Exhibit 10.1
LEASE AGREEMENT
BETWEEN
RFP MAINSTREET 2101 COMMERCIAL,
LLC
(“LANDLORD”)
AND
OMNICOMM, SYSTEMS,
INC.
(“TENANT”)
THE 2101 BUILDING
2101 West Commercial
Boulevard
Fort Lauderdale, Florida
33309
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BASIC LEASING INFORMATION
THE 2101 BUILDING
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LEASE DATE
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March 24,
2006
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TENANT:
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OMNICOMM
SYSTEMS, INC., a Delaware corporation
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ADDRESS OF
TENANT:
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2101 West Commercial Blvd. Ft. Lauderdale,
Florida 33309
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TENANT’S CONTACT:
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Ron
Linares
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TELEPHONE: 954-473-1254
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LANDLORD:
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RFP
Mainstreet 2101 Commercial, LLC, a Delaware limited liability
company
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ADDRESS OF
LANDLORD:
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c/o Mainstreet
Real Estate Services, Inc.
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One Financial Plaza, Suite 102 Fort Lauderdale,
Florida 33301
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LANDLORD’S CONTACT:
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Tamar Lubow
TELEPHONE: 954-764-8380
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LEASED
PREMISES:
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Suite No. 4000,
which is located in the office building which has been constructed,
and known as THE 2101 BUILDING (the “Building”),
located at 2101 West Commercial Blvd., Fort Lauderdale, FL
33309
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LEASE
TERM:
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Sixty-three
(63) months.
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TARGET
DATE:
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April 15,
2006
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BASE
RENT:
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SQUARE
FOOT
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BASE ANNUAL* RENTAL
RATE
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BASE ANNUAL*
RENTAL
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MONTHS 1-3
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7,833
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No charge to Base Rent –
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Operating Expenses only
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MONTHS 4-12
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7,833
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$101,829.00
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$13.00
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MONTHS 13-24
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7,833
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$105,902.00
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$13.52
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MONTHS 25-36
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7,833
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$110,131.98
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$14.06
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MONTHS 37-48
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7,833
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$114,518.46
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$14.62
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MONTHS 49-60
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7,833
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$119,061.60
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$15.20
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MONTHS 6 1-63
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7,833
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$ 30,940.35
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$15.80
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plus applicable
sales tax
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ADDITIONAL
RENT:
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Currently
estimated to be approximately $10.00 per rentable square foot per
year (plus applicable sales tax), subject to increase/adjustment as
provided within the Lease.
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TENANT’S PROPORTIONATE
SHARE:
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8.3%
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SECURITY
DEPOSIT:
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$15,232.33 due
and payable upon Tenant’s execution of the Lease.
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PREPAID
RENT/INITIAL PAYMENT:
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$15,232.33 due
and payable upon Tenant’s execution of the Lease.
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RENTABLE
SQUARE FEET IN THE BUILDING (RSF):
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94,352
RSF**
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RENTABLE
SQUARE FEET (LEASED PREMISES):
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7,833
RSF**
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PERMITTED
USE:
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General
Office
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BROKER(S):
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Cushman &
Wakefield, on behalf of Landlord, and, Brenner Real Estate Group,
on behalf of Tenant
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GUARANTORS:
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Mr. Cornelis Wit
Mr. Randall Smith
Mr. Ronald Linares
Mr. Matthew Veatch
Mr. Gustaaf van Kesteren
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PARKING
SPACES:
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4:1,000 Surface
Spaces
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Thirty-two(32)
Non-reserved surface parking spaces in Parking Area at no
charge.
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Parking spaces
are allotted at a rate of four (4) spaces per 1,000 rentable square
feet.
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The above rates
are the current rates charged for parking at the time of Lease
execution and are subject to change during the Lease
Term.
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TERMINATION
OPTION:
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Tenant shall
have the right to terminate the Lease Term after three (3) years
pursuant to the terms outlined in Paragraph 40 of thes Lease
Agreement.
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FURNITURE
PURCHASE:
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Upon execution
of the Lease Tenant shall pay Landlord
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$4,000 for the
furniture that is currently located in the Premises.
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The foregoing Basic Lease
Information is hereby incorporated into and made a part of the
Lease identified hereinabove. Each reference in the Lease to any of
the information and definitions set forth in the Basic Lease
Information shall mean and refer to the information and definitions
hereinabove set forth and shall be used in conjunction with and
limited by all references thereto in the provisions of the Lease.
In the event of any conflict between any Basic Lease Information
and the Lease, the Lease shall control.
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Building
measurements based on modified BOMA Standards; multi-tenant loss
factor of 15%.
