<PAGE>
Exhibit 10.5
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ENCLOSED IS THE
LEASE AGREEMENT
BETWEEN
LIBERTY PROPERTY LIMITED PARTNERSHIP,
A PENNSYLVANIA LIMITED PARTNERSHIP
("LANDLORD")
AND
NATIONSHEALTH SUPPLY, L.L.C.
A FLORIDA LIMITED LIABILITY COMPANY ("TENANT")
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<PAGE>
LEASE
AGREEMENT
(Multi-Tenant Industrial)
INDEX
<TABLE>
<CAPTION>
SECTION
SECTION
PAGE
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-------
----
<S>
<C>
<C>
1. Summary of
Terms and Certain Definitions....................... 1
2.
Premises.......................................................
2
3. Acceptance
of Premises......................................... 2
4. Use;
Compliance................................................
2
5.
Term...........................................................
2
6. Minimum
Annual Rent............................................
3
7. Operation
of Property; Payment of Expenses..................... 3
8.
Signs..........................................................
4
9.
Alterations and Fixtures ......................................
5
10. Mechanics'
Liens............................................... 5
11. Landlord's Right
of Entry...................................... 5
12. Damage by Fire
or Other Casualty............................... 5
13.
Condemnation...................................................
6
14. Non-Abatement of
Rent.......................................... 6
15. Indemnification
of Landlord.................................... 6
16. Waiver of
Claims............................................... 6
17. Quiet
Enjoyment................................................
6
18. Assignment and
Subletting...................................... 6
19. Subordination;
Mortgagee's Rights.............................. 7
20. Recording;
Tenant's Certificate................................ 7
21. Surrender;
Abandoned Property.................................. 8
22. Curing Tenant's
Defaults....................................... 8
23. Defaults -
Remedies ........................................... 8
24. Representations
of Tenant...................................... 9
25. Liability of
Landlord.......................................... 9
26. Interpretation;
Definitions ................................... 10
</TABLE>
<PAGE>
THIS LEASE
AGREEMENT is made by and between LIBERTY PROPERTY LIMITED
PARTNERSHIP, a Pennsylvania limited
partnership ("LANDLORD") with its address at
777 Yamato Road, Boca Raton, FL 33431, and
NATIONSHEALTH SUPPLY L.L.C., a
limited liability company organized under
the laws of Florida ("TENANT") with
its address at 2500 Weston Road, Suite 401,
Weston, Florida 33331 and is dated
as of the date on which this lease has been
fully executed by Landlord and
Tenant.
1. SUMMARY OF TERMS AND CERTAIN
DEFINITIONS.
(A) "PREMISES": Approximate rentable
square feet: 17,720
(Section 2) Suite:
(B) "BUILDING": Approximate rentable
square feet: 24,732
(Section 2) Address: 13650 N.W. 8th Street
Sunrise, Florida 33325
(C) "TERM": Ninety (90) months
(Section 5)
(i) "COMMENCEMENT DATE": March 1,
2003
(ii) "EXPIRATION DATE": SEE SECTION 5
(D) MINIMUM RENT (Section 6) &
OPERATING EXPENSES (Section 7)
(i) "MINIMUM ANNUAL
RENT":
<TABLE>
<CAPTION>
MONTHS ANNUAL
MONTHLY
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<S>
<C>
<C>
1 - 6 N/A
$
0.00
*7 - 18 $105,000.00 $ 8,750.00
19 - 30 $194,920.00 $16,243.33
31 - 42 $203,780.00 $16,981.66
43 - 54 $212,640.00 $17,720.00
55 - 66 $221,500.00 $18,458.33
67 - 78 $230,360.00 $19,196.66
79 - 90 $239,220.00 $19,935.00
</TABLE>
* TENANT IS REQUIRED TO
PAY ANNUAL OPERATING EXPENSES PLUS STATE SALES TAX
DURING THIS YEAR
BASED ON 10,000 RENTABLE SQUARE FEET.
(ii) ESTIMATED "ANNUAL OPERATING EXPENSES": $52,000.00
(Fifty-Two
Thousand and 00/100 Dollars), payable in
monthly installments of $4,333.33 (Four
Thousand Three Hundred Thirty-Three and
33/100 Dollars), subject to adjustment
(Section 7(a)).
(iii) ESTIMATED "ANNUAL PREMISES DIRECT OPERATING EXPENSES":
$15,948.00 (Fifteen Thousand Nine Hundred
Forty-Eight and 00/100 Dollars),
payable in monthly installments of
$1,329.00 (One Thousand Three Hundred
Twenty-Nine and 00/100 Dollars), subject to
adjustment (Section 7(g)).
(E)
"PROPORTIONATE SHARE" (Section 7(a)): 71.65% (Ratio of
approximate
rentable square feet in the Premises to
approximate rentable square feet in the
Building).
(F) "USE"
(Section 4): General office, marketing, shipping and pharmacy,
to
the extent permitted by applicable law.
<PAGE>
(G) "SECURITY
DEPOSIT" (Section 28): $14,412.33 (Fourteen Thousand Four
Hundred Twelve and 33/100 Dollars). See
Rider.
(H) "CONTENTS":
This lease consists of the Index, pages 1 through 11
containing Sections 1 through 28 and the
following, all of which are attached
hereto and made a part of this lease:
Rider with Sections 29 through 52
Exhibits: "A" - Plan showing Premises
"B" - Commencement Certificate Form
"C" - Building Rules
"D" - Estoppel Certificate Form
"E" - Plan of Improvements
"F" - Standard Tenant Buildout Specifications
"G" - Cleaning Schedule
"H" - Memorandum to Lease
"I" - Form of Letter of Credit
2
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2. PREMISES. Landlord hereby leases to
Tenant and Tenant hereby leases from
Landlord the Premises as shown on attached
Exhibit "A" within the Building (the
Building and the lot on which it is
located, the "PROPERTY"), together with the
nonexclusive right with Landlord and other
occupants of the Building to use all
areas and facilities provided by Landlord
for the use of all tenants in the
Property including any driveways, sidewalks
and parking, loading and landscaped
areas (the "COMMON AREAS").
3. ACCEPTANCE OF PREMISES. Tenant has
examined and knows the condition of the
Property, the zoning, streets, sidewalks,
parking areas, curbs and access ways
adjoining it, visible easements, any
surface conditions and the present uses,
and Tenant accepts them in the condition in
which they now are, without relying
on any representation, covenant or warranty
by Landlord. Tenant and its agents
shall have the right, at Tenant's own risk,
expense and responsibility, at all
reasonable times prior to the Commencement
Date, to enter the Premises for the
purpose of taking measurements and
installing its furnishings and equipment;
provided that the Premises are vacant and
Tenant obtains Landlord's prior
written consent.
4. USE; COMPLIANCE.
(A) PERMITTED
USE. Tenant shall occupy and use the Premises for and only
for the Use specified in Section 1(f) above
and in such a manner as is lawful,
reputable and will not create any nuisance
or otherwise interfere with any other
tenant's normal operations or the
management of the Building. Without limiting
the foregoing, such Use shall exclude any
use that would cause the Premises or
the Property to be deemed a "place of
public accommodation" under the Americans
with Disabilities Act (the "ADA") as
further described in the Building Rules
(defined below). All Common Areas shall be
subject to Landlord's exclusive
control and management at all times. Tenant
shall not use or permit the use of
any portion of the Property for outdoor
storage or installations outside of the
Premises nor for any use that would
interfere with any other person's use of any
portion of the Property outside of the
Premises.
