Exhibit
10.1
LEASE AGREEMENT
LIBERTY PROPERTY LIMITED PARTNERSHIP
Landlord
AND
FREE FOR ALL, INC.
Tenant
AT
303 Lippincott Drive, Suite 310
Marlton, New Jersey 08053
LEASE AGREEMENT
THIS LEASE AGREEMENT is made by and between LIBERTY PROPERTY
LIMITED PARTNERSHIP , a Pennsylvania limited partnership
(“Landlord”), and FREE FOR ALL, INC. , a
corporation organized under the laws of Delaware
(“Tenant”), and is dated as of the date on which this
Lease has been fully executed by Landlord and Tenant.
1.
Basic Lease Terms and Definitions »
(a)
Premises : Suite 310, as shown on Exhibit
“A” , consisting of 2,668 rentable square
feet.
(b)
Building : 83,260 rentable square
feet.
Address: 303 Lippincott Drive,
Marlton, New Jersey 08053.
(c)
Term : Twenty-Six (26) months (plus any partial
month from the Commencement Date until the first day of the next
full calendar month during the Term).
(d)
Commencement Date : August 17, 2009, or the date
Tenant takes possession of the Premises, if earlier.
(e)
Expiration Date : The last day of the
Term.
(f)
Minimum Annual Rent : Payable in monthly
installments as follows:
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Month of Term
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Annual
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Monthly
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Month of Term
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Annual
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Monthly
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*1-2
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$0.00
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13-24
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$19,343.00
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$1,611.92
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3-12
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------------
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$1,611.92
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25-26
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$1,611.92
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*Monthly
installments of Annual Operating Expenses shall be payable by
Tenant in these months notwithstanding that no installments of
Minimum Annual Rent are then due and payable.
(g)
Annual Operating Expenses : $32,016.00, payable
in monthly installments of $2,668.00, subject to adjustment as
provided in this Lease.
(h)
Tenant’s Share : 3.20% (also see
Definitions).
(i)
Use : General office.
(j)
Security Deposit : $8,559.84.
(k)
Addresses For Notices :
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Landlord:
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Liberty
Property Limited Partnership
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Tenant:Before
the Commencement Date:
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901 Lincoln
Drive West, Suite 100
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Free For All,
Inc.
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Marlton,
NJ 08053
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6 Alton
Avenue
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Attention: Vice
President/City Manager
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Voorhees, New
Jersey 08043
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On or after the
Commencement Date: Premises
(l)
Tenant’s North American Industry Classification System
Number : 524292 .
(m)
Guarantor : Not required.
(n)
Additional Defined Terms : See Rider 1 for
the definitions of other capitalized terms.
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(o)
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Contents : The following are attached to and
made a part of this Lease:
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Rider 1 –
Additional Definitions
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Exhibits:“A” – Plan showing
Premises
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“B”
– Building Rules
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“C”
– Estoppel Certificate Form
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“D”
– Cleaning Schedule
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2.
Premises . Landlord leases to Tenant and
Tenant leases from Landlord the Premises, together with the right
in common with others to use the Common Areas. Tenant
accepts the Premises, Building and Common Areas “AS
IS”, without relying on any representation, covenant or
warranty by Landlord other than as expressly set forth in this
Lease. Landlord and Tenant (a) acknowledge that all
square foot measurements are approximate and (b) stipulate and
agree to the rentable square footages set forth in
Sections 1(a) and (b) above for all purposes with respect to
this Lease.
3.
Use . Tenant shall occupy and use the
Premises only for the Use specified in Section l
above. Tenant shall not permit any conduct or condition
which may endanger, disturb or otherwise interfere with any other
Building occupant’s normal operations or with the management
of the Building. Tenant may use all Common Areas only
for their intended purposes. Landlord shall have
exclusive control of all Common Areas at all times
.
4.
Term; Possession. The Term of this Lease shall
commence on the Commencement Date and shall end on the Expiration
Date, unless sooner terminated in accordance with this
Lease. If Landlord is delayed in delivering possession
of all or any portion of the Premises to Tenant as of the
Commencement Date, Tenant will take possession on the date Landlord
delivers possession, which date will then become the Commencement
Date (and the Expiration Date will be extended so that the length
of the Term remains unaffected by such
delay). Landlord shall not be liable for any loss
or damage to Tenant resulting from any delay in delivering
possession due to the holdover of any existing tenant or other
circumstances outside of Landlord’s reasonable
control.
