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BUSINESS LEASE

Lease Agreement

BUSINESS LEASE | Document Parties: DRIFTWOOD VENTURES, INC. | Lakeside Business Park, LLC You are currently viewing:
This Lease Agreement involves

DRIFTWOOD VENTURES, INC. | Lakeside Business Park, LLC

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Title: BUSINESS LEASE
Date: 9/18/2008

BUSINESS LEASE, Parties: driftwood ventures  inc. , lakeside business park  llc
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BUSINESS LEASE

 

The Landlord and the Tenant agree to lease the Rental Space for the Term and at the Rent stated, as follows: (The words Landlord and Tenant include all landlords and all tenants under this Lease.)

 

Landlord:

Lakeside Business Park, LLC One Drexel Plaza

3001 Market Street

Philadelphia, PA 19104

 

Tenant:

Destination Software, Inc.

137 Hurffville-Cross Keys Road Suite C

Sewell, NJ 08080

EIN - 36-4424999

 

 

 

 

Rental Space: Lakeside Business Park

 

700, 701, 702 Liberty Place

Sicklerville, NJ

3,066 SF

[as outlined on Exhibit "A"]  

 

 


 

1.

Possession. Use and Permits

4

2.

Condition of Rental Space

5

3.

No Assignment or Subletting

5

4.

Rent and Additional Rent

5

5.

Security and Damages

6

6.

Liability Insurance

6

7.

Fire. Casualty and Other Insurance

6

8.

Water Damage

7

9.

Liability of Landlord and Tenant

7

10.

Real Estate Taxes

7

11.

Quiet Enjoyment

7

12.

Utilities and Services

7

13.

Repairs, Maintenance and Compliance

7

14.

No Alterations

8

15.

Signs

10

16.

Access to Rental Space

10

17.

Fire and Other Casualty

10

18.

Eminent Domain

10

19.

Subordination to Mortgage

11

20.

Tenant's Certificate

11

21.

Violation, Eviction, Re-entry and Damages

11

22.

Notices    23.17

12

23

No  Waiver

 

24.

Survival

12

25.

End of Term

12

26.

Binding

12

27.

Full Agreement

12

28.

Late Payment

13

29.

Environmental Compliance

13

30.

Waiver of Subrogation

13

31.

Waiver of Claims

13

32.

Brokers

14

33.

Holdover

14

34.

Condominium Association

14

35.

Exhibit A - Space Plan

15

36.

Exhibit B - Site Plan

15

37.

Exhibit C - Utility Transfer Acknowledgement

15

38.

Exhibit D - Condominium Document Receipt

15

 

 

2


 

Date of Lease:   September 20, 2007 Term: Three (3) Years

 

 

 

 

 

Beginning:

 

On the date Landlord tenders possession of the rental space to Tenant substantially completed, estimated to be approximately December 1, 2007.

 

Renewal:

Ending:

Three (3) years after the commencement date. If the commencement date is not on the first day of a calendar month the Lease shall automatically be extended to the last day of the month in which it would have otherwise expired.

 

Security Deposit:   $ 4,599.00

 

Broker: The Landlord and Tenant recognize Lanard & Axilbund, LLC, t/a Colliers Lanard & Axilbund, as the Broker who brought about this Lease. The Landlord shall pay the Broker's commission.

 

Liability Insurance: Minimum amounts for each person injured $1,000,000, single limit.

 

Rent for the Term is:

Tenant shall pay to Landlord throughout the term basic annual rent ("Basic Rent", and together with all additional rent, the "Rent") in the amount as follows:

 

For the 1 st full calendar year: $55,188.00 - $4,599.00/mo. For the 2 nd full calendar year: $56,721.00 - $4,726.75/mo. For the 3r d full calendar year: $58,254.00 - $4,854.50/mo. payable in advance on the first day of each month, without notice or demand, in equal monthly installments as follows on or prior to the first day of each month during the term. The Tenant shall pay to Landlord all Rent without notice, demand, setoff or deduction. The first month's Basic Rent and security deposit shall be payable upon the execution of this Lease.

 

Tenant shall be permitted to renew this Lease for one (1) additional period of three (3) years ("Renewal Term") provided Tenant is not then in default and received written notice of such default during the original Term hereof. The Basic Rent for each year of Renewal Tenn will be calculated (annually) to 95% of the average current Fair Market Value for similar office buildings located in the vicinity of the Rental Space. Tenant shall exercise the Renewal Term by delivering written notice to Landlord not less than one hundred twenty (120) days prior to the expiration of the original Term, or Renewal Term then in effect. Tenant's occupancy of the Rental Space during the Additional Term shall be on the same terms and conditions as the Lease.

 

The Base Year shall be recalculated in the Renewal Term, if any, to mean the calendar year 2010 ("Renewal Base Year") and Tenant shall pay Landlord, as additional rent, for any increase in the Operating Expenses following the Renewal Base Year.

