REGIONAL INDUSTRIAL DEVELOPMENT
CORPORATION
OF SOUTHWESTERN PENNSYLVANIA
TOLLGRADE COMMUNICATIONS,
INC.
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3.1.1 Commencement/Termination
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4.1.1 Initial Term Base Rent
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4.1.2 Renewal Term Base Rent
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4.2 Place and Method of Payment
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5
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5
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6. Taxes, Utilities and Operation and
Maintenance Costs
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6.1.1 Change in Method of Taxation
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6.1.2 Tax Assessment Appeal Rights
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6.3 Maintenance and Operations
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7.2 Equipment and Personal Property
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8. Compliance with Laws and Other
Obligations
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8.2 Rules and Regulations
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9.1 Tenant Indemnification
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9.2 Landlord Indemnification
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10.1.1.1 Liability Insurance
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10.1.1.2 All Risk Insurance
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10.1.1.3 Workers’ Compensation
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10.3 Waiver of Subrogation
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10.4 Landlord’s Fire and Casualty
Insurance
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10
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11. Utilities and Building Services
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11.1 Services and Utilities
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11
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12. Maintenance and Repairs
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11
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12.1 Landlord’s Obligations
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11
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12.2 Tenant’s Obligations
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12
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12
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12
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13.1 Tenant’s Improvements
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12
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13
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13
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14. Assignment and Subletting
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14
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15
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17. Damage to or Destruction of Leased
Premises
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16
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17.1 Landlord’s Duty to Repair and
Restore
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16
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16
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17.3 Landlord’s Right to
Terminate
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16
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17.4 Notice of Termination
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17
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ii
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18. Default; Remedies of Landlord
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17
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17
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18
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18
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19.1 Total or Partial Taking
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18
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19
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20. Subordination of Lease/Attornment
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19
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19
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19
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21. Estoppel Certificate/Reporting
Requirements
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20
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21.1 Estoppel Certificate
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20
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22. Environmental Matters
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20
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20
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22.2 Tenant’s Obligations
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20
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22
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22
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22
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23.3 Non-Waiver by Landlord
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22
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23.4 No Acceptance of Surrender
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22
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23.5 No Waiver of Payment
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22
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23
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23
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23
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23
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23.13 Successors and Assigns
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24
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24
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24
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iii
A — Legal
Description of Leased Premises
B — Drawing of Leased Premises
C — Capital Items
D — Rules and Regulations
E — Tenant Lease Estoppel Certificate
iv
THIS LEASE (this
“Lease”) is made and entered into this 31
st day of August, 2005 (the “Execution
Date”), by and between REGIONAL INDUSTRIAL DEVELOPMENT
CORPORATION OF SOUTHWESTERN PENNSYLVANIA, a Pennsylvania nonprofit
corporation (“Landlord”), and TOLLGRADE COMMUNICATIONS,
INC., a Pennsylvania corporation (“Tenant”), but shall
be deemed to be effective as of January 1, 2005.
WHEREAS, Landlord
and Tenant are parties to that certain Lease Agreement dated
August 5, 1993, as amended (the “Original Lease”),
pursuant to which Tenant occupies the entirety of that certain
building known as Harmar Industrial Manor located as 493 Nixon
Road, Cheswick, PA 15024 (the “Building”);
and
WHEREAS, in order
to reflect numerous desired changes to the Original Lease, Landlord
and Tenant desire that this Lease supersede and replace the
Original Lease in its entirety.
NOW THEREFORE, for
good and valuable consideration, the receipt of which is hereby
acknowledged, and intending to be legally bound hereby, Landlord
and Tenant covenant and agree as follows:
As used in this
Lease, the following terms shall have the meanings set forth below
or in the Section of this Lease referred to, unless the context
otherwise requires:
Additional
Rent : As defined in
Section 5.1.
Base
Rent : As defined in
Section 4.1.1.
Building : As defined in the Recitals hereto.
Capital
Items : As defined in
Section 2.2.
Casualty : As defined in Section 17.1.
CERCLA : As defined in Section 22.1.1.
Commencement
Date : As defined in
Section 3.1.1.
Environmental Laws : As defined in Section 22.1.1.