5.
Rent; Taxes. Tenant agrees to pay to Landlord,
without demand, deduction or offset, Minimum Annual Rent and Annual
Operating Expenses for the Term. Tenant shall pay the
Monthly Rent, in advance, on the first day of each calendar month
during the Term, at Landlord’s address designated in
Section 1 above unless Landlord designates otherwise; provided
that Monthly Rent for the third full month shall be paid at the
signing of this Lease. If the Commencement Date is not
the first day of the month, the Monthly Rent for that partial month
shall be apportioned on a per diem basis at the rate of $142.66 per
day and shall be paid on or before the Commencement
Date. Tenant shall pay Landlord a service and handling
charge equal to 5% of any Rent not paid within 5 business days
after the date due. In addition, any Rent, including
such charge, not paid within 5 days after the due date will bear
interest at the Interest Rate from the date due to the date
paid. Tenant shall pay before delinquent all taxes
levied or assessed upon, measured by, or arising from: (a) the
conduct of Tenant’s business; (b) Tenant’s leasehold
estate; or (c) Tenant’s property. Additionally,
Tenant shall pay to Landlord all sales, use, transaction privilege,
or other excise tax that may at any time be levied or imposed upon,
or measured by, any amount payable by Tenant under this
Lease.
6.
Operating Expenses. The amount of the Annual
Operating Expenses set forth in Section 1(g) above represents
Tenant’s Share of the estimated Operating Expenses for the
calendar year in which the Term commences. Landlord may
adjust such amount from time to time if the estimated Annual
Operating Expenses increase or decrease; Landlord may also invoice
Tenant separately from time to time for Tenant’s Share of any
extraordinary or unanticipated Operating Expenses. By
April 30 th of
each year (and as soon as practical after the expiration or
termination of this Lease or, at Landlord’s option, after a
sale of the Property), Landlord shall provide Tenant with a
statement of Operating Expenses for the preceding calendar year or
part thereof. Within 30 days after delivery of the
statement to Tenant, Landlord or Tenant shall pay to the other the
amount of any overpayment or deficiency then due from one to the
other or, at Landlord’s option, Landlord may credit
Tenant’s account for any overpayment. If Tenant
does not give Landlord notice within 30 days after receiving
Landlord’s statement that Tenant disagrees with the statement
and specifying the items and amounts in dispute, Tenant shall be
deemed to have waived the right to contest the
statement. Landlord’s and Tenant’s
obligation to pay any overpayment or deficiency due the other
pursuant to this Section shall survive the expiration or
termination of this Lease. Notwithstanding any other
provision of this Lease to the contrary, Landlord may, in its
reasonable discretion, determine from time to time the method of
computing and allocating Operating Expenses, including the method
of allocating Operating Expenses to various types of space within
the Building to reflect any disparate levels of services provided
to different types of space. If the Building is not
fully occupied during any period, Landlord may make a reasonable
adjustment based on occupancy in computing the Operating Expenses
for such period so that Operating Expenses are computed as though
the Building had been fully occupied. The Building is
intended to be part of a multi-building development on the Property
and adjacent properties (the
“Development”). Landlord may, at its option,
treat the entire Development, or any portion thereof, as a single
unified project for purposes of determining and allocating certain
Operating Expenses that relate to the entire Development, such as
real estate taxes. In such event, such Operating
Expenses as Landlord elects to allocate based on the entire
Development shall include the aggregate amount thereof for all
buildings on the Property and adjacent properties and their
attendant common areas included in the unified project, and
Tenant’s Share with respect to such Operating Expenses shall
be equal to a fraction, the numerator of which is the number of
rentable square feet of the Premises and the denominator of which
is the number of rentable square feet of all buildings on the
Property and adjacent properties.
7.