 

3


 

This figure includes base rent, the condominium fee and Real Estate Taxes. The condominium fee is paid by the Landlord to the Lakeside Business Park Condominium Association to cover the cost of common area maintenance including items such has snow removal, landscaping and exterior maintenance.

 

Tenant is responsible for its own utilities, which are separately metered to the Premises. Tenant is also responsible for its own janitorial services to the Premises.

 

Tenant shall pay, as additional rent, Tenant's proportionate share of all increases in operating expenses over the base year. The term "base year" shall mean the calendar year 2007.

 

The term "Operating Expenses" shall mean certain costs and expenses paid or incurred with respect to the ownership, repair, replacement, restoration, maintenance and operation of the Property limited to the following: (i) assessments and other charges allocated to the Property under any declaration or similar document applicable to the Lakeside Business Park Condominium Association (the "Condo Fees"); (ii) property taxes (iii) services provided directly by employees of Landlord or Agent in connection with the maintenance of the Property; (iv) any capital improvements made by, or on behalf of, Landlord to the Property

 

that (a) reduce Operating Expenses and/or (b) are required to keep the Property in compliance with all governmental laws, rules and regulations applicable thereto, and which are enacted after the Commencement and from time to time thereafter, the cost of which capital improvements shall be amortized by Landlord over the useful life of the improvement, in accordance with generally accepted accounting principles. Landlord shall fully disclose the Operating Expenses to Tenant each year and Tenant may audit the records of Landlord in connection with the Operating Expenses.

 

Use of Rental Space:   General Office

 

Possession, Use and Permits

 

The Landlord shall give possession of the Rental Space to the Tenant for the Term. The Tenant shall take possession of and use the Rental Space for the purpose stated above. The Tenant may not use the Rental Space for any other purpose without the written consent of the Landlord.

 

The Tenant shall not allow the Rental Space to be used for any unlawful or hazardous purpose. The Tenant is satisfied that the Rental Space is zoned for the Use stated. The Tenant shall obtain any necessary certificate of occupancy or other certificate permitting the Tenant to use the Rental Space for that Use. Landlord is obligated for the initial C/O following completion of construction.

 

The Tenant shall not use the Rental Space in any manner that results in (1) an increase in the rate of fire or liability insurance or (2) cancellation of any fire or liability insurance policy on the Rental Space. The Tenant shall comply with all requirements of the insurance companies insuring the Rental Space. The Tenant shall not abandon the Rental Space during the Term of this Lease or permit it to become vacant for extended periods.

 

4


 

Tenant shall, in the use and occupancy of the Rental Space and the conduct of Tenant's business or profession therein, at all times and at Tenant's expense comply with, and conform the Rental Space to the following requirements (the "Requirements"): all applicable laws, ordinances, orders, notices and regulations of the federal, state and municipal governments, or any of their departments and the regulations of the insurers of the Rental Space and building (including Title III of the Americans with Disabilities Act). Tenant shall indemnify, protect, defend and save harmless Landlord with regard to any non-compliance or alleged non-compliance by Tenant with any Requirements which are the responsibility of the Tenant.

 

This paragraph applies if (a) the Landlord cannot give possession of the Rental Space to the Tenant on the beginning date and (b) the reason for the delay is not the Landlord's fault. The Landlord shall not be held liable for the delay. The Landlord shall then have 30 days in which to give possession. If possession is given within that time, the Tenant shall accept possession and pay the Rent for that date. The ending date of the Tenn shall not change. If possession is not given within that time this Lease may be canceled by either party on notice to the other.

 

2.

Condition of Rental Space

 

The Tenant has inspected the Rental Space and agrees that the Rental Space is in satisfactory condition. The Tenant agrees that the Rental Space shall be delivered to Tenant, accepts the Rental Space, in their "as is" condition on the date hereof, and agrees that Landlord shall have no obligation to perform any improvements to the Rental Space. Tenant shall be responsible at Tenant's sole cost and expense for all Alterations (under Article 14) necessary to the Renal Space in order to allow Tenant to lawfully use and occupy same. Notwithstanding the foregoing, both parties agree that the proposed interior renovations to the leased property have not been completed in accordance with Exhibit "A". Landlord will complete the within space renovation prior to the commencement of the lease. Tenant shall have the right to inspect and approve such renovations prior to the commencement of the lease and occupancy. In the event the renovations are not completed or unacceptable, the parties will agree to negotiate in good faith a mutual solution.

 

3.

