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:
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(a)
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Landlord: Galleria
Equities, LLC, a Michigan limited liability company
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(Tax I.D. Number:
38-3527980).
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(b)
Landlord's Address: 26877 North western Highway, Suite 101, P.O.
Box 70, Southfield, Michigan 48037-0070.
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(c)
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Coordinated Care
Solutions, Inc., a Delaware corporation.
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(d)
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Tenant's Address: 12301
NW 39th Street, Coral Springs, Florida 33065.
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(e)
Building: That certain office building located at 400 Galleria
Office Centre, in the City of Southfield, County of Oakland and
State of Michigan.
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(f)
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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".
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(g)
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Commencement: See
Section 3.2 hereof.
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(h)
Expiration: The last day of the thirty-ninth (39th) complete
calendar month following the Commencement Date.
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a.
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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
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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).
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b.
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For the period
beginning on the first day immediately following the expiration
of
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the Free Rent Period
and ending on the last day of the fifteenth (16th)
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complete calendar month
following the Commencement Date, Basic
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Rental
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shall be $6,804.76 per
month ($21.00 per square foot per annum).
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c.
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For the period
beginning on the first day of the sixteenth (16th)
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complete
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calendar month
following the Commencement Date and ending on the
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last day
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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).
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d.
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For the period
beginning on the first day of the twenty eighth (28th)
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complete
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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).
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(j)
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Base Expenses (as
defined in Section 14.1(a) hereof) incurred for the
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2005 calendar year.
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(k)
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Security Deposit:
$6,081.17.
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(I)
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Right of First Offer:
See Article 29 hereof.
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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).
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3.2
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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.
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3.3
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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.
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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.
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.
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7.1
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Landlord shall maintain
(i) the common areas, including any lobbies, stairs, elevators,
corridors
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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.
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.
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9.
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Insurance and
Indemnification
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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.
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10.
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Assignment and Subletting.
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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