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OFFICE LEASE
AGREEMENT
THIS OFFICE LEASE AGREEMENT,
made this 13 th day of APRIL, 1998, by and between JFB
JOINT VENTURE LIMITED PARTNERSHIP , a Maryland Limited
Partnership, hereinafter called “Landlord” and
SCIENTIFIC ENGINEERING SOLUTIONS, INC., a corporation organized and
existing under the law of the State of Maryland, having an address
at 10010 Junction Drive, Suite 202, Annapolis Junction, MD 20701,
hereinafter called “Tenant.”
WITNESSETH
1. DEMISE, TERM,
RENTAL .
Landlord hereby leases to
Tenant and Tenant hereby hires from Landlord all that certain
office space (the “Premises”) known as Suite No. 202
outlined on Exhibit “A” containing a rentable area of
3,812 square feet in the building (“Building”) known as
10010 Junction Drive, Annapolis Junction, MD the Premises to be
used and occupied only for general offices and for no other
purpose, all in accordance with the Rules and Regulations attached
hereto, for the term of Twenty Four (24) months commencing on the
1st day of May 1998, (the “Commencement Date”) and
terminating on the 30th day of April 2000, (the “Termination
Date”) for the following Base Gross Rent:
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Year Lease Term
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Rate/S.F. Rent/Yr.
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Rent/Month
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| 1 |
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5/1/98
thru 4/30/99 |
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16.00 60,992.00 |
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5,082.67 |
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| 2 |
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5/1/99
thru 4/30/00 |
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16.50 62,898.00 |
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5,241.50 |
All Base Gross Rent shall be paid in
lawful money of the United States of America, (subject to
adjustment as hereafter provided) PAYABLE in monthly installments
in advance during the term of this Lease on the first day of each
month, without offset or deduction of any kind, the first and last
installment of rent to be paid at the time of signing this Lease.
All rent shall be payable without prior notice or demand to
Landlord c/o First National Bank of MD, P.O. Box 6420,
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Baltimore, MD 21264-4201, or at such
other place as Landlord may from time to time designate by notice
in writing.
2. ADJUSTMENTS TO RENT
.
A. The Operating Base Expense
of the office area of the Building shall be the actual operating
expenses for the year 1998 per square foot of office rentable area
therein. If in any calendar year during the term hereof, the
Operating Expenses of the office area of the Building should exceed
the Operating Base Expense (such excess being hereinafter referred
to as the “Operating Expense Differential”), then, as
additional rental for that year, Tenant shall pay the Operating
Expense Differential to Landlord within thirty (30) days of being
notified by Landlord of said amount being due for each rentable
square foot of floor space leased hereunder, and any expansion or
extensions thereof.
B. At any time during the
term of this Lease, but not later than ten (10) days prior to the
date a rental payment is due, Landlord may deliver to Tenant a
written estimate of any additional rents which may be reasonably
anticipated hereunder, whereupon the monthly rental for such full
or partial calendar year shall be increased by the amount estimated
divided by the number of months remaining in the calendar
year.
C. Statements showing the
actual Operating Expenses of the Building and Tenant’s
proportionate share thereof (hereinafter referred to as
“Statement of Actual Adjustment”) shall be delivered by
Landlord to Tenant within ninety (90) days after the end of any
calendar year in which additional rental was paid or due by Tenant
under the provisions hereof. Within fifteen (15) working days after
the delivery by Landlord to Tenant of such Statement of Actual
Adjustment, Tenant shall pay to Landlord the amount of any rentals
shown as being due and unpaid thereon. Should such Statement of
Actual Adjustment show the Tenant
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had paid to Landlord an aggregate amount
in excess of the additional rental due for the preceding calendar
year and Tenant is not then in default hereunder, Landlord shall
credit the amount thereof to the monthly rent or rents next
becoming due from Tenant.
D. If the term of this Lease
begins on a day other than the first day of a calendar year, or
should this Lease terminate on a day other than the last day of a
calendar year, the amount shown as due by Tenant on the Statement
of Actual Adjustment shall reflect a proration based on the
proportion that the number of days this Lease was in effect during
such calendar year bears to 365.
E. For purposes of this
article, the term “operating Expenses” shall mean any
and all costs and expenses paid or incurred by Landlord, or its
agents, for any calendar year in connection with the operation,
servicing, maintenance and repair of the Building, determined in
accordance with generally accepted accounting principles, and
ground rent, if any, property taxes, insurance and any tax imposed
upon gross receipt of rents, but shall exclude: (1) provisions for
depreciation; (2) interest on indebtedness; (3) income taxes; (4)
dividends; and (5) other expenses which do not relate to the
operations of the Building.
F. The obligations of
Landlord and Tenant under this Paragraph 2 shall survive the
expiration or other termination of this Lease.
3. POSSESSION
.
A. Notwithstanding the date
specified in Paragraph 1 for the Commencement Date, the term of the
Lease shall not commence until the substantial completion of the
construction of all Tenant Improvements as specified in Paragraph
4. Landlord shall not be liable to Tenant if Landlord does not
deliver possession of the Premises to Tenant on such date, and
Landlord’s non-delivery of the Premises shall not affect this
Lease or the obligations of
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Tenant under this Lease. The Lease Term
shall be extended for a period equal to the delay in delivery of
possession of the Premises to Tenant, plus the number of days
necessary to end the Lease Term on the last day of a month. If
delivery of possession of the Premises to Tenant is delayed,
Landlord and Tenant shall, upon such delivery, execute an amendment
to this Lease setting forth the Commencement Date and Termination
Date of this Lease.
B. If Tenant occupies the
Premises prior to the Commencement Date, such occupancy shall not
advance the Termination Date of the Lease. All of the terms,
covenants and provisions of the Lease shall apply from the date of
occupancy and possession and the rent shall be paid at the rate
herein set forth on a pro rata basis for the early occupancy
period.
