LEASE AGREEMENT
THIS AGREEMENT OF LEASE, made as of the
last date endorsed hereon
("Effective Date"), by and between NAPPEN & ASSOCIATES, a
Pennsylvania
limited partnership, t/a 309 DEVELOPMENT COMPANY ("Lessor")
A N D
MICRO MEMORY BANK, INC., a Pennsylvania
corporation ("Lessee").
Lessee and Lessor, in consideration of the
mutual covenants herein
contained and other good and valuable consideration, receipt of
which is
hereby acknowledged and intending to be legally bound hereby, agree
as
follows:
1. Lease and Premises.
A. Lessor hereby demises and leases to
Lessee and Lessee
hereby leases from Lessor that certain premises situate in
Montgomery
Township, Montgomery County, Pennsylvania, known and numbered Lot
No. 16,
Montgomeryville Industrial Center, having a post office address of
130
Corporate Drive, Montgomeryville, PA 18936 together with the
building
("Building") containing approximately 17,500 sq. ft., more or less,
and
improvements constructed thereon, such ground, Building and
improvements
being hereinafter collectively called the "Premises."
B. Lessee acknowledges that it has
inspected the Premises and
leases the same (other than Lessor's Work {as hereinafter defined}
and
Lessee's Work {as hereinafter defined}) in the condition existing
on the
Effective Date. Notwithstanding anything set forth herein to the
contrary,
prior to the Lease Commencement Date (as hereinafter defined),
Lessor shall
construct, at Lessor's cost and expense, the office improvements as
set
forth in Exhibit "A" attached hereto and made part hereof, in
accordance
with Lessor's standard office specifications ("Lessor's Work").
Additionally, prior to the Lease Commencement Date, Lessor shall
construct,
at Lessee's expense, the improvements set forth in Exhibit "B"
attached
hereto and made part hereof ("Lessee's Work"). Within ten (10) days
after
rendition of an invoice (and as a condition precedent to
commencement of
Lessee's Work), Lessee shall pay to Lessor a sum equal to twenty
percent
(20%) of the estimated price of Lessee's Work. Upon completion of
Lessee's
Work by Lessor, Lessee shall pay the remaining balance of the price
of
Lessee's Work to Lessor within ten (10) days of final invoicing
therefor.
C. The Premises shall be occupied and used
for office,
warehouse and manufacturing, in accordance with applicable laws,
ordinances
and regulations. Under no circumstances whatsoever may the Premises
be used
in whole or in part for personal, family, residential or household
purposes.
2. Term.
A. The term of this Lease shall be five (5)
years, commencing
April 1, 2001("Lease Commencement Date") and expiring at 11:59 p.m.
on
March 31, 2006, unless extended, renewed or previously terminated,
as
hereinafter set forth.
B. If Lessee remains in possession of the
Premises, including
failure to restore the same to the conditions required hereunder
after the
expiration of the term of this Lease, or any extension or renewal
thereof
(a "Holding Over"), without the prior written consent of Lessor,
such
Holding Over shall create a Holding Over tenancy from month to
month with
respect to the Premises on all of the same terms and conditions as
are in
effect on the last day of the preceding term, except that the
monthly
installment of Minimum Annual Rent shall be increased to an amount
equal to
Two (2) times the monthly installment of Minimum Annual Rent in
effect on
the last day of the preceding term. Notwithstanding anything set
forth to
the contrary, Lessor may cancel such month to month Holding Over
tenancy at
any time within such Holding Over tenancy upon Fifteen (15) days
prior
written notice, but such cancellation notwithstanding, Minimum
Annual Rent
shall accrue at the Holding Over rate set forth herein until Tenant
vacates
fully the Premises and restores the same to the condition required
hereunder.
C. Lessor shall not be liable to Lessee in
any respect in the
event that Lessor is unable to deliver possession of the Premises
to Lessee,
provided Lessee shall not be required to pay any installment of
Minimum
Annual Rent (as hereinafter defined) or Additional Rent.(as
hereinafter
defined) until such time as Lessor delivers possession. If such
delivery is
not made on or before thirty (30) days after the Lease Commencement
Date set
forth above, either party may terminate this Lease by written
notice to the
other as provided herein, and such termination shall be effective
upon
rendition of said notice.
3. Minimum Annual
Rent.
