Exhibit 10.7
INDEX TO WINSTON ROAD PROPERTIES
LEASE
TENANT: AMERICARE MEDICAL SERVICES,
INC.
|
|
|
|
|
|
|
|
|
|
|
Page
|
|
1.
|
|
Premises and
Term
|
|
1
|
|
|
|
|
|
2.
|
|
Rental
|
|
2
|
|
|
|
|
|
3.
|
|
Possession
|
|
2
|
|
|
|
|
|
4.
|
|
Use
|
|
2
|
|
|
|
|
|
5.
|
|
Acceptance of
Premises
|
|
2
|
|
|
|
|
|
6.
|
|
Tenant’s
Care
|
|
2
|
|
|
|
|
|
7.
|
|
Services
|
|
3
|
|
|
|
|
|
8.
|
|
Destruction or
Damage to Premises
|
|
6
|
|
|
|
|
|
9.
|
|
Default by
Tenant - Landlord’s Remedies
|
|
6
|
|
|
|
|
|
10.
|
|
Assignment and
Subletting
|
|
8
|
|
|
|
|
|
11.
|
|
Condemnation
|
|
8
|
|
|
|
|
|
12.
|
|
Inspections
|
|
8
|
|
|
|
|
|
13.
|
|
Subordination
|
|
8
|
|
|
|
|
|
14.
|
|
Indemnity and
Hold Harmless
|
|
8
|
|
|
|
|
|
15.
|
|
Tenant’s
Insurance and Waiver of Subrogation
|
|
9
|
|
|
|
|
|
16.
|
|
Rights of
Landlord
|
|
9
|
|
|
|
|
|
17.
|
|
Holding
over
|
|
9
|
|
|
|
|
|
18.
|
|
Entire
Agreement - No Waiver
|
|
9
|
|
|
|
|
|
19.
|
|
Headings
|
|
9
|
INDEX TO WINSTON ROAD PROPERTIES
LEASE
TENANT: AMERICARE MEDICAL SERVICES,
INC.
|
|
|
|
|
|
|
|
|
|
|
Page
|
|
20.
|
|
Notices
|
|
9
|
|
|
|
|
|
21.
|
|
Heirs and
Assigns - Parties
|
|
10
|
|
|
|
|
|
22.
|
|
Attorney
Fees
|
|
10
|
|
|
|
|
|
23.
|
|
No Estate in
Land
|
|
10
|
|
|
|
|
|
24.
|
|
Time of
Essence
|
|
11
|
|
|
|
|
|
25.
|
|
Parking
|
|
11
|
|
|
|
|
|
26.
|
|
Rules and
Regulations
|
|
11
|
|
|
|
|
|
27.
|
|
Special
Stipulations
|
|
12
|
Page 2
LEASE AGREEMENT
FOR
OFFICE FACILITIES
THIS LEASE is made this 27th day of
August 1992, between William M. Thomas and Robert C. Eldridge, Jr.,
and Park Med Properties, d/b/a Winston Road Properties of
Knoxville, Tennessee, herein called “Landlord,” whose
address is:
1900 Winston Road
Suite 100
Knoxville, Tennessee
37919
and Americare Medical Services, Inc.
of Knoxville, Tennessee, herein called “Tenant” whose
address is:
1900 Winston Road
Suite 300
Knoxville, Tennessee
37919
1. PREMISES AND TERM
Landlord hereby leases to Tenant and
Tenant hereby rents and leases from Landlord the following
described space, herein called “Premises”:
Square Feet: 9,744
Floor: 3rd
at the herein called
“Building”:
|
|
|
|
|
Building:
|
|
Winston Road
Properties
|
|
Address:
|
|
1900 Winston
Road
|
|
|
|
Knoxville,
Tennessee
|
|
District:
|
|
6th
|
|
County:
|
|
Knox
|
|
State:
|
|
Tennessee
|
The Premises being more particularly
shown and outlined on the floor plan attached hereto as Exhibit
“A” and made a part hereof, for a term to commence on
the 1st day of December 1992,
Page 1
and end at midnight on the 30th day of November
2002, such period being herein called “Term”. Unless
either party gives written notice of intent not to renew to the
other not less than ninety (90) days prior to the expiration
of the term, this lease will automatically renew for successive
terms of one (1) year each
2. RENTAL
(a) Tenant shall pay to Winston Road
Properties or at such other place as Landlord may designate in
writing, without demand, deduction or off-set, annual rental at the
rate of $63,336.00 (herein called “Base Rental”),
payable in equal monthly installments of $5,278.00 in advance on
the first day of each calendar month during the first twelve months
of the lease term. Beginning the thirteenth month, the unadjusted
(prior to annual percentage increase) annual Base Rent shall be
$102,312.00, payable in equal monthly installments of $8,526.00 in
advance on the first day of each calendar month during the balance
of the lease term.
