LEASE AGREEMENT

Exhibit 10.10

LEASE AGREEMENT

BY, BETWEEN AND AMONG:

D&P 170 Ninth Avenue Associates, L.P.(Landlord)

20 Community Place

Morristown, NJ 07960

 

AND:

LQ Corporation, Inc. (Tenant)

888 Seventh Avenue, 17 ^th Floor

New York, NY 10019

PREMISES:

8,900 square feet of the building located on Lot 43.09, Block 135, also known as 170 Ninth Avenue, Borough of Runnemede, County of Camden, State of New Jersey, Zip 08078.

 

 

 

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TABLE OF CONTENTS

ARTICLE

 

THIS AGREEMENT OF Lease made this 27 day of January, 2006.

 

 

 

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with its principal offices at 20 Community Place, Morristown, New Jersey 07960, (hereinafter referred to as “Landlord”)

 

With an office at 888 Seventh Ave., 17th Floor, New York, NY 10019 (hereinafter referred to as “Tenant”)

WITNESSETH:

WHEREAS , Landlord owns certain lands and Premises located on Lot 135, Block 43.09, Borough of Runnemede, County of Camden, State of New Jersey, having an address 170 Ninth Avenue, Runnemede, NJ 08078 (hereinafter the “Building”); and

WHEREAS , Landlord is the owner of the office/warehouse building on said Premises which contains approximately 18,788 square feet and Tenant desires to occupy and Lease 8,900 square feet of said building, also known as Unit A (hereinafter the “Leased Premises”), in accordance with the terms’ and conditions hereinafter mentioned and the consideration herein expressed; and

NOW, THEREFORE , for the rents reserved, the mutual considerations herein set forth, and the parties mutually intending to be legally bound hereby, the Landlord does demise and lease for rent unto the Tenant, and the Tenant does rent and take from the Landlord the Leased Premises described in Article 1, and the parties hereby covenant and agree as follows:

 

ARTICLE 1

LEASED PREMISES

Tenant stipulates that for all purposes of this Lease and rental calculation, the Leased Premises shall consist of 8,900 square feet, equaling 47% (percent, “the Stipulated

 

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Percentage”) of the building, as calculated using outside dimensions. Said square feet to consist of approximately of offices and the balance as warehouse (the “Leased Premises”). Exhibit A is intended to delineate the area to be demised for the purposes of location. The total obligation of Landlord for “Tenant fix-up” is attached hereto as Exhibit B; any additional improvements to the Leased Premises shall be at Tenant’s sole cost and expense.

 

ARTICLE 2

TERM OF LEASE AND COMMENCEMENT

The Term of this Lease shall be for a period of five years (5), (herein after referred to as the “Term” or the “Original Term”). The Commencement Date shall be the later of March 1, 2006, or the date on which the Landlord substantially completes Landlord’s work in accordance with Exhibit __ attached hereto, and obtains a Certificate of Occupancy. Provided, however, if Landlord is unable, through no fault of the Tenant, to obtain a Certificate of Occupancy within six (6) months of the date of execution of this Lease, the Tenant shall have the right, on written notice, to terminate the Lease and receive back its security deposit. Notwithstanding the above, in the event the Landlord, through no fault of the Tenant, is unable to obtain a Certificate of Occupancy by April 1, 2006, for each day thereafter until the date that Landlord is able to obtain a Certificate of Occupancy, the Tenant shall be entitled to one free day’s rent. Thus, for example, if the Landlord, through no fault of the Tenant, does not obtain a Certificate of Occupancy until April 15, 2006, the Tenant shall be entitled, upon its occupancy of the Leased Premises, to a rental abatement equal to fourteen days rent.

If, prior to the Commencement Date, Tenant takes possession of the Leased Premises (other than to install racks, fixtures, and/or office equipment), moves inventory into the warehouse portion of the Leased Premises, or conducts business in the Leased Premises, the Commencement Date of the Term shall be on such earlier date.

 

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Subject to the provisions of Article 45, this Lease shall Terminate on February 28, 2011, or five (5) years after the date a Certificate of Occupancy is obtained, whichever is later, unless otherwise modified through mutual agreement in writing, signed by both Landlord and Tenant.