The minimum
annual rent ("Minimum Annual Rent") payable by Lessee
to Lessor shall be Ninety-Six Thousand Two Hundred Fifty and 00/100
Dollars
($96,250.00) per year, lawful money of the United States of
America, payable
in monthly installments in advance during the said term of this
Lease in
sums of Eight Thousand Twenty and 83/100 Dollars ($8,020.83) on the
first
day of each month, rent to begin from the Lease Commencement Date,
the first
installment to be paid on or before the Lease Commencement Date,
subject to
the requirements of subparagraph 2 (C), supra. The first
installment of
Minimum Annual Rent to be made during the occupancy of the Premises
shall be
adjusted to pro rate a partial month of occupancy, if any, at the
inception
of this Lease at the rate of Minimum Annual Rent in effect during
the first
Lease Year, i.e., the period of twelve (12) calendar months
following the
Lease Commencement Date. If the date of commencement of the term of
this
Lease shall be a day other than the first day of the calendar
month, then
the term of this Lease shall be deemed extended by the number of
days
between the Lease Commencement Date and the last day of said month,
so that
the term of this Lease shall expire five (5) years after such first
day of
the first calendar month following the Lease Commencement Date,
unless
extended or previously terminated, as herein set forth.
4. Additional
Rent.
As
Additional Rent ("Additional Rent") hereunder, Lessee shall pay
Lessor the following on or before the date such additional payment
shall
become due, but not later than ten (10)n business days from
rendition of a
bill therefor (unless otherwise set forth herein):
A. All "Taxes" (as hereinafter defined)
assessed or imposed
upon the Premises during the term of this Lease and any extension
or renewal
term or applicable to the Premises during' the term of this Lease.
The
amount due hereunder oh account of such Taxes shall be apportioned
for that
part of the first and last calendar years covered by the original,
renewal
or extension term hereof as regards county and township real estate
taxes
and for that part of the first and last July 1st fiscal years
covered by
the original, renewal or extension term hereof regarding school
real estate
taxes. At the time of execution of this Lease, Lessee shall pay
Lessor the
pro rated portion of school real estate taxes on the Premises for
the
fiscal year commencing July 1, 2000. Lessor shall promptly forward
to Lessee
all bills received by Lessor for such Taxes and the amount of such
Taxes
shall be paid by Lessee to Lessor at least Fifteen (15) days before
the
expiration of the net payment period for said Taxes and before
penalties
are assessed. In the event Lessee desires to take advantage of
any
nonobligatory early payment discount, said tax payment shall be
paid by
Lessee to Lessor at least one (1) month before the expiration of
any
discount period. A bill submitted by Lessor to Lessee, accompanied
by a true
and correct copy of a bill for Taxes, shall be conclusive evidence
of the
amount of Taxes assessed or levied as well as the items taxed.
"Taxes" as
utilized in this Lease shall mean all taxes,
assessments and charges of whatsoever nature levied upon or with
respect to
the Premises or Lessor's ownership interest in the Premises.
"Taxes" shall
include, without limitation, all general real property taxes and
general and
special assessments, charges, fees, or assessments for transit,
housing,
police, fire or other governmental services or purported benefits
inuring to
the Premises, service payments in lieu of taxes, and any tax, fee
or excise
on the act of entering into and/or maintaining this Lease or any
other lease
of space on the Premises, or the use or occupancy of the Premises
or any
part thereof, or on the rent payable under any lease or in
connection with
the business of leasing the Premises, including, but not limited
to,
business privilege taxes that have been, or are now, or hereafter
levied or
assessed against Lessor by the United States of America, the
Commonwealth
of Pennsylvania or any political subdivision, political
corporation,
district or other political or public entity, whether quasi in
nature or
otherwise, but not including any federal or state income tax levied
solely
on Lessor's income generally. "Taxes" does not include transfer
taxes of
any nature whatsoever arising from the purchase, sale or lease of
any real
property.
Lessee at
all times shall be responsible for and shall pay before
delinquency, all municipal, county, state or federal taxes assessed
against
any leasehold interest or any personal property of any kind,
owned,
installed or used by Lessee.
Lessee, at
its sole cost and expense, and after having given
twenty (20) days prior written notice to Lessor, may contest by
appropriate
legal proceedings, promptly instituted and thereafter conducted in
good
faith with due diligence, the amount or validity, in whole or in
part of
any Taxes; provided, however, Lessee shall have at the time of
giving notice
to Lessor, contemporaneously deposited with Lessor such financial
security,
by certified funds or an irrevocable letter of credit, for payment
of the
contested Taxes, said amount deposited with Lessor to equal one
hundred
twenty percent (120%) of the total contested Taxes, including
interest and
penalties, or other security as may reasonably be required by
Lessor.