(B) COMPLIANCE.
Landlord represents that, as of the date of this lease,
there is no action required with respect to
the Premises or Common Areas under
any laws (including Title III of the ADA),
ordinances, notices, orders, rules,
regulations and requirements applicable to
the Premises or to the Common Areas.
From and after the Commencement Date,
Tenant shall comply promptly, at its true
expense, (including making any alterations
or improvements) with all laws
(including the ADA), ordinances, notices,
orders, rules, regulations and
requirements regulating the Property during
the Term which impose any duty upon
Landlord or Tenant with respect to Tenant's
use, occupancy or alteration of, or
Tenant's installations in or upon, the
Property including the Premises, (as the
same may be amended, the "LAWS AND
REQUIREMENTS") and the building rules
attached as Exhibit "C", as amended by
Landlord from time to time (the "BUILDING
RULES"). Provided, however, that Tenant
shall not be required to comply with the
Laws and Requirements with respect to the
footings, foundations, structural
steel columns and girders forming a part of
the Property unless the need for
such compliance arises out of Tenant's use,
occupancy or alteration of the
Property, or by any act or omission of
Tenant or any employees, agents,
contractors, licensees or invitees
("AGENTS") of Tenant. With respect to
Tenant's obligations as to the Property,
other than the Premises, at Landlord's
option and at Tenant's expense. Landlord
may comply with any repair, replacement
or other construction requirements of the
Laws and Requirements and Tenant shall
pay to Landlord all costs thereof as
additional rent.
(C)
ENVIRONMENTAL. Tenant shall comply, at its sole expense, with all
Laws
and Requirements as set forth above, all
manufacturers' instructions and all
requirements of insurers relating to the
treatment, production, storage,
handling, transfer, processing,
transporting, use, disposal and release of
hazardous substances, hazardous mixtures,
chemicals, pollutants, petroleum
products, toxic or radioactive matter (the
"RESTRICTED ACTIVITIES"). Tenant
shall deliver to Landlord copies of all
Material Safety Data Sheets or other
written information prepared by
manufacturers, importers or suppliers of any
chemical and all notices, filings, permits
and any other written communications
from or to Tenant and any entity regulating
any Restricted Activities.
(D) NOTICE. If
at any time during or after the Term, Tenant becomes aware
of any inquiry, investigation or proceeding
regarding the Restricted Activities
or becomes aware of any claims, actions or
investigations regarding the ADA,
Tenant shall give Landlord written notice,
within 5 days after first learning
thereof, providing all available
information and copies of any notices.
5. TERM. The Term of this lease shall
commence on the Commencement Date and
shall end at 11:59 p.m. on the last day of
the Term (the "EXPIRATION DATE"),
without the necessity for notice from
either party, unless sooner terminated in
accordance with the terms hereof. At
Landlord's request, Tenant shall confirm
the Commencement Date and Expiration Date
by executing a lease commencement
certificate in the form attached as Exhibit
"B".
6. MINIMUM ANNUAL RENT. Tenant agrees to
pay to Landlord the Minimum Annual Rent
in equal monthly installments in the amount
set forth in Section l(d) (as
increased at the beginning of each lease
year as set forth in Section l(d)), in
advance, on the first day of each calendar
month during the Term, without
notice, demand or setoff, at Landlord's
address designated at the beginning of
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this lease unless Landlord designates
otherwise; provided that rent for the
first full month shall be paid at the
signing of this lease. If the Commencement
Date falls on a day other than the first
day of a calendar month, the rent shall
be apportioned pro rata on a per diem basis
for the period from the Commencement
Date until the first day of the following
calendar month and shall be paid on or
before the Commencement Date. As used in
this lease, the term "lease year" means
the period from the Commencement Date
through the succeeding 12 full calendar
months (including for the first lease year
any partial month from the
Commencement Date until the first day of
the first full calendar month) and each
successive 12 month period thereafter
during the Term.
7. OPERATION OF PROPERTY; PAYMENT OF
EXPENSES.
(A) PAYMENT OF
OPERATING EXPENSES. Tenant shall pay to Landlord the Annual
Operating Expenses in equal monthly
installments in the amount set forth in
Section l(d) (prorated for any partial
month), from the Commencement Date and
continuing throughout the Term on the first
day of each calendar month during
the Term, as additional rent, without
notice, demand or setoff; provided that
the monthly installment for the first full
month shall be paid at the signing of
this lease. Landlord shall apply such
payments to the operating expenses owed to
Landlord by Tenant pursuant to the
following Sections 7(b)-(f). The amount of
the Annual Operating Expenses set forth in
Section l(d) represents Tenant's
Proportionate Share of the estimated
operating expenses during the first
calendar year of the Term on an annualized
basis; from time to time Landlord may
adjust such estimated amount if the
estimated operating expenses increase. By
April 30th of each year (and as soon as
practical after the expiration or
termination of this lease or at any time in
the event of a sale of the
Property), Landlord shall provide Tenant
with a statement of the actual amount
of such expenses for the preceding calendar
year or part thereof. Landlord or
Tenant shall pay to the other the amount of
any deficiency or overpayment then
due from one to the other or, at Landlord's
option, Landlord may credit Tenant's
account for any overpayment. Tenant's
obligation to pay the Annual Operating
Expenses pursuant to this Section 7 shall
survive the expiration or termination
of this lease.
(B) TAXES AND OTHER IMPOSITIONS. Tenant
shall pay prior to delinquency all
levies, taxes (including sales taxes and
gross receipt taxes), assessments,
liens, license and permit fees, which are
applicable to the Term, and which are
imposed by any authority or under any law,
ordinance or regulation thereof, or
pursuant to any recorded covenants or
agreements, and the reasonable cost of
contesting any of the foregoing (the
"IMPOSITIONS") upon or with respect to the
Premises, or any improvements thereto, or
directly upon this lease or the Rent
(defined in Section 7(f)) or amounts
payable by any subtenants or other
occupants of the Premises, or against
Landlord because of Landlord's estate or
interest herein. Additionally, Tenant shall
pay as aforesaid its Proportionate
Share of any Imposition which is not
imposed upon the Premises as a separate
entity but which is imposed upon all or
part of the Property or upon the leases
or rents relating to the Property.
(i) Nothing herein contained shall be interpreted as requiring
Tenant
to pay any income, excess profits or
corporate capital stock tax imposed or
assessed upon Landlord, unless such tax or
any similar tax is levied or assessed
in lieu of all or any part of any
Imposition or an increase in any Imposition.
(ii) If it shall not be lawful for Tenant to reimburse Landlord
for
any of the Impositions, the Minimum Annual
Rent shall be increased by the amount
of the portion of such Imposition allocable
to Tenant, unless prohibited by law.
(C)
INSURANCE.
(i) PROPERTY. Landlord shall keep in effect, and Tenant shall pay
to
Landlord its Proportionate Share of the
cost of, insurance against loss or
damage to the Building or the Property by
fire and such other casualties as may
be included within fire, extended coverage
and special form insurance covering
the full replacement cost of the Building
(but excluding coverage of Tenant's
personal property in, and any alterations
by Tenant to, the Premises), and such
other insurance as Landlord may reasonably
deem appropriate or as may be
required from time-to-time by any
mortgagee.