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3
LEASE AGREEMENT
THIS LEASE AGREEMENT
(this “Lease”) is made
and entered into as of the day of
, 2006 by and between RFP Mainstreet 2101 Commercial, LLC, a
Delware limited liability company (“Landlord”),
whose address is One Financial Plaza, Suite 102, Fort Lauderdale,
Florida, 33301 and OMNICOMM SYSTEMS, INC., a
corporation (“Tenant”), whose address is 2101
West Commercial Boulevard, Suite 4000, Fort Lauderdale, Florida,
33309
W
I T N
E S S E T H
:
1.1 DEFINED
TERMS:
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(1)
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Leased Premises
and Project: Suite No. 4000 (the “Leased
Premises”) in the “Building” (as that term is
hereafter defined). The Leased Premises is in a center now known as
“The 2101 Building” located at 2101 West Commercial
Boulevard, Fort Lauderdale, Florida, which is comprised of, but is
not limited to, a 5-story office building (the
“Building”) and Parking Facilities (as defined below),
all of which collectively together with all ancillary improvements
appurtenant thereto shall hereafter be called the
“Project.”
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(2)
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Leased Premises
Completion Date: In the event that this Lease calls for
Landlord’s Work, (as per Exhibit “A-1”) this date
shall be no more than five (5) days after the Landlord
notifies Tenant that the work is complete (the “Leased
Premises Completion Date”).
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(3)
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Business Hours:
“Business Hours” of the Project shall mean Monday
through Friday from 8:00 a.m. to 6:00 p.m., and Saturday from 8:00
A.M. to 12:00 P.M., except on New Years Day, Presidents’ Day,
Memorial Day, Fourth of July, Labor Day, Thanksgiving Day,
Christmas Day, Martin Luther King’s Birthday and any other
national legal holiday which may be established.
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1.2 LEASED PREMISES:
Subject to and upon the terms, pro-visions, covenants and
conditions hereinafter set forth, and in consideration of their
respective duties, covenants and obligations hereunder, Landlord
does hereby lease, demise and let to Tenant and Tenant does hereby
lease, demise and let from Landlord those certain premises (the
“Leased Premises”) located in the Project, as further
identified in paragraph 1.1(1) of this Lease and as reflected on
the floor plan attached as Exhibit “A” and by this
reference made a part of this Lease.
The rentable area (the
“Rentable Area”) of the Leased Premises (which includes
a portion of hallways, restrooms, shafts, ducts, electrical,
janitorial and telephone closets, elevators, lobbies and other such
“Common Areas” as hereinafter defined) is hereby
mutually agreed to by the parties to be, for all purposes, as shown
in the Basic Leasing Information of this Lease, whether the same
should be more or less as a result of minor variations resulting
from actual construction and, if applicable, completion of the
Leased Premises by Landlord for occupancy so long as such work is
done substantially in accordance with the approved plans. The
Rentable Area of the Project is hereby stipulated and mutually
agreed to by the parties to be, for all purposes, to be that shown
in the Basic Leasing Information, subject to Paragraph 17 below.
This Lease does not grant to Tenant or any other third party any
right to light or air over or about the Leased Premises.
2. TERM :
2.1 The Term of this Lease shall be
for the period shown under the Basic Leasing Information of this
Lease, or until such term shall sooner cease and expire as
hereinafter provided (the “Term”).
The Term of this Lease shall
commence on a date (the “Commencement Date”) which
shall be the first to occur of:
(i) the date upon which Tenant
begins business operations in the Leased Premises; or
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(ii) the day Tenant, or anyone
claiming under or through Tenant, first occupies or uses the Leased
Premises; or
(iii) the date of the issuance of a
Certificate of Occupancy or similar approval by the applicable
governmental authority permitting occupancy of the Leased Premises;
or
(iv) the Leased Premises Completion
Date stated in paragraph 1.1(2) of this Lease; or
(v) if no Landlord’s Work is
required to be performed by Landlord pursuant to this Lease, five
(5) days after this Lease is executed; or
(vi) in all events no later than one
hundred fifty (150) days following Lease execution.
2.2 Upon the request of Landlord,
Tenant shall join in the execution of an agreement stipulating the
Commencement Date and the date upon which this Lease is scheduled
to terminate.
2.3 If the occurrence of any
condition set forth in subparagraph 2.1 above shall be delayed due
to any act or omission of Tenant, the Leased Premises shall be
deemed ready for occupancy, and the Commencement Date shall occur,
on the date when said condition would have been met but for such
delay. Landlord’s notice to Tenant of the meeting of any
condition set forth in subparagraph 2.1 shall be definitive
evidence of the same.
2.4 Taking possession of the Leased
Premises by Tenant shall be conclusive evidence as against Tenant
that the Leased Premises were in good and satisfactory condition
when possession was so taken (subject only to punchlist items, if
any).