Event of
Default : As defined in
Section 18.1.
Final
Walk-Through : As defined
in Section 16.
Hazardous
Substances : As defined
in Section 22.1.2.
HSCA :
As defined in Section 22.1.1.
Initial
Term : As defined in
Section 3.1.1.
Initial Term
Base Rent : As defined in
Section 4.1.1.
Initial
Walk-Through : As defined
in Section 16.
Land :
As defined in Section 2.1.
Late
Rate : As defined in
Section 4.3.
Laws :
As defined in Section 8.1.
Leased
Premises : As defined in
Section 2.1.
Mold
Conditions : As defined
in Section 12.4.1.
Obligation : As defined in Section 23.3.
Operation
and Maintenance Costs :
As defined in Section 6.3.
Original
Lease : As defined in the
Recitals hereto.
Prepaid
Taxes : As defined in
Section 6.1.3.
Punch List
Items : As defined in
Section 16.
RCRA :
As defined in Section 22.1.1.
Renewal
Notice : As defined in
Section 3.2.2.
Renewal
Term : As defined in
Section 3.2.1.
Renewal Term
Base Rent : As defined in
Section 4.1.2.
Rent :
As defined in Section 5.1.
Rentable
Square Feet : As defined
in Section 2.1.
Rules and
Regulations : As defined
in Section 8.2.
2
Taxes : As defined in Section 6.1.1.
Tenant’s Improvements
: As defined in
Section 13.1.
Term :
As defined in Section 3.1.1.
Termination
Date : As defined in
Section 3.1.
Utility
Costs : As defined in
Section 6.2.
2.1
Description . The leased premises shall consist of
the Building together with all appurtenances thereto including,
without limitation, the land upon which the Building is situated
(the “Land” and together with the Building, the
“Leased Premises”). The Building contains One Hundred
Eleven Thousand Six Hundred (111,600) square feet of space
(“Rentable Square Feet”). The legal description of the
Land is attached hereto and incorporated herein as Exhibit A.
A drawing depicting the Leased Premises is attached hereto and
incorporated herein as Exhibit B.
2.2
Demise . For and in consideration of payment of Rent
and performance of other obligations hereunder and intending to be
legally bound, Landlord does hereby lease and demise unto Tenant,
and Tenant does hereby lease and take from Landlord, the Leased
Premises. No personal property or equipment of Landlord shall be
part of the Leased Premises. Except for Landlord’s
obligations as set forth in Section 12.1, the items described
on Exhibit C attached hereto and incorporated herein and any
latent defects related thereto (“Capital Items”) and
any latent defects otherwise related to the Leased Premises, and to
the extent the Leased Premises are in compliance with applicable
Laws, Tenant hereby accepts the Leased Premises in its “AS
IS, WHERE IS” condition “WITH ALL
FAULTS”.
3.1.1
Commencement/Termination . The initial term of this Lease
(the “Initial Term”) shall be deemed to have commenced
as of 12:01 A.M. on January 1, 2005 (the
“Commencement Date”) and shall expire as of
11:59 P.M. on June 30, 2007 (the “Termination
Date”), unless the Initial Term is extended as provided in
Section 3.2.1 hereof. The Initial Term and the Renewal Term
(as defined herein) are sometimes hereinafter collectively referred
to as the “Term.”
3.2.1
Renewal Option . Tenant shall have the option to renew this
Lease for two (2) years following expiration of the Initial
Term (the “Renewal Term”), provided: (i) that this
Lease is in full force and effect immediately prior to the date of
the commencement of the Renewal Term; and (ii) that there is
no then-existing Event of Default under any of the provisions
herein.
3
3.2.2
Exercise . Such renewal option shall be exercised by Tenant
serving on Landlord written notice to that effect not later than
six (6) months prior to the expiration of the Initial Term
(the “Renewal Notice”). The Renewal Notice given by
Tenant shall be irrevocable and shall constitute an agreement
between the parties for a renewal of this Lease. If Tenant fails to
exercise its renewal option on or before such time period, Tenant
waives its renewal option. Subject to Section 3.3 below, if
this Lease or the right of occupancy of Tenant hereunder shall have
expired or come to an end pursuant to any of the provisions of this
Lease, all rights of Tenant to renew shall be deemed terminated
automatically.