(ii) LIABILITY. Tenant, at its own expense, shall keep in
effect
comprehensive general public liability
insurance with respect to the Premises
and the Property, including contractual
liability insurance, with such limits of
liability for bodily injury (including
death) and property damage as reasonably
may be required by Landlord from
time-to-time, but not less than a combined
single limit of $1,000,000 per occurrence
and a general aggregate limit of not
less than $3,000,000 (which aggregate limit
shall apply separately to each of
Tenant's locations if more than the
Premises); however, such limits shall not
limit the liability of Tenant hereunder.
The policy of comprehensive general
public liability insurance also shall name
Landlord and Landlord's agent as
insured parties with respect to the
Premises, shall be written on an
"occurrence" basis and not on a "claims
made" basis, shall provide that it is
primary with respect to any policies
carried by Landlord and that any coverage
carried by Landlord shall be excess
insurance, shall provide that it shall not
be cancelable or reduced without at least
30 days prior written notice to
Landlord and shall be issued in form
satisfactory to Landlord. The insurer shall
be a responsible insurance carrier which is
authorized to issue such insurance
and licensed to do business in the state in
which the Property is located and
which has at all times during the Term a
rating of no less than A VII in the
most current edition of Best's Insurance
Reports. Tenant shall deliver to
Landlord on or before the
3
<PAGE>
Commencement Date, and subsequently
renewals of a certificate of insurance
evidencing such coverage and the waiver of
Subrogation described below.
(iii) WAIVER OF SUBROGATION. Landlord and Tenant shall have
included
in their respective property insurance
policies waivers of their respective
insurers' right of subrogation against the
other party. If such a waiver should
be unobtainable or unenforceable, then such
policies of insurance shall state
expressly that such policies shall not be
invalidated if, before a casualty, the
insured waives the right of recovery
against any party responsible for a
casualty covered by the policy.
(iv) INCREASE OF PREMIUMS. 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 promptly upon
being billed.
(D) REPAIRS AND
MAINTENANCE; COMMON AREAS; BUILDING MANAGEMENT. Except as
specifically otherwise provided in this
Section (d), Tenant at its sole expense
shall maintain the Premises in good order
and condition, promptly make all
repairs necessary to maintain such
condition, and repair any damage to the
Premises caused by Tenant or its Agents.
All repairs made by Tenant shall
utilize materials and equipment which are
comparable to those originally used in
constructing the Building and Premises.
When used in this Section (d), the term
"repairs" shall include replacements and
renewals when necessary.
(i) Landlord, at its sole expense, shall make all necessary repairs
to
the footings, foundations, structural steel
columns and girders forming a part
of the Premises, provided that Landlord
shall have no responsibility to make any
repair until Landlord receives written
notice of the need for such repair.
(ii) Landlord, at Tenant's sole expense, shall maintain and repair
the
HVAC systems appurtenant to the
Premises.
(iii) Landlord shall make all necessary repairs to the roof,
exterior
portions of the Premises and the Building,
utility and communications lines,
equipment and facilities in the Building,
which serve more than one tenant, and
to the Common Areas, the cost of which
shall be an operating expense of which
Tenant shall pay its Proportionate Share,
provided that Landlord shall have no
responsibility to make any repair until
Landlord receives written notice of the
need for such repair. Landlord shall
operate and manage the Property and shall
maintain all Common Areas and any paved
areas appurtenant to the Property in a
clean and orderly condition. Landlord
reserves the right to make alterations to
the Common Areas from time to time.
Operating expenses also shall include (A)
all sums expended by Landlord for the
supervision, maintenance, repair,
replacement and operation of the Common
Areas (including the costs of utility
services), (B) any costs of building
improvements made by Landlord to the
Property that are required by any
governmental authority or for the purpose of
reducing operating expenses and (C) a
management and administrative fee
applicable to the overall operation of the
Property.
(iv) Notwithstanding anything herein to the contrary, repairs
and
replacements to the Property including the
Premises made necessary by Tenant's
use, occupancy or alteration of, or
Tenant's installation in or upon the
Property or by 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. Tenant shall not
bear the expense of any repairs or
replacements to the Property arising out of
or caused by any other tenant's use,
occupancy or alteration of, or any other
tenant's installation in or upon, the
Property or by any act or omission of any
other tenant or any other tenant's
Agents.
(E) UTILITY
CHARGES. Tenant shall pay for water, sewer, gas, electricity,
heat, power, telephone and other
communication services and any other utilities
supplied to or consumed in or on the
Premises. Landlord shall not be responsible
or liable for any interruption in utility
service, nor shall such interruption
affect the continuation or validity of this
lease.
(F) NET LEASE.
Except for the obligations of Landlord expressly set forth
herein, this lease is a "triple net lease"
and Landlord shall receive the
Minimum Annual Rent as net income from the
Premises, not diminished by any
expenses other than payments under any
mortgages, and Landlord is not and shall
not be required to render any services of
any kind to Tenant. The term "RENT" as
used in this lease means the Minimum Annual
Rent, Annual Operating Expenses and
any other additional rent or sums payable
by Tenant to Landlord pursuant to this
lease, all of which shall be deemed rent
for purposes of Landlord's rights and
remedies with respect thereto. Tenant shall
pay all Rent to Landlord within 30
days after Tenant is billed, unless
otherwise provided this lease, and interest
shall accrue on all sums due but
unpaid.
8. SIGNS. Except for signs which are
located wholly within the interior of the
Premises and not visible from the exterior
of the Premises, no signs shall be
placed on the Property without the prior
written consent of Landlord. All signs
installed by Tenant shall
4
<PAGE>
be maintained by Tenant in good condition
and Tenant shall remove all such signs
at the termination of this lease and shall
repair any damage caused by such
installation, existence or removal.
9. ALTERATIONS AND FIXTURES.
(a) Subject to
Section 10, Tenant shall have the right to install its trade
fixtures in the Premises, provided that no
such installation or removal thereof
shall affect any structural portion of the
Property nor any utility lines,
communications lines, equipment or
facilities in the Building serving any tenant
other than Tenant. At the expiration or
termination of this lease and at the
option of Landlord or Tenant, Tenant shall
remove such installation(s) and, in
the event of such removal. Tenant shall
repair any damage caused by such
installation or removal; if Tenant, with
Landlord's written consent, elects not
to remove such installation(s) at the
expiration or termination of this lease,
all such installations shall remain on the
Property and become the property of
Landlord without payment by Landlord.
(b) Except for
non-structural changes which do not exceed $5000 in the
aggregate. Tenant shall not make or permit
to be made any alterations to the
Premises without Landlord's prior written
consent. Tenant shall pay the costs of
any required architectural/engineering
reviews. In making any alterations, (i)
Tenant shall deliver to Landlord the plans,
specifications and necessary
permits, together with certificates
evidencing that Tenant's contractors and
subcontractors have adequate insurance
coverage naming Landlord and Landlord's
agent as additional insureds, at least 10
days prior to commencement thereof,
(ii) such alterations shall not impair the
structural strength of the Building
or any other improvements or reduce the
value of the Property or affect any
utility lines, communications lines,
equipment or facilities in the Building
serving any tenant other than Tenant, (iii)
Tenant shall comply with Section 10
and (iv) the occupants of the Building and
of any adjoining property shall not
be disturbed thereby. All alterations to
the Premises by Tenant shall be the
property of Tenant until the expiration or
termination of this lease; at that
time all such alterations shall remain on
the Property and become the property
of Landlord without payment by Landlord
unless Landlord gives written notice to
Tenant to remove the same, in which event
Tenant will remove such alterations
and repair any resulting damage. At
Tenant's request prior to Tenant making any
alterations, Landlord shall notify Tenant
in writing, whether Tenant is required
to remove such alterations at the
expiration or termination of this lease.