(b) Base Rent Adjustment. The
monthly Base Rent shall be increased from tine-to-time as mutually
agreed upon by both tenant and landlord.
3. POSSESSION
Tenant will occupy Premises at the
beginning of the term.
4. USE
Tenant shall use and occupy Premises
as offices only. Tenant’s use of Premises shall not violate
any ordinance, law, or regulation of any governmental body or the
“Rules and Regulations” of Landlord herein provided
for. Tenant agrees to conduct its business in the manner and
according to the generally accepted business principles of the
business or profession in which Tenant is engaged.
5. ACCEPTANCE OF PREMISES
The taking of possession of Premises
by Tenant at commencement of Term shall be conclusive evidence as
against Tenant that Tenant accepts the same “as is” and
that said Premises and the building were in good and satisfactory
condition for the use intended at the time such possession was
taken.
6. TENANT’S CARE
(a) Tenant will, at Tenant’s
expense, take good care of Premises and the fixtures and
appurtenances therein, and will suffer no active or permissive
waste or injury thereof; and Tenant shall, at Tenant’s
expense, but under the direction of Landlord, promptly repair any
injury or damage to Premises or Building caused the misuse or
neglect thereof by Tenant, or by persons permitted on Premises by
Tenant, or Tenant moving in or out of Premises.
Page 2
(b) Tenant will not, without
Landlord’s written consent, make alterations, additions or
improvements in or about Premises and will not do anything to or on
the Premises which will increase the rate of fire insurance on the
Building. All alterations, additions or improvements of a permanent
nature made or installed by Tenant to the Premises shall become the
property of Landlord at the expiration of this lease, but Landlord
reserves the right to require Tenant to remove any improvements or
additions made to the Premises by Tenant, and repair and restore
Premises to their condition prior to such alteration, addition or
improvement. Tenant further agrees to do so prior to the expiration
of Term.
(c) No later than the last day of
Term, Tenant will remove all Tenant’s personal property and
repair all injury done by or in connection with installation or
removal of said property and surrender Premises (together with all
keys to Premises) in as good a condition as they were at the
beginning of Term, reasonable wear and damage by fire, the elements
or casualty excepted. All property of Tenant. remaining on Premises
after expiration of Term shall be deemed conclusively abandoned and
may be removed by Landlord and Tenant shall reimburse Landlord for
the cost of removing the same, subject however, to Landlord’s
right to require Tenant to remove any improvements or additions
made to Premises by Tenant pursuant to the preceding sub-paragraph
(b).
(d) In doing any work related to the
installation of Tenant’s furnishings, fixtures, or equipment
in the Premises, Tenant will use only contractors or workmen
approved by Landlord. Tenant shall promptly remove any lien for
material or labor claimed against Premises, by such contractors or
workmen if such claim should arise and hereby indemnifies and holds
Landlord harmless from and against any and all costs, expenses or
liabilities incurred by Landlord as a result of such
liens.
(e) Tenant shall not place nor
maintain any food or drink coin- operated or vending machine within
Premises or Building without the written consent of Landlord; such
consent shall not preclude Landlord from charging Tenant for
utility costs therefor under Paragraph 7(b).
(f) Tenant agrees that all personal
property brought into the Premises by Tenant, its employees,
licensees and invitees shall be at the sole risk of Tenant and
Landlord shall not be liable for theft thereof or of money
deposited therein or for any damages thereto; such theft or damage
being the sole responsibility of Tenant.