No Assignment or Subletting

 

The Tenant may not do any of the following without the Landlord's written consent: (a) assign this Lease, (b) sublet all or any part of the Rental Space or (c) permit any other person or business to use the Rental Space. Tenant shall not, by operation of law, merger, or otherwise, assign, mortgage, pledge or encumber in any manner by reason of any act or omission on the part of Tenant, this Lease, or the term and estate hereby granted, or sublet or license the whole or any part of the Rental Space or permit the Rental Space or any part thereof to be used or occupied by others. Notwithstanding anything to the contrary contained in the Lease if Tenant is a corporation or partnership, and if at any time during the term of this Lease (as same may be extended), the person or persons who, on the date of this Lease, own or owns a majority of such corporation's voting shares or such partnership's partnership interest, as the case may be, cease or ceases to own a majority of such shares, or such partnership interest as the case may be (whether such sale occurs at one time or at intervals so that, in the aggregate such a transfer shall have occurred), same shall be deemed an assignment requiring Landlord's consent, which shall not be unreasonably withheld, hereunder.

 

4.

Rent and Additional Rent Tenant shall pay the Rent to the Landlord at the Landlord's address set forth above.

 

If the Tenant fails to comply with any agreement in this Lease, the Landlord may do so on behalf of the Tenant. The Landlord may charge the cost to comply, including reasonable attorney's fees, to the Tenant as "additional rent". The additional rent shall be due and payable as Rent with the next monthly Base Rent payment.

 

All other payments in addition to the Rent due from Tenant to Landlord hereunder shall be deemed "additional rent". Non-payment of additional rent shall give the Landlord the same rights against the Tenant as if the Tenant failed to pay the Base Rent.

 

5.

Security and Damages

 

The Tenant has given to the Landlord the Security stated above. The Security shall be held by the Landlord during the Term of this Lease. The Landlord may deduct from the Security any expenses incurred in connection with the Tenant's violation of any agreement in this Lease. For example, if the Tenant does not leave the Rental Space in good condition at the end of the Term, the Security may be used to put it in good condition. If the amount of damage exceeds the Security, the Tenant shall pay the additional amount to the Landlord on demand.

 

5


 

If the Landlord uses the Security or any part of it during the Term, the Tenant shall on demand pay the Landlord for the amount used. The amount of the Security is to remain constant throughout the Term. The Security is not to be used by the Tenant for the payment of Rent. The Landlord shall repay to the Tenant any balance remaining within a reasonable time after the end of the Term. The Tenant shall not be entitled to interest on the Security.

 

If the Landlord's interest in the Rental Space is transferred, the Landlord shall turn over the Security to the new Landlord. The Landlord shall notify the Tenant of the name and address of the new Landlord. Notification must be given within 5 days after the transfer, by registered or certified mail. The Landlord shall then no longer be responsible to the Tenant for the repayment of the Security. The new Landlord shall be responsible to the Tenant for the return of the Security in accordance with the terms of this Lease.

 

6.

Liability Insurance

 

The Tenant shall obtain, pay for, and keep in effect during the Term commercial general liability insurance on the Rental Space. The insurance company and the broker must be acceptable to the Landlord and must name Landlord and any Lender designated by Landlord as an additional insured. This coverage must be in at least the minimum amounts stated above.

 

All policies shall state that the insurance company cannot cancel or refuse to renew without at least 10 days written notice to the Landlord.

 

The Tenant shall deliver the original policy to the Landlord with proof of payment of the first year's premiums. This shall be done not less than fifteen (15) days before the Commencement Date. The Tenant shall deliver a renewal policy to the Landlord with proof of payment not less than fifteen (15) days before the expiration date of each policy.

 

7.

Fire, Casualty and Other Insurance

 

Should Tenant fail to obtain and maintain a general commercial liability policy with respect to the occupied Rental Space asset forth in paragraph 7, Landlord may obtain, at Tenantrs expense, such general commercial liability insurance, as may be required. Tenant will be liable for all costs relative to this coverage and shall promptly reimburse the Landlord for all associated costs.Landlord shall be solely responsible for all fire, casualty and other insurance relative to the building and surrounding common areas (walls out). Any such insurance obtained by the Tenant shall name the Landlord as an additional insured.

 

8.

Water Damage

 

The Landlord shall not be liable for any damage or injury to any persons or property caused by the leak or flow of water from or into any part of the building located upon the Rental Space.

 

9.

Liability of Landlord and Tenant

 

The Landlord shall not be liable for injury or damage to any person or property unless it is due to the Landlord's negligence. The Tenant is liable for any loss, injury or damage to any person or property caused by the act or omission of the Tenant or the Tenant's employees or agents. The Tenant shall defend the Landlord from and reimburse the Landlord for all liability and costs (including reasonable attorneys' fees) resulting from any injury or damage due to the act or omission of the Tenant or the Tenant's employees or agents.

 

6


 

10.

Real Estate Taxes

 

The Landlord shall pay the yearly Municipal Real Estate Taxes on the Rental Space.

 

1


 
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