B. All sums which may become due by reason
of the failure of
Lessee to comply with any of the terms, covenants and conditions of
this
Lease to be kept and observed by Lessee, and any and all damages
and costs
and expenses (including without limitation thereto, reasonable
attorney's
fees) which Lessor may suffer or incur by reason of any default of
Lessee
and any damages to the Premises caused by any act or omission of
Lessee
together with interest to the date of payment at a rate per annum
equal to
five hundred (500) basis points above the prime interest rate
(Prime + 5%)
of First Union National Bank, Philadelphia, Pennsylvania, or its
successor,
in effect during the period said payment is due.
C. The premiums for insuring the Premises,
including
alterations, additions and improvements other than Lessee's
fixtures and
equipment against loss or damage by fire, all extended coverage,
and rental
value insurance (covering twelve (12) months' rental on a fully
gross basis)
for the full, fair and insurable value thereof, exclusive of
foundations,
excavations, and pavement, and insuring Lessor against liability
for bodily
injury (including death), personal injury and property damage. The
premiums
shall be pro-rated for such portion of the term of the Lease that
is
included within any period in which an insurance policy is in
effect.
D. Upon the written request of Lessor's
mortgagee,(other than
the existing mortgage) Lessee will pay to Lessor, together with
each monthly
installment of Minimum Annual Rent, an amount equal to one-twelfth
of the
aggregate annual' amount of (i) the taxes referred to in
subparagraph A
hereof and (ii) the insurance premiums referred to in subparagraph
C hereof,
all as estimated by Lessor; such amounts shall be held in escrow by
Lessor
or transmitted to any Mortgagee requiring such payments and applied
on
account of the taxes and insurance premiums as and when payments
therefor
are due. Without limitation of the foregoing, Lessee shall also pay
to
Lessor such additional amounts as Lessor's Mortgagee may request
from time
to time to provide a sufficient fund, at least thirty (30) days
prior to the
due date (or, in the case of any tax which may be paid in
installments, the
due date of the next installment thereof) for payment of such taxes
and
premiums. Any amounts held in escrow by Lessor pursuant to this
paragraph
may be deposited in a non-interest bearing account. Lessor may
apply such
deposit against any arrearages by Lessee in the payment of Minimum
Annual
Rent and/or Additional Rent. In the event Lessor assigns its
interest in
this Lease, Lessor shall have the right to pay the balance of such
amounts
then in its possession to the assignee, and Lessor shall thereupon
be
completely released from any liability with respect to such
amounts.
E. Intentionally Deleted by the Parties
F. In the event Lessee requests any
consents or approvals of
Lessor and Lessor is reasonably obliged to expend counsel fees and
costs by
reason thereof, Lessee will reimburse Lessor for the reasonable
counsel fees
and costs incurred, as Additional Rent, within ten (10) days of
submission
of bills therefor.
G. If Lessee does not pay any installment
of Minimum Annual
Rent or any item of Additional Rent on the day when the same shall
become
due and payable, and such failure shall continue for a period of
ten (10)
days, Lessee shall pay Lessor as Additional Rent a service charge
at the
rate of One and One-Half Percent (1-1/2%) per month (or such lesser
charge
as may be the legal maximum for a debtor of the same nature and
character as
Lessee in the jurisdiction which the Premises is located) on the
amount of
such installment of Minimum Annual Rent or item of Additional Rent
or all of
the same for each month or a portion of a month that the same shall
remain
unpaid; provided, however, that such charge shall in no event be
less than
Twenty-Five Dollars ($25.00) for any month or a portion of a month
that any
installment of Minimum Annual Rent or item of Additional Rent shall
remain
unpaid. Such charge shall be in the form of Additional Rent for the
purposes
of defraying administrative expenses of Lessor and is not intended
as a
penalty against Lessee. The provision of this paragraph shall not
preclude
Lessor from exercising its options as set forth in any other
sections of
this Lease, or as provided by law.
5. Utilities.
Lessee shall
heat the Premises at its own expense and shall also
pay all charges of utility companies or public authorities for
electricity,
gas, telephone, water, steam, sewer service or other services or
utilities
furnished to the Premises. Under no circumstances shall Lessor be
required
to furnish or be responsible for the furnishing of or the failure
of any
utility companies or public authorities to furnish any utilities or
any
other service of any kind to the Premises or any part thereof.