4. CONSTRUCTION OF
PREMISES .
There is attached hereto
Exhibit “B” setting forth what construction is
necessary to prepare the Premises for Tenant’s occupancy and
further setting forth the responsibility of Landlord and Tenant
respectively, for undertaking such construction and the
responsibility of each for the cost of same. Any additions to the
attached exhibits which result in additional costs shall be handled
as change orders and paid for by Tenant upon execution of change
orders.
5. ACCEPTANCE OF
PREMISES .
By entry and commencement of
use and occupancy of the Premises, Tenant acknowledges that Tenant
has examined the Premises and thereby shall be deemed to accept the
same as being in the condition called for by this Lease.
6. MECHANIC’S
LIENS .
Tenant shall, within ten (10)
days after notice from Landlord, discharge any mechanic’s
lien for material or labor claimed to have been furnished to the
Premises on Tenant’s behalf
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(except for work contracted for by
Landlord) and shall indemnify and hold harmless the Landlord from
any loss incurred in connection therewith.
7. BUILDING SERVICES
.
Landlord shall furnish heat
and pair-conditioning during the hours from 8:00 a.m. to 6:00 p.m.,
Monday to Friday and 8:00 a.m. to 1:00 p.m. on Saturday, inclusive,
except holidays, as required in Landlord’s sole and
reasonable judgment for the comfortable occupancy of the Premises
by Tenant, and will cause the Premises to be cleaned and cared for,
and will also furnish electricity for lighting the Premises and
small (desk top) business machines. Business machines shall be
deemed to include such equipment as typewriters, adding machines,
proof machines, bookkeeping machines, word processors and personal
computers now in general use. Tenant will pay, however, for all
electric current furnished, if any, for specialized tabulation and
electronic computing equipment and other similar equipment and
machinery using more electricity than the business machines
enumerated above. In such case, a separate meter therefore shall be
installed at Tenant’s cost and said electric current shall be
paid for by Tenant at the prevailing rate charged to Landlord by
the utility company. If Tenant, requests heat and air-conditioning
after the regular hours set forth above, the Tenant agrees to pay
Landlord for such additional heat and air-conditioning based on the
actual cost to Landlord. Landlord agrees to replace standard
building fixture light bulbs in the lighting fixtures whenever
necessary. Landlord shall not be liable for any failure to supply
said services unless failure is due to gross negligence on
Landlord’s part.
8. ASSIGNMENT AND
SUBLETTING .
A. Tenant shall not assign,
pledge, mortgage or otherwise transfer or encumber this Lease nor
sublet all or any part of the Premises or permit employees
without
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Landlord’s prior written consent,
which consent may not be unreasonably withheld by the Landlord. If
the Tenant hereunder is a corporation, any transfer sale, pledge,
or other disposition of more than 50% of the ownership interests
shall be deemed such an assignment.
B. Tenant’s request for
consent shall be in writing and contain the name, address, and
description of the proposed assignee or subtenant, and its most
recent financial statement and other evidence of financial
responsibility, the intended use of the Premises, the terms and
conditions of the proposed assignment or subletting and, in the
case of any subletting,, the amount of the proposed sub-rents. This
prohibition against assigning or subletting shall be construed to
include a prohibition against any assignment or subletting by
operation of law. Any subtenants, assignees or transferees
consented to by Landlord shall become directly liable to Landlord
for all obligations of Tenant hereunder, without relieving Tenant
(or any guarantors of Tenant’s obligations hereunder) of any
liability therefore, and Tenant shall remain liable for all
obligations to Landlord arising under this Lease during the term
hereof plus any extension.
C. Any rental received by
Tenant in excess of the rent reserved under this Lease or any
payment made to Tenant in consideration of such assignment or
subletting shall be paid over to Landlord as additional
rent.
9. ALTERATIONS,
IMPROVEMENTS AND TRADE FIXTURE .
A. Upon completion of the
Tenant Improvements in accordance with Paragraph 4 hereof, Landlord
shall assign to Tenant all warranties relating to such Tenant
Improvements and shall have no further obligation to make any
alterations or improvements to the Premises except as provided in
Paragraph 10A hereof.
B. Tenant further covenants
that it will at no time or times make any alterations, improvements
or changes of any kind to the Premises without first submitting
the
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plans thereof and securing the prior
written consent of the Landlord, which consent shall not be
unreasonably withheld. Tenant may either:
1. Contract with Landlord or
Landlord’s agent to make alterations and improvements at
Tenant’s expense, or
2. May contract with any
licensed contractor to make alterations and improvements after
first providing the following items to Landlord:
a) approval of the Fire
Marshal of the authority having jurisdiction (City or State),
and
b) copy of a building permit
issued by the local authority having jurisdiction (City or County)
or evidence from the authority that no permit is required,
and
c) copy of license of
contractor performing the work, and
d) copy of insurance
certificate from contractor naming the Landlord as an additional
insured and showing evidence of coverage as follows:
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TYPE
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LIMITS
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General Liability
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Each
occurrence |
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$1,000,000 |
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general
aggregate |
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$2,000,000 |
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Automobile Liability
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Each
accident |
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$1,000,000 |
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Worker’s Compensation
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Statutory |
e) release of
mechanic’s liens for all work to be performed, and
C. Tenant further covenants
that if it makes alterations and improvements to the Premises
that:
1. During the construction
period, Landlord or Landlord’s agent will have access to the
premises to verify that all work is in accordance with approved
plans. Tenant shall reimburse Landlord for all reasonable costs
incurred for inspection services, if conducted by a third party
service.
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2. Within 30 days of
completion of construction, Tenant will furnish Landlord copies of
Fire Marshal’s Final Inspection Report and Certificate of
Occupancy or use, issued by the local authority having
jurisdiction.