3.2.3
Terms . Said renewal shall be upon the same terms,
covenants, conditions and limitations as provided in this Lease,
except that the Renewal Term Base Rent shall be the amount set
forth in Section 4.1.2.
3.3.
Holdover . If Tenant occupies the Leased Premises
after the expiration of (a) the Initial Term, absent an
exercise of its renewal rights hereunder, or (b) the Renewal
Term, as the case may be, this Lease and all of its terms,
provisions, conditions, covenants, waivers, remedies and any and
all of Landlord’s rights herein specifically given and agreed
to, shall be in force for one month thereafter and thereafter from
month to month.
4.1.1
Initial Term Base Rent . Tenant shall pay Base Rent to
Landlord during the Initial Term beginning on the Commencement Date
and on the first business day of each successive calendar month, in
advance and without demand. The Base Rent for the Initial Term
(“Initial Term Base Rent”) shall be Four Hundred
Eighteen Thousand Five Hundred Dollars and No Cents ($418,500.00)
per year, payable in equal monthly installments of Thirty-Four
Thousand Eight Hundred Seventy-Five Dollars and No Cents
($34,875.00). Landlord acknowledges that for the period
January 1, 2005 to September 30, 2005 (the “Stub
Period”), it has received Base Rent payments from Tenant in
an amount equal to Four Hundred Ninety Seven Thousand One Hundred
Seventy-Eight Dollars and No Cents ($497,178.00) which represents
an overpayment of Base Rent of One Hundred Eighty-Three Thousand
Three Hundred Three Dollars and No Cents ($183,303.00) during the
Stub Period. Tenant shall be credited such amount less the amount
of Prepaid Taxes (as defined in Section 6.1.3), Insurance
Costs (as defined in Section 10.1.1.2) and Operation and
Maintenance Costs (as defined in Section 6.3) incurred by Landlord
as set forth herein. Such credit amounts to Seventy-Nine Thousand
Eighty-Four Dollars and Ninety-Eight Cents ($79,084.98) which will
be applied to the Base Rent for the months of October, November and
December of 2005. Accordingly, the next Base Rent payment due to
Landlord shall be Twenty-Five Thousand Five Hundred Forty Dollars
and Two Cents ($25,540.02) which shall be due and payable on
December 1, 2005.
4.1.2
Renewal Term Base Rent . Tenant shall pay Base Rent to
Landlord on the first day of each month during the Renewal Term, in
advance and without demand. The Base Rent for the Renewal Term
(“Renewal Term Base Rent”) shall be an amount equal to
Four Hundred Twenty-Six Thousand Eight Hundred Seventy Dollars and
No Cents ($426,870.00) per each twelve (12)
4
month period of
the Renewal Term, payable in equal monthly installments of
Thirty-Five Thousand Five Hundred Seventy-Two Dollars and Fifty
Cents ($35,572.50).
4.2 Place
and Method of Payment . Tenant agrees to pay Base Rent
(whether for the Initial Term or for the Renewal Term), in monthly
installments, on or before the first business day of each month
throughout the Term. Base Rent must be received by Landlord, on the
first business day of each month by either (a) wire transfer
to Landlord’s account at Dollar Bank, account # 266-587-7127,
Dollar Bank, ABA # 243-074-385, or (b) by check made payable
to Landlord, which shall be delivered or mailed, postage prepaid,
to Regional Industrial Development Corporation of Southwestern
Pennsylvania, Post Office Box 3830, Pittsburgh, PA 15230-3830, or
to such other account or address as Landlord may specify from time
to time.
4.3 Late
Charge . If any installment of Rent, or any other sum due
from Tenant shall not be received by Landlord within ten
(10) days after the due date, then Tenant shall pay Landlord a
late charge for each month or partial month that such amount is
overdue equal to the overdue amount of any Rent or other sum that
is due and payable to Landlord multiplied by FIVE PERCENT (5%) (the
“Late Rate”). Acceptance of such late charge by
Landlord shall in no event constitute a waiver of Tenant’s
default with respect to such overdue amount, nor prevent Landlord
from exercising any of the other rights and remedies granted
hereunder.