 

ARTICLE 3

CERTIFICATE OF OCCUPANCY

The Landlord shall make application, in the name of the Tenant, and make all reasonable efforts to obtain a Certificate of Occupancy from the municipality. Said Certificate of Occupancy shall be for the Tenant’s use of the Leased Premises. Tenant warrants and represents that it shall promptly supply any and all necessary information required by the municipality in order to effect the prompt issuance of said Certificate of Occupancy. Tenant hereby designates Landlord its attorney-in-fact to process any and all such applications for the issuance of a Certificate of Occupancy. Landlord makes no representation that the Certificate of Occupancy is obtainable, and if, in the Landlord’s reasonable judgment, the Certificate of Occupancy is not obtainable then the Landlord may cancel this Lease. Should Tenant enter the premises prior to receipt of the Certificate of Occupancy and make any changes or do any work that delays or causes a denial of the Certificate of Occupancy, then the Term of the Lease shall commence as scheduled in ARTICLE 2 . In such an occurrence the obtaining of a Certificate of Occupancy shall become the responsibility of the Tenant.

 

ARTICLE 4

BASIC RENT

(A)          Tenant covenants and agrees to pay the Landlord, with no set-offs or deductions whatsoever, at the office of the Landlord, whose mailing address is P.O. Box 1405, Morristown, NJ 07962-1405, or such other place as the Landlord may from time to time designate in writing, rent during the initial 60 month Term

 

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in accordance with the following schedule (hereinafter called “Basic Rent”). Tenant agrees to pay this Basic Rent in lawful money of the United States, IN ADVANCE ON THE FIRST DAY OF EACH MONTH during said Term. If the Term commences on other than the first day of the month, Tenant shall pay to the Landlord on the commencement date a prorated portion of the Basic Rent for the remaining days of the month in which the Lease shall commence.

 

 

(B)          Tenant acknowledges that in addition to Basic Rent, other costs, charges, expenses, pass throughs, reimbursements, and the like are payable or may become payable in connection with this Lease. These items shall be referred to as “Additional Rent”, payable under the Terms and conditions of ARTICLE 11 as well as elsewhere in this Lease.

(C)          Tenant acknowledges that payment of Basic and Additional Rent when due is of essence to the mutual undertakings herein, and that late payment results in substantial damages to Landlord which are difficult to accurately measure. Tenant accordingly agrees to pay TWENTY-FIVE ($25.00) DOLLARS FOR EACH CALENDAR DAY Tenant shall be in arrears of any payment of Basic and/or Additional Rent due to Landlord. This Late Charge, when determined, shall itself be considered Additional Rent, due on the first day of the next calendar month. Notwithstanding the above, there shall be a Five day grace period for the payment of any installment of Basic Rent, or Additional Rent which may be due under Article 11 of this Lease.

 

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ARTICLE 5

USE

Tenant agrees that the Leased Premises shall be used for research & development, executive offices, light manufacturing and distribution and covenants not to substantially or materially change the use without the prior written consent of the Landlord. Tenant further covenants that the proposed use shall conform to the applicable zoning ordinances, rules and regulations of the Township of Runnemede and any other governmental agencies, boards or bureaus having jurisdiction thereof.

Tenant represents and warrants, for the purposes herein that no use to be undertaken, shall, in addition to the additional warranties and restrictions contained herein, violate any rules, regulations or statutes of the Occupational Safety and Health Administration or any other similar agency or enactment.

 

ARTICLE 6

LANDLORD'S CONSENT

Whenever in this Lease the Landlord’s consent is required, such consent, effective only if in writing, shall not be unreasonably withheld or delayed, and if denied, Landlord shall provide reason(s) for such denial.

 

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ARTICLE 7

COMPLIANCE WITH RULES AND REGULATIONS

Tenant shall abide by the following rules and regulations of Landlord (in addition to all other obligations of Tenant under this Lease), and such additional reasonable rules and regulations as Landlord may establish for the Leased Premises and surrounding Property from time to time during the Term of this Lease, so long as these and any additional rules and regulations are enforced equally among all Tenants of the building. Failure of Tenant to comply with the rules and regulations constitutes an event of default.