10. MECHANICS' LIENS. Tenant shall pay
promptly any contractors and materialmen
who supply labor, work or materials to
Tenant at the Property and shall take all
steps permitted by law in order to avoid
the imposition of any mechanic's lien
upon all or any portion of the Property.
Should any such lien or notice of lien
be filed for work performed for Tenant
other than by Landlord, Tenant shall bond
against or discharge the same within 5 days
after Tenant has notice that the
lien or claim is filed regardless of the
validity of such lien or claim. Nothing
in this lease is intended to authorize
Tenant to do or cause any work to be done
or materials to be supplied for the account
of Landlord, all of the same to be
solely for Tenant's account and at Tenant's
risk and expense. Throughout this
lease the term "MECHANIC'S LIEN" is used to
include any lien, encumbrance or
charge levied or imposed upon all or any
portion of, interest in or income from
the Property on account of any mechanic's,
laborer's, materialman's or
construction lien or arising out of any
debt or liability to or any claim of any
contractor, mechanic, supplier, materialman
or laborer and shall include any
mechanic's notice of intention to file a
lien given to Landlord or Tenant, any
stop order given to Landlord or Tenant, any
notice of refusal to pay naming
Landlord or Tenant and any injunctive or
equitable action brought by any person
claiming to be entitled to any mechanic's
lien.
11. LANDLORD'S RIGHT OF ENTRY. Tenant shall
permit Landlord and its Agents to
enter the Premises at all reasonable times
following reasonable notice (except
in the event of an emergency), for the
purpose of inspection, maintenance or
making repairs, alterations or additions as
well as to exhibit the Premises for
the purpose of sale or mortgage 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 the foregoing rights, but
shall not be liable for any loss of
occupation or quiet enjoyment thereby
occasioned.
12. DAMAGE BY FIRE OR OTHER CASUALTY.
(a) If the
Premises or Building shall be damaged or destroyed by fire or
other casualty, Tenant promptly shall
notify Landlord and Landlord, subject to
the conditions set forth in this Section
12, shall repair such damage and
restore the Premises 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
or alterations installed by Tenant.
Landlord shall notify Tenant in writing,
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 may terminate this lease
effective as of the date of casualty by
giving written notice to the other within
10 days after Landlord's notice.
Further, if a casualty occurs during the
last 12 months of the Term or any
extension thereof, Landlord may cancel 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.
5
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(b) Landlord
shall maintain a 12 month rental coverage endorsement or other
comparable form of coverage as part of its
fire, extended coverage and special
form insurance. Tenant will receive an
abatement of its Minimum Annual Rent and
Annual operating Expenses to the extent the
Premises are rendered untenantable
as determined by the carrier providing the
rental coverage endorsement.
13. CONDEMNATION.
(A) TERMINATION.
If (i) all of the Premises are taken by a condemnation or
otherwise for any public or quasi-public
use, (ii) any part of the Premises is
so taken and the remainder thereof is
insufficient for the reasonable operation
of Tenant's business or (iii) any of the
Property is so taken, and, in
Landlord's opinion, it would be impractical
or the condemnation proceeds are
insufficient to restore the remainder of
the Property, then this lease shall
terminate and all unaccrued obligations
hereunder shall cease as of the day
before possession is taken by the
condemnor.
(B) PARTIAL
TAKING. If there is a condemnation and this lease has not been
terminated pursuant to this Section, (i)
Landlord shall restore the Building and
the improvements which are a part of the
Premises to a condition and size as
nearly comparable as reasonably possible to
the condition and size thereof
immediately prior to the date upon which
the condemnor took possession and (ii)
the obligations of Landlord and Tenant
shall be unaffected by such condemnation
except that there shall be an equitable
abatement of the Minimum Annual Rent
according to the rental value of the
Premises before and after the date upon
which the condemnor took possession and/or
the date Landlord completes such
restoration.
(C) AWARD. In
the event of a condemnation affecting Tenant, Tenant shall
have the right to make a claim against the
condemnor for moving expenses and
business dislocation damages to the extent
that such claim does not reduce the
sums otherwise payable by the condemnor to
Landlord. Except as aforesaid and
except as set forth in (d) below, Tenant
hereby assigns all claims against the
condemnor to Landlord.
(D) TEMPORARY
TAKING. No temporary taking of the Premises shall terminate
this lease or give Tenant any right to any
rental abatement. Such a temporary
taking will be treated as if Tenant had
sublet the Premises to the condemnor and
had assigned the proceeds of the subletting
to Landlord to be applied on account
of Tenant's obligations hereunder. Any
award for such a termparary taking during
the Term shall be applied first, to
Landlord's costs of collection and, second,
on account of sums owing by Tenant
hereunder, and if such amounts applied on
account of sums owing by Tenant hereunder
should exceed the entire amount owing
by Tenant for the remainder of the Term,
the excess will be paid to Tenant.
14. NON-ABATEMENT OF RENT. Except as
otherwise expressly provided as to damage
by fire or other casualty in Section 12(b)
and as to condemnation in Section
13(b), there shall be no abatement or
reduction of the Rent for any cause
whatsoever, and this lease shall not
terminate, and Tenant shall not be entitled
to surrender the Premises.
15. INDEMNIFICATION OF LANDLORD. Subject to
Sections 7(c)(iii) and 16, Tenant
will protect, indemnify and hold harmless
Landlord and its Agents from and
against any and all claims, actions,
damages, liability and expense (including
fees of attorneys, investigators and
experts) 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 Premises 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, except to the
extent such loss, injury or damage
was caused by the negligence of Landlord or
its Agents. In case any action or
proceeding is brought against Landlord
and/or its Agents by reason of the
foregoing. Tenant, at its expense, shall
resist and defend such action or
proceeding, or cause the same to be
resisted and defended by counsel (reasonably
acceptable to Landlord and its Agents)
designated by the insurer whose policy
covers such occurrence or by counsel
designated by Tenant and approved by
Landlord and its Agents. Tenant's
obligations pursuant to this Section 15 shall
survive the expiration or termination of
this lease.
16. WAIVER OF CLAIMS. Landlord and Tenant
each hereby waives all claims for
recovery against the other for any loss or
damage which may be inflicted upon
the property of such party even if such
loss or damage shall be brought about by
the fault or negligence of the other party
or its Agents; provided, however,
that such waiver by Landlord shall not be
effective with respect to any
liability of Tenant described in Sections
4(c) and 7(d)(iv).
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, to the
exceptions, reservations and conditions of
this lease.
6
<PAGE>
18. ASSIGNMENT AND SUBLETTING.
(A) LIMITATION.