5.1
Payment . In addition to Base Rent, Tenant shall pay
all Taxes, Utility Costs, insurance costs and Operation and
Maintenance Costs related to the Leased Premises (collectively, the
“Additional Rent”). To the extent that Tenant is
required to pay any items of Additional Rent directly to Landlord,
following receipt of appropriate documentation of such items from
Landlord, Additional Rent shall be payable by Tenant in the same
manner as Base Rent pursuant to Subsection 4.2 above without
demand. Tenant’s failure to pay any such Additional Rent
shall entitle Landlord to the same remedies available for
non-payment of Base Rent. Base Rent and Additional Rent are herein
collectively referred to as “Rent”. Additional Rent
shall not include: (a) depreciation, interest, or amortization
on any mortgage encumbering the Leased Premises, (b) legal
fees incurred in negotiating and enforcing this Lease or any
sublease or assignment hereof, (c) expenses incurred in
leasing or procuring new lessees including, real estate
brokers’ leasing commissions and advertising, (d) costs
of any items to the extent Landlord receives reimbursement for same
from insurance proceeds or a third party, (e) interest,
principal, attorney fees, costs of environmental investigations or
reports, points, fees, and other lender costs and closing costs on
any mortgage or mortgages or other debt instrument encumbering any
portion of the Leased Premises, (f) costs of
(i) Landlord’s accounting and legal matters which may,
include, without limitation, (A) defending or prosecuting any
lawsuit with any mortgagee, lender, broker, tenant, occupant, or
prospective tenant or occupant, (B) selling or syndicating any
of Landlord’s interest in the Leased Premises, and
(C) disputes between Landlord and Landlord’s property
manager, if any; (g) wages, salaries, and other compensation
paid to any employee or independent contractor of Landlord,
including Landlord’s property manager, if any; (h) costs
or penalties incurred by Landlord because the Leased Premises
violates any valid, applicable building code, regulation, or law in
effect and as interpreted by government authorities before the date
hereof; and (i) fines, penalties, interest, and the costs of
repairs, replacements, alterations, or
5
improvements
necessary to make all or any portion of the Leased Premises comply
with applicable past laws in effect and as interpreted by
government authorities before the date hereof, such as sprinkler
installation or requirements under the Americans With Disabilities
Act of 1990 (42 USC ss. 12101-12213). Tenant shall have the right
to audit Landlord’s books and records relating to the
calculation of Additional Rent and Landlord shall reimburse Tenant
for any overcharge. In the event it is determined as a result of
such audit that Landlord overcharged Tenant by more than five
percent (5%), Landlord will reimburse Tenant for the cost of such
audit.
6. TAXES,
UTILITIES AND OPERATION AND MAINTENANCE COSTS
6.1
Taxes . “Taxes” shall mean all taxes
pertaining to the Leased Premises, including all federal, state and
local governmental ad valorem real estate taxes, assessments and
charges of every kind or nature, including, but not limited to, any
municipal Business Privilege Tax, Neighborhood Improvement District
Tax, and Business Improvement District Tax, which Landlord shall
pay or become obligated to pay because of or in connection with the
ownership, leasing, management, control or operations of the Leased
Premises. For purposes hereof, Taxes for any year shall be Taxes
which are assessed for such year. Taxes in any year shall be
reduced by the net amount of any tax refund received by Landlord
with respect to such year and all payments in such year shall be
paid so as to take advantage of any discount. In the event that
Landlord receives a tax refund, Landlord shall immediately notify
Tenant in writing of such tax refund. Taxes shall not include any
federal, state or local use, franchise, capital stock, inheritance,
general income, gift or estate taxes except as provided
below.