 

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vi.           Comply with all reasonable rules and regulations made by Landlord from time to time, respecting the delivery or shipment of materials, supplies and fixtures to and from the Leased Premises.

vii.          Keep all garbage and refuse in the kind of container specified by Landlord, in the manner and at the location reasonably specified by Landlord.

viii.          Keep the Leased Premises at a temperature above 50 degrees Fahrenheit at all times.

ix.            Attend to pest extermination when needed.

x.             Immediately notify Landlord of any accident, fire or damage occurring to the Leased Premises.

xi.            Utilize a “night-lighting” circuit for the Leased Premises and/or keep the same lighted from the close of business until Tenant next opens for business.

xii.           Promptly pay all costs, expenses, fines, penalties, or damages which may be imposed upon Landlord by reason of Tenant failure to comply with any governmental laws or regulations with which Tenant is obligated to comply, including all reasonable attorney’s fees incurred by Landlord in connection therewith.

i.             Do or permit any act or thing to be done in or to the Leased Premises or bring any item onto the property which is contrary to law, or which will invalidate or be in conflict with policies of insurance carried by or for the benefit of Landlord with respect to the entire building or the Leased Premises.

ii.            Burn trash or garbage anywhere within the Leased Premises.

iii.           Keep any flammable or dangerous material anywhere within the Leased Premises.

 

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iv.           Create excessive noise, vibration or odor.

v.            Install anything on the roof without the prior written consent of Landlord.

vi.           Do anything or permit anything to be done which tends to destroy the peace and quiet of the Landlord, other tenants, invites of the Leased Premises, or persons in the neighborhood.

vii.          Erect any aerial or antenna, or anything else on any exterior wall without prior consent of Landlord.

viii.         Use any loudspeaker, television receiver, phonograph, radio or other device so that the same can be heard or seen outside the Leased Premises, without written consent of Landlord.

ix.            Throw or permit any foreign substance to be thrown into the plumbing facilities.

x.             Permit trucks or trailers to remain parked overnight on the Property surrounding the Leased Premises, except in designated truck parking spaces.

xi.            Obstruct any part of the Property outside the Leased Premises.

xii.           Use or operate any equipment that, in Landlord’s sole judgment, is or may be harmful to the Leased Premises or the building of which the Leased Premises is a part.

xiii.          Attach any awning, or other projection to the outside of the Leased Premises, or the building of which the Leased Premises is a part.

xiv.          Conduct any auction, fire sale, bankruptcy sale, going-out-of-business sale, or lost-our-Lease sale, in or about the Leased Premises.

xv.           Place anything including signs and lettering to the inside or outside of windows and doors in the Leased Premises, except signs for identification purposes.

 

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ARTICLE 8

NUISANCE

Tenant covenants and agrees that it will not commit any nuisance nor permit the emission of any objectionable sound, noise, smoke, waste or odor which would be violative of any applicable local, state or federal governmental rule or regulation or would, per se, create a nuisance.

 

ARTICLE 9

INSURANCE

(A)          Throughout the Term of this Lease, the Landlord will obtain and keep in force fire insurance, with full extended coverage including all risk perils, on the building located on the referenced lot and block, in an amount equivalent to the full replacement value of the insurable improvements of the entire building. Landlord will obtain business interruption insurance (Loss of Rents), covering all Basic and Additional Rents for a period of 12 months. Landlord shall also implement Comprehensive General Liability coverage including Broad Form CGL and excess. If required by a mortgagee, the Landlord shall also obtain and maintain flood insurance. Tenant agrees that throughout the Term of this Lease (and any extensions thereof) it will pay and discharge, as Additional Rent, its pro-rated share of the full annual premiums charged to the Landlord for such insurance coverage in accordance with Article 11 of this Lease. If for any reason attributable to Tenant it shall be impossible to obtain or maintain the foregoing insurance coverage at a premium cost and/or with insurance companies acceptable to Landlord or Landlord’s mortgagee, then the Tenant shall be given fifteen (15) days to cure by correcting the unacceptable peril or by providing a replacement insurance policy acceptable to Landlord. If Tenant fails to cure as set forth above, then the Landlord may elect to declare this Lease in default as set forth in Article 26 – DEFAULT , hereunder by giving ten (10) days written notice to Tenant.

 

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(B)          Throughout the Term of this Lease, Tenant covenants and agrees, at Tenant’s own cost and expense, to:

i.              obtain and maintain in force Worker’s Compensation insurance as required by law; and

ii.             maintain public liability insurance covering the Tenant with the coverage limits of $3,000,000.00 combined single limit including Bodily Injury and Property Damage coverage.