Tenant shall not transfer this lease, voluntarily or by
operation of law, without the prior written
consent of Landlord which shall not
be withheld unreasonably. However,
Landlord's consent shall not be required in
the event of any transfer by Tenant to an
affiliate of Tenant which is at least
as creditworthy as Tenant as of the date of
this lease and provided Tenant
delivers to Landlord the instrument
described in Section (c)(iii) below,
together with a certification of such
creditworthiness by Tenant and such
affiliate. Any transfer not in conformity
with this Section 18 shall be void at
the option of Landlord, and Landlord may
exercise any or all of its rights under
Section 23. A consent to one transfer shall
not be deemed to be a consent to any
subsequent transfer. "Transfer" shall
include any sublease, assignment, license
or concession agreement, change in
ownership or control of Tenant, mortgage or
hypothecation of this lease or Tenant's
interest therein or in all or a portion
of the Premises.
(B) OFFER TO
LANDLORD. Tenant acknowledges that the terms of this lease,
including the Minimum Annual Rent, have
been based on the understanding that
Tenant physically shall occupy the Premises
for the entire Term. Therefore, upon
Tenant's request to transfer all or a
portion of the Premises, at the option of
Landlord, Tenant and Landlord shall execute
an amendment to this lease removing
such space from the Premises, Tenant shall
be relieved of any liability with
respect to such space and Landlord shall
have the right to lease such space to
any party, including Tenant's proposed
transferee.
(C) CONDITIONS.
Notwithstanding the above, the following shall apply to any
transfer, with or without Landlord's
consent:
(i) As of the date of any transfer, Tenant shall not be in
default
under this lease nor shall any act or
omission have occurred which would
constitute a default with the giving of
notice and/or the passage of time.
(ii) No transfer shall relieve Tenant of its obligation to pay
the
Rent and to perform all its other
obligations hereunder. The acceptance of Rent
by Landlord from any person shall not be
deemed to be a waiver by Landlord of
any provision of this lease or to be a
consent to any transfer.
(iii) Each transfer shall be by a written instrument in form
and
substance satisfactory to Landlord which
shall (A) include an assumption of
liability by any transferee of all Tenant's
obligations and the transferee's
ratification of and agreement to be bound
by all the provisions of this lease,
(B) afford Landlord the right of direct
action against the transferee pursuant
to the same remedies as are available to
Landlord against Tenant and (C) be
executed by Tenant and the transferee.
(iv) Tenant shall pay, within 10 days of receipt of an invoice
which
shall be no less than $250, Landlord's
reasonable attorneys' fees and costs in
connection with the review, processing and
documentation of any transfer for
which Landlord's consent is requested.
19. SUBORDINATION; MORTGAGEE'S RIGHTS.
(A) This lease
shall be subordinate to any first mortgage or other primary
encumbrance now or hereafter affecting the
Premises. Although the subordination,
is self-operative, within 10 days after
written request, Tenant shall execute
and deliver any further instruments
confirming such subordination of this lease
and any further instruments of attornment
that may be desired by any such
mortgagee or Landlord. However, any
mortgagee may at any time subordinate its
mortgage to this lease, without Tenant's
consent, by giving written notice to
Tenant, and thereupon this lease shall be
deemed prior to such mortgage without
regard to their respective dates of
execution and delivery, provided, however,
that such subordination shall not affect
any mortgagee's right to condemnation
awards, casualty insurance proceeds,
intervening liens or any right which shall
arise between the recording of such
mortgage and the execution of this lease.
(B) It is
understood and agreed that any mortgagee shall not be liable to
Tenant for any funds paid by Tenant to
Landlord unless such funds actually have
been transferred to such mortgagee by
Landlord.
(C)
Notwithstanding the provisions of Sections 12 and 13 above,
Landlord's
obligation to restore the Premises after a
casualty or condemnation shall be
subject to the consent and prior rights of
Landlord's first mortgagee.
20. RECORDING; TENANT'S CERTIFICATE. Tenant
shall not record this lease or a
memorandum thereof without Landlord's prior
written consent. Within 10 days
after Landlord's written request from time
to time:
(A) Tenant shall
execute, acknowledge and deliver to Landlord a written
statement certifying the Commencement Date
and Expiration Date of this lease,
that this lease is in full force and effect
and has not been modified and
otherwise as set forth in the
7
<PAGE>
form of estoppel certificate attached as
Exhibit "D" or with such modifications
as may be necessary to reflect accurately
the stated fact and/or such other
certifications as may be requested by a
mortgagee or purchaser. Tenant
understands that its failure to execute
such documents may cause Landlord
serious financial damage by causing the
failure of a financing or sale
transaction.
(B) Tenant shall
furnish to Landlord, Landlord's mortgagee, prospective
mortgagee or purchaser reasonably requested
financial information.
21. SURRENDER; ABANDONED PROPERTY.
(A) Subject to
the terms of Sections 9(b), 12(a) and 13(b), at the
expiration or termination of this lease.
Tenant promptly shall yield up in the
same condition, order and repair in which
they are required to be kept
throughout the Term, the Premises and all
improvements thereto, and all fixtures
and equipment servicing the Building,
ordinary wear and tear excepted.
(B) Upon or
prior to the expiration or termination of this lease, Tenant
shall remove any personal property from the
Property. Any personal property
remaining thereafter shall be deemed
conclusively to have been abandoned, and
Landlord, at Tenant's expense, may remove,
store, sell or otherwise dispose of
such property in such manner as Landlord
may see fit and/or Landlord may retain
such property as its property. If any part
thereof shall be sold, then Landlord
may receive and retain the proceeds of such
sale and apply the same, at its
option, against the expenses of the sale,
the cost of moving and storage and any
Rent due under this lease.
(C) If Tenant,
or any person claiming through Tenant, shall continue to
occupy the Premises after the expiration or
termination of this lease or any
renewal thereof, such occupancy shall be
deemed to be under a month-to-month
tenancy under the same terms and conditions
set forth in this lease, except that
the monthly installment of the Minimum
Annual Rent during such continued
occupancy shall be double the amount
applicable to the last month of the Term.
Anything to the contrary notwithstanding,
any holding over by Tenant without
Landlord's prior written consent shall
constitute a default hereunder and shall
be subject to all the remedies available to
Landlord.
22. CURING TENANT'S DEFAULTS. If Tenant,
shall be in default in the performance
of any of its obligations hereunder,
Landlord, without any obligation to do so,
in addition to any other rights it may have
in law or equity, may elect to cure
such default on behalf of Tenant after
written notice (except in the case of
emergency) to Tenant. Tenant shall
reimburse Landlord upon demand for any sums
paid or costs incurred by Landlord in
curing such default, including interest
thereon from the respective dates of
Landlord's incurring such costs, which sums
and costs together with interest shall be
deemed additional rent.
23. DEFAULTS - REMEDIES.
(A) DEFAULTS. It
shall be an event of default:
(i) If Tenant does not pay in full when due any and all Rent;
(ii) If Tenant fails to observe and perform or otherwise breaches
any
other provision of this lease;
(iii) If Tenant abandons the Premises, which shall be
conclusively
presumed if the Premises remain unoccupied
for more than 10 consecutive days, or
removes or attempts to remove Tenant's
goods or property other than in the
ordinary course of business; or
(iv) If Tenant becomes insolvent or bankrupt in any sense or makes
a
general assignment for the benefit of
creditors or offers a settlement to
creditors, or if a petition in bankruptcy
or for reorganization or for an
arrangement with creditors under any
federal or state law is filed by or against
Tenant, or a bill in equity or other
proceeding for the appointment of a
receiver for any of Tenant's assets is
commenced, or if any of the real or
personal property of Tenant shall be levied
upon; provided, however, that any
proceeding brought by anyone other than
Landlord or Tenant under any bankruptcy,
insolvency, receivership or similar law
shall not constitute a default until
such proceeding has continued unstayed for
more than 60 consecutive days.
