OFFICE /DISTRIBUTION BUILDING
LEASE
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THIS LEASE is made as of the 2 day
of May, 1997, by and between the LANDLORD and TENANT identified
below:
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1.
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INFORMATIONAL PROVISIONS AND
DEFINITIONS
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1.1.
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LANDLORD’S NAME & MAILING
ADDRESS:
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CORPORATE CENTER DEVELOPERS, a
Florida general partnership
4860 N.E. 12th Avenue
Fort Lauderdale FL 33334
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1.2.
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[ILLEGIBLE] NAME & MAILING
ADDRESS:
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Home Diagnostics, Inc.
2300 N.W. 55th court
Fort Lauderdale. FL 33309
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1.3.
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GUARANTOR(S)AND ADDRESS:
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1.4.
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BUILDING (Par. 10): As per Exhibit
“A”
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1.5.
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DEMISED PREMISES (Par. 10 and as per
Exhibit “A”) GROSS LEASABLE AREA
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(Par.
6.4)(Approx.) 72,522 leasable square feet, which includes office
space to be built out as per Exhibit “A”. Plans shall
be mutually agreed on between Landlord and Tenant.
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l.6.l. COMMENCEMENT DATE (Par. 3.1):
(Approx.) 1st day of March, 1998.
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l.6.2. INITIAL TERM (Par. 3.3): Ten
(10) Years (plus partial 1st month if applicable).
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l.6.3. RENEWAL TERM(S) (Par. 3.4):
TWO RENEWAL TERM(S) of five years each.
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1.7.
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TENANT PAYMENTS (Par. 4):
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l.7.l. MINIMUM RENT (Par.
5):
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LEASE
YEAR(S)
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BASE MONTHLY RENT
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Common Area (CAM)
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MONTHLY INSTALLMENTS
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$43.090.16
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$16.196.58
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$59.286.74
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$43.090.16
plus
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$16.196.58
plus
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$59.286.74 plus
annual CPI
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annual CPI
increase
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increase
per
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increase on
Base Rent and
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Para.
1.7.3.
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Actual on
Common Expenses.
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1.7.2. RENT FOR RENEWAL TERM(S)
(Par. 5): Market Rate
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1.7.3. Share of Common Expenses
(Par. 6) Common area expenses and real estate taxes are estimated
at $2.68 per square foot for year #1 of the Lease Term. Any
increases in operating expenses after year #1 of the Lease Term
shall be passed through to Tenant on a proportionate share
basis.
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*$
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62.843.94
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paid upon
execution of Lease.
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$
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62.843.94
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paid upon plan
approval, includes real estate taxes, base rent, CAM and sales
tax.
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$
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125.687.88
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*
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Landlord shall
credit Tenant with security deposit-currently being held on
existing lease between Home Diagnostics. Inc. and Corporate Center
Developers as a partial payment of security deposit on this
Lease.
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1.9.
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PERMITTED USE (Par. 11):
Office/Warehouse/Distribution
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1.10.
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EXHIBITS: The exhibits attached to
the Lease are hereby incorporated hereby and made a part
hereof.
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Addendum
Exhibit “A” - Floor Plan
Exhibit “B” - Rules and Regulations
2. LEASE
Landlord hereby leases the Demised Premises to Tenant, and Tenant
hereby leases the Demised Premises from Landlord, upon the terms
and conditions hereafter set forth.
3.1.
COMMENCEMENT DATE The Commencement Date of the Term will be
date Landlord delivers possession of the Demised Premises to Tenant
for Tenant’s sole and exclusive use. After the Commencement
Date, upon written demand by Landlord, Tenant agrees to execute and
deliver to Landlord a written document certifying the Commencement
Date of this Lease.
3.2. LEASE
YEAR A “Lease Year” shall mean and refer to a
period of 12 full calendar months. The first Lease Year shall
commence on the Commencement Date and shall terminate on the last
day of the month which is 12 full calendar months thereafter. The
last lease Year shall end on the expiration of the Term or earlier
terminations of this Lease.
3.3. INITIAL
TERM The Initial Term of this lease will be for the number of
Lease Years set forth in Paragraph 1.6.2, beginning on the
Commencement Date.