3. At the end of the lease
period, at Landlord’s sole option, the Tenant will remove all
alterations and improvements and restore premises to its prior
condition at Tenant’s sole cost (ordinary wear and tear
excluded).
All improvements,
alterations, replacements and building service equipment made or
installed by or on behalf of Tenant and permanently affixed to the
Improvements shall immediately upon completion or installment
thereof be and become the property of Landlord without payment
therefor by Landlord, but subject to the provisions of this Lease;
provided that all machinery, equipment (other than building service
equipment), trade fixtures, movable partitions, furniture and
furnishings installed by Tenant or maintained on the Premises, even
if permanently affixed thereto, shall remain the property of
Tenant, and Tenant shall, if not in default, be entitled to remove
the same or any part thereof at any time during the Lease term, but
Tenant shall, at its expense, repair any and all damage to the
Premises resulting from or caused by such removal. The interest of
Tenant in any property which is not so removed shall at the end of
the time provided for removal thereof vest in Landlord.
10. REPAIRS
.
A. Landlord . Other
than the initial construction of the Premises pursuant to Paragraph
4, Landlord shall not be required to make any repairs or
improvements to the Premises except structural repairs necessary
for safety and inhabitability.
B. Tenant . At the
expiration or other termination of this Lease or upon abandoning
the premises, Tenant shall leave the same, and during the term
thereof shall keep the
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same, including carpeting and
partitioning, in good order and condition, ordinary wear and tear
and damage by the elements excepted, and, for that purpose, Tenant
shall make all necessary repairs and replacements. Tenant shall
also remove all dirt, rubbish, waste and refuse from the Premises
and all its property there from at the and of the term of this
Lease, to the end that Landlord may again have and repossess the
same not later than midnight on the date upon which this lease or
any renewal or extension thereof ends. Tenant shall not do or
commit or suffer to be done or committed upon the Premises any act
or thing contrary to then laws, rules or regulations prescribed
from time to time, by any of the constituted Federal, State, County
or Municipal authorities.
11. ACCESS TO PREMISES
.
The Landlord shall have the
right at all reasonable times, including times other than regular
business hours for emergency repairs, to enter the Premises for the
purpose of examining or inspecting the same, providing services or
maintenance, or making such repairs or alterations therein as the
Landlord shall deem necessary. During the last one hundred eighty
(180) days of the term, the Landlord may exhibit the Premises to
prospective new tenants.
12. SURRENDER OF PREMISES
AND HOLDOVER .
If Tenant continues in
possession of the Premises after the expiration or termination of
the term hereof, or any renewals or extensions thereof, without
Landlord’s consent, Tenant shall pay a rental equal to One
Hundred Fifty Percent (150%) of the monthly rental and additional
rent then payable hereunder, but nothing in this section shall be
construed as consent by Landlord to such possession of the Premises
by Tenant after the term hereof. Tenant shall, at least sixty (60)
days before the expiration of the term hereof, any renewals or
extensions thereof, give the Landlord written notice of its
intentions to surrender the Premises. In the event such notice is
not
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given and Tenant holds possession of the
Premises after the expiration of the term hereof, or any renewals
or extensions thereof, with Landlord’s consent, Tenant shall
become a tenant from month to month at a rental equal to one and
one-half times (1.5 x) the monthly rental and other charges than
payable hereunder.
13. NEGATIVE COVENANTS OF
TENANT .
Tenant covenants that it will
not:
(a) Damage the Premises or
any other part of the Building, or use any part of the Building not
designated for use by Tenant;
(b) Conduct itself or permit
its agents, employees, invitees and guests to conduct themselves in
a manner which, in Landlord’s reasonable judgment, interferes
with the rights granted by Landlord to other tenants of the
Building or is improper or unsafe;
(c) Vacate or desert the
Premises prior to termination of the Lease or permit the same to
become empty or unoccupied;
(d) Occupy the Premises in
any manner or for any other purpose than as set forth in Paragraph
1 hereof;
(e) Do anything which would
result in the cancellation or suspension or, increase in the
premium of, any fire or other insurance policy carried by
Landlord;
(f) Remove any of
Tenant’s property from the Premises except such as can be
carried by Tenant and as would be reasonable and customary for
persons occupying similar space to remove; or
(g) Do or permit to be done
anything that might constitute a public or private nuisance or
cause waste.
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14. DEFAULT AND
REMEDIES .
A. The following events shall
be deemed to be events of default by Tenant under this Lease
Agreement:
(i) Tenant shall fail to pay
any installment of Gross Base Rent, additional rent or any other
charge or assessment against Tenant pursuant to the terms hereof
within five (5) business days of when due;
(ii) Tenant shall fail to
comply with any term, provision, covenant or warranty made under
this Lease by Tenant, other than the payment of the Gross Base Rent
or additional rent or any other charge or assessment payable by
Tenant, and shall not cure such failure within fifteen (15) days
after notice thereof to the Tenant;
(iii) Tenant or any guarantor
of the Lease shall become insolvent, or shall make a transfer in
fraud of creditors or shall make an assignment for the benefit of
creditors;
(iv) Tenant or any guarantor
of this Lease shall file a petition under any Section or Chapter of
the United States Bankruptcy Code, as amended, or under any similar
law or statue of the United States or any State thereof, or there
shall be filed against Tenant or any guarantor of this Lease a
petition in bankruptcy or insolvency or a similar proceeding, or
Tenant or any guarantor shall be adjudged bankrupt or insolvent in
proceedings filed against Tenant or any such guarantor;
(v) a receiver or trustee
shall be appointed for Premises or for all or substantially all of
the assets of Tenant or of any guarantor of this Lease;
(vi) Tenant shall abandon or
vacate all or any portion of the Premises or fail to take
possession thereof as provided in this Lease; or
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(vii) Tenant shall do or
permit to be dons anything which creates a lien upon the
Premises.