All such insurance must be written by companies authorized to do business in New Jersey. Tenant shall use its best efforts to have the policy provide that it shall not be cancelable without at least Thirty (30) days prior written notice of cancellation to the Landlord. Certificates evidencing same shall be furnished to the Landlord before Tenant takes possession of the Leased Premises and each policy anniversary thereafter. Such certificates of insurance must include the Landlord as additional named insured. If Tenant fails or neglects to carry insurance under this Article, Landlord shall have the right to have such insurance issued at Tenant’s cost and expense, and the cost thereof shall become Additional Rent and shall be due and payable with the next installment of Basic Rent due under this Lease.

 

ARTICLE 10

LIMITATION OF LANDLORD'S RESPONSIBILITIES

Landlord or its agents, shall not be liable for any damage to the property, equipment and fixtures of the Tenant, nor for loss or damage to any property of Tenant by theft or otherwise unless such loss or damage is a result of the negligence of Landlord or its agents. Except as may other be provided herein, Tenant

 

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assumes all risk of damage to its property, equipment and fixtures and to property of others entrusted to Tenant, whatever the cause of such damage or casualty. Landlord shall not be liable for any damage or injury, unless such damage or injury results from negligence of Landlord or its agents, to persons or property as a consequence of (a) the failure, breakage, leakage or obstruction of the water, plumbing, steam, sewer, waste or soil pipes, roof, roof drains, leaders, gutters, valleys, downspouts or the like, or of the electrical, gas, power, conveyors, sprinkler, air conditioning, or heating systems or hoist equipment; or (b) by reason of the elements, including water, rain, ice or snow; or (c) resulting from carelessness, negligence or improper conduct on the part of the Tenant, its agents, employees, guests, licensees, invites, subtenants, assignees or successors; or (d) attributable to any interference with or interruption or failure of any service to be furnished or supplied by the Landlord. Any obligation of Landlord shall be strictly conditioned upon, extended or eliminated by reason of strike, acts of God, labor unrest, governmental preemption or order, regulation or directive, rationing or curtailment, war or emergency, unavailability of labor or material or any other cause beyond the control of Landlord. If Landlord shall breach any of the provisions of this Lease, Landlord’s liability shall in no event exceed Landlord’s equity interest in the Building as of the date of Landlord’s breach, and Tenant expressly agrees that any judgment or award which it may obtain against Landlord shall be recoverable and satisfied solely out of the right and title not to exceed the equity interest of the Landlord in and to the building (or, in the event of a sale or destruction by casualty, the sale or insurance proceeds), and that Tenant shall have no rights of lien or levy against any other property of the Landlord, nor shall any other property or assets of the Landlord be subject to levy, execution or other enforcement proceedings for collection of any such sums or satisfaction of any such judgment or award.

 

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ARTICLE 11

PAYMENT OF TAXES, INSURANCE

AND OTHER REIMBURSABLE EXPENSES

The Tenant agrees that it will, beginning on the Commencement Date and continuing for the duration of the Term of the Lease or during any renewal or extension period thereof, pay to Landlord in addition to Basic Rent, Additional Rent in payment of those items and services listed hereinafter. The amount due each month as Additional Rent shall represent one-twelfth (1/12) of the annual cost as determined by Landlord from appropriate invoices or receipts. The Tenant shall pay its proportionate share of those items and services listed in this Article as determined by dividing the square footage of the Leased Premises, by the square footage of the building, all using outside dimensions. The stipulated Percentage shall be 47%. Such Additional Rent as specified in subparagraphs A, B, and C, below shall be payable each month on the due date for payment of Basic Rent. Such Additional Rent is Landlord’s best estimation of the actual expenses and will be reconciled and adjusted on a semi-annual basis. Any overage of estimated expenses paid by Tenant in excess of actual expenses will be applied towards the next semi-annual adjustment or, if after the end of the term, reimbursed. If actual expenses exceed estimated expense paid by the Tenant, the short fall will be billed to the Tenant as Additional Rent with payment due twenty-one (21) days following submission of the bill by Landlord. Other items of Additional Rent as specified in subparagraph D below in this Lease shall be payable twenty-one (21) days after the invoice of Landlord to Tenant.

(A)          Real Estate Taxes and added assessments levied or assessed against Block, 43.09, Lot 135, (including any taxes, levies or license fees which may be assessed or imposed in addition to general real estate taxes) in the Borough of Runnemede, County of Camden, during the Term hereof, payable during the Term hereof, at the Stipulated Percentage. Real estate taxes shall not be deemed to include any interest or penalties for

 

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late payment thereof; transfer taxes; costs attributable to special assessments; corporate income, profit, excess profits and/or business taxes imposed on Landlord; or any other tax bf a personal nature charged against the Landlord rather than the real property.