3. COMPLETION OF LEASED
PREMISES: Landlord agrees to perform work, if any
(“Landlord’s Work”), in the Leased Premises in
substantial accordance with the provisions of Exhibit
“B-1” attached to and made a part of this Lease. If
Landlord is to perform Landlord’s Work, Landlord shall
attempt to complete Landlord’s Work by the Target Date (the
“Target Date”) which is shown in the Basic Leasing
Information of this Lease. Landlord’s obligation as to work
to be performed for Tenant, if any, is solely as set forth in
Exhibit “B-1”. Once Landlord has completed
Landlord’s Work, except for reasonable punch list items,
Landlord shall notify Tenant and Tenant will thereafter promptly
begin the construction or installation of improvements and finishes
which Tenant is to perform in the Leased Premises
(“Tenant’s Work”) which shall be in substantial
accordance with the provisions of Exhibit “B-2”
attached to and made a part of this Lease. If Landlord is not
obligated to perform any Landlord’s Work, Tenant will begin
the construction or installation of Tenant’s Work immediately
after this Lease is executed (subject to the pre-construction
requirements set forth in this Lease).
In the event Tenant is to perform
any Tenant’s work, within 15 days following the full
execution of this Lease, but in all events prior to Tenant
constructing or performing any portion of Tenant’s Work in
the Leased Premises, Tenant shall:
(i) submit to Landlord for
Landlord’s prior written approval (and shall obtain
Landlord’s prior written approval) which Landlord shall
exercise reasonably, detailed plans and specifications for all of
Tenant’s Work prepared by an architect reasonably
satisfactory to Landlord, generally conforming to the provisions of
Exhibit “B-2”, along with samples for all of the Tenant
finishes in the Leased Premises;
(ii) obtain Landlord’s
approval of the general contractor which Tenant intends to use. In
connection with that approval, Tenant shall provide Landlord with
financial information and other information on the contractor and
evidence that the contractor has reasonable insurance coverage, all
of which must meet Landlord’s approval;
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(iii) obtain all required
permits;
(iv) provide Landlord with a
certified copy of each insurance policy required pursuant to this
Lease; and
(v) provide a complete list of all
approved contractors (general and sub) who will be working within
the Leased Premises.
Tenant agrees that all improvements
or alterations made by it pursuant to this Lease will be performed
in a good and workmanlike manner and that once Tenant begins
construction of any improvements or alterations, it will diligently
pursue such work to completion. In addition, after completion of
construction, Tenant agrees to diligently pursue obtaining an
occupational license and a Certificate of Occupancy, and all other
permits, licenses and approvals as are necessary and required by
all state and local governmental agencies or
authorities.
If Tenant does not fully comply with
the provisions of this Paragraph, it will be considered a default
of this Lease, and Landlord will have the right, in addition to all
other rights and remedies, at Landlord’s option, to re-enter
the Leased Premises and complete Tenant’s Work or any other
improvements or alterations to be made by Tenant, at Tenant’s
sole cost and expense, which Tenant agrees to reimburse Landlord
upon demand.
Within five (5) business days
of the completion of Tenant’s Work and of any other
improvements or alterations approved by Landlord and made by
Tenant, Tenant shall notify Landlord stating that the
Tenant’s Work, and if applicable, any other improvements or
alterations are completed. Within ten (10) days of receipt of
this notice from Tenant, Landlord shall have the option to inspect
and approve Tenant’s Work, and if applicable, any other
improvements or alterations to insure that they were performed in
accordance with the plans and specifications approved by Landlord
and to insure that no defects exist. If Landlord determines that
any defects exist or that the Tenant’s Work, and if
applicable, any other improvements or alterations were not
performed in accordance with the plans and specifications, Landlord
shall notify Tenant and Tenant shall thereafter within a reasonable
time frame correct the defect(s), at Tenant’s sole cost and
expense. If such correction is not timely made by Tenant, this
Lease may, in Landlord’s sole discretion, and without
limiting its other rights and remedies, be terminated and Tenant,
upon request from Landlord, shall immediately remove all
improvements and alterations, and shall return the Leased Premises
to the condition they were in prior to Tenant’s occupation of
the Leased Premises.
Except for that contemplated under
Landlord’s Work, Tenant shall be responsible for all costs
associated with Tenant’s Work, and if applicable, all other
improvements or alterations to the Leased Premises, including, but
not limited to, preparation of the Leased Premises, preparation of
the plans and specifications, architectural, engineering, and
construction costs and the costs of obtaining any and all
governmental approvals, permits and licenses.
If the occurrence of any condition
set forth in this section shall be delayed due to any act or
omission of Tenant, the Leased Premises shall be deemed ready for
occupancy, and the Commencement Date shall occur, on the date when
said condition would have been met but for such delay in
Landlord’s reasonable opinion. Landlord’s notice to
Tenant of the meeting of any condition set forth in this section
shall be definitive evidence of the same.
4. BASE RENT: Tenant
agrees to pay to Landlord without notice an annual “Base
Rent”. The Base Rent will be payable at the annual rate shown
in the Basic Leasing Information of this Lease without any offset,
defense or deduction whatsoever, in lawful (legal tender for public
or private debts) money of the United States of America, at
Landlord’s address or elsewhere as designated from time to
time by Landlord’s written notice to Tenant. The Base Rent
will be adjusted for increases as set forth within the Basic
Leasing Information of this Lease.