Services. Landlord will furnish the following
services for the normal use and occupancy of the Premises for
general office purposes: (i) electricity,
(ii) heating and air conditioning in season during Normal
Business Hours, (iii) water, (iv) trash removal and
janitorial services pursuant to the cleaning schedule attached as
Exhibit “D” , and (v) such other services
Landlord reasonably determines are appropriate or
necessary. If Tenant requests, and if Landlord is able
to furnish, services in addition to those identified above,
including heating or air conditioning outside of Normal Business
Hours, Tenant shall pay Landlord’s reasonable charge for such
supplemental services. If because of Tenant’s
density, equipment or other Tenant circumstances, Tenant
puts demands on the Building Systems in excess of those of the
typical office user in the Building, Landlord may install
supplemental equipment and meters at Tenant’s
expense. Landlord shall not be responsible or liable for
any interruption in such services, nor shall such interruption
affect the continuation or validity of this
Lease. Notwithstanding the foregoing, in the event that
any utility service is not delivered for a period in excess of five
(5) consecutive business days solely as a result of the negligence
or willful misconduct of Landlord, and if Tenant is unable to
reasonably use the Premises for the conduct of its business by
reason thereof, Rent shall thereafter abate until the interrupted
service is restored or Tenant conducts or is able to reasonably
conduct business in the Premises. Landlord shall have
the exclusive right to select, and to change, the companies
providing such services to the Building or Premises. Any
wiring, cabling or other equipment necessary to connect
Tenant’s telecommunications equipment shall be Tenant’s
responsibility, and shall be installed in a manner approved by
Landlord. In the event Tenant’s consumption
of any utility or other service included in Operating Expenses is
excessive when compared with other occupants of the Property,
Landlord may invoice Tenant separately for, and Tenant shall pay on
demand, the cost of Tenant’s excessive consumption, as
reasonably determined by Landlord.
8.
Insurance; Waivers; Indemnification.
(a) Landlord
shall maintain insurance against loss or damage to the Building or
the Property with coverage for perils as set forth under the
“Causes of Loss-Special Form” or equivalent property
insurance policy in an amount equal to the full insurable
replacement cost of the Building (excluding coverage of
Tenant’s personal property and any Alterations by Tenant),
and such other insurance, including rent loss coverage, as Landlord
may reasonably deem appropriate or as any Mortgagee may
require.
(b) Tenant,
at its expense, shall keep in effect commercial general liability
insurance, including blanket contractual liability insurance,
covering Tenant’s use of the Property, with such coverages
and limits of liability as Landlord may reasonably require, but not
less than a $1,000,000 combined single limit with a $3,000,000
general aggregate limit (which general aggregate limit may be
satisfied by an umbrella liability policy) for bodily injury or
property damage; however, such limits shall not limit
Tenant’s liability hereunder. The policy shall
name Landlord, Liberty Property Trust and any other associated or
affiliated entity as their interests may appear and at
Landlord’s request, any Mortgagee(s), as additional insureds,
shall be written on an “occurrence” basis and not on a
“claims made” basis and shall be endorsed to provide
that it is primary to and not contributory to any policies carried
by Landlord and to provide that it shall not be cancelable or
reduced without at least 30 days prior notice to
Landlord. The insurer shall be authorized to issue such
insurance, licensed to do business and admitted in the state in
which the Property is located and rated at least A VII in the most
current edition of Best’s Insurance
Reports. Tenant shall deliver to Landlord on or
before the Commencement Date or any earlier date on which Tenant
accesses the Premises, and at least 30 days prior to the date of
each policy renewal, a certificate of insurance evidencing such
coverage.
(c) Landlord
and Tenant each waive, and release each other from and against, all
claims for recovery against the other for any loss or damage to the
property of such party arising out of fire or other casualty
coverable by a standard “Causes of Loss-Special Form”
property insurance policy with, in the case of
Tenant, such endorsements and additional coverages as are
considered good business practice in Tenant’s business
, even if such loss or damage shall be brought about by the
fault or negligence of the other party or its Agents; provided,
however, such waiver by Landlord shall not be effective with
respect to Tenant’s liability described in Sections 9(b) and
10(d) below. This waiver and release is effective
regardless of whether the releasing party actually maintains the
insurance described above in this subsection and is not limited to
the amount of insurance actually carried, or to the actual proceeds
received after a loss. Each party shall have its
insurance company that issues its property coverage waive any
rights of subrogation, and shall have the insurance company include
an endorsement acknowledging this waiver, if
necessary. Tenant assumes all risk of damage of
Tenant’s property within the Property, including any loss or
damage caused by water leakage, fire, windstorm, explosion, theft,
act of any other tenant, or other cause.