3.4. RENEWAL
TERMS Tenant is hereby given the right to the number of Renewal
Term(s) set forth in Paragraph 1.6.3, if any. Each Renewal
Term shall be for the number of years set forth in
Paragraph 1.6.3 after the expiration of the Initial Term or
the immediately preceding Renewal Term, if any. Tenant must
exercise its right to any Renewal Term granted to it by delivering
written notice of its election to exercise the Renewal Term to
landlord at least six months prior to the expiration of the Initial
Term or the then existing Renewal Term. However, it shall be a
condition to Tenant’s right to any Renewal Term that Tenant
not be in default when the Renewal Term is exercised or begins, and
if Tenant is in default, then Tenant shall forfeit its right to the
Renewal Term and any future Renewal Terms. All of the terms of this
Lease pertaining to the Initial Term, except for the amount of
Rent, shall automatically apply to any Renewal Term.
3.5. TERM
The “Term” of this Lease shall mean and refer to the
Initial Term, and any Renewal Term(s) which are provided to and
property exercised by Tenant, as hereinabove described.
4. TENANT
PAYMENTS Throughout the Term, Tenant agrees to pay to Landlord,
without any prior demand required therefor and without any setoffs
or deductions whatsoever, the “Tenant Payments,” as
provided in this Lease, which shall include the Rent. Common
Expense Contribution, all applicable sales and use taxes, and any
other monies which pursuant to the terms of this Lease are to be
paid to Landlord by Tenant. If any Tenant Payment is not received
by Landlord when it is due. Landlord shall have the right to charge
Tenant a late fee equal to the greater of $25.00 or 3% of the
Tenant Payment, plus interest at the highest lawful rate from and
after the due date of the Tenant Payment until received by
Landlord, which late fee and interest shall be paid by Tenant
within ten (10) days after written demand by Landlord as an
additional Tenant Payment. Any Tenant Payment which is paid by
check will be subject to clearance, and if such check is not
honored it shall be deemed as if never paid by Landlord.
¿
5. RENT
Throughout the Term. Tenant agrees to pay Landlord the Rent. All
Rent shall be paid to Landlord in equal monthly installments, in
advance, plus applicable sales and use taxes, on the first day of
each and every calendar month throughout the Term. In the event the
Commencement Date is other than the first day of a calendar month,
the Rent installment for the remaining portion of the calendar
month in which the Commencement Date falls shall be prorated on the
basis of a thirty (30) day month and shall be paid on the
Commencement Date. The Rent for each Lease Year of the Term will be
that set forth in Paragraph 1.7.1 and 1.7.2 for the Lease
Year. If no specific amount of Rent is set forth for any Lease
Year(s) indicated in Paragraph 1.7.1 and 1.7.2, or if instead
of a set amount of Rent the initials “C.P.I.” or a
similar phrase or initials referring to a Consumer Price Index
adjustment are inserted, then the Rent applicable to such Lease
Year(s) shall be equal to the Rent applicable during the first
Lease Year of the Term increased by the percentage increase in the
Consumer Price Index as of three (3) months prior to the beginning
of the Lease Year(s) for which the Consumer Price Index adjustment
is to be made, as compared to the Consumer Price Index as of three
(3) months prior to the Commencement Date. For these purposes,
the Consumer Price Index to be utilized shall be that published by
the Bureau of Labor Statistics of the U.S. Department of Labor,
using the U.S. City Average, all Urban Consumers (1967 - 100). This
Consumer Price Index adjustment shall be made for each Lease Year
or group of Lease Years which are separately set forth in
Paragraph 1.7.1 for which the adjustment is to be made as
above determined. In the event the Consumer Price Index referred to
above is no longer published, then a comparable index which
measures inflationary factors, and the corresponding decrease in
the purchasing power of the U.S. Dollar, shall be selected by
Landlord and the Consumer Price Index adjustments shall be based
upon such index. If a Consumer Price Index adjustment is to be made
for any Lease Year(s), then Landlord shall notify Tenant in writing
of the amount of the increased Rent for such Lease Year(s), and if
Landlord fails to so notify Tenant prior to the commencement of
such Lease Year. Tenant shall continue paying the previously
applicable Rent installments until such time as Tenant is notified
in writing of the appropriate increase
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in the Rent,
and within thirty (30) days thereafter Tenant shall pay
Landlord any deficiency in the Rent installments paid by Tenant
prior to such notification. Notwithstanding the foregoing, in no
event shall the Rent for any Lease Year for which a Consumer Price
Index adjustment is applicable be less than the Rent for the
immediately preceding Lease Year. In addition, and notwithstanding
the foregoing, if Tenant exercises its right to any Renewal Term,
Landlord reserves the right, by written notice to Tenant prior to
the beginning of the Renewal Term, to increase the Rent during the
Renewal Term to the prevailing Rent then being charged by Landlord
for similar space, and in that event any Consumer Price Index
increases for subsequent Lease Years will be based upon the
percentage increase in the Consumer Price Index as of three months
prior to the beginning of the Lease Year, as compared to the
Consumer Price Index as of three months prior to the beginning of
the Renewal Term.