Landlord, upon execution of this
Lease by Landlord and Tenant, hereby acknowledges payment by Tenant
of the “Initial Payment” as shown in the Basic Leasing
Information of this Lease, representing payment of the monthly
installment(s) of annual Base Rent and Additional Rent (as
hereafter defined), together with the sales tax thereon. The total
Base Rent is payable in monthly installments on the first day of
each calendar month. If the
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Term commences on any day of a month other than
the first day, Tenant shall pay Landlord the full monthly Base Rent
as provided for herein for such commencement month, and thereafter
the sum which should have actually been paid for said first month
shall be calculated on a pro rata basis (such proration to be based
on the actual number of days in the commencement month), and the
difference shall be credited as a reduction in the next
month’s installment of annual Base Rent to be paid by Tenant
hereunder on the first day of the next succeeding month. Base Rent
for any partial month of occupancy at the end of the Term of this
Lease will be prorated, such proration to be based on the actual
number of days in the partial month.
In addition to Base Rent, Tenant
shall and hereby agrees to pay to Landlord on the first day of each
calendar month a sum equal to any sales tax, tax on rentals, and
any other governmental charges, taxes and/or impositions now in
existence or hereafter imposed based upon the privilege of renting
the Leased Premises or upon the amount of Rent (as defined below)
collected therefor, without any offset defense or deduction
whatsoever, in lawful (legal tender for public or private debts)
money of the United States of America, at Landlord’s address
or elsewhere as designated from time to time by Landlord’s
written notice to Tenant. In addition, Tenant agrees to be fully
responsible for the payment of documentary stamps, if any, due
pursuant to this Lease. Nothing herein shall, however, be taken to
require Tenant to pay any part of any Federal and State Taxes on
income imposed upon Landlord.
Tenant shall be required to pay
Landlord interest on any Rent (as defined below) due that remains
unpaid for five (5) days after its due date. Further, in the
event (i) Tenant fails to pay Rent by the fifth (5th) day
of the month in which such installment is due, or (ii) any
other sums owed to Landlord pursuant to the terms of this Lease
within five (5) days after accrual thereof or billing
therefor, there will be added to such unpaid sum a late charge
equal to ten percent (10%) of the installment or sum due, in
order to defray the costs to Landlord for additional administrative
expenses incurred as a result of such late payments. For all
purposes of this Lease, the term “Rent” shall include
all Base Rent, charges or impositions thereon, Additional Rent (as
defined below), adjustments to Rent and any and all other payments
due or which may become due from Tenant to Land-lord hereunder.
Interest will be computed at the maximum legal rate and will be
deemed to accrue from the fifth (5th) day after Rent is due
and shall continue to accrue for as long as the sum remains unpaid.
Provided, however, this provision shall not be construed as
requiring Landlord to accept any late payment of Rent or as a
waiver of any of Landlord’s rights or remedies by virtue of
Tenant’s not making timely payment of Rent hereunder, and
Land-lord’s acceptance of late Rent and such interest shall
not be construed as constituting a waiver by Landlord of any rights
or remedies available to it in the event that Rent is not timely
paid by Tenant on any one or more future occasions, including
declaring Tenant in default under this Lease and pursuing all
remedies available to it arising from such default.
The Base Rent as specified in the
Basic Leasing Information of this Lease will increase annually on
each yearly anniversary of the Lease Term as stated
therein.
Tenant by acceptance and execution
of this Lease shall be deemed to have agreed to and received notice
of the Annual Base Rent for each year of the Lease Term. Landlord
shall not be required to provide notice of the new Base Rent; and
Tenant must pay Landlord the current monthly payment of Base Rent,
in accordance with the schedule set forth in the Basic Leasing
Information.
5. ADDITIONAL
RENT:
(A) In addition to the Base Rent,
Tenant shall, during each year, or portion of a year, pay to
Landlord as “Additional Rent” the “Tenant’s
Proportionate Share” (as defined below) of the
“Operating Expenses” (as defined below) and
“Taxes” (as defined below) for the applicable year. As
used herein, the term:
(i) “Tenant’s
Proportionate Share” shall mean the percentage which the
Rentable Area then leased by Tenant in the Project bears to the
total Rentable Area contained in the Project which share is hereby
agreed to be the percentage shown in the Basic Leasing Information
of this Lease, subject to changes in the Rentable Area of the
Project as described in paragraph 1.2 above.