6.1.1 Change
in Method of Taxation . If at any time during the Term hereof
the methods of taxation prevailing at the commencement of the Term
hereof shall be altered so that in lieu of or as a supplement to or
a substitute for the whole or any part of the real estate taxes or
assessments now levied, assessed, or imposed upon the Leased
Premises, there shall be levied, assessed, or imposed any form of
assessment, tax, license fee, license tax, business license fee,
business license tax, excise tax, commercial rental tax, levy,
charge, penalty, or other imposition by the federal or state
government, any political subdivision, municipality, school
district, or other taxing or assessing body or assessing body,
which constitutes (1) a tax, levy, assessment, fee, imposition
or other charge upon the Rent payable hereunder, the
Landlord’s right to rent or other income from the Building or
upon the Landlord’s business of leasing the Leased Premises;
or (2) a tax, levy, assessment, fee, imposition or other
charge allocable to or measured, in whole or in part, by the area
of the Building or the Leased Premises or the Rent payable
hereunder; or (3) a tax, levy, assessment, fee, imposition or
other charge upon this transaction or any document related thereto,
or upon the status of Landlord or Tenant as such; or (4) any
tax, levy, assessment, fee, imposition or other charge upon or with
respect to the possession, leasing, operating, management,
maintenance, alteration, repair, use or occupancy of the Building
or the Leased Premises; then all such taxes, assessments, levies,
impositions and charges or the part thereof so measured or based,
which are in lieu of or a substitute for the whole or any part of
the real estate taxes or assessments now levied, assessed or
imposed on the Leased Premises or the Leased Premises shall also be
included in the definition of the term
“Taxes.”
6
6.1.2 Tax
Assessment Appeal Rights . In the event that the Leased
Premises is reassessed for Tax purposes during the Term, Landlord
hereby authorizes Tenant to appeal any tax reassessment for and on
its behalf using counsel of Tenant’s choice. If Tenant elects
not to appeal a tax reassessment, Landlord shall have the right to
do so at its sole cost and expense provided that Landlord
periodically provide Tenant with information relating to the
appeal. In the event a governmental authority institutes
proceedings for the purposes of challenging the current assessment
or any reassessment, Landlord shall immediately notify Tenant and
shall give Tenant the option of either jointly defending the
challenge with Landlord or defending the challenge for and on
behalf of Landlord.
6.1.3
Prorated Taxes . Tenant acknowledges and agrees that prior
to the Execution Date, Landlord has paid Seventy-Seven Thousand
Eight Hundred Eighty-Nine Dollars and Sixteen Cents($77,889.16) for
certain Taxes applicable to the years 2005 and 2006 which were not
payable or paid by Tenant under the Original Lease (“Prepaid
Taxes”). In order to comply with Section 5.1 hereof,
Tenant shall reimburse Landlord for the amount of Prepaid Taxes in
accordance with Section 4.1.1 above.
6.2
Utilities . “Utility Costs” shall mean
the cost of all utilities serving the Leased Premises, including,
without limitation, gas, steam, water, sewer, electricity, power,
heating, lighting, air-conditioning and ventilation consumed by the
Leased Premises and the servicing thereof.
6.3
Maintenance and Operations . The expenses for
maintaining and operating the Leased Premises (hereinafter referred
to as “Operation and Maintenance Costs”) shall be
deemed to mean any and all expenses, costs and disbursements
incurred during such operating year in respect of the operation,
maintenance, servicing and repair of the Leased Premises except for
expenses related to (i) improvements, repair or maintenance to
the exterior walls, roof and foundation of the Building
(ii) Capital Items (as described in Exhibit C
hereto), and (iii) the items stated in the last sentence of
Section 5.1 hereof. Landlord shall be solely responsible for
the expenses related to items (i), (ii) and (iii). Tenant
acknowledges and agrees that prior to the Execution Date, Landlord
has paid Eight Thousand Eight Hundred Thirteen Dollars and
Eighty-Six Cents ($8,813.16) for certain Operation and Maintenance
Costs applicable to the calendar year 2005 which were not payable
by Tenant under the Original Lease. In order to comply with
Section 5.1 hereof, Tenant shall reimburse Landlord for said
amount of Operation and Maintenance Costs in accordance with
Section 4.1.1 above.
7.1
Use . Tenant will not engage nor will Tenant permit
any person, corporation or other entity to engage upon the Leased
Premises in any trade or occupation which is in violation of law.
Tenant shall use the Leased Premises for the purpose of conducting
its business operations which includes light manufacturing
operations and adjunct uses, such as storage and related office
activities. Tenant shall not use or occupy the Leased Premises for
any other purpose or business without the prior written consent of
Landlord which such consent shall not be unreasonably withheld,
conditioned or delayed. The Leased Premises shall not be used for
retail sales or displays for such purposes, nor shall Tenant
install an automated teller machine within the Leased Premises.