6. COMMON
EXPENSE CONTRIBUTION
6.1. COMMON
EXPENSE CONTRIBUTION As an additional Tenant Payment, Tenant
shall pay to Landlord a Common Expense Contribution, which shall be
a share of such excess Common Expenses, as hereafter determined.
The “Common Expenses” include all costs and expenses
incurred by Landlord in connection with the ownership, operation,
maintenance and management of the Building, and in providing
services to the tenants of the Building including, but not limited
to the following:
6.1.1.
Landlord’s insurance including, but not limited to,
liability, casualty, rent loss, workman’s compensation, and
flood insurance.
6.1.2.
Cleaning, maintaining, repairing, replacing, and painting of the
entire Building (except the portions of the Building to be
maintained by the tenants of the Building) and all equipment
serving the Building.
6.1.3.
All utilities for the Building and the cost of maintaining and
repairing all utility lines and services, except for utilities for
the Demised Premises paid directly by Tenant.
6.1.4.
The amortized cost of equipment and personal property of Landlord
used in connection with the maintenance and operation of the
Building and rent paid for leasing any such equipment and personal
property, and the amortized cost of installation of capital
investment items which are primarily for the purpose of reducing
(or avoiding increases in) operating costs or which may be required
by governmental authority. All such costs shall be amortized over
the reasonable life of the capital investment items with the
reasonable life and amortization schedule being determined in
accordance with generally accepted accounting principles and in no
event to extend beyond the reasonable life of the
Building.
6.1.5.
The wages and salaries of all employees engaged in the direct
operation and maintenance of the Building, including all taxes,
insurance and other expenses or benefits relating to such
employees.
6.1.6.
All supplies and materials used in the operation and maintenance of
the Building.
6.1.7.
Legal, accounting and management fees and expenses incurred with
respect to the Building.
6.1.8.
All costs incurred in complying with any controlling governmental
requirements.
There shall be
excluded from the foregoing Common Expenses only the following: the
costs of initially constructing the Building: principal and/or
interest payments made on any mortgage encumbering the Building:
expenses which are for capital improvements and capital expenses as
determined by Landlord’s accountant pursuant to generally
accepted accounting principles and depreciation of the improvements
constituting the Building, except pursuant to Paragraph 6.1.5.
above: real estate broker’s commissions for leasing portions
of the Building: and costs or expenses necessitated by the acts of
any tenant, or any employee, agent or invitee of any tenant, to the
extent Landlord is able to collect such costs and expenses from the
responsible tenant. The foregoing list of Common Expenses shall not
be deemed to impose any requirement that Landlord incur such
expenses or provide such services to or on behalf of Tenant or in
connection with the operation and maintenance of the
Building.
6.2. Amount
Payable Tenant’s Common Expense Contribution shall be
paid to Landlord monthly. On the first day of each and every
calendar month throughout the Term, plus applicable sales taxes, on
the basis of Landlord’s good faith estimate of the Common
Expenses, which may be revised by Landlord from time to time and at
any time, by written notice to Tenant at least ten (10) days
prior to the due date of the next Common Expense Contribution. If
the Commencement Date or the termination date of this Lease is a
day other than the first day of a calendar month, the Common
Expense Contribution payable by Tenant for the month in which the
Commencement Date or termination date falls shall be appropriately
prorated.
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6.3.
Statements After the end of each calendar year. Landlord
shall prepare and deliver to Tenant a statement of all Common
Expenses actually incurred by Landlord for the prior calendar year.
