PARK CENTRE OFFICE
BUILDING
THIS
AGREEMENT made the 1 st day of June , 1998, between 2401
Lake Park Drive Associates, L.P., a Georgia limited partnership
whose address is 2401 Lake Park Drive, Suite 355, Smyrna,
Georgia 30080 (hereinafter referred to as “Lessor”),
and WHIPPLE DEVELOPMENT CORPORATION, a South Carolina corporation,
whose address is 2401 Lake Park Drive, Suite 200, Smyrna, Georgia
30080 (herein referred to as “Lessee”).
For
and in consideration of the payment of rent, and the keeping and
performing of the covenants and agreements hereinafter set forth to
be kept and performed by Lessor and Lessee, Lessor hereby leases to
Lessee and Lessee hereby leases from Lessor certain premises (the
“Premises”) located in an office building (the
“Building”), which is known as “Park
Centre”, situation in the County of Cobb, which Premises and
Building are more particularly described hereinbelow, for the Term,
at the rental, and subject to and upon all of the terms and
conditions hereinafter set forth.
1.
FUNDAMENTAL LEASE PROVISIONS AND EXHIBITS.
1.1 Fundamental Lease Provisions.
A. Name of Building: Park Centre.
B. Address of Premises: 2401 Lake Park Drive, Suite 200,
Smyrna, Georgia 30080.
C. Net Rentable Area and Location of Premises . The Net
Rentable Area of the Premises is 2,430 square feet, located on
second (2 nd
) floor of the Building, and being
also known as Suite 200.
The
term “Net Rentable Area”, as used herein, shall refer
to (i) in the case of a single tenancy floor, all floor area
measured from the inside surface of the outer glass wall of the
Building to the inside surface of the opposite exterior glass wall,
excluding only the areas (“Service Areas”) within the
exterior glass walls used for Building stairs, elevator shafts,
flues, vents, stacks, pipe shafts and vertical ducts, but including
any Service Areas which are for the specific use of the particular
tenant such as special stairs or elevators, and (ii) in the
case of a partial floor, all floor areas within the inside surface
of the outer glass wall enclosing the portion of the Premises on
such floor and measured to the mid-point of the walls separating
areas leased by or held for lease to other tenants or from areas
devoted to corridors, elevator foyers, rest rooms, mechanical
rooms, janitor closets, vending areas and other similar facilities
for the use of all tenants on a particular floor (herein sometimes
called “Common Areas”), but including a proportionate
part of the Common Areas located on such floor based upon the ratio
which the Lessee’s Net Rentable Area on such floor
(determined by excluding such Common Areas) bears to the aggregate
Net Rentable Area on such floor (determined by excluding such
Common Areas). No deductions from Net Rentable Area are made for
columns or projections necessary to the Building. The Net Rentable
Area in the Premises
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as set forth
above have been calculated on the basis of the foregoing definition
from dimensions shown on the plans for the building and shall be
binding, whether the actual area should be more or less as a result
of minor variations resulting from actual construction and
completion of the Premises for occupancy so long as such work is
done in accordance with the terms and provisions hereof.
D. Lease Term: Commencement Date – September 1,
1998, or such earlier date as provided herein.
Expiration
Date – April 30, 2003.
E. Base Annual Rental: $38,272.50 (the “Base Annual
Rental”).
F. Base Monthly Rental: $3,189.38 (the “Base Monthly
Rental”).
1.2 Exhibits. The Exhibits listed in this
Section 1.2 and attached to this Lease are hereby incorporated
in this Lease by reference, and are to be construed as part of this
Lease. Lessor and Lessee each agree to perform all of their
respective obligations stated therein.
Exhibit “A” – Building Floor
Plan.
Exhibit “B” – Location of Lessee’s
Premises Within Building.
Exhibit “C” – Rental
Adjustments.
Exhibit “D” – Acceptable
Agreement.
Exhibit “E” – Work Letter.
2. PREMISES AND TERM . Lessor does hereby rent and lease to
the Lessee the Premises located within the Building as shown on the
Location of Lessee’s Premises Within Building attached hereto
as Exhibit “B”, as depicted on the Floor Plan attached
hereto as Exhibit “A”, for a Term commencing on the
1 st
day of September 1, 1998 and
ending on the 30 th day of April, 2003 (the “Term”). *No
easement for light or air is included in the Premises, and Lessee
is not given any rights as to the number, size or location of
windows in the Premises. Lessor agrees to warrant and defend Lessee
in the quite enjoyment of the Premises during the Term of this
Lease so long as Lessee complies with the provisions
hereof.
