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LEASE

Lease Agreement

LEASE | Document Parties: PATIENT INFOSYSTEMS INC | Galleria Equities, LLC | Coordinated Care Solutions, Inc You are currently viewing:
This Lease Agreement involves

PATIENT INFOSYSTEMS INC | Galleria Equities, LLC | Coordinated Care Solutions, Inc

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Title: LEASE
Governing Law: Michigan     Date: 6/29/2006
Industry: Computer Services     Sector: Technology

LEASE, Parties: patient infosystems inc , galleria equities  llc , coordinated care solutions  inc
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LEASE

THIS LEASE, made as of the 30 day of June, 2005, by and between the Landlord and Tenant hereinafter defined in Sections 1(a) and 1(c), respectively.

WITNESSETH:

1. Basic Lease Provisions.

The following sets forth basic data hereinafter referred to in thls Lease and, where appropriate, constitute dellnltlons of the terms hereinafter listed:

 

(a)

Landlord: Galleria Equities, LLC, a Michigan limited liability company

 

(Tax I.D. Number: 38-3527980).

 

(b)           Landlord's Address: 26877 North western Highway, Suite 101, P.O. Box 70, Southfield, Michigan 48037-0070.

 

(c)

Coordinated Care Solutions, Inc., a Delaware corporation.

 

 

(d)

Tenant's Address: 12301 NW 39th Street, Coral Springs, Florida 33065.

(e)           Building: That certain office building located at 400 Galleria Office Centre, in the City of Southfield, County of Oakland and State of Michigan.

 

(f)

Demised Premises: The premises known as Suite 214 located on the second floor of the Building, containing approximately 2,964 square feet of usable floor area and 3,317 square feet of rentable floor area as shown on the floor plan attached hereto as Exhibit "A".

 

 

(g)

Commencement: See Section 3.2 hereof.

(h)          Expiration: The last day of the thirty-ninth (39th) complete calendar month following the Commencement Date.

 

(i)

Basic:

 

 

a.

For the Free Rent Period (as hereinafter defined), Basic Rental shall be $0.00 ($0.00 per rentable square foot per annum). The term "Free Rent Period" is hereby defined as follows: (1) If the Commencement Date is the first day of a calendar month, the Free Rent Period shall be the period beginning on the Commencement Date and ending on the last day of the third (3rd) complete calendar month following the Commencement Date, and (ii) if the Commencement Date Is a day other than the first day of a calendar month, the Free Rent Period shall be the period beginning on the Commencement Date and ending on the day Immediately preceding the day which corresponds numerically

 

 

to the Commencement Date in the third (3rd) calendar month following the calendar month which contains the        Commencement Date (provided that if there Is no such numerically corresponding day in such third (3rd) calendar month, the Free Rent Period shall end on the last day of such third (3rd) calendar month).

 

b.

For the period beginning on the first day immediately following the expiration of

 

 

the Free Rent Period and ending on the last day of the fifteenth (16th)

 

 

complete calendar month following the Commencement Date, Basic

 

 

Rental

 

 

shall be $6,804.76 per month ($21.00 per square foot per annum).

 

 

c.

For the period beginning on the first day of the sixteenth (16th)

 

 

complete

 

 

calendar month following the Commencement Date and ending on the

 

last day

 

 

 

 

 

 

 

 

 

 

 

 

of the twenty seventh (27th) complete calendar month following the Commencement Date, Basic Rental shall be $6,942.96 per month ($21.60 per square foot per annum).

 

d.

For the period beginning on the first day of the twenty eighth (28th)

 

complete

 

 

 

 

 

 

calendar month following the Commencement Date and ending on the last day

of the thirty-ninth (39th) complete calendar month following the Commencement Date, Basic Rental shall be $6,081.17 per month ($22.00 per square foot per annum).

 

(j)

Base Expenses (as defined in Section 14.1(a) hereof) incurred for the

2005 calendar year.

 

(k)

Security Deposit: $6,081.17.

 

 

(I)

Right of First Offer: See Article 29 hereof.

