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LEASE DATED MAY 5, 2000

Lease Agreement

LEASE DATED MAY 5, 2000 | Document Parties: BARDEN ASSOCIATES I, LLC | ILLINOIS PCS, LLC You are currently viewing:
This Lease Agreement involves

BARDEN ASSOCIATES I, LLC | ILLINOIS PCS, LLC

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Title: LEASE DATED MAY 5, 2000
Governing Law: Michigan     Date: 1/15/2003
Industry: Communications Services     Sector: Services

LEASE DATED MAY 5, 2000, Parties: barden associates i  llc , illinois pcs  llc
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<PAGE>

Exhibit 10.22

 

LEASE

 

THIS LEASE is made and executed this 5th day of May, 2000, between BARDEN

ASSOCIATES I, L.L.C., a Michigan limited liability company, of 4380 Brockton

Dr., Grand Rapids, Michigan 49512, as "Landlord", and ILLINOIS PCS LLC, an

Illinois limited liability company, of 373 Prarie Knoll Drive, Naperville,

Illinois, 60565 ("Tenant").

1. Leased Premises. Landlord is the owner of the real property located at 4717

Broadmoor, SE, in the City of Kentwood, Kent County, Michigan and more

particularly described on attached Exhibit A (the "Property") on which Landlord

has constructed a single story building (containing approximately 51,000 square

feet of floor area) (the "Building") and other related improvements (the

"Improvements"). Landlord LETS AND LEASES to Tenant, and Tenant HIRES AND LEASES

from Landlord, that portion of the Building, containing approximately 5,100

square feet of floor area, more particularly described on attached Exhibit B

(the "Leased Premises"), at the rents and under the terms and conditions set

forth in this Lease.

2. Purpose of Occupancy. Tenant shall occupy and use the Leased Premises for

office and warehousing purposes in connection with its telecommunications

business and for any related purpose, but for no other purpose without the

written consent of Landlord, which consent shall not be unreasonably withheld.

The Leased Premises shall not be used for any purpose which would violate any

law, ordinance, rule or regulation applicable to the Building, nor in any way to

create any nuisance or trespass, nor in any way to violate the terms of a

standard form policy of insurance or increase the rate of insurance under any

such policy of insurance on the Building or the Leased Premises.

3. Term of Lease; Renewal Term. The term of this Lease shall commence on May 15,

2000, and shall continue for ten (10) years thereafter unless sooner terminated

as provided in this Lease. Tenant's taking possession of the Leased Premises

shall constitute Tenant's acceptance of the Leased Premises in their "as is"

condition, subject only to the other terms and conditions of this Lease. At the

request of Landlord, Tenant shall execute and deliver to Landlord the Acceptance

of Premises form attached to this Lease as Exhibit D.

Provided Tenant is not then in default in the performance of any of its

covenants and agreements under this Lease, Tenant may renew this Lease for two

(2) additional five (5) year terms, upon the same terms and conditions as

provided in this Lease except as to rent which shall be adjusted as provided in

Paragraph 4, below. In order to exercise such renewal rights, Tenant shall serve

Landlord with written notice of Tenant's election to renew not less than six (6)

months prior to the end of the term of this Lease or each renewal term, as the

case may be.

4. Rent. Tenant covenants and agrees to pay Landlord as rent for the lease

premises during the term of this Lease and any ---- renewal term as follows:

(a) Base Rent. As Base Rent, Tenant shall pay an amount equal to Thirty Five

Thousand Seven Hundred Sixty and 00/Dollars ($35,760.00) per year, payable

in equal monthly installments of Two Thousand Nine Hundred Eighty

00/Dollars ($2,980), subject, however, to adjustment as provided under

Paragraph 4(b), below. Base Rent shall be paid in advance on the first day

of each month during the term and any renewal term of this Lease; provided,

however, that Base Rent for the first full month of the term of this Lease

shall be paid upon the execution of this Lease. Moreover, in the event the

Commencement Date is any day other than the first day of a month, Tenant

shall pay to Landlord on the Commencement Date a prorated portion of the

monthly Base Rent for the period from the Commencement Date to the first

day of the following month.

