THIS LEASE
AGREEMENT (sometimes referred to as “Lease”) is made
and entered into as of this
day of December , 2006, between 10600 COLONEL GLENN,
LLC, hereafter referred to as “Landlord” and DAC
TECHNOLOGIES GROUP INTERNATIONAL, INC , a Florida
Corporation , hereafter collectively referred to as
“Tenant”:
1. LEASED
PREMISES: In consideration of the rents, terms, provisions, and
covenants of this Lease, Landlord hereby leases, lets and demises
to Tenant Suite 6200 (referred to as “leased
premises” or “premises” and containing
approximately 7,447 rentable gross square feet) at Bowman
Plaza II located at 12120 Colonel Glenn Road, Little Rock,
Arkansas 72210 (sometimes referred to as “the
building” or “the project”), as outlined on the
attached Exhibit “A”, Leased Premises. The statement of
square footage contained in this Lease is made for reference
purposes only and is not a part of this agreement. Tenant states
that it is not relying on any Landlord representations relating to
square foot measurements.
2. TERM:
Subject to and upon the conditions set forth below, the term of
this Lease shall commence on February 1, 2007, (the
“commencement date”) and shall terminate on January
31, 2011 . After the immediate occupancy of Tenant’s
second premises on Colonel Glenn and Shackleford, if said date is
different than previously stated above, Tenant and Landlord agree
to establish a new commencement date but such date shall not exceed
sixty (60) days after February 1, 2007 . The Lease
Agreement shall terminate at midnight forty-eight (48) months
after the established commencement date. Upon 60 days prior
written notice to Landlord, Tenant shall have the option to extend
this Lease for one (1) additional period of forty-eight (48)
months each.
3. RENT:
(a) Tenant agrees to pay, as monthly rental during the term of
this Lease, the sum of Six Thousand Six Hundred Ninety-Six and
09/100 , ($ 6,696.09) per month, along with
Tenant’s Share of the Operating Expenses referenced in
subparagraph 3(g), which amount shall be payable to Landlord at the
address shown below on the first day of each month without
abatement, deduction or setoff. One monthly installment of rent
shall be due and payable on the date of execution of this Lease by
Tenant for the first month’s rent and a like monthly
installment shall be due and payable on or before the first day of
each calendar month succeeding the commencement date during the
demised term; provided, that if the commencement date should be a
date other than the first day of a calendar month, the monthly
rental set forth above shall be prorated to the end of that
calendar month, and all succeeding installments of rent shall be
payable on or before the first day of each succeeding calendar
month during the demised term. Tenant shall pay, as additional
rental, all other sums due under this Lease.
(b) The
monthly rental installments provided hereinabove shall be increased
annually, effective January 1, 2009, and thereafter on January
1 of each calendar year including any extension options thereafter,
by an amount equal to Three percent (3%) of the rental in
effect for the immediate preceding year. The monthly rental in any
calendar year may be determined as follows: preceding year’s
monthly rental multiplied by 1.0 3 and rounded to the
nearest dollar. If the commencement date of the term of this Lease,
as above set forth, shall be on a date other than January 1,
2008 the three percent ( 3 %) rental adjustment in
the first calendar year following the commencement date shall be
prorated by a fraction, the numerator of which is the remaining
number of days in the year following the commencement date and the
denominator is three hundred sixty-five (365).
(c) On the
date of execution of this Lease by Tenant, there shall be due and
payable by Tenant a security deposit (“Security
Deposit”) in an amount equal to one monthly rental
installment to be held for the performance by Tenant of
Tenant’s covenants and obligations under this Lease, it
being
expressly
understood that the deposit shall not be considered an advance
payment of rental or a measure of Landlord’s damage in case
of default by Tenant. Upon the occurrence of any event of default
by Tenant or breach by Tenant of Tenant’s covenants under
this Lease, Landlord may, from time to time, without prejudice to
any other remedy, use the security deposit to the extent necessary
to make good any arrears of rent and/or any damage, injury, expense
or liability caused to Landlord by the event of default or breach
of covenant, any remaining balance of the security deposit to be
returned by Landlord to Tenant upon termination of this Lease. If
Landlord so uses any portion of the Security Deposit, then Tenant
will restore the Security Deposit to its original amount within
five (5) days after written demand from Landlord. Landlord
will not be required to keep the Security Deposit separate from its
own funds and Tenant will not be entitled to interest on the
Security Deposit.
(d) If any
increase in the property and casualty/public liability insurance
premiums paid by Landlord for the building in which Tenant occupies
space is caused by Tenant’s use and occupancy of the leased
premises, or if Tenant vacates the leased premises and causes an
increase in such premiums, then Tenant shall pay as additional
rental the amount of such increase to Landlord.