 

 

 

 

 

 

2. Demised Premises.

2.1 Landlord, in consideration of the rents to be paid and the covenants to be performed by Tenant, and upon and subject to the terms and provisions herein set forth, does hereby lease unto Tenant the demised premises described In Section l(f) hereof together with the non- exclusive right and easement to use the exterior and interior common and public areas and facilities which may from time-to-time be furnished by Landlord, including parking areas and decks (other than the enclosed parking garage), in common with Landlord and the tenants and occupants (their agents, employees, customers and invitees) of the Building and of adjacent buildings now or hereafter constructed (such exterior and interior common areas and facilities to be hereinafter referred to as the "common areas").

2.2 Landlord reserves the right (a) to designate certain parking areas for the exclusive IJS~ of designated tenants or for short term parking, (b) to make changes, alterations, additions, improvements, repairs or replacements in or to the Building (including the demised premises) and the fixtures and equipment thereof as well as the interior and exterior common areas, including the construction of additional buildings and parking decks; (c) to eliminate, substitute and/or rearrange the interior and exterior common areas as Landlord deems appropriate in its discretion, and (d) to erect, maintain and use pipes, ducts, conduits and wires in and through the demised premises

 

 

in locations which will not materially interfere with Tenant's use thereof. Notwithstanding the foregoing, Landlord shall not exercise any right under this Section 2.2 In such a manner so as to unreasonably interfere with Tenant's use of the demised premises or with Tenant's ingress to, and egress from, the demised premises.

3. Term and Construction.

3.1 Landlord shall construct the Tenant improvements (as defined In Exhibit “C" attached hereto). The term of this Lease shall commence on the Commencement Date (as hereinafter defined) and expire on the Expiration Date (as defined in Section 1 (h) hereof).

 

3.2

The term ‘”Commencement Date" shall mean the date Landlord has Substantially Completed (as hereinafter defined) the Tenant Improvements, provided in the event of a Tenant Delay (as hereinafter defined), the Tenant improvements shall be deemed to have been so Substantially Completed and the Commencement Date shall be deemed to have occurred on the date such Substantial Completion would have occurred but for such delay. Notwithstanding the foregoing, in the event Tenant shall take possession of the demised premises and commence ordinary business operations there from prior to the Commencement Date as determined by the preceding sentence, the Commencement Date shall be deemed to be the date Tenant so takes possession of the demised premises and commences ordinary business operations there from. The term "Substantially Complete" shall mean (i) substantial completion subject only to the completion of details of construction, decorations and mechanical adjustments that do not materially interfere with Tenants use of the demised premises, and (ii) receipt of all governmental approvals required for the occupancy of the demised premises. The term 'Tenant Delay" shall mean any delay caused by Tenant or Tenant's contractors In the Substantial Completion of the Tenant Improvements, including (i) any delay caused by a change in the Tenant improvements requested by Tenant from and after the date hereof, and/or (ii)any delay caused as a result of interference by Tenant's subcontractors with the construction of the Tenant improvements and/or obtaining final inspections and approvals from the City of Southfield.

 

 

3.3

Tenant shall have the right to enter the demised premises at least ten (10) days prior to the Commencement Date, for the purposes of installing voice data cable, furniture, and equipment, provided (i)such activities by Tenant shall not interfere with the completion of the Tenant improvements and/or obtaining final Inspections and approvals from the City of Southfield, (ii) Landlord shall not be responsible or liable for any Injury (including death) to persons or loss or damage to any of Tenant's improvements fixtures or equipment or any other materials installed or left in the demised premises by Tenant (or its contractors) prior to the Commencement Date, and (iii)any such use of the demised premises by Tenant prior to the commencement Date shall be subject to all of the terms and conditions of this Lease except the payment of Basic Rental and additional rent.

 

 

 

 

 

4.

Basic Rental.  