(d) Tenant
shall not be permitted to satisfy any of its insurance obligations
set forth in this Lease through any self-insurance or self-insured
retention in excess of $25,000.
(e) Subject
to subsection (c) above, and except to the extent caused by the
negligence or willful misconduct of Landlord or its Agents, Tenant
will indemnify, defend, and hold harmless Landlord and its Agents
from and against any and all claims, actions, damages, liability
and expense (including reasonable fees of attorneys, investigators
and experts) which may be asserted against, imposed upon, or
incurred by Landlord or its Agents and arising out of or in
connection with loss of life, personal injury or damage to property
in or about the Premises or arising out of the occupancy or use of
the Property by Tenant or its Agents or occasioned wholly or in
part by any act or omission of Tenant or its Agents, whether prior
to, during or after the Term. Tenant’s obligations
pursuant to this subsection shall survive the expiration or
termination of this Lease.
9.
Maintenance and Repairs.
(a) Landlord
shall Maintain the Building, including the Premises, the Common
Areas, the Building Systems and any other improvements owned by
Landlord located on the Property. If Tenant becomes
aware of any condition that is Landlord’s responsibility to
repair, Tenant shall promptly notify Landlord of the
condition.
(b) Tenant
at its sole expense shall keep the Premises in a neat and orderly
condition. Alterations, repairs and replacements to the
Property, including the Premises, made necessary because of
Tenant’s Alterations or installations, any use or
circumstances special or particular to Tenant, or any act or
omission of Tenant or its Agents shall be made at the sole expense
of Tenant to the extent not covered by any applicable insurance
proceeds paid to Landlord.
(a) Tenant
will, at its expense, promptly comply with all Laws now or
subsequently pertaining to the Premises or Tenant’s use or
occupancy. Tenant will pay any taxes or other charges by
any authority on Tenant’s property or trade fixtures or
relating to Tenant’s use of the Premises. Neither
Tenant nor its Agents shall use the Premises in any manner that
under any Law would require Landlord to make any Alteration to or
in the Building or Common Areas (without limiting the
foregoing, Tenant shall not use the Premises in any manner that
would cause the Premises or the Property to be deemed a
“place of public accommodation” under the ADA if such
use would require any such Alteration). Tenant shall be
responsible for compliance with the ADA, and any other Laws
regarding accessibility, with respect to the Premises.
(b) Tenant
will comply, and will cause its Agents to comply, with the Building
Rules.
(c) Tenant
agrees not to do anything or fail to do anything which will
increase the cost of Landlord’s insurance or which will
prevent Landlord from procuring policies (including public
liability) from companies and in a form satisfactory to
Landlord. If any breach of the preceding sentence by
Tenant causes the rate of fire or other insurance to be increased,
Tenant shall pay the amount of such increase as additional Rent
within 30 days after being billed.
(d) Tenant
agrees that (i) no activity will be conducted on the Premises
that will use or produce any Hazardous Materials, except for
activities which are part of the ordinary course of Tenant’s
business and are conducted in accordance with all Environmental
Laws (“Permitted Activities”); (ii) the Premises will
not be used for storage of any Hazardous Materials, except for
materials used in the Permitted Activities which are properly
stored in a manner and location complying with all Environmental
Laws; (iii) no portion of the Premises or Property will be used by
Tenant or Tenant’s Agents for disposal of Hazardous
Materials; (iv) Tenant will deliver to Landlord copies of all
Material Safety Data Sheets and other written information prepared
by manufacturers, importers or suppliers of any chemical; and (v)
Tenant will immediately notify Landlord of any violation by Tenant
or Tenant’s Agents of any Environmental Laws or the release
or suspected release of Hazardous Materials in, under or about the
Premises, and Tenant shall immediately deliver to Landlord a copy
of any notice, filing or permit sent or received by Tenant with
respect to the foregoing. If at any time during or after
the Term, any portion of the Property is found to be contaminated
by Tenant or Tenant’s Agents or subject to conditions
prohibited in this Lease caused by Tenant or Tenant’s Agents,
Tenant will indemnify, defend and hold Landlord harmless from all
claims, demands, actions, liabilities, costs, expenses, reasonable
attorneys’ fees, damages and obligations of any nature
arising from or as a result thereof, and Landlord shall have the
right to direct remediation activities, all of which shall be
performed at Tenant’s cost. Tenant’s
obligations pursuant to this subsection shall survive the
expiration or termination of this Lease.