B. Upon the occurrence of any
of the aforesaid events of default, Landlord shall have the option
to pursue any one or more of the following remedies without any
notice or demand whatsoever;
(i) terminate this Lease, in
which event Tenant shall immediately surrender the Premises to
Landlord and if Tenant fails to do so, Landlord may without
prejudice to any other remedy which it may have for possession or
arrearages in rent, enter upon and take possession of the Premises
and expel or remove Tenant and any other person who may be
occupying the Premises or any part thereof, without being liable
for prosecution or any claim of damages therefore; Tenant hereby
agreeing to pay to Landlord on demand the amount of all loss and
damage which Landlord may suffer by reason of such termination,
whether through inability to relet the Premises on satisfactory
terms or otherwise;
(ii) enter upon and take
possession of the Premises and expel or remove Tenant and any other
person who may be occupying said demised premises or any part
thereof, without being liable for prosecution or any claim of
damages therefore and, if Landlord so elects, relet the Premises on
such terms as Landlord may deem advisable, without advertisement,
and by private negotiations, and receive the rent therefore, Tenant
hereby agreeing to pay to Landlord the deficiency, if any, between
all rent reserved hereunder and the total rental applicable to the
Lease Term hereof obtained by Landlord re-letting, and Tenant shall
be liable for Landlord’s expenses in restoring the Premises
and all costs incident to such re-letting;
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(iii) enter upon the demised
Premises without being liable for prosecution or any claim of
damages therefore, and do whatever Tenant is obligated to do under
the terms of this Lease, and Tenant agrees to reimburse Landlord on
demand for any expenses including, without limitation, reasonable
attorney’s fees which Landlord may incur in thus effecting
compliance with Tenant’s obligations under this Lease and
Tenant further agrees that Landlord shall not be liable for any
damages resulting to Tenant from such action, whether caused by
negligence of Landlord or otherwise; or
(iv) declare immediately due
and payable all rent and other charges and assessments against
Tenant due and to become due under this Lease.
C. Pursuit of any of the
foregoing remedies shall not preclude pursuit of any other remedy
herein provided or any other remedy here provided constitute an
election of remedies thereby excluding the later election of any
alternate remedy, or a forfeiture or waiver of any areas Base Rent,
additional rent or other charges and assessments payable by Tenant
and due to Landlord hereunder or of any damages accruing to
Landlord by reason of violation of any of the terms, covenants,
warranties and provisions herein contained. No action taken by or
on behalf of Landlord shall be construed to be an acceptance of a
surrender of this Lease. Forbearance by Landlord to enforce one or
more of the remedies herein provided upon an event of default shall
not be deemed or construed to constitute a waiver of such default.
In determining the amount of loss or damage which Landlord may
suffer by reason of termination of this Lease or the deficiency
arising by reason of any re-letting of the Premises by Landlord as
above provided, allowance shall be made for expense of repossession
and the Gross Base Rent and additional rent herein provided, for
the period from the time of an event of default until the end of
the term hereof, shall be deemed to be equal to the highest Base
Rent and additional rent
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required to be paid hereunder by Tenant
during any preceding Lease year multiplied by the number of
calendar years or portions thereof remaining in the term hereof.
Tenant agrees to waive its right to jury trial and to pay to
Landlord all costs and expenses incurred by Landlord in the
enforcement of this Lease, including without limitation, the
reasonable fees of Landlord’s attorneys when such attorneys
are employed by Landlord to effect collection of any sums due
hereunder or to enforce any right or remedy of Landlord.
15. LANDLORD’S
OBLIGATIONS .
Landlord’s obligations
hereunder shall be binding upon Landlord only for the period of
time that Landlord owns the Building; and, upon termination of that
ownership, Tenant, except as to any obligations which have then
matured, shall look solely to Landlord’s successor in
interest in the Building for the satisfaction of each and every
obligation hereunder.
16. LANDLORD’S
LIABILITY .
Landlord shall have no
personal liability under and of the terms, conditions or covenants
of this Lease and Tenant shall look solely to the equity of the
Landlord in the Building of which the Premises form a part for the
satisfaction of any claim, remedy or cause of action accruing to
Tenant as a result of the breach of any covenant of this Lease by
Landlord.
17. LATE PAYMENT
.
In the event that any payment
required by Tenant under the provisions hereof shall not be paid
when due, Tenant shall, upon demand, pay a late charge to Landlord
in an amount computed at 18% per annum of each dollar so overdue
and such late charge shall be deemed “rent” for all
purposes under this lease.
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18. TENANT’S
INDEMNIFICATION AND LIABILITY INSURANCE .
A. Tenant hereby agrees to
indemnify and hold Landlord harmless from any loss or damages
whatsoever (including reasonable attorney’s fees) arising out
of the use and occupancy of the Premises by Tenant and to further
secure this indemnification, on or before the first day of the
month of each lease year, by delivering to Landlord a certificate
of a policy or renewal policy of Public Liability Insurance
insuring Landlord and Tenant and their partners, officers,
employees, agents and representatives against loss or damage
arising from injury to persons or property occurring within the
Premises, which policy, or renewal policy shall:
(i) provide that it is
noncancellable without thirty (30) days proper written notice to
Landlord,
(ii) have the following
limits: not less than One Million Dollars ($1,000,000.00) in
respect of bodily injury or death to one person, and to the limit
of not less than Three Million Dollars ($3,000,000.00) in respect
to one accident,
(iii) name Landlord as an
additional insured; and
(iv) be accompanied by proof
of payment of the premium therefore.
B. Notwithstanding the
provisions of this Lease, in any event of loss or damage to the
Building, the Premises and/or any contents, each party shall look
first to any insurance in its favor before making any claim against
the other party; and to the extent possible without additional
cost, each party shall obtain for each policy of such insurance,
provisions permitting waiver of any claim against the other party
for loss or damage within the scope of the insurance, and each
party, to such extent permitted, for itself and its insurers waives
all such insured claims against the other party.