6. Repairs.
A. Except as otherwise set forth herein,
Lessee shall be
responsible for all maintenance to the Premises and at Lessee's
sole
expense, shall make all necessary or appropriate repairs,
replacements
(except for the air conditioning components [but not any heating
component]
of warehouse air-conditioning units), renewals, and additions,
interior and
exterior, structural (not arising from the act or neglect of
Lessee, its
agents, servants, and business visitors) and non-structural,
ordinary and
extraordinary, foreseen and unforeseen, required to keep and
maintain the
Premises and all Systems (as hereinafter defined), equipment and
apparatus
appurtenant thereto or used in connection therewith in good order
and
condition including but not limited to lawn and shrub trimming,
cutting and
maintenance, and parking lot and driveway repair, replacement,
maintenance,
cleaning and snow and ice removal. Lessor shall be responsible only
for
maintenance to the roof and structural (defined as "load bearing
elements
and the exterior surface of exterior curtain walls") portions of
the
Building, not arising from the act or neglect of Lessee, its
agents;
servants, and business visitors; in accordance with the provisions
of
subparagraph B hereof. Pertaining to Lessee's responsibility to
maintain the
heating, air-conditioning, plumbing, electrical and sprinkler
systems of the
Premises ("Systems"), in addition to all required repairs and
replacements,
Lessee agrees that it shall, to the extent generally available, at
its cost
and expense, enter into a service contract or contracts with
responsible
service companies providing for at least two (2) semi-annual
periodic
inspections, and complete maintenance of all air-conditioning
units, only
including all necessary parts and labor, commencing upon the
Lease
Commencement Date, which contract or contracts shall continue
during the
term of this Lease and any renewal thereof and will be subject to
the
approval of Lessor, which Lessor agrees not to unreasonably
withhold. A copy
of said service contract shall be deposited with Lessor prior to
the Lease
Commencement Date and said contract must provide for at least
fifteen (15)
days' notice to Lessor prior to cancellation thereof. True and
correct
copies of all inspection reports received from the service
contractor shall
be furnished to Lessor no later than ten (10) days after receipt of
same.
B. Upon receipt of written notice from
Lessee, Lessor agrees
to proceed with due diligence to repair at its own cost and
expense, any
leaks in the roof, or make any repairs to the structural portions
of the
Building, provided such repairs are not necessitated by any act or
neglect
on the part of Lessee, its agents, servants or business visitors.
In no
event, however, shall Lessor be liable to Lessee for damages,
including
consequential damages, for any loss or damage sustained by Lessee
due to,
or alleged to be due to, failure to make such repairs in a timely
or proper
manner. In the event Lessor fails to make said repairs within a
reasonable
time and in a proper manner, after notice by Lessee, Lessee may
proceed to
effect said repairs and Lessor shall repay Lessee the reasonable
costs of
said repairs, together with interest to the date of payment at a
rate per
annum equal to five hundred (500) basis points above the prime
interest rate
(Prime + 5%) of First Union National Bank, Philadelphia,
Pennsylvania, or
its successor, in effect during the period said payment is due, but
Lessee
may not set off the amount of such costs against any rent due to
Lessor
pursuant to the terms of this Lease. Provided, however, that within
ten (10)
days of receipt of any such bill for repairs, Lessor may submit
the
questions of the reasonableness of said bills and/or Lessor's
responsibility
to pay for same to arbitration before the American Arbitration
Association
in Philadelphia, Pennsylvania, and in accordance with the rules
and
regulations of the American Arbitration Association in
Philadelphia,
Pennsylvania. The decision of the arbitrators shall be final and
binding
upon the parties and shall be unappealable. The cost of
arbitration, as well
as the reasonable counsel fees and costs of the prevailing party
shall be
borne by the non-prevailing party.
C. Any repairs, replacements, renewals and
additions, and any
labor performed or materials furnished in, on or about the Premises
shall be
performed and furnished by Lessee and/or Lessor, as the case may
be, in
strict compliance with all applicable laws, regulations, ordinances
and
requirements of all duly constituted municipal authorities or
other
governmental bodies having jurisdiction over the Premises and
the
requirements of any board of underwriters having jurisdiction
thereof.