(e) Other
remedies for nonpayment of rent notwithstanding, if the monthly
rental payment is not received by Landlord on or before the tenth
(10th) day of the month for which rent is due, or if any other
payment due Landlord by Tenant is not received by Landlord on or
before the tenth (10 th )
day of the month next following the month in which Tenant was
invoiced, Landlord will incur unanticipated costs, the exact amount
of which are impractical or extremely difficult to ascertain, and a
service charge of ten percent (10%) of such past due amount or ten
dollars ($10.00) per day for each day such amount remains past due,
whichever is greater, shall become due and payable in addition to
such amounts owed under this Lease. Any installment of rent or
additional rental as defined herein which is not paid on or before
the tenth (10th) day of the month for which rent is due shall also
bear interest at the highest rate permitted by law from the due
date until paid.
(f) The term
“Operating Expenses” as used in this Lease includes all
expenses incurred with respect to the maintenance and operation of
the building project of which the leased premises are a part,
including, but not limited to, maintenance, repair, replacement
costs, sewer, trash, security, landscaping grounds maintenance,
termite/pest control, inspections, management fees, wages and
fringe benefits payable to employees of Landlord whose duties are
connected with the operation and maintenance of the building and/or
project, all services, supplies, repairs, replacements or other
expenses for maintaining and operating the building and/or project
including common area and parking area maintenance. The term
“Operating Expenses” also includes all real property
taxes, whether assessed or incurred, and installments of special
assessments, including special assessments due to deed restrictions
and/or owners’ associations, which accrue against the
building and/or project of which the leased premises are a part
during the term of this Lease as well as all insurance premiums
Landlord is required to pay or deems necessary to pay, including
public liability insurance and property and casualty insurance,
with respect to the building and/or project; and any improvements
made to the building and/or project as a result of current or
future governmental requirements, including without limitation,
Americans with Disabilities Act, lead-based paint requirements, et
al. The term “Operating Expenses” shall not include
repairs, restoration or other work occasioned by fire, windstorm or
other casualty, to the extent of Landlord’s insurance, income
and franchise taxes of Landlord, expenses incurred in leasing to or
procuring of tenants, leasing commissions, expenses for the
renovating of space for new tenants, interest or principal payments
on any mortgage or other indebtedness of Landlord, compensation
paid to any employee of Landlord above the grade of building
superintendent nor any depreciation allowance or
expense.
(g) Tenant
agrees to pay Landlord Six and Seventy-Four Hundredths
percent (6.74 %) of all Operating Expenses as estimated by
Landlord for the ensuing period (“Tenant’s Share of the
Operating Expenses”). Tenant’s Share of the Operating
Expenses for or during the term hereof, as determined by Landlord
shall be paid in monthly installments on or before the first day of
each calendar month in advance, in an amount estimated by Landlord
(the amount of the first such estimate being One Thousand
Sixty-One and 19/100 Dollars $ 1,061.19 per month).
Within a reasonable period after the end of the year,
Landlord
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shall furnish
Tenant with a written statement in reasonable detail of the actual
Operating Expenses and the amount of Tenant’s Share thereof
for the preceding calendar year. Within (15) days after receipt of
such statement by Tenant, Tenant shall pay to Landlord any
deficiency due the Landlord. Any surplus paid by the Tenant shall
be credited against the next monthly installment(s) of
Tenant’s Share of Operating Expenses.
For the calendar
years in which this Lease commences and terminates, Tenant’s
liability for Tenant’s Share of Operating Expenses shall be
subject to a pro rata adjustment based upon the number of days of
said calendar year during which the term of this Lease is in
effect.
4. SIGNS:
Tenant shall have the right to erect one sign in good taste only on
the front face of the Tenant’s premises in the building, (or
such other location as may be designated by Landlord) subject to
all applicable laws, deed restrictions and regulations. Within
fifteen (15) days of the commencement date, Tenant shall provide to
Landlord a computer-generated sign mock-up prepared by a bona fide
sign contractor which clearly indicates all sign specifications,
including but not limited to, size, design, color(s), composition
of material(s), and method of attachment to the building. Upon
Landlord’s written approval of the same, Tenant shall cause
such signage to be erected within forty-five (45) days of
receipt of such approval by Landlord. The composition and location
of such sign shall be: (a) in compliance with all municipal,
city, and state codes, (b) installed by a licensed contractor,
and (c) subject to prior written approval of Landlord for the
purposes of maintaining architectural continuity and quality of
design. No signs or other objects shall be erected which are
attached to the roof of the building and no signs shall be attached
to the building or canopy at right angles suspended by guy wires,
but shall be attached flush in a safe and secure manner. All such
signs erected shall advertise Tenant’s business only and no
revenue producing advertising shall be erected on the leased
premises without specific written permission of Landlord. Tenant
shall not paint any signs directly on the walls of the building or
otherwise deface, damage or overload the building. Tenant shall
have the right to place lettering upon the entrance door(s) or upon
the plate glass windows contiguous to the entrance door(s) of the
leased premises; provided, however, that the lettering shall not
exceed six inches in height and shall be subject to the prior
approval of Landlord. No other signs (mobile or stationary) shall
be displayed on the leased premises without the prior written
consent of Landlord. Tenant shall remove all signs at the
termination of this Lease at Tenant’s sole risk and expense
and shall in a workmanlike manner properly repair any damage and
close any holes caused by the removal of Tenant’s
signs.