Product displays will be permitted provided the same cannot be seen
from
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the outside of
the Leased Premises. Tenant covenants and agrees that no more than
the maximum number of occupants allowed by applicable Law shall
occupy the Leased Premises at any time.
7.2
Equipment and Personal Property . Tenant may bring
such equipment, furniture, trade fixtures or other personal
property into the Leased Premises as may be required for its
business, including, without limitation, special HVAC units
(including Liebert temperature and humidity control system or the
equivalent thereof). Title to such personal property shall at all
times be vested in Tenant. Such personal property shall not be of
an unusual size, type, or weight so as to adversely affect the
Leased Premises.
8.
COMPLIANCE WITH LAWS AND OTHER OBLIGATIONS
8.1
Compliance with Laws . Tenant will, at Tenant’s
expense, observe and comply with all laws, orders, regulations,
rules, and requirements of federal, state and local governments or
any subdivision, agency or authority thereof, including, but not
limited to, the Americans with Disabilities Act (the
“Laws”), applicable to the Leased Premises to the
extent such Laws pertain to the manner in which Tenant uses the
Leased Premises; provided, however, Tenant shall have no obligation
to make structural changes to the Leased Premises required as a
result of any change in Law enacted or becoming effective prior to
or during the Term. Without limiting the foregoing, Tenant agrees
that it shall not, nor shall it permit or suffer any subtenant,
occupant or other user of the Leased Premises to engage in any
activity that could result in any liability, cost or expense under
any Environmental Laws (as hereinafter defined) or any other law or
regulation. Except for, and to the extent of, Landlord’s
gross negligence, willful misconduct or failure to comply with the
terms of this Lease, Tenant will indemnify and save harmless
Landlord from any liability, damage or expense (including
reasonable attorney’s fees and expenses) arising from
Tenant’s failure to comply with this
Section 8.
8.2 Rules
and Regulations . Tenant will observe and comply with the
Rules and Regulations for the Building (the “Rules and
Regulations”) contained on Exhibit D attached hereto and
made a part hereof by reference and as the same may be amended from
time to time. The Rules and Regulations standards shall apply to
Tenant and its employees, agents, licensees, invitees, permitted
subtenants and contractors.
9.1
Tenant Indemnification . Tenant shall indemnify, hold
harmless and defend Landlord from and against any and all costs,
expenses (including reasonable attorney’s fees and court
costs), liabilities, losses, damages, suits, actions, fines,
penalties, claims or demands of any kind asserted by or on behalf
of any person or governmental authority, arising out of or in any
way connected with, and Landlord shall not be liable to Tenant on
account of, (i) any failure by Tenant to perform any of the
agreements, terms, covenants or conditions of this Lease required
to be performed by Tenant, (ii) any failure by Tenant to
comply with any statutes, ordinances, regulations or orders of any
governmental authority relating to the use and occupancy of the
Leased Premises, or (iii) any accident, death or personal
injury, or damage to, or loss or theft of, property, which shall
occur in or about the Leased Premises, except as the same may be
caused
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solely by the
gross negligence or intentional wrongdoing of Landlord, its
employees or agents or failure of Landlord to observe its covenants
hereunder.
9.2
Landlord Indemnification . Landlord shall indemnify,
hold harmless and defend Tenant from and against any and all costs,
expenses (including reasonable attorney’s fees and court
costs), liabilities, losses, damages, suits, actions, fines,
penalties, claims or demands of any kind asserted by or on behalf
of any person or governmental authority, arising out of or in any
way connected with, and Tenant shall not be liable to Landlord on
account of, (i) any failure by Landlord to perform any of the
agreements, terms, covenants or conditions of this Lease required
to be performed by Landlord, (ii) any failure by Landlord to
comply with any statutes, ordinances, regulations or orders of any
governmental authority relating to the use and occupancy of the
Leased Premises, or (iii) any accident, death or personal
injury, or damage to, or loss or theft of, property, which shall
occur in or about the Leased Premises, except as the same may be
caused solely by the gross negligence or intentional wrongdoing of
Tenant, its employees or agents or failure of Tenant to observe its
covenants hereunder.