 

Tenant shall pay to Landlord as rent for the demised premises the Basic Rental set forth in Section 1(i) hereof. The Installment of Basic Rental payable with respect to the first month following the Free Rent Period shall be payable upon the execution of this Lease, and thereafter the Basic Rental shall be paid, in advance, upon the first day of each and every successive calendar month throughout the term of this Lease; provided, however, that if the Commencement Date is other than the first day of a calendar month or the Expiration Date is other than the last day of a calendar month, then the rental for such first or last fractional month shall be such portion of the monthly rental then In effect as the number of days in such fractional month bears to the total number of days in the calendar month.

 

 

5.

Use and Occupancy.  

The demised premises shall be used and occupied for office use and purposes incidental thereto and for no other purposes without the written consent of Landlord. Tenant shall comply with all requirements of the insurance policies, the American Insurance Association and the National Fire Protection Association relating to the demised premises and the Building, and Tenant shall not use the demised premises in any manner which will in any way increase the existing rate of, or otherwise affect, any fire or other insurance upon the demised premises or the Building, or adversely affect or interfere with any services required to be furnished by Landlord to Tenant or to any other tenants or occupants of the Building or with the proper and economical rendition of any such service. Tenant shall not use the demised premises for any purpose in violation of any law, municipal ordinance, or regulation, nor shall Tenant perform any acts or carry on any practices which may injure or cause waste in or about the demised premises or the Building or be a nuisance, disturbance or menace to the other tenants of the Building. Tenant shall not use, store or place in or upon the demised premises any toxic or hazardous substances or materials other than office supplies and cleaning fluids typically used in a business office in compliance with law. Tenant shall comply with any occupancy certificate or directive issued pursuant to any law by any public officer as well as the provisions of all recorded documents affecting the demised premises, insofar as they relate to the condition, use or occupancy of the demised premises. If any use of the demised premises shall cause the rate of insurance on the Building to be increased, Tenant shall pay the amount of any such increase.

6. Utilities and Services.

6.1 Landlord will arrange for the furnishing of electricity to the demised premises, and Tenant shall pay for such electricity at the applicable secondary rates dictated by Detroit Edison. Such charge to Tenant for electricity shall be payable, as additional rent, in monthly installments payable within thirty (30) days following receipt of an invoice from Landlord.

6.2 Landlord shall furnish the demised premises with (a) heat, ventilation and air conditioning to the extent required for the occupancy of the demised premises to standards of comfort, and during such hours, as reasonably determined by Landlord for the Building (which hours, until Landlord shall otherwise designate, shall be from 7:00

 

 

a.m. to 7:00 p.m. on weekdays and from 8:00 a.m. to 3:00 p.m. on Saturdays; in each case except holidays), or as may be prescribed by any applicable policies or regulations adopted by any utility or governmental agency, provided Landlord shall not be required to provide supplemental ventilation and air conditioning to the demised premises required by reason of heat generating equipment or lighting other than building standard lights, or if the demised premises shall be occupied by a number of persons in excess of the design criteria of the air conditioning system, or to accommodate any other extraordinary ventilation or air conditioning requirements of Tenant, (b) elevator service, and (c) janitorial services in accordance with Exhibit "D" attached hereto, provided, however, Tenant shall pay a reasonable additional charge for providing janitorial services to any portion of the demised premises used for other than normal office purposes. Landlord shall not be responsible for removal and disposal of trash in excess of that created as a result of normal office operations. In addition, Landlord shall replace all burned out fluorescent tubes, ballasts and starters.

Landlord shall not be in default hereunder or be liable for any damages directly or indirectly resulting from, nor shall the rental herein reserved be abated or an actual or constructive eviction or partial eviction be deemed to have occurred by reason of: (1) the installation, use or interruption of use, of any equipment in connection with the furnishing of any of the foregoing services, (2) failure to furnish or delay in furnishing any such services when such failure or delay is caused by accident or any condition beyond the reasonable control of Landlord or by the making of necessary repairs or improvements to the demised premises or to the Building, or (3) any limitation, curtailment, rationing or restriction on use of water, electricity, steam, gas or any other form of energy serving the demised premises or the Building. Landlord shall use reasonable efforts diligently to remedy any interruption in the furnishing of such services.