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19. FIRE OR OTHER
CASUALTY .
In the event the Premises are
totally destroyed by fire or other casualty or are damaged to such
an extant that Landlord desires to raze or remodel the Building
then the term hereby created shall end on the date of such fire or
casualty, and Tenant shall pay the rent apportioned to the time of
such fire or casualty and shall surrender possession of the
Premises. If, however, the Premises, in the judgment of Landlord,
can be repaired within sixty (60) working days so as to be in as
good condition as they are at the beginning of the term, the Lease
and the term herein created shall not be affected except that rent
shall be apportioned or suspended while such repairs are being
made. If, however, the Premises are slightly damaged by fire,
accident or other casualty and are not thereby rendered unfit for
occupancy, then the same shall be repaired by Landlord with
reasonable promptness, and no abatement or apportionment of the
rant shall be made.
20. CONDEMNATION
.
A. If title to any part of
the Premises is taken for any public or quasi-public use by virtue
of the exercise of the power of eminent domain or by private
purchase in lieu thereof, or if title to so much of the Building of
which the Premises are a part is taken that a reasonable amount of
reconstruction thereof will not in Landlord’s sole discretion
result in the Premises or the Building being reasonably suitable
for use for the purpose for which they are designed, than, in
either event, this Lease shall terminate, at the option of Landlord
on the data that the condemning authority actually takes possession
to the part so condemned or purchased.
B. It this Lease is
terminated under the provisions of this Paragraph, rent shall be
apportioned and adjusted as of the date of termination. Tenant
shall have no claim against Landlord or against the condemning
authority for the value of any leasehold estate or for the value of
the unexpired term of this Lease.
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C. If there is a partial
taking of the Premises or the Building and this Lease is not
thereupon terminated under the provisions of this Section, then
this Lease shall remain in full force and effect, and Landlord
shall, within a reasonable time thereafter, repair and restore the
remaining portion of the Premises, should they be affected, to the
extent necessary to render the same tenantable, and shall repair or
reconstruct the remaining portion of the Building to the extent
necessary to make the same a complete architectural unit; provided
that such work shall not exceed the scope of the work required to
be done by Landlord in originally constructing such Building or the
Premises and the Landlord shall not be required to expend more than
the net proceeds of the condemnation award which are paid to
Landlord in complying with its obligations hereunder.
D. All compensation awarded
or paid upon a total or partial taking of the Premises or the
Building shall belong to and be the property of Landlord without
any participation by Tenant. Nothing herein shall be construed to
preclude Tenant from prosecuting any claim directly against the
condemning authority for loss of business, moving expenses, and
damage to, and cost of removal of, trade fixtures, furniture, and
other personal property belonging to Tenant; provided, however,
that no such claim shall diminish or adversely affect
Landlord’s award.
E. After any partial taking
of the Premises which does not result in a termination of this
Lease, the Base Gross Rent for the remainder of the term hereof
shall be reduced by the same percentage as the floor area of the
space taken bears to the total floor area in the
Premises.
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21. GOVERNMENTAL
REGULATIONS .
Tenant agrees, at
Tenant’s sole cost and expense, to promptly comply with all
requirements of any legally constituted public authority made
necessary by reason of Tenant’s occupancy of the
Premises.
22. GOVERNING LAWS
.
This Lease shall be construed, governed
and enforced in accordance with the laws of the State of
Maryland.
23. HAZARDOUS
MARTIALS
A. Tenant shall not cause or
permit any Hazardous Material to be brought upon, kept or used in
or about the Premises by Tenant, its agents, employees, contractors
or invitees, except for such Hazardous Material as is necessary or
useful to Tenant’s business.
B. Any Hazardous Material
permitted on the Premises as provided in Paragraph 23.A. above, and
all containers therefore, shall be used, kept, stored and disposed
of in a manner that complies with all Federal, State and local laws
or regulations applicable to any such Hazardous
Material.
C. Tenant shall not
discharge, leak or emit, or permit to be discharged, leaked or
emitted, any material into the atmosphere, ground, sewer system or
any body of water, if such material (as reasonably determined by
the Landlord, or any governmental authority) does or may, pollute
or contaminate the same, or may adversely affect (a) the health,
welfare or safety of persons, whether located on the Premises or
elsewhere, or (b) the condition, use or enjoyment of the Building
or any other real or personal property.
D. At the commencement of
each Lease Year, Tenant shall disclose to Landlord the names and
approximate amounts of all Hazardous Material which Tenant intends
to store, use or dispose of on the Premises in the coming Lease
Year. In addition, at the
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commencement of each Lease Year,
beginning with the second Lease Year, Tenant shall disclose to
Landlord the names and amounts of all Hazardous Materials which
were actually used, stored or disposed of on the Premises if such
materials ware not previously identified to Landlord at the
commencement of the previous Lease Year.
E. As used herein, the term
“Hazardous Material” means (a) any “hazardous
waste” as defined by the Resource Conservation and Recovery
Act of 1976, as amended from time to time, and regulations
promulgated thereunder; (b) any “hazardous substance”
as defined by the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended from time to
time, and regulations promulgated thereunder; (c) any “oil,
petroleum products, and their by-products”; and (d) any
substance which is or becomes regulated by any Federal, State or
local governmental authority.