10.1
Tenant’s Insurance .
10.1.1
Coverages . Tenant will, at Tenant’s cost and expense,
maintain with insurance companies satisfactory to Landlord during
the Term:
10.1.1.1
Liability Insurance . Commercial general public liability
insurance on an occurrence basis insuring against claims for bodily
injury, death or property damage occurring on, in or about the
Leased Premises with minimum combined limits of One Million Dollars
($1,000,000.00) for bodily injury liability and property damage
liability. This policy shall be written on a comprehensive basis to
provide all major divisions of coverage, including, but not limited
to, the following: (1) Leased Premises operations,
(2) products and complete operations, (3) personal injury
liability, (4) broad form property damage, and (5) fire
legal liability.
10.1.1.2 All
Risk Insurance . Insurance covering the Leased Premises, all
trade fixtures and personal property in or on the Leased Premises,
in an amount not less than one hundred percent (100%) of their
actual replacement cost, providing protection against all risks of
direct physical loss. Notwithstanding the foregoing, the parties
acknowledge and agree that prior to the Execution Date, Landlord
has solely maintained insurance coverage on the Leased Premises and
in connection therewith, Landlord has paid Seventeen Thousand Five
Hundred Fifteen Dollars and No Cents ($17,515.00) for said
insurance coverage for the period January 1, 2005 to
September 1, 2005 which was not payable by Tenant under the
Original Lease (“Insurance Costs”). In order to comply
with Section 5.1 hereof, Tenant shall reimburse Landlord for
said Insurance Costs in accordance with Section 4.1.1 above.
Additionally, beginning on September 1, 2005, Tenant shall
obtain and maintain the insurance described in this
Section 10.1.1.2 at its sole cost and expense.
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10.1.1.3
Workers’ Compensation . Worker’s compensation
insurance in the amounts required by law and employer’s
liability insurance in the amount of Five Million Dollars
($5,000,000).
10.1.1.4
Builder’s Risk . During any period of construction by
Tenant on the Leased Premises, builder’s risk insurance on a
completed value, non-reporting basis for the total cost of such
alterations and improvements providing protection against all risks
of direct physical loss.
10.1.1.5
Terrorist Acts . Coverage for terrorist acts, if such
coverage is commercially, reasonably available, with limits and
deductibles satisfactory to Landlord. Such coverage will be deemed
commercially, reasonably available if a majority of similarly
situated (or comparable) Tenants in the county in which the Leased
Premises is located maintain such coverage.
10.2
Requirements . Such insurance coverage (other than
workers’ compensation) shall name Landlord as loss payee and
an additional insured and shall contain a provision that the same
may not be cancelled or reduced without providing Landlord at least
thirty (30) days’ prior written notice. All policies
shall be procured for periods of not less than one (1) year.
Tenant shall deposit with Landlord certificates of such insurance
(or copies of policies upon Landlord’s request) at or prior
to the commencement of this Lease and thereafter not less than ten
(10) days prior to the expiration of such policy or policies.
In the event that the Tenant fails to comply with any of the
foregoing requirements, and after ten (10) business days
notice allowing Tenant an opportunity to cure, Landlord shall be
entitled, but not obligated, to procure such insurance. Any sums
expended by Landlord in procuring such insurance shall be deemed
Additional Rent and shall be paid by Tenant immediately upon
written demand therefor by Landlord.
10.3
Waiver of Subrogation . Landlord and Tenant each
waives any and all rights of recovery that such party, or any party
claiming by, through or under such party by subrogation or
otherwise, may have against the other party, or against the
officers, employees, agents and representatives of the other party,
for loss of, or damage to, such waiving party or its property or
the property of others under its control, to the extent any such
loss or damage is insured against (or should be insured against
pursuant to the terms of this Lease) under any insurance policy in
force at the time of such loss or damage. Landlord and Tenant
shall, upon obtaining the policies of insurance required hereunder,
give notice to the insurance carriers that the foregoing mutual
waiver of subrogation is contained in this Lease and such insurance
policies shall contain a provision by which the insurance company
specifically waives its right of subrogation with respect to any
loss or losses paid thereunder.