If the statement reflects Tenant underpaid its share of the actual
Common Expenses for the calendar year, then within thirty
(30) days after delivery of the statement Tenant shall pay any
deficiency, and if the statement reflects that Tenant overpaid its
share of actual Common Expenses for the calendar year, then within
thirty (30) days after delivery of the statement Landlord
shall refund the excess to Tenant or, at Landlord’s option,
direct Tenant to deduct such excess from future Common Expense
Contributions payable by Tenant. If this Lease commences or
terminates in the middle of a calendar year. Tenant’s share
of all Common Expenses for such calendar year shall be prorated
based upon the number of days in the calendar year after the
Commencement Date, or prior to the termination date, and without
regard to when any particular Common Expense was actually incurred
during the calendar year. If this Lease terminates in the middle of
a calendar year, then as soon as Landlord is able to determine
Tenant’s actual share of Common Expenses for the portion of
the year prior to the termination of this Lease. Landlord shall
refund to Tenant or apply against any other monies owed to Landlord
any excess amount paid by Tenant.
6.4.
Determination of Tenant’s Responsibility
Tenant’s share of the Common Expenses shall be equal to the
ratio that the Gross Leasable Area of the Demised Premises bears to
the entire Gross Leasable Area of the Building. The Gross Leasable
Area of the Demised Premises, or any other Demised Premises within
the Building, shall be the square feet of area within such Demised
Premises plus a pro rata share of the Common Areas of the Building
as determined by Landlord. Based upon the foregoing, Tenant’s
initial share of the Common Expenses is set forth in
Paragraph 1.7.3., but that share is subject to change upon
written notice by Landlord based on the aforementioned
formula.
7.1 Taxes and
Assessments Tenant shall be responsible for all real estate
taxes, and for assessments charged by any governmental authority,
or condominium or property owner’s association, against the
Demised Premises during the Term. Such taxes and assessments for
the first and last Lease Year will be prorated as of the
commencement and termination dates of this Lease, preceding the
Commencement Date and that portion of the year following the
termination date. Landlord will forward to Tenant all tax bills
which Tenant is required to pay and Tenant shall give Landlord
evidence that the tax bills were paid no later than 30 days
prior to the final date by which said taxes may be paid without
becoming delinquent or in jeopardy or subject to penalty. In the
alternative, Landlord may require Tenant to pay the amount of such
taxes and assessments to Landlord, and as regards real estate
taxes. Landlord may require Tenant to pay each month one twelfth
(1/12) of the estimated taxes for the Demised Premises, and after
the tax bill is issued Tenant shall pay any deficiency or Landlord
shall refund to Tenant any excess taxes paid by Tenant.
Notwithstanding the foregoing, in the event the taxes or
assessments for the Demised Premises are assessed against the
Building and are not separately assessed against the Demised
Premises, then Landlord may include such taxes and assessments as
part of Common Expenses.
7.2. Personal
Property Taxes Tenant shall pay, prior to delinquency, all
taxes assessed or levied upon its business operation, and upon its
leasehold interest, trade fixtures, furnishings, equipment, and
personal property of any kind owned, installed or used by Tenant
in, on or upon the Demised Premises, and all alterations, change
and additions thereto.
7.3. Sales
Tax Tenant, and not Landlord, shall pay, when due and payable,
the Florida State Sales Tax and any other sales or excise tax or
assessment now or hereafter levied or assessed upon or against
Tenant’s or Landlord’s interest in the Tenant Payments
to be paid under this Lease.
8.1.
Responsibility Tenant shall be responsible for obtaining,
maintaining and paying for telephone and electrical utility service
for the Demised Premises. Water and sewer service, and trash
removal service, will be provided by Landlord as part of the Common
Expenses. However, if Landlord determines in its sole discretion
that Tenant uses more water and sewer service, or trash removal
service than the other tenants of the Building. Landlord reserves
the right to separately charge Tenant for such services, and
reserves the right to charge Tenant for special trash removal
service which may be required at any time if Tenant throws out
unusual or extraordinary amounts of trash.
8.2. Landlord
shall not be liable for any disruption of any of the above
referenced utility or other services for reasons beyond the control
of Landlord.