5. USAGE:
Tenant warrants and represents to Landlord that the leased premises
shall be used and occupied only for the purposes of general
office use and no other purpose. Tenant shall occupy the leased
premises, conduct its business and control its agents, employees,
invitees and visitors in such a way as is lawful, reputable and
will not create any nuisance or otherwise interfere with, annoy or
disturb any other tenant in its normal business operations or
Landlord in its management of the building. Tenant shall not
commit, or suffer to be committed, any waste on the leased
premises.
6. INSURANCE:
Tenant shall not permit the leased premises to be used in any way
which would, in the opinion of Landlord, be extra hazardous on
account of fire or otherwise which would in any way increase or
render void the fire insurance on leasehold improvements or
contents in the building belonging to other tenants in the
building. If at any time during the term of this Lease the State
Board of Insurance or other insurance authority disallows any of
Landlord’s sprinkler credits or imposes an additional penalty
or surcharge in Landlord’s insurance premiums because of
Tenant’s original or subsequent placement or use of storage
racks or bins, method of storage or nature of Tenant’s
inventory or any other act of Tenant, Tenant agrees to pay as
additional rental the increase (between fire walls) in
Landlord’s insurance premiums. Tenant shall, during the
entire term hereof, keep in full force and effect a policy of
public liability and property damage insurance with respect to the
leased premises, and the business operated by Tenant and any
assignees or subtenants of Tenant in the premises in which the
limits of public liability for personal and bodily injury shall be
not less than $1,000,000 single limit and in which the property
damage liability shall be not less than $100,000. The policy shall
name both Landlord and Tenant as insureds, and shall contain a
clause that the insurer will not cancel or change the
insurance
without first
giving the Landlord thirty (30) days prior written notice. The
insurance shall be carried with companies reasonably satisfactory
to Landlord and a copy of the policy or a certificate of insurance
shall be delivered to Landlord. Tenant acknowledges that it is
solely responsible for maintaining insurance on its personal
property, fixtures, improvements and alterations, now or
hereinafter made to the leased premises or the building.
7. UTILITY
SERVICE: Landlord shall provide the normal utility service
connections into the leased premises. Tenant shall pay the cost of
all utility services, including, but not limited to, initial
connection charges, all charges for gas, water and electricity used
on the leased premises, and for all electric light lamps or tubes.
However, in a multi-occupancy building, Landlord may provide water
to the leased premises, in which case Tenant agrees to pay to
Landlord Tenant’s Share of the cost of such water unless
Tenant’s usage of the leased premises exceeds normal domestic
water consumption, in which event the cost shall be estimated as
appropriate for such excess consumption. Tenant shall pay all costs
caused by Tenant introducing excessive pollutants or solids other
than ordinary human waste into the sanitary sewer system, including
permits, fees and charges levied by any governmental subdivision
for any such pollutants or solids. Tenant shall be responsible for
the installation and maintenance of any dilution tanks, holding
tanks, settling tanks, sewer sampling devices, sand traps, grease
traps or similar devices as may be required by any governmental
subdivision for Tenant’s use of the sanitary sewer system. If
the leased premises are in a multi-occupancy building, Tenant shall
pay all surcharges levied due to Tenant’s use of sanitary
sewer or waste removal services insofar as such surcharges affect
Landlord or other tenants in the building. Landlord shall not be
required to pay for any utility services, supplies or upkeep in
connection with the leased premises. However, in the event the
utilities are not separated to the Premises, the Landlord shall pay
utility expense and Tenant shall reimburse Landlord for its pro
rata share, which is equal to 73.75% of the total 10,097 RSF space.
If the downstairs 2,650 RSF space is leased, the pro rate share
shall be adjusted accordingly.