F. Tenant hereby agrees that
it shall be fully liable for all costs and expenses related to the
use, storage and disposal of Hazardous Material kept on the
Premises by the Tenant, and the Tenant shall give immediate notice
to the Landlord of any violation or potential violation of the
provisions of Paragraph 23.B. above. Should a violation be caused
by any action of Tenant, then Tenant shall defend, indemnify and
hold harmless Landlord and its Agents, from and against any claims,
demands, penalties, fines, liabilities, settlements, damages,
costs, or expenses (including, without limitation, attorney and
consultant fees, court coats and litigation expenses) of whatever
kind or nature, known or unknown, contingent or otherwise, arising
out of or in any way related to (a) the presence, disposal,
release, or threatened release of any such Hazardous Material which
is on, from, or affecting the soil, water, vegetation, buildings,
personal property, persons, animals, or otherwise; (b) any personal
injury (including wrongful death) or property damage (real or
personal) arising out of or related to such Hazardous
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Material; (c) any lawsuit brought or
threatened, settlement reached or government order relating to such
Hazardous Material; and/or (d) any violation of any laws applicable
thereto. The provisions of this Paragraph 23.F. shall be in
addition to any other obligations and liabilities Tenant may have
to Landlord at law or equity and shall survive the transactions
contemplated herein and shall survive the termination of this
Lease.
24. SUBORDINATION
.
This Lease is subject to and
subordinate to any and all mortgages now or hereafter placed upon
the Building, but as long as Tenant is not in default and performs
its obligations hereunder, Tenant shall not be disturbed in its
possession of the Premises and this Lease shall remain in full
force and effect. This subordination shall be self-executing, but
Tenant agrees, upon demand of Landlord, to execute, acknowledge and
deliver such instruments as shall be requested by any mortgagee or
proposed mortgagee to confirm each subordination, and Tenant agrees
to execute an attornment agreement in favor of any mortgagee,
provided Landlord shall deliver to Tenant, upon Tenant’s
demand and in exchange for the foregoing instruments, a
Non-Disturbance Agreement executed by any present or future
mortgagee of the premises.
25. ESTOPPEL
CERTIFICATE .
Tenant does hereby agree
that, within ten (10) days following request of Tenant by Landlord
or by Landlord’s mortgagee, Tenant shall deliver to such
requesting party, in form satisfactory to such requesting party,
(however, substantially in the form attached hereto as Exhibit
“C”) a written statement to the effect that there are
no defaults of Landlord or defenses or offsets against Landlord
under this Lease, that the Lease (plus any modifications and
amendments shall be identified) is unmodified and in full force and
affect, that the rent has
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commenced to accrue, that the rent and
all other charges have been paid as of the dates to which such
charges have been paid and that Tenant has accepted and is
occupying the Premises.
26. SEVERABILITY
.
In the event that any portion
of this Lease shall be held to be unenforceable or void, such
determination shall not, in any event, affect the provisions and
enforceability of the remainder of this Lease.
27. FIRST AND LAST
MONTH’S RENT .
The first and last
month’s rent in the amount of Ten Thousand Three Hundred
Twenty-Four and 17/100 , Dollars ($ 10,324.17 ) shall
accompany this Lease, when returned for approval by the Landlord.
If this Lease is not approved by the Landlord within thirty (30)
days of its submission to the Landlord, the above sum will be
refunded in full.
28. NOTICES
.
All notices required to be
given by either party hereto to the other shall be in writing. All
such notices shall be deemed to have been properly given if sent by
United States registered or certified mail, return receipt
requested, postage prepaid, addressed to Landlord at 92
Read’s Way, Suite 100, New Castle, Delaware 19720, and
addressed to Tenant at Premises or to such other address as either
party may hereafter designate in writing by notice given in the
aforesaid manner.
29. BINDING EFFECT
.
All rights and liabilities
herein given to, or imposed upon the respective parties hereto,
shall extend to and bind the server and respective heirs,
executors, administrators, successors and assignees of said
parties.
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30. CAPTIONS
.
The captions identifying the
various sections of the Lease are for convenience or reference only
and are not to be used in construing this Lease.
31. RELOCATION
.
Landlord hereby reserves the
right to relocate the Tenant to another area of the Building or
Buildings within the same complex. Landlord shall provide
sufficient notice of its intention to relocate Tenant and will
construct at its sole cost and expense the new premises to the same
general specifications as the original premises. Landlord shall
also be responsible for all moving costs.
32. AUTHORITY
.
Tenant represents and
warrants to Landlord that Tenant is a Maryland Corporation,
duly organized and validly existing; that this Lease has been
approved by all necessary parties, is validly executed by an
authorized officer of Tenant and is binding upon and enforceable
against Tenant in accordance with its terms; and that the name and
address of Tenant’s resident agent in the State of Maryland
is Mr. Reggie Daniel . Tenant shall notify Landlord promptly
of any change in the name or address of such resident
agent.
33. ENTIRE AGREEMENT
.
It is expressly understood
and agreed by and between the parties hereto that this Lease, and
any Riders that may be attached hereto, sat forth all the promises,
agreements, conditions and understandings between Landlord or his
agents and Tenant relative to the Premises, and that there are not
promises, agreements, conditions or understandings either oral or
written, between them other than are herein set forth. It is
further understood and agreed that, except as herein otherwise
provided, no subsequent alteration, amendment, change or addition
to this Lease shall be binding upon Landlord or Tenant unless
reduced to writing and signed by them.
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34. RIDERS
:
Attached hereto and
incorporated into this Office Lease Agreement are Riders numbered
1 through 2 .
IN WITNESS WHEREOF the
parties hereto have caused 3 copies of this Lease to be
executed the day and year first above written.
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ATTEST/WITNESS
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JFB JOINT VENTURE
LIMITED
PARTNERSHIP
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[Illegible]
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By:
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[Illegible]
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General Partner
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Landlord
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SCIENTIFIC & ENGINEERING SOLUTIONS,
INC.