(b) CPI Adjustments. The Rent paid by Tenant shall be adjusted upward, but

never downward, effective as of the first ---------------- anniversary of

the Commencement Date (or the first day of the thirteenth month after the

Commencement Date in the event the Commencement Date is a date other than

the first day of a calendar month) and on the same day of each year

thereafter during the term and any renewal term of this Lease to reflect

the increase, if any, in the Consumer Price Index (All Cities, All Urban

Consumers, All Items, 1982-1984=100) (subsequently referred to as "CPI-U")

or its successor Consumer Price Index, as published by the United States

Bureau of Labor Statistics. This adjustment shall be computed by adding to

the Base Rent an amount determined as follows: (i) the CPI-U index number

for second month preceding the Commencement Date ("Initial Index Number")

shall be subtracted from the CPI-U index number for the second month

immediately preceding the effective date of increase; (ii) the resulting

amount shall be divided by the Initial Index Number and reduced to a

decimal equivalent; (iii) the resulting decimal shall be multiplied by the

Base Rent. In no event, however, shall the Rent increase by more than four

percent (4%) per year on a cumulative basis. The Rent, as adjusted, shall

be paid in equal monthly installments as provided in Paragraph 4(a), above.

If the CPI-U is changed so that the base year differs from that used for

the Initial Index Number, the CPI-U shall be converted in accordance with

the conversion factor published by the United States Department of Labor,

Bureau of Labor Statistics. If the CPI-U is discontinued or revised during

the term of this Lease or any renewal term, such other government index or

computation with which it is replaced shall be used in order to obtain

substantially the same results as would be obtained if the CPI-U had not

been discontinued or revised.

(c) Landlord Improvement Rent. In addition to Rent, Tenant shall pay to

Landlord as Landlord Improvement Rent an amount determined as follows: The

amount by which the total cost to Landlord for all Landlord Improvements to

the Leased Premises exceeds $__________ shall be amortized on a monthly

basis over the initial ten (10) year term of the Lease at the rate of

__________ percent (__) per annum and paid monthly on the first day of each

month during the initial term of this Lease.

(d) Payment. The monthly installments of rent and all other sums payable under

this Lease by Tenant shall be paid to Landlord at Landlord's address set

forth above, or at such other address as Landlord may direct by written

notice, without setoff, counter claim, recoupment, abatement, suspension or

deduction.

5. Taxes and Special Assessments. Landlord shall pay and discharge all real

property taxes and special assessments which may be levied against all or any

portion of the Property, Building and Improvements during the term of this

Lease. Tenant shall pay and discharge all personal property taxes which may be

levied against its furniture, equipment and other personal property located on

the Leased Premises.

6. Insurance and Indemnity. Landlord shall keep the Property, Building and

Improvements insured against the following: -----------------------

(a) loss or damage by fire and those risks covered by "extended coverage" as

provided in a Michigan standard fire insurance policy in the amount of the

full replacement cost of the Building and Improvements.

(b) public liability and property damage insurance with coverage of at least

One Million Dollars ($1,000,000.00) on a combined single limit basis.

All such policies of insurance shall be payable to Landlord or as Landlord

specifies. Tenant shall indemnify Landlord against and save Landlord

harmless from any liability or claim for damages which may be asserted

against Landlord by reason of any accident or casualty occurring in, on or

about the Leased Premises or otherwise arising from Tenant's use and

occupancy of the Leased Premises except such as arise from the negligence

of Landlord, its agents or employees.

Tenant, at its expense, shall keep all of its furnishings, equipment and

other personal property located on the Leased Premises fully insured

against loss or damage by fire and those risks covered by "extended

coverage" as provided in a Michigan standard fire insurance policy. Such

policy of insurance shall be payable to Tenant or as Tenant specifies.

Tenant hereby releases Landlord from any and all liability for any damage

to or loss of such personal property from any cause whatsoever except to

the extent such loss or damage is the result of the negligence of Landlord,

its agents or employees and is not otherwise covered by insurance required

to be carried by Tenant under this Lease.

7. Waiver of Subrogation. Each policy of insurance authorized or required of

either party under this Lease shall contain a clause or endorsement under which

the insurer waives all right of subrogation against the other party, its agents

and employees with respect to losses payable under such policy, and each party

hereby waives all right of recovery it might otherwise have against the other

party, its agents and employees for any loss or injury which is covered by such

a policy of insurance, notwithstanding that such loss or injury may result from

the negligence or fault of such other party, its agents and employees.

8. Utilities. Tenant shall pay all charges for utility services provided to the

Leased Premises, which are separately metered. Landlord shall pay all charges

for all other utility services necessary for the reasonable use and operation of

the Leased Premises and the Building and Improvements. Landlord shall not be

liable in damages or otherwise for any interruptions or failure in the supply of

any utilities or utility service to the Leased Premises except such failure or

interruption which results from the negligence of Landlord, its agents or

employees.