7. Insurance.
A. Liability.
Lessee shall provide and keep in force at its own cost and
expense:
(i) Commercial General Liability Insurance,
including
Personal Injury, Bodily Injury Including Death, and Property Damage
covering
premises liability, independent contractors liability, and
contractual
liability, with minimum limits of coverage of One Million
Dollars
($1,000,000.00) per occurrence and Two Million Dollars
($2,000,000.00)
aggregate applicable to the Premises only.
(ii) Worker's Compensation Insurance in the
full
statutory amount.
(iii) All policies carried hereunder,
providing liability
coverage, will include Lessor as an additional named insured with
respect to
ownership of the Premises.
B. Lessee's Personal Property. Lessee shall
keep its personal
property and trade fixtures in the Premises insured with "all
risks"
insurance in an amount to cover 100% of the replacement cost of the
property
and fixtures.
C. Insurance policies required by this
Lease shall:
(i) Be issued by insurance companies
licensed to do
business in the State of Pennsylvania, with general policyholder's
ratings
of at least A and a financial rating of at least XI in the most
current
Best's Insurance Reports available on the date of issuance. If the
Best's
ratings are changed or discontinued, the parties shall agree to
an
equivalent method of rating insurance companies;
(ii) Provide that the insurance not be
cancelled or
materially changed in scope or amount of coverage unless thirty
(30) days
advance notice is given to the Lessor;
(iii) Be primary policies -- not
contributing with, or in
excess of the coverage that the Lessor may carry;
(iv) Be permitted to be carried under a
"blanket policy".
However, a specific minimum limit must be listed which is
applicable to the
Premises and acceptable to the Lessor.
(v) Be maintained during the entire term
and any
extension or renewal term of this Lease.
D. By the Lease Commencement Date and prior
to Lessee entering
possession of the Premises, and upon each renewal of its insurance
policies,
Lessee shall provide certificates of insurance to Lessor by
notice
hereunder. The certificates shall specify amounts, types of
coverage, the
waiver of subrogation, specified in Paragraph 16 hereof, and the
insurance
criteria listed in this paragraph 7. The policies shall be renewed
or
replaced and maintained by Lessee. If Lessee fails to give any
required
certificate within the time provided herein, Lessor may obtain and
pay for
that insurance and receive reimbursement from, Lessee as Additional
Rent,
any other provision of this Lease notwithstanding.
8. Destruction of
Premises.
A. Total Destruction of Building. In the
event the Building is
totally destroyed or so damaged by fire or other casualty covered
by a
policy or policies of insurance maintained by Lessor that the same
cannot be
repaired and restored within ninety (90) days from the happening of
such
injury, the current term of this Lease shall absolutely cease and
terminate
and the Minimum Annual Rent and Additional Rent shall abate for the
balance
of the term, with reimbursement to Lessee of prepaid Minimum Annual
Rent and
Additional Rent. Nothing contained herein shall be construed to
affect
Lessor's right to collect the proceeds of rental value insurance on
the
Building.
B. Partial Destruction of Building. If the
damage be only
partial and such that the Building can be restored, to
approximately its
former condition within ninety (90) days from the date of the
casualty loss,
Lessor shall restore the same with reasonable promptness, reserving
the
right to enter upon the Premises for that purpose. Lessor also
reserves the
right to enter upon the Premises whenever necessary to repair
damage caused
by fire or other casualty to the building of which the Premises is
a part if
the building is a multi-tenant building, even though the affect of
such
entry be to render the Premises or part thereof untenantable. The
rent shall
be apportioned and suspended during the term that any portion of
the
Premises is untenantable (i.e., not fit for Lessee's reasonable
business
use), taking into account the ratio of the untenantable portion to
the total
Premises and the duration of such untenantability. Nothing
contained herein
shall affect or limit Lessor's right to collect the proceeds of any
rental
value insurance on the Premises.
C. Intentionally Deleted by the Parties
D. Lessor shall not be liable for any
damage, compensation or
claim by reason of the necessity of repairing any portion of the
Premises,
the interruption of the use of the Premises, any inconvenience or
annoyance
arising as a result of such repairs or interruption or the
termination of
this Lease by reason of damage or destruction of the Premises or
any part
thereof, unless caused by the negligence or fault of Lessor, its
agents,
servants, employees and/or contractors.
9.
Condemnation.