3. RENTAL TIME IS OF THE ESSENCE OF THIS SECTION
3.
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In the event
the Premises is ready for occupancy prior to September 1,
1998, Lessee may occupy the Premises and rent for the month of
August, 1998 will be prorated based upon the date Lessee accepts
the Premises by executing the Acceptance Agreement.
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A. Base Annual Rental and Base Monthly Rental . Lessee shall
pay to Lessor at the Building management office or such other
location designated by Lessor from time to time, promptly on or
before the first day of each month in advance, without demand,
setoff or abatement, during the entire Term of this Lease, the Base
Monthly Rental, which for a lease year is equivalent to the Base
Annual Rental; which Base Monthly Rental and Base Annual Rental
include Lessee’s share of “Common Area” rental as
determined by a thirteen and eight tenths percent (13.8%) common
area factor; (the Base Monthly Rental, and all other sums due and
payable hereunder, including, but not limited to, Rental Adjustment
under Paragraph 3.2 below, are hereinafter referred to as
“Monthly Rental”); provided, however, that the Base
Monthly Rental and resulting Base Annual Rental shall be adjusted
in accordance with the provisions of Paragraph 3.2
below.
If
this Lease is executed before the Premises herein become ready for
occupancy and Lessor cannot acquire and/or deliver possession of
the Premises by the time the Term of this Lease is fixed herein to
begin, then (i) Lessee shall waive any claim for damages due
to such delay, (ii) Lessor shall waive the payment of any Monthly
Rental until Lessor delivers possession to Lessee, and
(iii) Lessor and Lessee shall enter into an agreement
extending the beginning of the Lease Term until the date Lessor
delivers possession and extending the end of the Lease Term by a
like period of time, to be prepared by Lessor.
B. Late Charge. Lessee agrees that Lessor shall require and
Lessee shall pay a late or delinquent charge of ten percent (10%)
of the total Monthly Rental due if and when the full amount of the
Monthly Rental, as adjusted, has not been received by the tenth
(10 th
)day of the month at the Building
management office of Lessor, or at such other place as Lessor has
designated in writing; provided, however, Lessor shall have no
obligation to accept any payment of Monthly Rental after the first
day of any month during the Term hereof.
3.2 Rental Adjustments. Lessee shall pay to Lessor, as
additional Monthly Rental, the rental adjustments more particularly
described in Exhibit “C” attached hereto.
Lessee’s obligation to pay the Monthly Rental and Late
Charge, if applicable, to Lessor, and Lessee’s obligation to
pay the rental adjustments referred to in this Paragraph 3.2
and Exhibit “C” attached hereto, shall survive the
expiration or early termination of this Lease.
4. SECURITY DEPOSIT. [This section intentionally deleted by
the parties.]
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5. SERVICES. As long as Lessee is not in default under any
of the provisions of this Lease, Lessor agrees to furnish to or
provide for the Premises the services described below, without
charge except as provided for herein.
5.1 Services. From 8:00 a.m. to 6:00 p.m. on weekdays and
8:00 a.m. to 1:00 p.m. on Saturday (“Building Standard
Hours”) (excluding legal holidays), Lessor shall furnish the
Premises with electricity for lighting and operation of low power
usage office machines, water, heat and air conditioning and
elevator service. During all other hours, Lessor shall furnish such
service except for heat and air conditioning. Lessor shall also
provide fluorescent light replacement service for Lessor furnished
light fixtures, toilet room supplies, window washing at reasonable
intervals, and customary building janitorial service. No janitorial
service shall be provided Saturdays, Sundays, or legal holidays.
Lessee agrees to notify Lessor prior to its use of electrical
business or other office machines which are not low power usage
machines, and to pay to Lessor the amount of additional charge as
determined by Lessor therefor.
5.2 Interruption or Discontinuance of Service. Lessor shall
not be liable for any loss, injury or damage to property or person,
including, without limitation, consequential, derivative,
incidental or special damages, caused by or resulting from any
variation, interruption, or failure of such services due to any
cause whatsoever or from failure to make any repairs or perform any
maintenance. No temporary interruption or failure of such
services
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incident to
making of repairs, alterations, or improvements, or due to
accident, strike, or conditions or events beyond Lessor’s
reasonable control shall be deemed an actual or constructive
eviction of Lessee or relieve Lessee from any of Lessee’s
obligations hereunder, including, without limitation, the prompt
and punctual payment of Monthly Rental.