11.
UTILITIES AND BUILDING SERVICES
11.1
Services and Utilities . Tenant shall promptly
pay, as the same become due, all Utilities Costs related to the
Leased Premises during the Term, including without limitation,
meter, use and/or connection fees, hook-up fees, or standby fees
and penalties for discontinued or interrupted service caused by
Tenant.
11.2 Snow
Removal . Tenant shall be responsible for arranging and
paying for snow and ice removal services for the parking lot,
roadways, sidewalks and walkways of the Leased Premises.
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11.3
Landscaping . Tenant shall be responsible for
arranging and paying for landscaping services at the Leased
Premises.
12.
MAINTENANCE AND REPAIRS
12.1
Landlord’s Obligations . Landlord shall be
responsible to maintain and repair the roof, the exterior walls and
the foundation of the Leased Premises and shall also be responsible
for the maintenance and repair of Capital Items as provided in
Exhibit C. If Landlord refuses or neglects to perform the
maintenance and repair obligations for which it has responsibility
under this Lease, or fails to diligently prosecute the same to
completion, after written notice from Tenant of the need therefore,
and after a reasonable time thereafter in which to make the same,
Tenant may make such repairs at the expense of Landlord and such
expense shall be credited against the next payable installment of
Rent.
12.2
Tenant’s Obligations . Except as the Landlord
is obligated for repairs as provided in Section 12.1, Tenant
shall make, at its sole cost and expense, all repairs and
replacements necessary to maintain the Leased Premises and shall
keep the Leased Premises and fixtures therein, and the parking
lots, roadways, sidewalks and walkways which are part of the Leased
Premises in neat, clean, and orderly condition. Tenant’s
repair and maintenance obligations shall include, but shall not be
limited to, all HVAC, plumbing and sewerage facilities within the
Leased Premises, fixtures, interior walls and ceiling, floors,
windows (including the repairing, resealing, cleaning and replacing
of both interior and exterior windows), interior and exterior
doors, entrances, plate glass, showcases, skylights, all electrical
facilities and equipment, including lighting fixtures, lamps, fans
and any exhaust equipment and systems, electrical motors and all
other appliances and equipment of every kind and nature located in,
upon or about the Leased Premises. Tenant shall also be responsible
for all pest control within the Leased Premises, and for all trash
removal and disposal for the Leased Premises. Tenant shall obtain
HVAC systems preventive maintenance contracts in accordance with
manufacturer recommendations and paid for by Tenant, and which
shall provide for and include replacement of filters, oiling and
lubricating of machinery, parts replacements, adjustment of drive
belts, oil changes and other preventive maintenance, including
maintenance of duct work interior unit drains and caulking at sheet
metal, and recaulking of jacks and vents on an as-needed basis.
Tenant shall have the benefit of all warranties available to
Landlord regarding the equipment in such HVAC systems. Tenant shall
also be responsible for any repairs needed due to Tenant’s
negligence or misuse. If Tenant refuses or neglects to make any
such repairs which are its responsibility hereunder, or fails to
diligently prosecute the same to completion, after written notice
from Landlord of the need therefor, and a reasonable time
thereafter in which to make the same, Landlord may make such
repairs at the expense of Tenant and such expense shall be
collectible as Additional Rent. Notwithstanding the foregoing, the
parties acknowledge and agree that certain portions of the parking
lots and roadways on the Leased Premises are in need of replacement
as of the date of execution hereof. Landlord further acknowledges
and agrees that Tenant shall not be obligated to replace all or any
portion of the parking lots and roadways or improve the same beyond
their current condition, provided that Tenant shall maintain the
condition of the same in at least the same condition as they are in
as of the date of execution hereof using methods similar to those
used by Landlord for the maintenance thereof prior to the date
hereof.
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12.3 No
Liability . Landlord shall not be liable by reason of any
injury to or interference with Tenant’s business arising from
the making of any repairs, alterations, additions or improvements
in or to the Leased Premises or the Building or to any
appurtenances or equipment therein except for injuries or
interference with Tenant’s business relating to
Landlord’s repairs of the items it is required to repair
hereunder, including Capital Items.
Tenant shall
not install any Tenant’s Improvements or conduct
any
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