A. Total Condemnation. In the event
the entire Premises is
taken or condemned by any public or quasi-public authority
exercising the
right of eminent domain, the term of this Lease shall terminate as
of the
date the condemning authority takes possession of the Premises,
with the
same force and effect as though such date were the date fixed
herein for
expiration of the term. The entire amount of any award for such
taking shall
belong to the Lessor, except for moving, business interruption
expenses, and
damages to Lessee's personal property, if any, awarded directly to
Lessee
and Lessee hereby waives any other right it may have to any portion
of such
award.
B. Partial Condemnation. In the event that
a portion of the
Premises, but not the entire Premises is taken or condemned for a
public or
quasi-public use, the Minimum Annual Rent herein shall abate
equitably in
proportion to the area of the building on the Premises condemned as
of the
date on which the condemning authority shall take possession of
the
condemned property. Provided, however, that if the condemnation was
so
extensive that the Premises is not suitable for Lessee's use as set
forth
herein, the taking shall be considered a total taking and
subparagraph A
above will apply. The entire amount of any award for such taking
shall
belong to Lessor except for moving, business interruption expenses
and
damages to Lessee's personal property, if any, awarded directly to
Lessee
and Lessee hereby waives any other right it may have to any portion
of such
award. If the parties are unable to agree as to whether any taking
is so
substantial as to constitute a total taking for the purposes of
this Lease,
or as to the amount of abatement of rent after a partial taking,
the matter
shall be submitted to arbitration in Philadelphia, Pennsylvania,
in
accordance with the rules of the American Arbitration Association
then in
force and the decision of the arbitrators shall be final and
binding on both
parties.
10. Use and
Compliance with Regulations.
A. Lessee hereby covenants and agrees that
it will at no time
use the Premises for any other use or purpose than lawful purposes.
Lessee
further agrees that it will at no time use the Premises in any
manner which
may be deemed a violation of any municipal (including but not
limited to
township authorities, regulatory agencies and water and sewer
authorities),
state or federal law, rules, regulations or requirements. Lessee
shall
comply at its sole cost and expense with any and all municipal,
state and
federal rules, regulations, requirements or laws, including
additional
installations which may be required, covering Lessee's specific use
and
occupancy of the Premises; Lessor shall comply, at its sole cost
and expense
with any and all municipal, state and federal rules,
'regulations,
requirements or laws, and/or additional installations covering
buildings and
property generally, without regard to Lessee's specific use and
occupancy
thereof.' Lessor represents and warrants that the applicable
zoning
ordinances permit Lessee's intended use of the Premises as
specified in
Paragraph 1(C) hereof. The applicable use and occupancy regulations
of
Montgomery Township, Montgomery County, Pennsylvania, require a
tenant to be
in possession of its space and set up for operation before
making
application for a certificate of occupancy ("CO") and the necessary
township
inspection. Accordingly, Lessee shall take possession of the
Premises, set
up its operation and promptly thereafter, make application to
Code
Enforcement Officer of Montgomery Township for a CO for the
Premises and
obtain any required CO. Lessee shall provide Lessor with a true and
correct
copy of its CO promptly after issuance, by notice hereunder. In the
event
issuance of a CO is withheld by reason of any condition of the
Premises not
related to Lessee's specific use and occupancy, Lessor, at its sole
cost and
expense, shall promptly use its best efforts to rectify this
condition and
otherwise will cooperate with Lessee and render reasonable
assistance to
Lessee for issuance of the CO. Lessee hereby agrees to protect,
indemnify
and save Lessor harmless from and against any and all loss, damage,
expense,
cause of action, suits, demands, judgments and claims of any
nature
whatsoever arising as a result of Lessee's breach' of the
covenants
Contained in this paragraph, in addition to any other
indemnification
provisions set forth in this Lease. Lessee shall deposit no process
wastes
into the sanitary sewer system serving the Premises and agrees that
only
sanitary waste shall be inserted into the sanitary sewer system.
Two (2)
EDU(s) of sanitary sewer capacity has been allocated to the
Premises and
Lessee shall not exceed said allocation.