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(ii) “Operating
Expenses” shall mean all expenses, costs and disbursements,
of every kind and nature, which Landlord shall pay or become
obligated to pay because of or in connection with the ownership,
maintenance and/or operation of the Project computed on the accrual
basis, but shall not include Taxes (as defined below), the cost of
mortgage financing, individual tenant improvements, or the
replacement of capital investment items and new capital
improvements unless such items and/or improvements result in the
operating cost of the Project being decreased, in which latter
event the cost of said capital investment item or new capital
improvement shall be included by spreading it over the period
necessary to recover the cost of such improvements from the savings
accomplished by the decreased operating cost. By way of explanation
and clarification, but not by way of limitation, Operating Expenses
will include the following:
(a) Wages and salaries of all
employees engaged in the operation and maintenance of the Project,
employer’s social security taxes, unemployment taxes or
insurance, and any other taxes which may be levied on such wages
and salaries, the cost of disability and hospitalization insurance,
pension or retirement benefits, and any other fringe benefits for
such employees.
(b) All costs, supplies and
materials used or incurred in the operation, repair and maintenance
of the Project.
(c) Cost of all utilities,
including, but not limited to, water, sewer, electricity, gas and
fuel oil used by or in the Project which are not billed directly to
tenants.
(d) Cost of Project management,
management fees, janitorial services, accounting and legal
services, security services, trash and garbage removal, operating,
servicing and maintenance of all systems and equipment including,
but not limited to, elevators, plumbing, heating, air conditioning,
ventilating, lighting, electrical, security and fire alarms, fire
pumps, fire extinguishers and hose cabinets, mail chutes, guard
service, painting, window cleaning, landscaping and
gardening.
(e) Cost of casualty and liability
insurance applicable to the Project and Landlord’s personal
property used in connection therewith, except to the extent same is
specifically paid by Tenant or other tenants in the
Project.
Notwithstanding any other provision
herein to the contrary, it is agreed that in the event the Project
is less than ninety-five percent (95%) occupied during any
partial year or any full calendar year for which Operating Expenses
are to be calculated (including the Base Year), an adjustment shall
be made in computing the Operating Expenses for such year to
compensate for any vacancies in the Project for such year so that
the Operating Expenses for such year shall assume a ninety-five
percent (95%) occupancy for the Project for a full year and
shall include, (1) those Operating Expenses actually incurred
during such year and (2) sums needed to compensate for
vacancies in the Project for such year.
(iii) “Taxes” shall mean
all impositions, taxes, user fees, assessments (special or
otherwise), and other govern-mental liens or charges of any and
every kind, nature and sort whatsoever, ordinary and extraordinary,
foreseen and unfore-seen, and substitutes therefor, including all
taxes whatsoever (except only those taxes of the following
categories: any social security tax or comparable tax due in
respect to wages of employees and the cost of which is included in
the computation of Operating Expenses, any inheritance, estate,
succession, transfer or gift taxes imposed upon Landlord or any
income taxes specifically payable by Landlord as a separate
taxpaying entity without regard to Landlord’s income source
arising from or out of the Project and/or the land on which it is
located) attributable in any manner to the Project, the land on
which the Project is located or the rents (however the term may be
defined) receivable therefrom or any part thereof, or any use
thereof, or any facility located therein or thereon or used in
conjunction therewith or any charge or other payment made or
required to be paid to any governmental authority, whether or not
any of the foregoing shall be designated “real estate
tax”, “sales tax” (except to the extent already
paid by Tenant or other tenants in the Project), “rental
tax”, “excise tax”, “business tax”,
or designated in any other manner.
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Landlord agrees to maintain
accounting books and records reflecting the Operating Expenses of
the Project in accordance with generally accepted accounting
principles. Landlord shall notify Tenant within a reasonable time
after the start of each calendar year during the Term of this Lease
(or, for the first year, within a reasonable time after this Lease
is executed, unless otherwise indicated) of the amount which
Landlord estimates (as evidenced by budgets prepared by or on
behalf of Landlord) will be the amount of Tenant’s
Proportionate Share of Operating Expenses and Taxes for the then
current calendar year. Tenant shall pay any sum attributable to
prior months for the then current calendar year within fifteen
(15) days after receipt of said notice and the prospective
balance of such sums in advance to Landlord in equal monthly
installments, over the balance of the current calendar year, on the
first day of each said month commencing on the first day of the
first month following Tenant’s receipt of such
notification.