(e) Tenant
shall furnish Landlord, upon request, with such information
relating to Tenant’s operations at the Premises as necessary
for Landlord to comply with the New Jersey Industrial Site Recovery
Act, N.J. Stat. Ann. 13:1K-6 et seq. and other federal and state
environmental laws, regulations and ordinances, including without
limitation, affidavits to be submitted to the New Jersey Department
of Environmental Protection in connection with requests for letters
of non-applicability and negative
declarations. Tenant’s obligations hereunder shall
survive the termination of this Lease.
11.
Signs. Landlord will furnish Tenant building standard
identification signage on the interior Building directory, if
applicable, and on or beside the main entrance door to the
Premises. Tenant shall not place any signs on the
Property without the prior consent of Landlord, other than signs
that are located wholly within the interior of the Premises and not
visible from the exterior of the Premises. Tenant shall
maintain all signs installed by Tenant in good condition. Tenant
shall remove its signs at the termination of this Lease, shall
repair any resulting damage, and shall restore the Property to its
condition existing prior to the installation of Tenant’s
signs.
12.
Alterations. Except for non-structural Alterations
that (i) do not exceed $5,000 in the aggregate, (ii) are not
visible from the exterior of the Premises, (iii) do not affect any
Building System or the structural strength of the Building, (iv) do
not require penetrations into the floor, ceiling or walls, and (v)
do not require work within the walls, below the floor or above the
ceiling, Tenant shall not make or permit any Alterations in or to
the Premises without first obtaining Landlord’s consent,
which consent shall not be unreasonably withheld. With
respect to any Alterations made by or on behalf of Tenant (whether
or not the Alteration requires Landlord’s consent): (i) not
less than 10 days prior to commencing any Alteration, Tenant shall
deliver to Landlord the plans, specifications and necessary permits
for the Alteration, together with certificates evidencing that
Tenant’s contractors and subcontractors have adequate
insurance coverage naming Landlord, Liberty Property Trust and any
other associated or affiliated entity as their interests may appear
as additional insureds, (ii) Tenant shall obtain Landlord’s
prior written approval of any contractor or subcontractor, (iii)
the Alteration shall be constructed with new materials, in a good
and workmanlike manner, and in compliance with all Laws and the
plans and specifications delivered to, and, if required above,
approved by Landlord, (iv) Tenant shall pay Landlord all reasonable
costs and expenses in connection with Landlord’s review of
Tenant’s plans and specifications, and of any supervision or
inspection of the construction Landlord deems necessary, and (v)
upon Landlord’s request Tenant shall, prior to commencing any
Alteration, provide Landlord reasonable security against liens
arising out of such construction. Any Alteration by
Tenant shall be the property of Tenant until the expiration or
termination of this Lease; at that time without payment by Landlord
the Alteration shall remain on the Property and become the property
of Landlord unless Landlord gives notice to Tenant to remove it, in
which event Tenant will remove it, will repair any resulting damage
and will restore the Premises to the condition existing prior to
Tenant’s Alteration. At Tenant’s request
prior to Tenant making any Alterations, Landlord will notify Tenant
whether Tenant is required to remove the Alterations at the
expiration or termination of this Lease. Tenant may
install its trade fixtures, furniture and equipment in the
Premises, provided that the installation and removal of them will
not affect any structural portion of the Property, any Building
System or any other equipment or facilities serving the Building or
any occupant.
13.
Mechanics’ Liens. Tenant promptly shall pay for
any labor, services, materials, supplies or equipment furnished to
Tenant in or about the Premises. Tenant shall keep
the Premises and the Property free from any liens arising out of
any labor, services, materials, supplies or equipment furnished or
alleged to have been furnished to Tenant. Tenant shall
take all steps permitted by law in order to avoid the imposition of
any such lien. Should any such lien or notice of
such lien be filed against the Premises or the Property in
connection with any work or service done by or for the benefit of
Tenant, Tenant shall discharge the same by bonding or otherwise
within 15 days after Tenant has notice that the lien or claim is
filed regardless of the validity of such lien or claim.