7. SERVICES
(a) Landlord shall furnish the
following services at his expense:
|
|
(i)
|
Elevator
service for passenger and delivery needs.
|
Page 3
|
|
(iii)
|
Public rest
rooms, including the furnishing of soap, paper towels, toilet
tissue and sanitary napkin machines.
|
|
|
(iv)
|
Janitorial
service, including sanitizing, dusting, cleaning, mopping,
vacuuming, and trash removal, each Monday through Friday plus floor
waxing and polishing, window washing, smudge removal, and vent and
blind cleaning as needed.
|
|
|
(v)
|
Electric power,
for small desk top types of machines, or handheld devices, such a
typewriters, adding machines and recording machines.
|
|
|
(vi)
|
Electric
lighting, at a level of at least 75 foot candles at desk height
except in corridor or storage areas, and including the replacement
of lamps and ballasts as needed.
|
|
|
(vii)
|
Repairs and
maintenance for maintaining in good order at all times, the
exterior walls, windows, doors, and roof of the building, public
corridors, stairs, elevators, storage rooms, and rest rooms, the
air conditioning, electrical, and plumbing systems of the Building,
and the walks, paving and landscaping surrounding the Building.
Tenant shall be responsible for damage, wear and tear to the
premises when caused by his usage and occupancy of the
Premises.
|
|
|
(viii)
|
Grounds care,
including the sweeping of walks and parking areas and the
maintenance of landscaping in an attractive manner.
|
|
|
(ix)
|
Property taxes,
as may be assessed against real estate by the state or
city.
|
|
|
(x)
|
Fire and
extended coverage insurance to protect the Landlord’s
interest in the property.
|
|
|
(xi)
|
General
management, including supervision, inspections, record keeping,
accounting, leasing, and related management functions.
|
(b) The services provided for in
Paragraph 7(a) herein, and the amount of the rental prescribed in
Paragraph 2(a) and 2(b) herein, are predicated on and are in
anticipation of certain usage of the Premises by Tenant as
follows:
Page 4
|
|
(i)
|
Services shall
be provided for, and the normal business hours of the Building
shall be from 8:00 a.m. to 6:00 p.m. on Mondays through Fridays,
except for national holidays.
|
|
|
(ii)
|
Air
conditioning design is based on sustained outside temperatures
being no higher than 95 degrees Fahrenheit and no lower than 10
degrees Fahrenheit with sustained occupancy of the Premises by no
more than one person per 75 square feet of floor area and heat
generated by electrical lighting and fixtures not to exceed 3.7
watts per square feet.
|
|
|
(iii)
|
For hours other
than normal business hours, heating of the Building shall be held
to a minimum temperature of approximately 60 degrees Fahrenheit and
cooling of the Building shall be held to a maximum temperature of
approximately 85 degrees Fahrenheit.
|
|
|
(iv)
|
Electric power
usage and consumption is based on lighting of the Premises during
normal business hours on an average level not to exceed 75 foot
candles at desk height, and power from small desk top type machines
and handheld devices using 110 volt 20-amp circuits. Such heavier
use items as electric heaters, bookkeeping machines, data
processing and duplicating equipment, stoves, refrigerators,
vending machines, and the like shall not be used or installed,
unless specified elsewhere herein, or by separate written consent
of Landlord.
|
|
|
(v)
|
If Tenant uses
services in an amount, or for a period in excess of that provided
for herein, then Landlord reserves the right to charge Tenant, as
additional rent, a reasonable sum as reimbursement for the direct
cost of such added services. In the event of disagreement as to the
reasonableness of such charge, the opinion of the appropriate local
utility company or an independent professional engineering firm
shall prevail.
|
(c) Landlord shall not be liable for
any damages directly or indirectly resulting from the installation,
use or interruption of use of any equipment in connection with the
furnishings of services by any cause beyond the immediate control
of the Landlord, but Landlord shall exercise due care in furnishing
adequate and uninterrupted services.
Page 5
8. DESTRUCTION OR DAMAGE TO
PREMISES
If the Premises are totally
destroyed (or so substantially damaged as to be untenantable) by
storm, fire, earthquake, or other casualty, rent shall abate from
the date of such damage or destruction and Landlord shall have 60
days to commence the restoration of the Premises to a tenantable
condition. In the event the Landlord fails to complete such
restoration within 120 days of such damage or destruction, this
lease may be terminated as of the date of such damage or
destruction upon written notice from either party to the other
given not more than 10 days following the expiration of said 120
days period. In the event such notice is not given, then this lease
shall remain in force and effect and rent shall commence upon
delivery of the Premises to Tenant in a tenantable condition. In
the event such damage or destruction occurs within one year from
the expiration of the term of this lease, Tenant may, at its option
or written notice to Landlord within thirty days of such
destruction or damage, terminate this lease as of the date of such
destruction or damage.