(B)          All charges incurred by Landlord, his agents and/or assignees for building maintenance and utilities, including but not limited to snow removal, landscaping and yard clean-up, normal parking lot lighting and maintenance, water, sewer, fire sprinkler and alarming and central monitoring service of same, roof repairs, and other repairs and utilities benefiting or consumed by the building, however not separately billable or meterable, at the Stipulated Percentage.

(C)          Insurance charges required by Article 9, at the Stipulated Percentage.

(D)          All attorney’s fees and other collection expenses incurred by the Landlord in enforcing any of the Tenant’s obligations under this Lease if Landlord prevails in its action.

Excluded from the reimbursable operating expenses that are included in Additional Rent are:

 

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ARTICLE 12

REPAIRS AND MAINTENANCE OF PREMISES

1)           Landlord shall, at its own cost and expense, within a reasonable period of time make all structural repairs to the exterior building walls, structural frame, foundations, common areas and the building systems up to the point of connection to the Leased Premises, and make all repairs and replacements to all or any part of the roof that cost in excess of $2,500. Although Landlord is responsible for any roof replacement, the cost of any ordinary repair and maintenance work relating to the roof which costs $2,500 or less is included in the Additional Rent paid by Tenant pursuant to Article 11 hereinabove.

Notwithstanding anything to the contrary in this Lease, in the event that the Tenant is unable to use all or any portion of the Premises for the ordinary conduct of Tenant’s business as a result of (x) Landlord’s breach of an obligation under this Lease to perform repairs or provide services, (y) Landlord’s exercise of its rights to access the Premises, or (z) disruption in any required services to the Premises due to Landlord’s negligence or willful misconduct, in each case other than as result of a fire or other casualty or breach of this Lease by Tenant, and such condition continues for a period in excess of five (5) consecutive business days after the date of notice from Tenant to Landlord (the “Abatement Notice”) stating Tenant’s inability to use all or any portion of the Premises, then, the Rent shall be abated on a per diem basis and in proportion to the Premises not useable by Tenant for the period commencing on the sixth (6 ^th ) business day after Tenant gives the

 

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which (A) Tenant is able to reoccupy the entire Premises for the ordinary conduct of its business, or (B) such condition is substantially remedied. Notwithstanding the above, there shall be no abatement of rent when the Landlord’s failure to make the repair shall have been due to any cause beyond Landlord’s control, including, without limitation, acts of God, strikes or labor disputes, and/or inability to obtain materials and/or equipment at reasonable prices.

If any of the repair work described above is made necessary by the negligence of Tenant, its servants, employees, invites or agents, then the Landlord shall be relieved of such repair or replacement obligations and the same shall become the responsibility of Tenant. The obligation of the Landlord to make the foregoing repairs is expressly subject to the Tenant giving the Landlord written notice of defects or needed repairs. In the event that Landlord undertakes to effect repairs due to Tenant’s negligence, Tenant shall reimburse Landlord for the reasonable cost of same, together with interest at the rate of the Prime Rate plus two percent (Prime Rate as defined by the Wall Street Journal, with interest to commence twenty (20) days from the date of submission of the bill to Tenant. Landlord shall submit bills to Tenant and same shall constitute Additional Rent which shall become due and payable on the twentieth day following submission of said bills. Nothing contained herein shall be construed as an undertaking or obligation of Landlord to perform work caused by Tenant’s negligence.

 

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iii.          repair any damage to the building or the Leased Premises caused by the moving or installation of Tenant’s furniture or equipment, vendors and common carriers making deliveries to or receiving shipments from the Leased Premises;

iv.          keep and maintain the Leased Premises in a clean and sanitary condition, free from rubbish and flammable or other objectionable materials;

v.           Landlord will provide Tenant with the use, if necessary, of any contractor’s or manufacturer’s guarantees or warranties in its possession on the mechanical, electrical, HVAC, roof and plumbing for the Leased Premises.