 

Notwithstanding the preceding paragraph, in the event that Tenant is prevented from using, and does not use, the demised premises or any portion thereof, for more than three (3) consecutive business days as a result of any failure of Landlord to provide services to the demised premises as a result of the negligence or willful act of Landlord, its agents, contractors or employees, then Tenant's Basic Rental and additional rent shall be abated or reduced, as the case may be, after expiration of the %day period for such time that Tenant continues to be so prevented from using the demised premises or a portion thereof, in the proportion that the rentable area of the portion of the demised premises that Tenant is prevented from using, and does not use, bears to the total rentable area of the demised premises.

6.3 Tenant shall pay, as additional rent, the cost of providing (i) all heating, ventilating and air conditioning, including all related utility costs, to the demised premises in excess of that required to be provided by Landlord pursuant to Section 6.2 hereof, provided Landlord shall have no obligation to provide heating, ventilating or air conditioning to the extent same cannot be provided utilizing the existing equipment servicing the Building, (ii) janitorial service in excess of the service required to be provided by Landlord pursuant to Section 6.2 hereof, and (iii)any other special service required by reason of Tenant's use of the demised premises during other than normal business hours or for other than normal office purposes. Tenant shall notify Landlord in writing at least one (1) business day prior to the time it requires heating, ventilating and air conditioning during periods the same are not otherwise furnished by Landlord pursuant to Section 6.2 hereof.

 

 

 

 

 

7.

Repairs

 

 

7.1

Landlord shall maintain (i) the common areas, including any lobbies, stairs, elevators, corridors

and restrooms, (ii) the windows and exterior walls, roofs, foundations and structure of the Building, and (iii) the mechanical, plumbing and electrical equipment servicing the Building, in good order and condition as reasonably determined by Landlord. Notwithstanding the foregoing, Tenant shall pay the cost of any repairs occasioned by the act, neglect or default of Tenant, its agents, employees, invitees and contractors.

 

7.2 Subject to the provisions of Section 7.1 hereof, Tenant shall keep the demised premises and every part thereof (including any special equipment Installed in the demised premises such as supplemental air conditioning equipment, and any other alterations, additions or improvements, whether Installed by Landlord or Tenant) in good condition and repair. Tenant shall be responsible for Installing, maintaining and replacing fire extinguishers in the demised premises to the extent required by applicable fire codes. All repairs made by or on behalf of Tenant shall be made and performed in such manner as Landlord may designate, by contractors or mechanics approved by Landlord and in accordance with the rules and regulations relating thereto annexed to this Lease as Exhibit "B" and all applicable laws, codes and regulations. Subject to the provisions of Article 8 hereof, Tenant shall, at the end of the term hereof, surrender to Landlord the demised premises in the same condition as when received, except for ordinary wear and tear, repairs required to be made by Landlord, and damage by fire, earthquake, act of God or the elements. Landlord has no obligation, and has made no promise, to alter, remodel, improve, repair, decorate or paint the demised premises or any part thereof and no representations respecting the condition of the demised premises or the Building have been made by Landlord to Tenant except as expressly set forth herein.

7.3 In the event that Landlord shall deem it necessary or be required by any governmental authority to repair, alter, remove, reconstruct or improve any part of the demised premises or of the Building, then the same shall be made by Landlord with reasonable dispatch (unless the same shall result from Tenant's act, neglect, default or mode of operation or shall have been required by the City in connection with any alteration of the demised premises performed by, or at the request of, Tenant, in which event Tenant shall make all such repairs, alterations and improvements or, at Landlord's option, Landlord shall make such repairs, alterations and improvements and shall be promptly reimbursed by Tenant for the cost incurred by Landlord in so doing), and should the making of such repairs, alterations or improvements cause any interference with Tenant's use of the demised premises, such interference shall not relieve Tenant from the performance of its obligations hereunder nor shall such interference be deemed an actual or constructive eviction or partial eviction or result In an abatement of rental. Notwithstanding the preceding sentence, in the event that Tenant is prevented from using, and does not use, the demised premises or any portion thereof, for more than three (3) consecutive business days as a result of Landlord's performance of such work, then Tenant's Basic Rental and additional rent shall be abated or reduced, as the case may be, after expiration of the 3-day period for such time that Tenant continues to be so prevented from using the demised premises or a portion thereof, in the proportion that the rentable area of the portion of the demised premises that Tenant is prevented from

 

 

using, and does not use, bears to the total rentable area of the demised premises.