6. USE OF PREMISES. Lessee covenants and agrees to use and
occupy the Premises as general business offices and for no other
purposes. Further, Lessee agrees as follows: to use the Premises in
a careful, safe and proper manner, ordinary wear and tear excepted;
to pay to Lessor on demand for any damage to the Premises caused by
misuse or abuse of such Premises by Lessee, its agents or
employees, or any other person entering upon the Premises under
express or implied invitation of Lessee; not to place or permit to
be placed in the Premises any excessively heavy objects, including,
without limitation, safes or computers, without the prior written
consent of Lessor as to the weight per square foot and position of
such heavy articles; and, not to use or permit the Premises to be
used by any purposes prohibited by the laws, codes, rules and
regulations of the United States, the State of Georgia, or any
applicable political subdivision thereof. Lessee shall not commit
waste, or suffer or permit waste to be committed, or permit any
nuisance on or in the Premises.
7. CONDITION OF PREMISES – ACCEPTANCE BY LESSEE.
Lessee accepts the Premises, including the Building, improvements
and personalty thereto, “AS IS”, in their present
condition on the date of the commencement of the term of this
Lease, and as suited for the use intended by Lessee, except for
items of “tenant finish” and such other items as are
set forth in a Work Letter which shall be attached hereto as
Exhibit “E”. Lessor and Lessee acknowledge that the
Work Letter will be prepared and attached subsequent to the date of
execution hereof, but on or before the commencement date of the
term hereof. Lessor, or Lessor’s agents, have made no
representation or warranty as to the condition of said Premises or
as to the use or occupancy which may be made thereof.
8. MAINTENANCE, REPAIRS AND ALTERATIONS. Lessor may enter
the Premises at reasonable hours: to maintain and clean the
Premises; to exhibit same to prospective purchasers or tenants; to
inspect the Premises to see that Lessee is complying with all its
obligations hereunder; and to make repairs required by Lessor under
the terms hereof or repairs to any adjoining space.
8.1 REPAIRS BY LESSEE. Lessee shall be liable for and shall
hold Lessor harmless in respect of damage or injury to the
Premises, or the person or property of the Lessee, or the person or
property of Lessor’s other tenants, or anyone else, if
arising out of the negligence or wilful misconduct of Lessee, its
agents, servants, employees, licensees or invitees. Lessee shall
report in writing to Lessor any defective condition known to him
which Lessor is required to repair and failure to so report shall
make Lessee responsible for damages resulting from such defective
condition. Such report shall be made within three
(3) weekdays. All personal
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property kept
upon the Premises shall be at the risk of Lessee only, and Lessor
shall not be liable for any damages thereto or theft thereof.
Lessee shall keep the Premises in a sound, safe, and fit condition.
Lessee will make no alteration in, or addition to, the Premises
without obtaining Lessor’s prior written consent. All
additions, fixtures and improvements, whether temporary or
permanent in character (except only the movable office furniture of
Lessee, made in or upon the Premises, either by Lessee or Lessor,
shall be Lessor’s property, and shall remain upon the
Premises at the termination of said Term by lapse of time or
otherwise, without compensation to Lessee. If requested by Lessor,
Lessee shall, at or before the expiration of the Term, or any
extension or renewal thereof, remove any additional fixtures or
improvements made by or for it, and restore the Premises to its
original condition.
8.2 REPAIRS BY LESSOR. In the event Lessor, during the Term
of this Lease, shall be required by the order or decree of any
court or any other governmental authority, to repair, alter,
remove, reconstruct or improve any part of the Premises, then such
repairing, alterations, removal, reconstruction or improvements may
be made by and at the expense of Lessor, and shall not in any way
affect the obligations or covenants of Lessee herein contained, and
Lessee hereby waives all claims for damages or abatement or setoff
of rent because of such repairing, alteration, removal,
reconstruction or improvement; provided, however, Lessee shall pay
for the cost of such repairs if same are required because of any
special use of the Premises by Lessee. Lessor shall not be
responsible for any latent defect or changes in condition in the
Building, improvements and personalty, and the Monthly Rental
hereunder shall in no case be withheld or diminished by any
abatement or setoff of rent, or otherwise, on account of any defect
therein, nor any change of condition thereof, nor for any damage
occurring thereto. Lessor shall not be required to make any repairs
or improvements to the Premises, except structural repairs
necessary for safety and tenantability.
