing any damage to the Premises or to the
Property resulting from the installation and/or removal thereof. At
or before the Expiration Date, or the date of any earlier
termination. Tenant, at its expense, shall remove from the Premises
all of Tenant’s Property and any Alterations (except such
items thereof as constitute Landlord’s Property; or as
Landlord shall have expressly permitted, in writing, to remain,
which property shall become the property of Landlord), and Tenant
shall repair (to Landlord’s reasonable satisfaction) any
damage to the Premises or the Property resulting from any
installation and/or removal of Tenant’s Property. Any other
items of Tenant’s Property that shall remain in the Premises
after the Expiration Date, or following an earlier termination
date, may, at the option of Landlord, be deemed to have been
abandoned, and in such case, such items may be retained by Landlord
as its property or be disposed of by Landlord, in Landlord’s
sole and absolute discretion and without accountability, at
Tenant’s expense. Notwithstanding the foregoing, if Tenant is
in default under the terms of this Lease, Tenant may remove
Tenant’s Property from the Premises only upon the express
written direction of Landlord.
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13.
Repairs And
Maintenance.
13.1
Tenant Repairs and Maintenance. Tenant shall, at its
expense, through
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