8.

Alterations

 

Tenant shall not make any alterations, additions or improvements to the demised premises (whether or not the same may be structural In nature) or attach any fixtures or equipment thereto without Landlord's prior written consent, which consent shall not be unreasonably withheld. All such alterations, additions or improvements shall be performed by contractors or mechanics approved by Landlord (which approval shall not be unreasonably withheld) and In accordance with the rules and regulations annexed hereto as Exhibit "B" and all applicable laws, codes and regulations. Tenant shall furnish Landlord with such sworn statements and waivers of lien as Landlord shall request In connection with such work and shall comply with such other reasonable safeguards and controls as Landlord shall require. Any such alterations, additions or improvements made by either party hereto to the demised premises shall become the property of Landlord upon their installation or completion and shall remain upon, and be surrendered with, the demised premises at the expiration or termination of this Lease; provided, however, that Landlord may require Tenant to remove any additions made by Tenant to the demised premises (including voice and data cabling) and to repair any damage caused by such removal, and provided further, that if Tenant has not removed Its property and equipment within ten (10) days after the expiration or termination of this Lease, Landlord may elect to retain the same as abandoned property.

9.

Insurance and Indemnification

 

9.1 Landlord shall provide and keep in force, or cause to be provided or kept in force, during the term hereof: (a) commercial general liability Insurance with respect to Landlord's operation of the Building and the common areas for bodily injury or death and damage to property of others; (b) 'all-risk" casualty insurance covering the Building and the common areas, excluding Tenant's trade fixtures, equipment, personal property and any leasehold improvements installed by Tenant; and (c) loss of rental income insurance; together with such other insurance as Landlord, in its sole discretion, elects to obtain. Insurance provided by Landlord shall have such limits of liability, deductibles and exclusions, and shall otherwise be on such terms and conditions as Landlord shall from time to time determine reasonable and sufficient.

9.2 Tenant shall indemnify and hold Landlord harmless from any damage to any property or injury to or death of any person occurring in, upon or about the demised premises, unless caused by the negligence or willful act of Landlord, its agents or employees. 'The foregoing indemnity obligation of Tenant shall include reasonable attorney's fees, investigation costs and all other costs and expenses incurred from the first notice that any claim or demand is to be made or may be made. The provisions of this Section 9.2 shall survive the termination of this Lease with respect to any damage, injury or death occurring prior to such termination.

9.3 Tenant shall procure and keep in effect commercial general liability insurance, including property damage and contractual liability, on an occurrence basis with bodily

 

 

injury and property damage combined single limits of liability of not less than Two Million Dollars ($2,000,000) per occurrence (which limits may be satisfied by maintaining an umbrella policy on top of a primary policy of $1,000,000), insuring Landlord and Tenant against any liability arising out of the ownership, use, occupancy or maintenance of the demised premises and all areas appurtenant thereto. From time to time, Tenant shall Increase the limits of such policies to such higher limits as Landlord shall reasonably require.

9.4 Tenant shall procure and keep in effect fire insurance (including standard extended coverage endorsement perils and leakage from fire protection devices) for the full replacement cost of Tenant's trade fixtures, equipment, personal property and any leasehold improvements installed by Tenant.

9.5 Tenant shall deliver certificates evidencing the lnsurance required pursuant to Sections 9.3 and 9.4 hereof to Landlord on or before the Commencement Date, and thereafter at least thirty (30) days before the expiration dates of the then current policies. Such insurance shall name Landlord as an additional insured, shall specifically include the liability assumed hereunder by Tenant, and shall provide that it is primary insurance and not excess over, or contributory with, any other valid, existing and applicable insurance in force for or on behalf of Landlord, and shall provide that Landlord shall receive thirty (30) days notice from the insurer prior to any cancellation or change of coverage.