9. MECHANICS’ LIENS. Lessee shall keep the Premises
free and clear of all mechanics’ liens and other liens on
account of work done, materials ordered or obligations incurred by
or on behalf of Lessee or persons claiming under it. Lessee hereby
agrees to indemnify, defend and save Lessor harmless of and from
all liability, loss, damage, costs or expenses, including
reasonable attorneys’ fees, incurred on account of any claims
of any nature whatsoever, including any such claims on liens.
Should any such liens be filed or recorded against the Premises or
any action affecting the title thereto be commenced, Lessee shall
cause such liens to be removed of record or bonded within five
(5) days after notice from Lessor. If Lessee shall be in
default in removing or binding any such lien, Lessor may (but
without being required to do so) pay such lien or claim. The entire
amount so paid, together with Lessor’s costs and expenses,
including reasonable attorneys’ fees incurred in connection
therewith, shall be immediately due from Lessee to Lessor as
additional rent hereunder.
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10. INSURANCE. Lessee agrees that it shall, at all times
during the Term hereof, carry and maintain, for the mutual benefit
of Lessor and Lessee, what is commonly known as fire and extended
coverage insurance naming Lessor as an additional insured, and
containing a waiver of rights of subrogation against Lessor,
insuring Lessee’s improvements in the Premises and its
interest in office furniture, equipment, supplies and all other
personal property, and Lessee hereby waives any right of action
against Lessor for loss or damage to its improvements, fixtures and
personal property in the Premises. Insurance required hereunder
shall be in companies rated A:XIII or higher in “Best’s
Key Rating Guide”, shall be non-cancellable without thirty
(30) days notice to Lessor, shall be in amounts approved by
Lessor, and shall not be subject to reduction of coverage. Lessee
shall deliver to Lessor certificates of such insurance. The limit
of such insurance shall in no way limit the liability of
Lessee.
If
Lessee should engage in any use upon the Premises that causes the
premium charged Lessor for its fire and extended coverage insurance
or any other insurance to increase above the premium amount that is
considered a normal or average premium amount in the Atlanta
metropolitan area for a premium of this type, then Lessee agrees,
upon demand, to pay the cost of any such increase.
11. SUBLETTING, ASSIGNMENT AND TRANSFER OF
OWNERSHIP.
11.1 Subletting and Assignment. Lessee shall not, without
the prior written consent of Lessor, which consent may be given or
withheld in Lessor’s sole discretion, assign this Lease or
any interest thereunder, or sublet the Premises or any part
thereof, or permit the use of the Premises by any party other than
Lessee, or otherwise mortgage, hypothecate or encumber its interest
under this Lease or in the Premises. Consent by Lessor to any one
assignment or subletting shall not be construed to relieve Lessee
from obtaining the prior written consent of Lessor to any further
assignment or subletting nor shall it waive Lessor’s right to
refuse to consent to any other such request. Such assignment or
subletting, or the consent of Lessor thereto, shall not relieve
Lessee of its primary obligations to Lessor hereunder. It is agreed
that if Lessee requests Lessor’s consent to an assignment or
subletting of all or any portion of the Premises, it shall submit
to Lessor in writing the name of the proposed assignee or
sublessee, the terms and conditions of the assignment or
subletting, and the nature, character and references of the
business of the proposed assignee or sublessee, along with such
other information regarding the proposed assignee or sublessee as
Lessor shall request.
In
addition to the Monthly Rental otherwise due and payable hereunder,
it is hereby agreed that during the Term hereof and any approved
sublease hereof, Lessee shall pay to Lessor as additional Monthly
Rental, one hundred percent (100%) of the amount by which the
rental received by Lessee from its subtenant exceeds the Monthly
Rental hereunder.
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11.2 Transfer of Ownership. If Lessee is a corporation or
partnership, and if at any time during the Term of this Lease the
person or persons who, on the commencement Date of the Term, own or
owns a majority of such corporation’s voting shares or the
general partner’s interest in such partnership, as the case
may be, cease or ceases to own a majority of such shares (whether
such sale occurs at one time or at intervals so that, in the
aggregate, such a transfer shall have occurred), or general
partner’s interest, as the case may be (except as the result
of transfer by inheritance), then an “assignment” shall
be deemed to have occurred for purposes of this Paragraph 11.
Lessee shall notify Lessor in writing not less than thirty
(30) days prior to such “assignment”, and the rest
of the above provisions regarding Lessor’s rights, and
consent to such “assignmen
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