B. As used herein, "Hazardous Substance"
means any substance
which is toxic, ignitable, reactive or corrosive and which is
regulated by
any local government, the State of Pennsylvania or the United
States
Government. Hazardous Substance includes any and all materials or
substances
which are defined as 'hazardous waste', 'extremely hazardous waste'
or
'hazardous substance' pursuant to state, federal or local
governmental laws
or regulations. "Hazardous Substance" includes, but is not
restricted to
asbestos, polychlorinated biphenyls (PCBs) and petroleum. Lessee
shall not
cause or permit any Hazardous Substance to be used, stored,
generated or
disposed of on or in the Premises by Lessee, Lessee's agents,
employees,
contractors or invitees, (except small quantities in sealed
containers used
in the ordinary course of Lessee's business) without first
obtaining
Lessor's written consent, which may be withheld or delayed at
Lessor's sole
and absolute discretion. If Hazardous Substances are. used,
stored,
generated or disposed of on or in the Premises or if the Premises
become
contaminated in any manner for which Lessee is legally liable,
Lessee shall
indemnify, defend and hold harmless the Lessor from any and all
claims,
damages, fines, judgments, penalties, costs, liabilities or
losses
(including without limitation, a decrease in value of the Premises
or the
Building or the Lot, damages because of adverse impact on marketing
of the
Premises and any and all sums paid for settlement of claims,
attorneys',
consultant and expert fees) arising during or after the term hereof
and
arising as a result of such contamination by Lessee. This
indemnification
includes, without limitation, any and all costs incurred because of
any
investigation of the Lot or any clean-up, removal or restoration
mandated by
a federal, state or local agency or political subdivision. In
addition, if
Lessee causes or permits the presence of any Hazardous Substance on
the
Premises and this results in contamination, Lessee shall promptly,
at its
sole expense, take any and all necessary actions to return the
Premises to
the condition existing before the presence of any such Hazardous
Substance
on the Premises, provided, however, that Lessee shall first obtain
Lessor's
approval for any such remedial action. Within ten (10) days after
receipt,
Lessor and Lessee shall advise the other party in writing and
provide the
other party with copies of (as applicable), any notices alleging
violation
of any law or regulation relating to any Hazardous Substance upon
any
portion of the Premises, the Building or the Lot; any claims made
or
threatened in writing regarding noncompliance with any law or
regulation
involving the presence of any Hazardous Substance on any portion of
the
Premises, the Building or the Lot; or any governmental or
regulatory actions
or investigations instituted or threatened regarding non-compliance
with any
law or regulation involving any Hazardous Substance upon any
portion of the
Premises, the Building or the Lot.
C. Within ten (10) days after receipt,
Lessor and Lessee shall
advise the other party in writing and provide the other with copies
of (as
applicable), any notices alleging violation of the Americans
with
Disabilities Act of 1990 ("ADA") relating to any portion of the
Premises,
the Building or the Lot; any claims made or threatened in writing
regarding
non-compliance with the ADA and relating to any portion of the
Premises, the
Building or the Lot; or any governmental or regulatory actions
or
investigations instituted or threatened regarding non-compliance
with the
ADA and relating to any portion of the Premises, the Building or
the Lot.
Lessor's Work shall comply with ADA requirements in effect on the
Effective
Date.
10.1 Lessor's
Environmental Representation
A. Lessor warrants and represents that to
the best of its
knowledge information, and belief, no Hazardous Substances exist
upon the
Premises, as of the Effective Date.
B. Lessor shall reimburse Lessee for all
out of pocket costs
incurred by Lessee as a result of a breach of Lessor's
environmental
warranty and representation set forth in Subparagraph A.
11.
Indemnification.
A. The Lessee shall keep, save and hold
harmless the Lessor
from any and all damages and liability for anything and
everything
whatsoever arising from or out of the occupancy of the Premises and
abutting
common areas by or under the Lessee, the Lessee's agents, servants,
or
business visitors, and from any loss or damage arising from any
fault or
negligence by the Lessee or any failure on the Lessee's part to
comply with
any of the covenants, terms and conditions contained in this
Lease.
Provided, however, that Lessee's obligations hereunder shall be
pro-ratably
reduced to the extent that a particular claim, liability, expense,
loss,
damage, demand, fine or cause of action is a result of Lessor's
gross
negligence or wilful misconduct.
B. Notwithstanding anything set forth
herein to the' contrary,
in the event Lessor is held liable to an employee of Lessee (either
an
actual employee or one deemed to be an employee by operation of
law) on
account of work-related injuries sustained by such employee on the
Premises,
Lessee shall be liable to Lessor for damages, contribution and
indemnity in
any action at law or otherwise. This subparagraph 11(B) shall
constitute "a
written contract" between Lessor and Lessee
purs