9. RENT
DEPOSIT Tenant has deposited with Landlord a security deposit
(the “Deposit”) as set forth in Paragraph 1.8. The
foregoing Deposit will be held by Landlord, without liability for
interest, as security for the full and faithful performance by
Tenant of each and every term, covenant and condition of this Lease
on the part of Tenant to be observed and performed. If Tenant fails
to perform any of the terms of this Lease, then Landlord may, at
its option, and without prejudice to any other remedy
which
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Landlord may
have on account thereof, appropriate and apply the entire Deposit,
and any other monies of Tenant held by Landlord, or so much thereof
as may be necessary to compensate Landlord toward the payment of
any Tenant Payment then due from Tenant, or toward any loss, damage
or expense sustained by Landlord resulting from such default on the
part of Tenant, and in such event. Tenant shall forthwith, upon
demand by Landlord, restore the Deposit to its original sum. In the
event Tenant shall fully and faithfully comply with all of the
terms, covenants and conditions of this lease and promptly pay all
Tenant Payments as they fall due, the Deposit will be returned to
Tenant promptly after the expiration of the Term and after Tenant
vacates the Demised Premises, as herein required.
10. DEMISED
PREMISES The “Demised Premises” constitute a
portion of the office building constructed or to be constructed
upon the property described in exhibit “A” attached
hereto, which portion is identified on the floor plans attached to
Exhibit “A” and is identified in Paragraph 1.5. As
used in this Lease, the term “Building” means and
refers to the office building, and all of the Common Areas as
described in Paragraph 12 and in addition in the event the
office building is part of a condominium which includes other
buildings, then the term “Building” shall mean and
refer to all of the buildings within the condominium. The
boundaries of the Demised Premises are the interior unfinished
surface of the structural ceiling, the interior unfinished surface
of the floor, the center of interior walls and the unfinished
outside surface of exterior walls. Tenant’s right to the use
of the Demised Premises shall be subject to the rights of Landlord
to install, maintain, use, repair and replace pipes, duct work,
conduits, utility lines and wires through hung ceiling space,
column space and partitions in or beneath the floor slab or above
or below the Demised Premises and serving the Demised Premises or
other parts of the Building.
11. USE OF
PREMISES Tenant shall use the Demised Premises solely for the
purpose specified in Paragraph 1.9. and shall not use or
permit the Demised Premises to be used for any other purpose or
purposes without the prior written consent of Landlord, which
consent may be granted or withheld in Landlord’s sole
discretion.
12.1. The
“Common Areas” (as initially constructed or as the same
may at any time thereafter be enlarged or reduced) shall mean all
areas, space, facilities, equipment, signs and special services
from time to time made available by Landlord for the common and
joint use and benefit of Landlord, Tenant and other tenants and
occupants of the Building, and their respective employees, agents,
subtenants, licensees, customers and invitees.
12.2. Use of
Common Areas Tenant and its employees and invitees are, except
as otherwise specifically provided in this Lease, authorized and
privileged during the Term to use the Common Areas for their
respective intended purposes in common with other
persons.
12.3. Changes
by Landlord Landlord shall have the right to determine the
nature and extent of the Common Areas, and to make such additions,
alterations, changes or deletions to the Common Areas as Landlord
may determine from time to time or which may be required by any
governmental authority.
12.4.
Parking Landlord reserves the right to assign particular
parking spaces to any tenant, and in that event if Tenant, its
employees, guests and invitees part their vehicles in any parking
space assigned to any other tenant. Landlord shall have the right
to tow such vehicles at the expense of Tenant.
13. RIGHTS
RESERVED TO LANDLORD Landlord reserves the following rights
with respect to the Demised Premises and the Building:
13.1. Constantly
to have keys to the Demised Premises, and Tenant shall not change
the door locks on the entrance doors into or on any doors within
the Demised Premises, or add any locks to such doors, without the
prior written consent of Landlord.
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13.2. Upon notice
to Tenant (except in situations of emergency where no notice shall
be required), to enter the Demised Premises for inspections,
repairs, alterations or additions to the Demised Premises, or when
such entry is required in connection with the inspection, repair,
alteration or addition to other portions of the
Building.
13.3. Upon notice
to Tenant to exhibit the Demised Premises to others.
13.4. To enter the
Demised Premises for any purpose whatsoever related to the safety,
protection, preservation or improvement of the Demised Premises or
the Building without being deemed guilty of an eviction or
disturbance of Tenant’s use and possession and without being
liable in any manner to Tenant.