(B) REMEDIES.
Then, and in any such event, Landlord shall have the
following rights:
(i) To charge a late payment fee equal to the greater of $100 or 5%
of
any amount owed to Landlord pursuant to
this lease which is not paid within 5
days after the due date.
(ii) To enter and repossess the Premises, by breaking open
locked
doors if necessary, and remove all persons
and all or any property therefrom, by
action at law or otherwise, without being
liable for prosecution or damages
therefor, and Landlord may,
8
<PAGE>
at landlord's option, make alterations and
repairs in order to relet the
Premises and relet all or any part(s) of
the Premises for tenant's account.
Tenant agrees to pay to Landlord on demand
any deficiency that may arise by
reason of such reletting. In the event of
reletting without termination of this
lease, Landlord may at any time thereafter
elect to terminate this lease for
such previous breach.
(iii) To accelerate the whole or any part of the Rent for the
balance
of the Term, and declare the same to be
immediately due and payable.
(iv) To terminate this lease and the Term without any right on
the
part of Tenant to save the forfeiture by
payment of any sum due or by other
performance of any condition, term or
covenant broken.
(C) GRACE
PERIOD. Notwithstanding anything hereinabove stated, neither
party will exercise any available right
because of any default of the other,
except those remedies contained in
subsection (b)(i) of this Section, unless
such party shall have first given 10 days
written notice thereof to the
defaulting party, and the defaulting party
shall have failed to cure the default
within such period; provided, however,
that:
(i) No such notice shall be required if Tenant fails to comply
with
the provisions of Sections 10 or 20(a), in
the case of emergency as set forth in
Section 22 or in the event of any default
enumerated in subsections (a)(iii) and
(iv) of this Section.
(ii) Landlord shall not be required to give such 10 days notice
more
than 2 times during any 12 month
period.
(iii) If the default consists of something other than the failure
to
pay money which cannot reasonably be cured
within 10 days, neither party will
exercise any right if the defaulting party
begins to cure the default within the
10 days and continues actively and
diligently in good faith to completely cure
said default.
(iv) Tenant agrees that any notice given by Landlord pursuant to
this
Section which is served in compliance with
Section 27 shall be adequate notice
for the purpose of Landlord's exercise of
any available remedies.
(D) NON-WAIVER;
NON-EXCLUSIVE. No waiver by Landlord of any breach by
Tenant shall be a waiver of any subsequent
breach, nor shall any forbearance by
Landlord to seek a remedy for any breach by
Tenant be a waiver by Landlord of
any rights and remedies with respect to
such or any subsequent breach. Efforts
by Landlord to mitigate the damages caused
by Tenant's default shall not
constitute a waiver of Landlord's right to
recover damages hereunder. No right
or remedy herein conferred upon or reserved
to Landlord is intended to be
exclusive of any other right or remedy
provided herein or by law, but each shall
be cumulative and in addition to every
other right or remedy given herein or now
or hereafter existing at law or in equity.
No payment by Tenant or receipt or
acceptance by Landlord of a lesser amount
than the total amount due Landlord
under this lease shall be deemed to be
other than on account, nor shall any
endorsement or statement on any check or
payment be deemed an accord and
satisfaction, and Landlord may accept such
check or payment without prejudice to
Landlord's right to recover the balance of
Rent due, or Landlord's right to
pursue any other available remedy.
(E) COSTS AND
ATTORNEYS' FEES. If either party commences an action against
the other party arising out of or in
connection with this lease, the prevailing
party shall be entitled to have and recover
from the losing party attorneys'
fees, costs of suit, investigation expenses
and discovery costs, including costs
of appeal.
24. REPRESENTATIONS OF TENANT. Tenant
represents to Landlord and agrees that:
(A) The word
"TENANT" as used herein includes the Tenant named above as
well as its successors and assigns, each of
which shall be under the same
obligations and liabilities and each of
which shall have the same rights,
privileges and powers as it would have
possessed had it originally signed this
lease as Tenant. Each and every of the
persons named above as Tenant shall be
bound jointly and severally by the terms,
covenants and agreements contained
herein. However, no such rights, privileges
or powers shall inure to the benefit
of any assignee of Tenant immediate or
remote, unless Tenant has complied with
the terms of Section 18 and the assignment
to such assignee is permitted or has
been approved in writing by Landlord. Any
notice required or permitted by the
terms of this lease may be given by or to
any one of the persons named above as
Tenant, and shall have the same force and
effect as if given by or to all
thereof.
(B) If Tenant is a
corporation, partnership or any other form of business
association or entity, Tenant is duly
formed and in good standing, and has full
corporate or partnership power and
authority, as the case may be, to enter into
this lease and has taken all corporate or
partnership action, as the case may
be, necessary to carry out the transaction
contemplated herein, so that when
executed, this lease constitutes a valid
and binding obligation enforceable in
accordance with its terms. Tenant shall
provide
9
<PAGE>
Landlord with corporate resolutions or
other proof in a form acceptable to
Landlord, authorizing the execution of this
lease at the time of such execution.
25. LIABILITY OF LANDLORD. The word
"LANDLORD" as used herein includes the
Landlord named above as well as its
successors and assigns, each of which shall
have the same rights, remedies, powers,
authorities and privileges as it would
have had it originally signed this lease as
Landlord. Any such person or entity,
whether or not named herein, shall have no
liability hereunder after it ceases
to hold title to the Premises except for
obligations already accrued (and, as to
any unapplied portion of Tenant's Security
Deposit, Landlord shall be relieved
of all liability therefor upon transfer of
such portion to its successor in
interest) and Tenant shall look solely to
Landlord's successor in interest for
the performance of the covenants and
obligations of the Landlord hereunder which
thereafter shall accrue. Neither Landlord
nor any principal of Landlord nor any
owner of the Property, whether disclosed or
undisclosed, shall have any personal
liability with respect to any of the
provisions of this lease or the Premises,
and if Landlord is in breach or default
with respect to Landlord's obligations
under this lease or otherwise, Tenant shall
look solely to the equity of
Landlord in the Property for the
satisfaction of Tenant's claims.
Notwithstanding the foregoing, no mortgagee
or ground lessor succeeding to the
interest of Landlord hereunder (either in
terms of ownership or possessory
rights) shall be (a) liable for any
previous act or omission of a prior
landlord, (b) subject to any rental offsets
or defenses against a prior landlord
or (c) bound by any amendment of this lease
made without its written consent, or
by payment by Tenant of Minimum Annual Rent
in advance in excess of one monthly
installment.
26. INTERPRETATION; DEFINITIONS.
(A) CAPTIONS.
The captions in this lease are for convenience only and are
not a part of this lease and do not in any
way define, limit, describe or
amplify the terms and provisions of this
lease or the scope or intent thereof.
(B) ENTIRE
AGREEMENT. This lease represents the entire agreement between
the parties hereto and there are no
collateral or oral agreements or
understandings between Landlord and Tenant
with respect to the Premises or the
Property. No rights, easements or licenses
are acquired in the Property or any
land adjacent to the Property by Tenant by
implication or otherwise except as
expressly set forth in the provisions of
this lease. This lease shall not be
modified in any manner except by an
instrument in writing executed by the
parties. The masculine (or neuter) pronoun
and the singular number shall include
the masculine, feminine and neuter genders
and the singular and plural number.