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[Illegible]
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By:
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[Illegible]
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Tenant
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RIDER #1 TO OFFICE LEASE
AGREEMENT
RULES AND
REGULATIONS
1. No sign, picture
advertisement or notice shall be displayed by Tenant on any part of
the Premises or the Building except on the directories and doors of
offices and then only in such size, color and style as Landlord
shall approve. Any such sign, approved by Landlord, shall be
painted or installed for Tenant by Landlord at Tenant’s
expense. No awnings, curtains, blinds, shades or screens shall be
attached to or hung in or used in connection with any window or
door of the Premises without the prior consent of the Landlord and
including approval by the Landlord of the quality, type, design,
color and manner attached.
2. Tenant agrees that its use
of electrical current shall never exceed the capacity of existing
feeders, risers or wiring installation. Any additional electrical
wiring shall be done by Landlord’s electrician or supervised
by such electrician, and Tenant shall bear the expense of such
additional materials and installation.
3. The Tenant shall not do or
permit to be done in or about the Premises or the Building anything
which shall increase the rate of insurance on the Building or its
property or obstruct or interfere with the rights of other tenants
of Landlord or annoy them in any way, including, but not limited
to, using any musical instrument, making loud or unseemly noises or
singing, etc., nor use the Premises for sleeping, lodging or
cooking by any person at any time except with permission of
Landlord. Tenant will be permitted to use for its own employees
within the Premises a conventional coffeemaker. No vending machines
of any kind will be installed, permitted or used on any part of the
Premises. No part of said Building or Premises shall be used for
gambling, immoral or other unlawful purposes. No intoxicating
beverage shall be sold or used in said Building or the Premises
without prior written consent of the Landlord. No area outside of
the Premises shall be used for storage purposes at any
time.
4. No bicycle, vehicles,
birds or animals of any kind shall be brought into said Building or
kept in or about the Promises.
5. The sidewalks, entrances,
passages, corridors, halls, elevators and stairways in the Building
shall not be obstructed by Tenant or used for any purposes other
than those for which same were intended as ingress and egress. No
windows, floors or skylights that reflect or admit light into the
Building shall be covered or obstructed by Tenant. Toilets, wash
basins and sinks shall not be used for any purpose other than those
for which they were constructed, and no sweeping, rubbish or other
obstructing substances shall be thrown therein. Any damages
resulting to them, or to heating apparatus, from misuse, by Tenant
or its employees shall be borne by Tenant.
6. Only one key for each
office in the Premises will be furnished Tenant without charge. No
additional lock, latch or bolt of any kind shall be placed upon any
door nor shall any changes be made in existing locks or mechanisms
thereof without written consent of Landlord. At the termination of
the Lease, Tenant shall return to Landlord all keys furnished to
Tenant by Landlord or otherwise procured by Tenant and in the event
of loss of any keys so furnished, Tenant shall pay to Landlord the
cost thereof.
7. Landlord shall have the
right to prescribe the weight, position and manner of installation
of heavy articles such as safes, machines and other equipment which
Tenant may use in the Premises. No safes, furniture, boxes, large
parcels or other kind of freight shall be taken to or from the
Premises or allowed in any elevator, hall or corridor at any time
except by permission of and at times allowed by Landlord. Tenant
shall make prior arrangements with Landlord for use of elevator for
the purpose of transporting such articles and such articles may be
taken in or out of said Building only between or during such hours
as may be arranged with and
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designated by Landlord. The persons
employed to move the same must be approved by Landlord. In no event
shall any weight be placed upon such floor by Tenant so as to
exceed 50 pounds per square foot of floor space without prior
written approval of Landlord.
8. Tenant shall not cause or
permit any unusual or objectionable gases, liquids or odors to be
produced upon or permeate from the premises and no flammable,
combustible or explosive fluid, chemical or substances except gas
and electricity for lighting the Premises shall be brought into the
Building.
9. The Building shall be open
to Tenant and its employees 365 days a year, 24 hours a day. The
building shall be open to business visitors between the hours of
8:00 a.m. and 6:00 p.m., Monday to Friday and 8:00 a.m. and 1:00
p.m. an Saturday. At all times other than the visitor hours listed
above, every person, including Tenant, its employees and visitors
entering and leaving the Building may be questioned by a watchman
as to that person’s business therein and may be required to
sign such person’s name on a form provided by Landlord for
excluding any person from the Building during such other times or
for admission of any person to the Building at any time or for
damages or loss or theft resulting therefrom to any person
including Tenant.
10. Unless explicitly
permitted by the Lease, Tenant shall not employ any person other
than Landlord’s employees for the purpose of cleaning and
taking care of the Premises. Landlord shall not be responsible for
any loss, theft, mysterious disappearance of or damage to any
property, however occurring, unless due to Landlord’s gross
negligence. Only persons authorized by the Landlord may furnish
ice, drinking water, towels and other similar services within the
Building and only at hours and under regulations fixed by
Landlord.
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11. Tenant shall observe
strict care not to leave the windows open when it rains or snows
and for any fault or carelessness in any of these respects, shall
make good any injury sustained by Landlord or any other Tenant. No
painting shall be done, nor shall any alterations by made, to any
part of the Premises by putting up or changing any partitions,
doors or windows, nor shall there by any nailing, boring or
screwing into the woodwork or plastering, nor shall any connection
be made to the electric wires or gas or electric fixtures, without
the consent in writing on each occasion of Landlord. All glass,
locks and trimmings in or upon the doors and windows of the
Building shall be kept whole and in good repair. Tenant shall not
injure, overload or deface the Building, the woodwork or the walls
of the Premises, nor carry upon the Premises any noisome, noxious,
noisy or offensive business.
12. If Tenant requires wiring
for a bell or buzzer system, such wiring shall be done by the
electrician of the Landlord only and no outside electrician shall
be allowed to do work of this kind unless by the written permission
of the Landlord or its representatives. If telegraph or telephone
service is desired, the wiring for same shall be done as directed
by the electrician of the Landlord or by some other employee of
Landlord who may be instructed by Landlord to supervise same and no
boring or cutting for wiring shall be done unless approved by
Landlord or its representatives, as stated. The electric current
shall not be used for power or heating unless written permission to
do so shall first have been obtained from Landlord or its
representatives in writing and at an agreed cost to
Tenant.