All of the aforesaid repairs required to be made by the Tenant shall be of a quality or class equal to the original work or construction. If Tenant fails after ten (10) days written notice to proceed with due diligence to make repairs required to be made by the Tenant, the same may be made by the Landlord at the sole expense of Tenant, together with interest at the rate of Prime Rate plus two percent if not paid within twenty (20) days of billing by Landlord, and the expense thereof incurred by Landlord shall be collectible as Additional Rent due within twenty (20) days following submission of a bill from Landlord to Tenant. Except as otherwise provided in this Lease, there shall be no allowance to Tenant for diminution of rental value and no liability on the part of Landlord by reason of inconvenience, annoyance or injury to business arising from Landlord, Tenant or others making or failing to make any repairs, alterations, additions or improvements in or to any portion of the building or Leased Premises or any fixtures, appurtenances or equipment thereof. Tenant agrees that it shall not cause or permit any waste, damage or disfigurement to the Leased Premises or any overloading of the floors of the Leased Premises.

 

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In the event that any mechanics lien is filed against the Premises as a result of alteration, addition or improvement made by Tenant, the Landlord, at its option, may declare this Lease in default upon giving notice to Tenant. Tenant shall be given thirty (30) days to cure by removing said lien or provide a performance bond against same. If Tenant has failed to cure the default within the time period allowed, Landlord may Terminate this Lease, effective immediately and may pay said lien without inquiring into the validity thereof, and Tenant shall forthwith reimburse the Landlord of the total cost incurred by Landlord in discharging said lien, including but not limited to all reasonable attorney’s fees, interest at Prime plus two percent and all additional cost and expenses, as Additional Rent hereunder. Notwithstanding anything contained herein to the contrary, Tenant shall remain fully liable for the payment of all rental as provided in this Lease notwithstanding Termination validity effected by Landlord.

 

ARTICLE 13

ALTERATIONS AND IMPROVEMENTS

Tenant shall not, without prior written consent of the Landlord, make any alterations, additions or improvements to the Leased Premises which (a) require structural changes, (b) lessen the value of the Leased Premises, (c) require penetration of the roof, (d) require modification of the exterior of the building, or (e) require modification of utility services, plumbing, electrical or heating systems or lines. If Landlord’s consent is requested, Landlord will respond within twenty (20) days after the receipt by Landlord of Tenant’s written request. If Landlord does not respond within such twenty (20) day period, Tenant may give a second request to Landlord which shall inform Landlord that a failure to respond within seven (7) days shall be deemed to be an approval of the request, and if Landlord does not respond within seven (7) days following Landlord’s receipt of the second request, the request shall be deemed to be approved.

 

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All fixtures, paneling, partitions and other items installed by the Tenant, except those replacements required to be made by Tenant under the terms of this Lease, shall be removed by the Tenant at the Tenant’s own expense prior to termination of this Lease, unless Landlord elects in writing to have said improvements remain in the Premises, in which case said improvements then become the property of the Landlord. Nothing in this Article shall be construed to prevent Tenant’s removal of trade fixtures. Upon removal of any such trade fixtures from Premises or upon removal of other installations as may be required by the Landlord, Tenant shall immediately and at its own expense, repair and restore the Premises to the condition existing prior to installation and repair any damage to the Leased Premises due to such removal, reasonable wear and tear excepted. All property permitted or required to be removed by Tenant at the end of the Lease Term, which remains in the Premises after Tenant’s removal shall be deemed abandoned and may at the election of the Landlord, either be retained as Landlord’s property or may be removed from the Premises by Landlord at Tenant’s expense.

 

ARTICLE 14

FIXTURES

Tenant is given the right to install, connect and operate equipment as may be deemed necessary by Tenant for its business, subject to compliance with applicable laws and regulations of governmental boards and bureaus having jurisdiction thereof. The machinery, trade fixtures and equipment belonging to Tenant shall remain the personal property of Tenant, and Tenant shall have the right to remove same at the expiration of the Lease Term, providing Tenant is not in default of the Terms and conditions of this Lease, and providing that Tenant at its owns cost and expense pays for any damages caused by such removal.

 

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ARTICLE 15

UTILITIES

Tenant shall be responsible for the payment of all utilities servicing the Leased Premises including, but not limited to, electricity, water, sewer, telephone and gas. Electricity, telephone and gas are separately metered/billed to Tenant directly by the utility company, and water and sewer are included in the Additional Rent pursuant to Article 11 of this Lease.

 

ARTICLE 16

SECURITY DEPOSIT

Landlord herewith acknowledges receipt of $21,693.75 representing three (3) month’s rent deposit made by the Tenant as security for the full and faithful performance of this Lease on the part of the Tenant (hereafter the “Security Deposit”). It is expressly understood and agreed that the Security Deposit is the property of Landlord. Landlord shall have the right to co-mingle the security funds with its general fund