The word "INCLUDING" followed by any
specific item(s) is deemed to refer to
examples rather than to be words of
limitation. Both parties having participated
fully and equally in the negotiation and
preparation of this lease, this lease
shall not be more strictly construed, nor
any ambiguities in this lease
resolved, against either Landlord or
Tenant.
(C) COVENANTS.
Each covenant, agreement, obligation, term, condition or
other provision herein contained shall be
deemed and construed as a separate and
independent covenant of the party bound by,
undertaking or making the same, not
dependent on any other provision of this
lease unless otherwise expressly
provided. All of the terms and conditions
set forth in this lease shall apply
throughout the Term unless otherwise
expressly set forth herein.
(D) INTEREST.
Wherever interest is required to be paid hereunder, such
interest shall be at the highest rate
permitted under law but not in excess of
15% per annum.
(E)
SEVERABILITY; GOVERNING LAW. If any provisions of this lease shall
be
declared unenforceable in any respect, such
unenforceability shall not affect
any other provision of this lease, and each
such provision shall be deemed to be
modified, if possible, in such a manner as
to render it enforceable and to
preserve to the extent possible the intent
of the parties as set forth herein.
This lease shall be construed and enforced
in accordance with the laws of the
state in which the Property is located.
(F) "MORTGAGE"
AND "MORTGAGEE." The word "MORTGAGE" as used herein includes
any lien or encumbrance on the Premises or
the Property or on any part of or
interest in or appurtenance to any of the
foregoing, including without
limitation any ground rent or ground lease
if Landlord's interest is or becomes
a leasehold estate. The word "MORTGAGEE" as
used herein includes the holder of
any mortgage, including any ground lessor
if Landlord's interest is or becomes a
leasehold estate. Wherever any right is
given to a mortgagee, that right may be
exercised on behalf of such mortgagee by
any representative or servicing agent
of such mortgagee.
(G) "PERSON."
The word "person" is used herein to include a natural person,
a partnership, a corporation, an
association and any other form of business
association or entity.
(H)
PROPORTIONATE SHARE. At any time or times, upon request of Landlord
or
of any tenant of the Building, the method
for allocating Tenant's Proportionate
Share of any Impositions, cost, charge,
rent, expense or payment then or
thereafter payable shall be redetermined by
an independent qualified expert. The
cost of such redetermination shall be borne
by the tenants of the Building in
10
<PAGE>
the same proportion as that determination
such expert for reallocation of said
relevant sum; except that if such
redetermination is requested by a tenant, the
cost thereof shall be borne entirely by
such tenant if the proportionate share
of said relevant sum allocable to such
tenant as the result of such
redetermination shall not vary by at least
5% from the amount which would have
been allocable to such tenant in accordance
with the percentage based on square
foot area.
27. NOTICES. Any notice or other
communication under this lease shall be in
writing and addressed to Landlord or Tenant
at their respective addresses
specified at the beginning of this lease,
except that after the Commencement
Date Tenant's address shall be at the
Premises, (or to such other address as
either may designate by notice to the
other) with a copy to any mortgagee or
other party designated by Landlord. Each
notice or other communication shall be
deemed given if sent by prepaid overnight
delivery service or by certified mail,
return receipt requested, postage prepaid
or in any other manner, with delivery
in any case evidenced by a receipt, and
shall be deemed received on the day of
actual receipt by the intended recipient or
on the business day delivery is
refused. The giving of notice by Landlord's
attorneys, representatives and
agents under this Section shall be deemed
to be the acts of Landlord; however,
the foregoing provisions governing the date
on which a notice is deemed to have
been received shall mean and refer to the
date on which a party to this lease,
and not its counsel or other recipient to
which a copy of the notice may be
sent, is deemed to have received the
notice.
28. SECURITY DEPOSIT. At the time of
signing this lease, Tenant shall, deposit
with Landlord the Security Deposit to be
retained by Landlord as cash security
for the faithful performance and observance
by Tenant of the provisions of this
lease. Tenant shall not be entitled to any
interest whatever on the Security
Deposit. Landlord shall have the right to
commingle the Security Deposit with
its other funds. Landlord may use the whole
or any part of the Security Deposit
for the payment of any amount as to which
Tenant is in default hereunder or to
compensate Landlord for any loss or damage
it may suffer by reason of Tenant's
default under this lease. If Landlord uses
all or any portion of the Security
Deposit as herein provided, within 10 days
after written demand therefor, Tenant
shall pay Landlord cash in amount equal to
that portion of the Security Deposit
used by Landlord. If Tenant shall comply
fully and faithfully with all of the
provisions of this lease, the Security
Deposit shall be returned to Tenant after
the Expiration Date and surrender of the
Premises to Landlord.
IN WITNESS
WHEREOF, and in consideration of the mutual entry into this
lease and for other good and valuable
consideration, and intending to be legally
bound, Landlord and Tenant have executed
this lease.
Date signed: 12/23/02
Landlord:
Witness:
LIBERTY PROPERTY LIMITED PARTNERSHIP
/s/ Anne K. Toal
By: Liberty Property Trust,
--------------------------------
Sole
General Partner
Name (printed): Anne K. Toal
/s/ Stephanie Garcia
By: /s/ Robert Goldschmidt
--------------------------------
-----------------------------------------
Name (printed): Stephanie Garcia
Robert Goldschmidt
Senior Vice President
Date signed: 12-19-2002
Tenant:
Attest/Witness:
NATIONSHEALTH SUPPLY, L.L.C.
/s/ Gregory Couto
By: /s/ Glenn M. Parker
--------------------------------
-----------------------------------------
Name (printed): Gregory Couto Name:
Glenn M. Parker
Title: CEO & Pres
/s/ TIM FAIRBANKS
--------------------------------
Name (printed): TIM FAIRBANKS
(Corporate Seal)
11
<PAGE>
<TABLE>
<CAPTION>
Section
Section
Page
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-------
----
<S>
<C>
29. Radon
Gas......................................................................
1
30. Completion by
Tenant...........................................................
1
31. Early
Occupancy................................................................
2
32. Option to Extend
Term..........................................................
3
33. Waiver of Jury
Trial...........................................................
4
34. Brokers: Recognition and
Indemnity............................................. 5
35.
Consents.......................................................................
5
36.
Parking........................................................................
5
37. Additional Contiguous
Space....................................................
5
38. Subordination of Landlord's
Lien............................................... 6
39. Additional Provisions
Relating to Premises.....................................
6
40. Additional Provisions
Relating to Use; Compliance..............................
7
41. Additional Provisions
Relating to Minimum Annual Rent..........................
7
42. Additional Provisions
Relating to Operation of Property; Payment of Expenses...
7
43. Additional Provisions
Relating to Signs........................................
12
44. Additional Provisions
Relating to Mechanics' Liens.............................
13
45. Additional Provisions
Relating to Indemnification..............................
13
46. Additional Provisions
Relating to Assignment and Subletting....................
14
47. Additional Provisions
Relating to Subordination; Mortgagee's Rights............
14
48. Additional Provisions
Relating to Recording; Tenant's Certificate..............