14.
Landlord’s Right to Relocate Tenant; Right of
Entry.
(a) Not
more often than once during the Term, Landlord may relocate Tenant
from the Premises to comparable space in the Building as reasonably
determined by Landlord; provided that Landlord shall in no event
increase the Minimum Annual Rent or other sums payable under this
Lease unless Tenant shall consent in writing to an expansion of the
Premises in connection with such relocation. The
relocation space shall be comparable to the Premises in all
material respects, including without limitation, the
size. Landlord will give Tenant at least 60 days advance
notice of relocation and will pay for all reasonable costs of such
relocation, including, without limitation, reasonable and actual
moving expenses, computer and telephone re-wiring and installation,
and cost of new stationery and business cards. Such a
relocation shall be accomplished during a weekend, holiday period
or evening(s) so as not to unreasonably interfere with the conduct
of Tenant’s business. Such a relocation shall not
terminate, modify or otherwise affect this Lease except that
“Premises” shall refer to the relocation space rather
than the old location identified in Section 1(a).
(b) Tenant
shall permit Landlord and its Agents to enter the Premises at all
reasonable times following reasonable notice (except in an
emergency) to inspect, Maintain, or make Alterations to the
Premises or Property, to exhibit the Premises for the purpose of
sale or financing, and, during the last 12 months of the Term, to
exhibit the Premises to any prospective tenant. Landlord
will make reasonable efforts not to inconvenience Tenant in
exercising such rights, but Landlord shall not be liable for any
interference with Tenant’s occupancy resulting from
Landlord’s entry.
15.
Damage by Fire or Other Casualty. If the Premises or
Common Areas shall be damaged or destroyed by fire or other
casualty, Tenant shall promptly notify Landlord, and Landlord,
subject to the conditions set forth in this Section, shall repair
such damage and restore the Premises or Common Areas to
substantially the same condition in which they were immediately
prior to such damage or destruction, but not including the repair,
restoration or replacement of the fixtures, equipment, or
Alterations installed by or on behalf of
Tenant. Landlord shall notify Tenant, within 30 days
after the date of the casualty, if Landlord anticipates that the
restoration will take more than 180 days from the date of the
casualty to complete; in such event, either Landlord or Tenant
(unless the damage was caused by Tenant) may terminate this Lease
effective as of the date of casualty by giving notice to the other
within 10 days after Landlord’s notice. If a
casualty occurs during the last 12 months of the Term, Landlord may
terminate this Lease unless Tenant has the right to extend the Term
for at least 3 more years and does so within 30 days after the date
of the casualty. Moreover, Landlord may terminate this
Lease if the loss is not covered by the insurance required to be
maintained by Landlord under this Lease. Tenant will
receive an abatement of Minimum Annual Rent and Annual Operating
Expenses to the extent the Premises are rendered untenantable as a
result of the casualty.
16.
Condemnation. If (a) all of the Premises are
Taken, (b) any part of the Premises is Taken and the remainder
is insufficient in Landlord’s opinion for the reasonable
operation of Tenant’s business, or (c) any of the
Property is Taken, and, in Landlord’s opinion, it would be
impractical or the condemnation proceeds are insufficient to
restore the remainder, then this Lease shall terminate as of the
date the condemning authority takes possession. If this
Lease is not terminated, Landlord shall restore the Building to a
condition as near as reasonably possible to the condition prior to
the Taking, the Minimum Annual Rent shall be abated for the period
of time all or a part of the Premises is untenantable in proportion
to the square foot area untenantable, and this Lease shall be
amended appropriately. The compensation awarded for a
Taking shall belong to Landlord. Except for any
relocation benefits to which Tenant may be entitled, Tenant hereby
assigns all claims against the condemning authority to Landlord,
including, but not limited to, any claim relating to Tenant’s
leasehold estate.
17.
Quiet Enjoyment. Landlord covenants that Tenant, upon
performing all of its covenants, agreements and conditions of this
Lease, shall have quiet and peaceful possession of the Premises as
against anyone claiming by or through Landlord, subject,
however,
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