8. RELOCATION:
In the event Landlord determines to utilize the leased premises for
other purposes during the term of this Lease, Tenant agrees to
relocate to other space in the building and/or project designated
by Landlord, provided such other space is of equal or larger size
than the leased premises. Landlord shall pay all out-of-pocket
expenses of any such relocation, including the expenses of moving
and reconstruction of all Tenant furnished and Landlord furnished
improvements. In the event of such relocation, this Lease shall
continue in full force and effect without any change in the terms
or other conditions, but with the new location substituted for the
old location set forth in paragraph 1 of this Lease.
9. REPAIRS
AND MAINTENANCE: (a) Unless otherwise expressly provided,
Landlord shall not be required to make any improvements,
replacement or repairs of any kind or character to the leased
premises during the term of this Lease except such repairs as are
set forth in this subparagraph. Landlord shall maintain only the
lawn and other landscaping, exterior painting, the roof, any
mechanical equipment which does not exclusively serve the Premises,
any utility lines which are concealed or which are not located
within and exclusively serve the Premises, HVAC replacement,
foundation, parking areas, and the structural soundness of the
exterior walls (excluding all windows, window glass, plate glass
and all doors) of the building in good repair and condition except
for acts of God, other casualties and reasonable wear and tear.
Landlord’s cost of maintaining the items set forth in this
subparagraph shall be included in Operating Expenses described in
Section 3. Tenant shall repair and pay for any damage caused
by the negligence or default of Tenant or Tenant’s agents and
employees. Tenant shall immediately give written notice to Landlord
of the need for repairs, which repairs shall be made by Landlord
beginning not more than fifteen (15) days after written notice
by Tenant. All requests for repairs or maintenance that are the
responsibility of Landlord pursuant to any provision of this Lease
must be made in writing to Landlord at the address set forth
below.
(b) Tenant
shall, at its own cost and expense, maintain the leased premises in
good repair and condition (including all necessary replacements).
Tenant shall take good care of all the property and its fixtures.
Should Tenant neglect to keep and maintain the leased premises,
then Landlord shall have the
4
right, but not
the obligation, to have the work done and the cost therefor shall
be charged to Tenant as additional rental which shall become
payable by Tenant with the payment of the rental next due
hereunder.
(c) Tenant
shall not allow any damage to be committed on any portion of the
leased premises, and at the termination of this Lease, by lapse of
time or otherwise, Tenant shall deliver the leased premises to
Landlord in good condition as existed at the commencement date or
completion date of this Lease, ordinary wear and tear excepted. The
cost and expense of any repairs necessary to restore the condition
of the leased premises shall be borne by Tenant, and if Landlord
undertakes to restore the leased premises it shall have a right of
reimbursement against Tenant.
(d) Landlord
shall not be liable to Tenant, except as expressly provided in this
Lease, for any damage, interruption of Tenant’s business or
inconvenience, and Tenant shall not be entitled to any abatement or
reduction of rent by reason of any repairs, alterations or
additions made by Landlord under this Lease.
10. COMPLIANCE
WITH LAWS, RULES AND REGULATIONS: Tenant, at Tenant’s
expense, shall comply with all laws, ordinances, orders, rules and
regulations of state, federal, municipal or other agencies or
bodies having jurisdiction relating to the use, condition and
occupancy of the leased premises. Tenant will comply with the rules
of the building and/or project adopted by Landlord which are set
forth on Exhibit “B”, Rules and Regulations, attached
to this Lease and made a part hereof. Landlord shall have the right
at all times to change the rules and regulations of the building or
to amend them in any reasonable manner as may be deemed advisable
for the safety, care and cleanliness, and for the preservation of
good order, of the leased premises. All changes and amendments in
the rules and regulations of the building will be sent by Landlord
to Tenant in writing and shall thereafter be carried out and
observed by Tenant.
11. LANDLORD
IMPROVEMENTS: If construction or repairs to the leased premises are
to be performed by Landlord prior to Tenant’s occupancy,
Landlord will, at its expense, commence and/or complete the
construction of the improvements constituting the leased premises,
including partitions, in accordance with the plans and
specifications agreed to by the parties and made a part of this
Lease as the attached Exhibit “C”, Landlord
Improvements. The plans and specifications shall be approved and
signed by the parties prior to the commencement of construction.
Any changes or modifications to the approved plans and
specifications shall be made and accepted by written change order
signed by Landlord and Tenant and shall constitute an amendment to
this Lease. Upon completion of the building and other improvements
in accordance with the plans and specifications, Tenant agrees to
execute and deliver promptly to Landlord a letter accepting
delivery of the leased premises. In addition, Landlord shall turn
over all mechanical equipment in good working order. Landlord shall
deliver and Tenant accepts the condition of the premises in its
present
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