14
49. Additional Provisions
Relating to Surrender; Abandoned Property................
15
50. Additional Provisions
Relating to Default - Remedies...........................
15
51. Additional Provisions
Relating to Security Deposit.............................
16
52. Additional Provisions
Relating to Building Rules (Exhibit "C").................
17
53. Emergency
Generator............................................................
17
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RIDER
(In the event of any conflict between the
provisions of this Rider and the Lease
Agreement to which it is attached, the
provisions of this Rider will govern,
control and prevail. All capitalized terms
used but not defined in this Rider
shall have the meanings given to them in
the Lease Agreement.)
29. Radon Gas. Radon is a naturally
occurring radioactive gas that, when it has
accumulated in a building in sufficient
quantities, may present health risks to
persons who are exposed to it over time.
Levels of radon that exceed federal and
state guidelines have been found in
buildings in Florida. Additional information
regarding radon and radon testing may be
obtained from your county public health
unit.
30. Completion by Tenant.
(a) At Tenant's
option, the Premises shall be completed by Tenant and its
contractor(s), at Tenant's sole expense, in
accordance with the plans attached
hereto as Exhibit "E" (the "Plans") and the
specifications attached hereto as
Exhibit "F" (the "Specifications"). In
addition to the improvements shown on the
Plans and Specifications, Tenant may, at
its sole cost and expense, make the
following improvements to the exterior of
or outside the Premises (the
"Additional Improvements"): (i) remove two
(2) 36" wide door units to the
Premises and replace same with two (2) 72"
wide door units to the Premises
(provided, however, upon the expiration or
earlier termination of this lease,
Tenant shall restore the 36" wide door
units and repair any damage caused by
such installation and removal); (ii) widen
existing ramps to conform to new door
widths; (iii) remove several short bushes
impeding access to the new doors; and
(iv) move one (1) handicapped parking space
approximately 20 feet north.
Landlord hereby consents to the alterations
Tenant intends to make to the
Premises in accordance with the Plans and
Specifications and the Additional
Improvements, provided that Tenant complies
with Sections 9 and 10 of this lease
and the following conditions:
(i) At least ten (10) days prior to commencement of
construction,
Tenant shall deliver to Landlord a
certificate of insurance for each of Tenant's
contractors evidencing adequate insurance
coverage naming Landlord and
Landlord's agent as additional
insureds.
(ii) In addition to the right of Landlord and its Agents to
inspect
the Premises set forth in Section 11 of
this lease, Landlord and its Agents
shall have the right to conduct a
walk-through inspection of the Premises as
completed by Tenant.
(iii) The warranties from Tenant's contractor(s) shall be for
the
benefit of Landlord as well as Tenant and
Tenant shall deliver such warranties
to Landlord upon receipt.
(iv) All construction shall be done in a good and workmanlike
manner
and shall comply at the time of completion
with all Laws and Requirements.
Tenant shall deliver to Landlord copies of
all certificates of occupancy,
permits and licenses required to be issued
by any authority in connection with
Tenant's construction.
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(b) Landlord
agrees that Tenant shall be entitled to a tenant improvement
allowance (the "Allowance") in the amount
of $173,619 which may be used by
Tenant in connection with the initial
buildout of the Premises by Tenant as set
forth in subsection (a) above and any
further alterations made by Tenant during
the Term of the lease pursuant to Section 9
of the lease, including without
limitation, improvements to the Premises,
computer/telephone infrastructure,
work station installation and the
installation of any wiring, cabling, signage
and/or security systems (the "Tenant
Improvements"). Provided Tenant is not then
in default under the lease, within 60 days
after (i) Landlord's receipt of
invoice therefor and evidence of Tenant's
payment thereof, and (ii) inspection
of the premises by Landlord to confirm the
completion of the work covered by
such invoice. Landlord shall pay Tenant the
amount of such invoice, the total of
all advances by Landlord hereunder not to
exceed $173,619. With respect to
requests by Tenant for advances of the
Allowance in excess of $86,809.50 in the
aggregate on account of payment for Tenant
Improvements, Tenant shall also be
required, as a condition precedent to
Landlord's obligation to make any such
advance, to deliver to Landlord a letter of
credit as required in Section 51 (or
endorsement thereto) increasing Tenant's
Security Deposit hereunder by the
amount of such advance.
(c) In the event
the Allowance is not fully advanced by Landlord and
provided Tenant is not then in default
hereunder, the unadvanced balance of the
Allowance as of November 1, 2004, but not
more than $86,809.50 (the "Maximum
Rent Credit"), shall, at Tenant's option,
upon prior written notice to Landlord
given on or before October 1, 2004, be
credited against Minimum Annual Rent
first coming due under the Lease. It is
expressly agreed and understood that the
Allowance will not be credited against
Annual Operating Expenses.
(d) In the event
the Allowance is not fully advanced by Landlord as of the
date which is six (6) months prior to the
Expiration Date and provided Tenant is
not then in default hereunder, the
remaining balance of the Maximum Rent Credit
not advanced pursuant to subsection (c)
above, if any (but not in excess of the
unadvanced balance of the Allowance), shall
be credited against Minimum Annual
Rent next coming due under the Lease. It is
expressly agreed that the Allowance
will not be credited against Annual
Operating Expenses.
(e) At Tenant's
option, Landlord will apply the Allowance to improvements
performed by Tenant to space leased by
Tenant from Landlord at 13650 N.W. 8th
Street, Sunrise, Florida; however, any
credit against Minimum Annual Rent to
which Tenant may be entitled hereunder
shall only be made against Minimum Annual
Rent due and payable under this lease.
31. Early Occupancy. Tenant and its
authorized agents, employees and contractors
shall at all reasonable times on or after
the date of execution of this lease
and prior to the Commencement Date have the
right, at Tenant's own risk, expense
and responsibility, to occupy the Premises.
If Tenant occupies the Premises
prior to the Commencement Date, Tenant
shall abide by the terms and conditions
of this lease including payment of all
utilities which are separately metered to
the Premises, Premises Direct Operating
Expenses and any other sums payable by
Tenant to Landlord pursuant to this lease,
as if the term of this lease had
already commenced, except that
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Tenant shall have no obligation to pay the
Minimum Annual Rent or Annual
Operating Expenses or any portion thereof
until the Commencement Date.
LANDLORD'S APPROVAL:
/s/ RG
-----------------------------
SENIOR VICE PRESIDENT
32. Option to Extend Term. Provided that
Landlord has not given Tenant notice of
default more than two (2) times in the
immediately preceding twelve (12) months,
that there then exists no event of default
by Tenant under this lease nor any
event that with the giving of notice and/or
the passage of time would constitute
a default, and that Tenant or a person or
entity to whom Tenant has the right to
assign this lease or sublet the Premises
without Landlord's prior written
consent pursuant to Section 18(a) of this
lease are the sole occupants of the
Premises, Tenant shall have the right and
option to extend the Term for two (2)
additional periods of thirty-six (36)
months each, exercisable by giving
Landlord prior written notice, at least
nine (9) months in advance of the
Expiration Date or the first extended
Expiration Date, as the case may be, of
Tenant's election to extend the Term; it
being agreed that time is of the
essence and that this option is personal to
Tenant and to any person or entity
to whom Tenant has the right to assign this
lease or sublet the Premises without
Landlord's prior written consent pursuant
to S