10.

Assignment and Subletting.  

10.1 Except as expressly permitted pursuant to this Article 10, Tenant shall not, without the prior written consent of Landlord, which consent shall not be unreasonably withheld, assign, transfer, hypothecate, or mortgage this Lease or any interest herein or sublet the demised premises or any part thereof, or permit the use of the demised premises by any party other than Tenant, provided that it shall not be unreasonable for Landlord to withhold or deny its consent with respect to any proposed assignment or subletting to a third party that is already a tenant or occupant In the Galleria Officentre complex or an affiliate thereof. Any assignment, transfer (including transfers by operation of law or otherwise), hypothecation, mortgage, or subletting without such written consent shall give Landlord the right to terminate this Lease and to re-enter and repossess the demised premises, but Landlord's right to damages shall survive. No consent by Landlord to any assignment, transfer, hypothecation, mortgage or subletting on any one occasion shall be deemed a consent to any subsequent assignment, transfer, hypothecation, mortgage or subletting by. Tenant or by any successors, assigns, transferees, mortgagees or subleasees of Tenant. The acceptance of rental by Landlord from any other person shall not be deemed a waiver by Landlord of any provision hereof. In the event of any assignment, transfer, hypothecation, mortgage or subletting, Tenant shall remain fully and primarily liable to perform all of the obligations of Tenant under this Lease and in the event of a default hereunder, Landlord may proceed directly against Tenant without the necessity of exhausting remedies against such assignee or successor.

10.2 If at any time or from time to time during the term of this Lease, Tenant desires to sublet all or any part of the demised premises or to assign this Lease, Tenant shall give notice to Landlord (Tenant's Subletting Notice") setting forth the proposed

 

 

subtenant or assignee and the terms of the proposed subletting or assignment. Landlord shall have the option, exercisable by notice given to Tenant within ten (10) business days after Tenant's Subletting Notice is received, (a) to consent or refuse to consent thereto, which consent shall not be unreasonably withheld, (b) if Tenant's request relates to a subletting, to terminate this Lease as to the portion of the demised premises to be sublet, or (c) If Tenant's request relates to an assignment, to terminate this Lease. In the event Landlord shall consent to the proposed subletting or assignment, Tenant shall be free for a period of one hundred eighty (180) days thereafter to sublet such space or to assign this Lease, provided that the subtenant or assignee and the terms of the sublease or assignment shall be as set forth in Tenant's Subletting Notice.

 

In the event Tenant shall so sublet a portion of the demised premises or assign this Lease, fifty percent (50%) of all of the sums or other economic consideration received by Tenant as a result of such subletting or assignment, whether denominated rentals or otherwise under the sublease or assignment, which exceed, in the aggregate, the total sums which Tenant is obligated to pay Landlord under this Lease (prorated to reflect obligations allocable to that portion of the demised premises subject to such sublease for the period of time covered by such sublease and after deducting there from the costs incurred by Tenant in connection with such sublease or assignment, such as brokerage commissions and tenant improvement costs) shall be payable to Landlord as additional rental under this Lease without affecting or reducing any other obligation of Tenant hereunder.

10.3 Notwithstanding the provisions of Sections 10.1 and 10.2 hereof, Tenant may assign this Lease or sublet the demised premises or any portion thereof, without Landlord's consent and without extending any option to Landlord, to any entity which controls, is controlled by or is under common control with Tenant, provided that said assignee assumes, in full, the obligations of Tenant under this Lease.

10.4 Notwithstanding anything to the contrary contained herein, Tenant shall not have the right to assign this Lease or sublet any portion of the demised premises (including pursuant to Section 10.3 hereof) (i) for any medical or dental use, (ii) to any governmental or quasi-governmental agency, (iii) for any


 
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