(a) If Premises are damaged but not
rendered wholly untenantable by any of the events set forth in the
paragraph above, rental shall abate in such proportion as Premises
have ben damaged and Landlord shall restore Premises as speedily as
practicable whereupon full rent shall commence.
(b) In no event shall rent abate if
the damage or destruction of the Premises whether total or partial,
is the result of the negligence of Tenant, its agents, or
employees.
9. DEFAULT BY TENENT -
LANDLORD’S REMEDIES
(a) If Tenant defaults for 30 days
after written notice, therein paying any and all rentals or
additional rentals reserved herein; or if Tenant defaults for 30
days after written notice thereof in performing any other of his
obligations hereunder; or if tenant is adjudicated a bankrupt, or
if a permanent receiver is appointed for Tenant’s property,
including Tenant’s interest in Premises, and such receiver is
not removed within 60 days after written notice from Landlord to
Tenant to obtain such removal, or if, whether voluntarily or
involuntarily, Tenant takes advantage of any debtor relief
proceedings under any present or future law, whereby the rent or
any part thereof deferred, or if Tenant makes an assignment for
benefits of Creditors; or if Premises or Tenant’s effects or
interest therein should be levied upon or attached under process
against Tenant, not satisfied or dissolved within 30 days after
written notice from Landlord to Tenant to obtain satisfaction
thereof, or if Premises shall be abandoned by tenant or become
vacant during the term hereof, then and in any of said Events,
Landlord at its option may at once, or within 6 months thereafter
(but only during continuance of such default or condition terminate
this lease by written notice to Tenant, whereupon this lease shall
end. After authorized assignment or subletting, the occurring of
any of the foregoing defaults or events shall affect this lease
only if caused by or happened to the assignee or sublessee. Upon
such termination by Landlord, Tenant must at once surrender
possession of Premises to Landlord and remove all of Tenant’s
effects therefrom, and Landlord may forthwith re-enter the
Premises
Page 6
and repossess itself thereof, and remove all
persons and effective therefrom, using such force as may be
necessary without being guilty or trespass, forcible entry or
detainer or other tort.
(b) Any installment of rent,
additional rent, or other sums herein required to be paid by Tenant
which is not paid when due, shall bear interest at the maximum
legal rate permissible in the State of Tennessee from the due date
until paid, as a late charge for the purpose of reimbursing
Landlord for expenses incurred by reason of such failure by Tenant
and not as penalty therefor.
(c) Landlord, as Tenant’s
agent, without termination of this lease, upon Tenant’s
default or breach of this Agreement, as set forth in subparagraph
(a) above, may at Landlord’s option, evidenced by
written notice to Tenant, terminate Tenant’s right to
possession and enter upon and rent Premises at the best price
obtainable by reasonable effort, without advertisement, and by
private negotiations and for any term Landlord deems proper. Tenant
shall, upon receipt of such notice, surrender possession of
Premises to Landlord and remove all of Tenant’s effects
therefrom, and Landlord may forthwith re-enter the Premises and
repossess itself thereof, and remove all persons and effects
therefrom, using such force as may be necessary without being
guilty of trespass, forcible entry or detainer or other tort.
Tenant shall be liable to Landlord for the deficiency, if any,
between the amount of all rent and additional rent reserved in this
lease and the net rent, if any, collected by Landlord in reletting
Premises, which deficiency shall be due and payable by Tenant on
the several days in which rent and additional rent reserved in the
lease would have been due and payable. Net rent shall be computed
by deducting from gross rents collected all expenses or costs of
whatsoever nature incurred by Landlord in reletting including, but
not limited to attorneys’ fees brokers’ commissions and
the cost of renovating or remodeling Premises.
(d) No termination of this lease
prior to the normal ending thereof by lapse of time or otherwise
shall affect Tenant’s obligation to pay and Landlord’s
right to