13. Tenants and occupants
shall observe and obey all parking and traffic regulations as
imposed by Landlord on the lot on which the Building is located.
Landlord in all cases retains the power to designate “no
parking” zones, traffic right-of-ways, and general parking
area procedures. Failure of Tenant to comply with such regulations
constitutes a violation of the Lease.
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14. Canvassing, peddling,
soliciting and distribution of handbills or any other written
materials in the Building are prohibited and Tenant shall cooperate
to prevent the same.
15. Landlord shall have the
right, exercisable without notice and without liability to Tenant,
to change the name and street address of the Building.
16. Landlord may waive any
one or more of these Rules and regulations for the benefit of any
particular tenant, but not such waiver by Landlord shall be
construed as a waiver of such Rules and regulations in favor of any
other tenant, nor prevent Landlord from hereafter enforcing any
such Rules and Regulations against any or all of the Tenants in the
Building.
17. These Rules and
Regulations are in addition to and shall at be construed to in any
way modify or amend, in whole or in part, the terms, covenants,
agreements and conditions of the Lease.
18. Landlord reserves the
right to make such other and reasonable Rules and Regulations as in
its judgment may from time to time be needed for the safety, care
and cleanliness, building and for the preservation of good order
therein.
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RIDER #2 TO OFFICE LEASE
AGREEMENT
OPTION TO
RENEW
THIS RIDER is attached to and
forms a part of a certain Lease dated
, 1998, between JFB JOINT VENTURE LIMITED PARTNERSHIP, a Maryland
Limited Partnership (hereinafter called “Landlord”) and
SCIENTIFIC & ENGINEERING SOLUTIONS, INC. (hereinafter called
“Tenant”).
Tenant shall have the Option
to Renew this Lease for an additional 3 year term, subject to any
pre-existing rights of other parties, upon giving notice of
intention to renew to Landlord not less than One Hundred Eighty
(180) days prior to the expiration of the original term hereof. All
the terms and conditions of this Lease shall remain in full force
and effect during the renewal term except that there shall be no
further right of renewal, and the Base Gross Rent during the
renewal shall be based on the current rental market value of the
premises as of the commencement data of the option period, but not
less than ninety seven percent (97%) the rate paid in the last year
of the initial term or any extensions thereof.
Each option granted to Tenant
in this Lease is personal to Tenant, affiliate or related company
and may not be exercised or be assigned, voluntarily, by or to any
person or entity other than Tenant, affiliate or related company
without prior written consent of Landlord, which shall not be
unreasonably withheld. Option to Renew does not extend to any
subtenant.
AS WITNESS the hands and
seals of the parties hereto the day and year first above
written.
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ATTEST/WITNESS
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JFB JOINT VENTURE UNITED PARTNERSHIP |
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[Illegible]
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General Partner |
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SCIENTIFIC & ENGINEERING SOLUTIONS, INC. |
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[Illegible]
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2
EXHIBIT
“B”
TENANT IMPROVEMENTS
Landlord and tenant hereby
agree that tenant shall occupy the demised premises in an “as
is” condition, and that Landlord shall not he responsible to
provide any physical improvements to the space whatsoever as a
condition of this current agreement.
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EXHIBIT
“C”
Tenant Estoppel
Certificate
Lessor:
Lessee:
Identification of Leased
Premises:
Approximately
square feet within a warehouse and office building on land known as
, as more fully set forth in the
lease.
Date of original Lease:
Date(s) of any Amendments:
The undersigned, the Tenant named above
of the premises identified above (the Premises) to induce
, (the “Lender”) to make a loan to Landlord hereby
certifies to Lander the following:
1. The undersigned has
accepted and is in, possession of and occupies the Premises under
the Lease, which is in full force and effect. The initial term of
the Lease commenced on
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.
2. There have been no
modifications or changes in the Lease, except by those Amendments
listed above.
3. The undersigned is paying
the full Lease rental, which on the rental payment due in
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basic minimum rent per month, and is also paying its proportionate
share (
%) of real estate taxes, insurance premises over Base Year, and of
expenses of snow removal, parking lot maintenance and grass
cutting.
4. No rent or other sum
payable under the Lease has been paid for more than thirty days in
advance of its duo data.
5. To the knowledge of
Tenant, the Landlord is not in default under the Lease and the
undersigned hail no defense, set-off or counterclaim against the
Landlord under the Lease or otherwise.
6. The undersigned has not
assigned, mortgaged or encumbered the Tenant’s interest under
the Lease.
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7. Tenant acknowledges
receipt of notices that all of the Landlord’s interest in the
Lease has been assigned to Lender as further security for one or
more loans to Landlord.
8. These statements,
agreements, representatives and acknowledgement shall bind the
undersigned, its successors and assigns and the undersigned shall
deliver a copy hereof to any assignee of its interest in the
Lease.
IN WITNESS WHEREOF, the
undersigned has caused this Estoppel Certificate to be duly
executed this
day of
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AMENDMENT #1 TO OFFICE
LEASE AGREEMENT
THIS AMENDMENT # 1 TO OFFICE
LEASE AGREEMENT is made this 30 day of May, 2000, by and
between JFB JOINT VENTURE, a Maryland general partnership,
hereinafter called “Landlord,” and SCIENTIFIC
ENGINEERING SOLUTIONS, INC., a Maryland corporation, hereinafter
called “Tenant.”
WHEREAS Landlord and Tenant
are parties to an Office Lease Agreement dated April 13, 1998 (the
“Lease”); and
WHEREAS Tenant has requested
Landlord to make certain modifications to the terms of the Lease;
and
WHEREAS Landlord is willing
to make the modifications to the Lea
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