9. Maintenance and Condition of Leased Premises. Tenant, at its expense, shall

keep the interior of the Leased Premises in good maintenance, condition, and

repair, reasonable wear and tear excepted, including, without limitation, the

maintenance, repair and replacement of all HVAC, plumbing and electrical systems

serving the Leased Premises, and perform all other maintenance, repair and

replacement upon the Leased Premises, the Property, Building and Improvements

necessitated by the acts or neglects of Tenant, its agents, employees or

invitees. All other necessary maintenance, repair and replacement of the

structural components of the Property, Building and Improvements, including the

roof, exterior walls and foundation, and the Common Areas (as defined in

Paragraph 16, below) shall be performed by Landlord. Tenant shall promptly

notify Landlord in writing of any defective condition known to it which Landlord

is required to repair or replace and failure to so report such defect shall make

Tenant responsible to Landlord for any additional loss or aggravation of loss

incurred by Landlord by reason of Tenant's failure to notify Landlord.

Tenant shall keep the Leased Premises in a neat and clean condition, shall not

allow refuse to accumulate, and shall conduct its business in such a manner that

the risk of fire to the Leased Premises shall not be increased beyond the hazard

normal and usual for its type of business.

10. Alterations. Tenant shall not make or permit to be made any alterations,

additions or improvements in, upon or to the Leased Premises, or any part of the

Leased Premises, without the prior written consent of Landlord. In the event

such consent is obtained, all such alterations, additions or improvements shall

be performed at the expense of Tenant in a good, workmanlike manner and in

accordance with all applicable laws and building codes and plans and

specifications approved by Landlord. Tenant shall not allow any construction

liens to attach to the Leased Premises or the Property, Building or Improvements

in connection with any such alteration, and the failure of Tenant to have any

such lien released within ten (10) days after written notice from Landlord shall

constitute a default under this Lease. In addition, Tenant shall indemnify,

defend and hold Landlord harmless from any and all costs and expenses incurred

by Landlord in connection with such construction liens, including, without

limitation, attorneys fees and costs of litigation. All alterations, additions

or improvements (except trade fixtures) so made and installed by Tenant shall

become part of the realty, shall become the property of Landlord and shall

remain for the benefit of Landlord at the end of the term or other expiration of

this Lease in as good condition as they were when installed, reasonable wear and

tear excepted; provided, however, that any such alteration, addition or

improvement remaining at the end of the term or other expiration of this Lease,

shall upon demand made by Landlord, be removed by Tenant, at Tenant's expense,

and Tenant shall repair any damage caused by such removal, restoring the Leased

Premises to their condition prior to the making of such alteration, addition or

improvement.

11. Performance by Landlord. In the event Tenant fails to perform any of its

covenants and agreements as set forth in this Lease and such failure continues

for a period of ten (10) days after written notice from Landlord (except that no

such notice shall be required in emergency situations), Landlord shall have the

option to undertake such performance for Tenant, and the costs and expenses

reasonably incurred by Landlord by reason of such undertaking shall be due and

payable forthwith by Tenant to Landlord as additional rent under this Lease.

12. Compliance with Public Authority Requirements. Tenant agrees, at its own

expense, to promptly comply with all requirements of any legally constituted

public authority made necessary by reason of Tenant's occupancy of the Leased

Premises, including, without limitation, the Americans with Disabilities Act.

Landlord shall deliver space as of the Commencement Date in full compliance with

all requirements legally constituted public authority, including without

limitation, the Americans with Disability Act.

13. Hazardous Materials.

(a) Definitions. For purposes of this Lease, the terms "Hazardous Materials"

and "Relevant Environmental Laws" shall be defined as follows:

(i) "Hazardous Materials" shall mean all solids, liquids and gasses,

including but not limited to solid waste, asbestos, crude petroleum

and petroleum fractions, toxic chemicals, polychlorinated biphenyl's,

paint containing lead, volatile organic chemicals, chlorinated organic

compounds, and urea formaldehyde foam insulation, which are governed

or regulated by Relevant Environmental Laws.

(ii) "Relevant Environmental Laws" shall include but not be limited to all

federal, state or local laws, rules, regulations, orders or

determinations established or issued by any judicial, legislative or

executive body, of any governmental or quasi-governmental entity which

govern or regulate the existence, storage, use, disposal, or release

of any solid, liquid or gas on, in or under the Leased Premises, or

which govern or regulate the environmental effect of any activity

currently or previously conducted on the Leased Premises.