Within a reasonable time after the
end of each calendar year during the Term, Landlord shall submit to
Tenant a statement showing the actual amount which should have been
paid by Tenant as Additional Rent pursuant to this Paragraph 5(A)
for the past calendar year, the amount actually paid during that
calendar year by Tenant and the amount of the resulting balance due
thereon, or overpayment thereof, as the case may be. Within thirty
(30) days after receipt by Tenant of this statement, Tenant
shall have the right in person to inspect Landlord’s books
and records, at Land-lord’s office, during normal business
hours, after five (5) days prior written notice, showing the
Operating Expenses and Taxes for the Project for the calendar year
covered by said statement. This statement shall become final and
conclusive between the parties, their successors and assigns as to
the matters set forth therein unless Landlord receives written
objections with respect thereto within this thirty (30) day
period. Any balance shown to be due pursuant to said statement,
whether or not objected to by Tenant, shall be paid by Tenant to
Landlord within thirty (30) days following Tenant’s
receipt thereof and any overpayment shall be immediately credited
against Tenant’s prospective obligation to pay expected
Additional Rent pursuant to this Paragraph 5(A) or, if by reason of
any termination of this Lease no such future obligation exists,
refunded to Tenant. Anything in this Lease to the contrary
notwithstanding, Tenant shall not delay or withhold payment of any
balance shown to be due pursuant to a statement rendered by
Landlord to Tenant, pursuant to the terms hereof, because of any
objection which Tenant may raise with respect to the statement and
Landlord shall immediately credit any overpayment found to be owing
to Tenant against Tenant’s prospective obligation to pay
Additional Rent pursuant to this Paragraph 5(A) for the then
current calendar year (and future calendar years, if necessary)
upon the resolution of said objection or, if at the time of the
resolution of said objection the Lease Term has expired,
immediately refund to Tenant any overpayment found to be owing to
Tenant.
(B) Additional Rent, due by reason
of the provisions of subparagraph 5(A) and this subparagraph 5(B)
for the final months of this Lease is due and payable even though
it may not be calculated until subsequent to the termination date
of the Lease; the Operating Expenses and Taxes for the calendar
year during which the Lease commences and terminates shall be
prorated according to that portion of the calendar year that this
Lease was actually in effect. Tenant expressly agrees that
Landlord, at Landlord’s sole discretion, may apply the
Security Deposit specified in Paragraph 8 of this Lease in full or
partial satisfaction of any Additional Rent due for the final
months of this Lease by reason of the provisions of Paragraph 5(A)
and this Paragraph 5(B). If the Security Deposit is greater than
the amount of any such Additional Rent and there are no other sums
or amounts owed Landlord by Tenant by reason of any other terms,
provisions, covenants or conditions of this Lease, then Landlord
shall refund the balance of the Security Deposit to Tenant as
provided in Paragraph 8 of this Lease. Nothing herein contained
shall be construed to relieve Tenant, or imply that Tenant is
relieved, of the liability for, or the obligation to pay, any
Additional Rent due for the final months of this Lease by reason of
the provisions of subparagraph 5(A) and this subparagraph 5(B) nor
shall Landlord be required to first apply the Security Deposit to
such Additional Rent if there are any other sums or amounts owed
Landlord by Tenant by reason of any other terms, provisions,
covenants or conditions of this Lease. Additional Rent for any
portion of a year during the final lease year, if applicable, shall
be calculated as if Tenant were occupying the Leased Premises for
the entire calendar year, but shall be due only in respect to those
months included within the term of this Lease. Any Additional Rent
for any partial month of occupancy at the end of the term of the
Lease will be prorated, such proration to be based on the actual
number of days in said partial month.
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6. TRIPLE NET LEASE:
It is the purpose and intent of Landlord and Tenant that the Rent
herein reserved shall be absolutely net to Landlord so that this
Lease shall, except as may be provided in this Lease to the
contrary, yield net to Landlord the Base Annual Rent to be paid in
each year during the term of this Lease, and that, except as set
forth herein, all costs and expenses including, but not limited to,
taxes, insurance, utilities, maintenance, repairs and obligations
of every kind or nature whatsoever relating to the Leased Premises
(the Project and the buildings and improvements thereon) which may
arise or become due during the term of this Lease, shall be paid by
Tenant and that Landlord shall be indemnified and saved harmless by
Tenant from and against the same.
7. TIME OF PAYMENT:
Tenant agrees that Tenant will promptly pay any and all Rent due
hereunder, at the times and place stated above; that Tenant will
promptly pay charges for work performed on order of Tenant, and any
other charges that accrue under this Lease; and that, if any part
of the Rent or above mentioned charges shall remain due and unpaid
for five (5) days after the same shall become due and payable,
Landlord shall have the option (in addition to all other rights and
remedies available to it by law and in equity and under this Lease)
of declaring the balance of the entire Base Rent for the entire
Term of this Lease to be immediately due and payable, and Landlord
may then proceed to collect all of the unpaid Base Rent called for
by this Lease by distress or otherwise.
8. SECURITY DEPOSIT:
Tenant, concurrently with the execution of this Lease, has
deposited with Landlord the sum shown under the Basic Leasing
Information of this Lease as the “Security Deposit”
(the “Security Deposit”), the receipt of which is
hereby acknowledged by Landlord, which sum shall be retained by
Landlord as security for the payment by Tenant of the Rent and all
other payments herein agreed to be paid by Tenant, and for the
faithful performance by Tenant of the terms, provisions, covenants
and conditions of this Lease. It is agreed that Landlord, at
Landlord’s option, may at the time of any default by Tenant
under any of the terms, provisions, covenants or conditions of this
Lease apply this sum or any part thereof towards the payment of the
Rent and all other sums payable by Tenant under this Lease, and
towards the performance of each and every one of Tenant’s
covenants under this Lease, but such covenants and Tenant’s
liability under this Lease shall thereby be discharged only pro
tanto and Tenant shall remain liable for any amounts that the sum
shall be insufficient to pay and, in addition, shall be obligated
to immediately deposit with Landlord the amount necessary to
increase the Security Deposit to its original amount; that Landlord
may exhaust any and all rights and remedies against Tenant before
resorting to this sum, but nothing herein contained shall require
or be deemed to require Landlord to do so; that, in the event the
Security Deposit shall not be utilized for any such purposes, then
the Security Deposit shall be returned by Landlord to Tenant within
the later of thirty (30) days next after the expiration of the
Term of this Lease; or (ii) the determination and payment of
the amounts due elsewhere under this Lease, including the
determination and payment of the Additional Rent due under
Paragraph 5 within the time period provided in Paragraph 5.
Landlord shall not be required to pay Tenant any interest on the
Security Deposit. In this connection, it is expressly understood
and agreed that Landlord shall not be obligated to segregate the
Security Deposit from any other funds or to hold same in escrow
during the term of this Lease, or to pay any interest to Tenant in
respect of the Security Deposit. On the contrary, Landlord shall
have the absolute right, at any and all times during the term of
this Lease, to commingle the Security Deposit with any of
Landlord’s other funds, to utilize the Security Deposit at
any time and for any purpose, to retain all interest and/or other
proceeds and/or avails earned or accrued in respect of the Security
Deposit, and otherwise to treat, use and dispose of the Security
Deposit as if, for all purposes, the same were the absolute
property of Landlord (it being understood, however, that nothing in
the foregoing shall be deemed to relieve Landlord of its obligation
to return the Security Deposit (or such portion thereof as shall
not have been used and applied in the event of any default by
Tenant as described and in the manner set forth above) to Tenant at
the expiration of the Lease Term.
9. ACCORD AND
SATISFACTION: No payment by Tenant or receipt by Landlord
of any lesser amount than the amount stipulated to be paid
hereunder shall be deemed other than on account of the earliest
stipulated rental or other sum payable by Tenant to Landlord
hereunder; nor shall any endorsement or statement on any check or
letter be deemed an accord and satisfaction, and Landlord may
accept any check or payment without prejudice to Landlord’s
rights to recover the balance due and/or to pursue any other remedy
available to Landlord.
10. USE: Tenant will use and
occupy the Leased Premises for the use or purpose, and for no other
use or purpose whatsoever, as shown under the Basic Leasing
Information of
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this Lease. In the event that Tenant uses the
Leased Premises for any purpose not expressly permitted herein,
said use shall be deemed a default by Tenant, and Landlord may, in
addition to all other remedies available to it, terminate this
Lease or restrain the improper use by injunction.
11. QUIET ENJOYMENT:
Upon payment by Tenant of the Rent, and upon the observance and
performance of all terms, provisions, covenants and conditions on
Tenant’s part to be observed and performed pursuant to this
Lease, Tenant shall, subject to all of the terms, provisions,
covenants and conditions of this Lease, peaceably and quietly hold
and enjoy the Leased Premises for the Term hereby demised.
Notwithstanding any provisions contained in this Lease to the
contrary, Tenant acknowledges that the Project shall be closed on
Sundays and on the following holidays: New Year’s Day,
Memorial Day, Thanksgiving Day, Christmas Day, and such other days
as are locally observed in multi-tenant commercial office buildings
in the market area in which the Project is located. Tenant shall
nonetheless have access to the Leased Premises 24 hours a day, 365
days per year, except in the event of emergencies.
12. INSURANCE
PREMIUMS: If Landlord’s insurance premiums exceed the
standard premium rates because of the nature of Tenant’s use
of the Leased Premises, then Tenant shall, upon receipt of
appropriate invoices from Landlord, reimburse Landlord for such
increase in premiums. It is understood and agreed between the
parties to this Lease that any such increase in premiums shall be
considered as Rent due and shall be included in any lien for Rent.
Tenant shall comply with any and all requirements of
Landlord’s insurer(s).