(b) Tenant's Obligations; Indemnification. Tenant shall not, nor shall it

permit its employees, business invitees, contractors or subcontractors

(collectively "Tenant's Agents"), to bring upon, keep, store, use, or

dispose of any Hazardous Materials on, in, under, or about the Leased

Premises, the Property, Building or Improvements or any adjacent property,

except for the following: (i) gas, diesel fuel, oil, and other petroleum

products and petroleum by-products which drip in normal amounts from motor

vehicles on parking and maneuvering areas surrounding the Building; (ii)

Hazardous Materials contained within Tenant's products, equipment, or

inventory (including, but not limited to oxygen, hydrogen and hydrochloric

acid) and which do not pose any significant threat of being released into

the environment; or (iii) general office supplies (including, without

limitation, ordinary cleaning chemicals and solutions) used for their

intended purpose and not posing any significant threat of contamination of

the Leased Premises, the Building, the Improvements or any adjacent

property. Tenant shall cause the presence, use, storage, and/or disposal of

any Hazardous Materials on, in, under, or about the Leased Premises, the

Property, Building or Improvements or any adjacent property by Tenant or

Tenant's Agents to be in complete compliance with all applicable laws,

rules, regulations, orders, and the like (the "Environmental Laws"). Tenant

shall defend, indemnify, protect, and hold Landlord harmless from and

against all claims, costs, fines, judgments, and liabilities, including

attorneys' fees and costs, arising out of or in connection with the

presence, storage, use, or disposal of Hazardous Materials in, on, under,

or about the Leased Premises, the Property, Building or Improvements or any

adjacent property caused by the acts, omissions, or negligence of Tenant

and/or Tenant's Agents. Tenant's obligations hereunder shall survive the

termination of this Lease.

(c) Landlord's Obligations; Indemnification. Neither Landlord nor Landlord's

employees, business invitees, agents, contractors, or subcontractors

(collectively "Landlord's Agents") shall bring upon, keep, store, use, or

dispose of any Hazardous Materials in, on, under, or about the Leased

Premises, the Property, Building or Improvements or any adjacent property

except in complete compliance with all Environmental Laws. Landlord shall

indemnify, defend, protect, and hold Tenant and Tenant's Agents harmless

from and against any and all claims, costs, fines, judgments, and

liabilities, including attorney fees and costs, arising out of or in

connection with the presence of Hazardous Materials in, on, under, or about

the Leased Premises, the Property, Building or Improvements or any adjacent

property upon the date this Lease commences or introduced in, on, under, or

about the Leased Premises, the Property, Building or Improvements or any

adjacent property subsequent to commencement of this Lease due to the acts,

omissions, or negligence of Landlord or Landlord's Agents. Landlord's

obligations hereunder shall survive the termination of this Lease.

14. Damage to Leased Premises. In the event the Leased Premises are damaged by

fire, the elements, act of God, or other cause to such extent that they are

rendered untenantable by Tenant, and in the event Landlord elects not to rebuild

the Leased Premises as they existed prior to the damage or in some other manner

satisfactory to Tenant, then Landlord, within thirty (30) days of the date the

damage occurred, shall notify Tenant in writing of such election, and this Lease

shall be canceled as of the date the damage occurred, and Landlord and Tenant

shall have no further obligations by reason of its provisions. In the event

Landlord elects to rebuild the Leased Premises as they existed prior to the

damage or in some other manner satisfactory to Tenant, then Landlord shall

commence such rebuilding within thirty (30) days of the date of such damage and

shall continue and complete such rebuilding as promptly as possible. Upon

completion of such rebuilding, this Lease shall be reinstated in all of its

terms; provided, however, the rent shall abate in full during the period of such

rebuilding.

In the event the Leased Premises are not damaged to such extent that they are

rendered wholly untenantable by Tenant, then Tenant shall continue to occupy

that portion of the Leased Premises which are tenantable, the rent shall abate

proportionately to the portion occupied, and Landlord shall promptly commence

and complete repairs to the portion damaged.

In no event and under no circumstances shall Landlord be liable to Tenant for

any loss occasioned by damage to the Leased Premises, other than for the

abatement of rent as provided in this Paragraph 14, except to the extent of

property damage resulting from the negligence of Landlord, its agents or

employees which is not otherwise covered by insurance required to be carried by

Tenant under this Lease. Under no circumstances shall there be any abatement of

rent under this Paragraph 14 if the damage to the Leased Premises is caused by

the acts or negligence of Tenant, its agents, employees o


 
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