13. RULES AND
REGULATIONS: Tenant agrees to comply with all rules and
regulations Landlord may reasonably adopt from time to time for the
operation of the Project, including but not limited to, parking
facilities contemplated to be utilized in connection therewith
(“Parking Facilities”) and the protection and welfare
of the Project, including, but not limited to, the Parking
Facilities, its tenants, visitors and occupants. The present rules
and regulations, which Tenant hereby agrees to comply with,
entitled “Rules and Regulations” are attached to this
Lease as Exhibit “C” and are by this reference
incorporated in to this Lease. Further, Tenant shall also observe
and abide by the terms of the Parking Agreement annexed hereto and
made a part hereof as Exhibit “D”. Any future rules and
regulations shall become a part of this Lease, and Tenant hereby
agrees to comply with the same upon delivery of a copy thereof to
Tenant. Tenant specifically agrees that Tenant shall
not:
(i) conduct, or permit or suffer to
be conducted, any solicitation, demonstration, business,
occupation, undertaking or activity outside of the building located
upon the Lease Premises or the Project;
(ii) use or permit or suffer the use
of any portion of the Leased Premises or of the Project for any
unlawful, improper, objectionable (i.e., to Landlord or any of the
other tenants in the Project), or immoral use or purpose or for
itinerant vending or for any other activity of a type which is
inconsistent with reasonable standards of office building practice
(as determined by Landlord in the exercise of Landlord’s
reasonable judgment); and
(iii) burn trash or, except for the
use of so-called “Dempster Dumpsters”, trash compactors
or similar apparatus located in a screened or enclosed area, store
any trash or garbage in any area other than inside the Leased
Premises (and Tenant shall attend to the timely disposal of trash
in the manner provided in this Lease).
14. GOVERNMENTAL
REQUIREMENTS: Tenant shall faithfully observe in the use of
the Leased Premises all municipal and county ordinances and codes
and state and federal statutes now in force or which may hereafter
be in force. In this regard, Tenant shall diligently pursue the
procurement of all licenses, permits and approvals necessary for
the permitted use of the Leased Premises as provided herein, and
shall furnish to Landlord upon execution of this Lease or within
five (5) days from Tenant’s receipt thereof, copies of
the same, including, but not limited to, city and county
occupational licenses and all other licenses, permits or the like
as may be necessary or required to operate Tenant’s business
in the Leased Premises. Tenant shall thereafter maintain all such
licenses, permits and approvals necessary for the permitted use of
the Leased Premises, and shall furnish to Landlord on an annual
basis, copies thereof. Tenant agrees to comply with any requirement
that the Leased Premises be vacated during any smoke test or other
governmental inspection of the Project and to hold the applicable
governmental authorities and Landlord harmless for any loss or
damage incurred by Tenant in connection therewith.
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Tenant shall comply with any certificate of
occupancy relating to the Leased Premises and with all other laws,
statutes, ordinances, orders, rules, regulations and requirements
of all federal, state, county and municipal governments and the
appropriate agencies, officers, departments, boards and commissions
thereof and the board of fire underwriters and/or the fire
insurance rating organization or similar organization in force
applicable to the Project or any part thereof and/or to the Leased
Premises, including, without limiting the generality of the
foregoing, the Americans With Disabilities Act (and in this
connection, Tenant shall be obligated to make any and all
alterations and/or modifications within and/or about the Leased
Premises as shall, at any time, be required pursuant to the
provisions thereof and/or of the regulations promulgated
thereunder), and all federal, state, municipal and/or
administrative laws, statutes, ordinances, orders, rules,
regulations and requirements governing and/or relating to the
monitoring, usage, handling, storage and/or disposal of hazardous
wastes and/or materials. If Tenant shall at any time receive any
notice from any governmental body or governmental office that
pertains to the Leased Premises or the Project (including those
relating to taxes or zoning), or if Tenant shall at any time
receive a notice of litigation or threatened litigation affecting
the Leased Premises or Project, Tenant shall promptly send a copy
of the same to Landlord. If required by any applicable governmental
authority, Tenant will execute a separate instrument confirming the
foregoing.
15. SERVICES AND
UTILITIES: Landlord will furnish only the following
services to Tenant:
(A) Cleaning services, deemed by
Landlord to be normal and usual in a first class office building,
on Monday through Friday (but not on New Years Day,
Presidents’ Day, Memorial Day, Fourth of July, Labor Day,
Thanksgiving Day, Christmas Day, Martin Luther King’s
Birthday and any other national legal holiday which may be
established), except that shampooing and replacement of carpet as
required by Tenant shall be at Tenant’s expense.
(B) Automatically operated elevator
service during Business Hours (i.e., standard passenger and freight
elevator services) with at least one passenger elevator during
non-business hours; public stairs; electrical current for lighting,
incidentals, and normal office use for general use of the
Project’s tenants; and water at those points of supply
provided for general use of the Project’s tenants at all
times and on all days throughout the year. Tenant shall nonetheless
have access to the Leased Premises at all times and heating,
ventilation and air conditioning services shall be available to
Tenant twenty-four (24) hours per day, three hundred sixty
five (365) days per year.
Such services shall be provided as
long as Tenant is not in default under any of the terms,
provisions, covenants and conditions of this Lease, subject to
interruption caused by repairs, renewals, improvements, changes of
service, alterations, strikes, lockouts, labor controversies,
inability to obtain fuel or power, accidents, breakdowns,
catastrophes, national or local emergencies, actions or
requirements by any governmental agency or official, acts of God
and conditions and causes beyond the control of Landlord, and upon
such happening,