14. RULES
AND REGULATIONS Tenant agrees that Landlord may establish and
amend from time to time reasonable Rules and Regulations regarding
the use, operation and maintenance of the various demised premises
and the Common Areas, and Tenant covenants to abide by all such
Rules and Regulations that shall be now or hereafter in effect from
time to time. The present Rules and Regulations are attached hereto
in Exhibit “B”.
15.
SIGNS No signs, symbols or identifying marks shall be placed
upon the Common Areas, or upon the windows or the exterior of the
doors or walls of the Demised Premises, without the prior written
consent of Landlord. Landlord agrees to provide and install, at
Tenant’s cost, a building standard identification sign for
Tenant on the exterior of the Demised Premises.
16. REPAIRS
AND ALTERATIONS OF DEMISED PREMISES
16.1.
Landlord’s Obligations Subject to the provisions of
those paragraphs dealing with destruction and condemnation,
Landlord shall not be required to make any repairs of any kind or
nature to the Demised Premises, except for necessary repairs to the
slab floor (but not any floor covering) and structural roof or
ceiling thereof (but not any hung or decorative ceiling or light
fixtures), and structural repairs to the building of which the
Demised Premises forms a part, unless the necessity for any of such
repairs to the slab floor, roof or structure shall have been
occasioned by any act, omission or negligence of Tenant, or any
subtenant, or licensee of Tenant, or their respective employees,
agents, customers, invitees or contractors, or is otherwise caused
by Tenant, in which event Tenant agrees to forthwith make any such
repairs, at Tenant’s cost and expense. In any event, Landlord
will not be required to make any repair unless and until a
reasonable time after Tenant gives Landlord written notice of the
necessity for the repair.
16.2.
Tenant’s Obligations Subject to the provision of those
paragraphs dealing with destruction and condemnation and the
preceding subparagraph, Tenant agrees, at Tenant’s own cost
and expense, to keep and maintain the Demised Premises and each and
every part thereof in good order and condition and to make all
repairs thereto, including but not limited to the exterior doors
and door frames, windows and window frames, all of Tenant’s
signs, and the lighting, electrical, plumbing, sewage, sprinkler
and alarm systems, air conditioning and heating systems, equipment,
fixtures and facilities exclusively serving the Demised Premises
(including such as are installed or located outside of the Demised
Premises and which exclusively serve the Demised
Premises).
16.3.
Landlord’s Approval for Repairs Tenant agrees to make
no alterations, changes, improvements, repairs, replacements or
additions to the Demised Premises which would materially alter the
Demised Premises, or the appearance thereof from that previously
approved by Landlord, nor to install any additional equipment
therein (other than trade fixtures, and equipment which does not
overburden the standard electrical service for the Demised
Premises, removable without material damage to the Demises
Premises) without, in each instance, obtaining the Landlord’s
prior written approval. As a condition to Landlord granting its
approval, Landlord may require Tenant to supply Landlord with plans
and specifications for such work, and in that event the work shall
be made in accordance with plans and specifications approved by
Landlord. All work shall be performed in a work man like manner by
duly licensed contractors approved by Landlord, in compliance with
all controlling laws, ordinances, orders, rules, regulations, and
other requirements of all controlling government authorities and,
where applicable. Tenant shall be required to obtain all necessary
governmental permits and authorizations prior to commencing any
work.
17.1.
Tenant’s Insurance Tenant agrees to secure and keep in
force from and after the date Landlord shall deliver possession of
the Demised Premises to Tenant and throughout the Term, at
Tenant’s own cost and expense, comprehensive general
liability insurance with a limit of not less than $500,000.00 for
injury or death to any person and $1,000,000.00 for any single
occurrence, and with a limit of not less than $100,000.00 for
property damage, occurring upon, in or about the Demised Premises,
including water damage and sprinkler leakage legal liability if
sprinklers are installed within the Demised
6
Premises, or
such greater amounts as may be reasonably required by Landlord from
time to time in accordance with industry standards. Landlord shall
be named as an additional insured on the insurance policy. The
original policy or a certificate thereof shall be delivered to
Landlord prior to Tenant’s possession of the Demised
Premises, and within 30 days prior to the expiration of such
policy, and as often as any such policy shall expire or terminate,
a renewal or replacement policy shall be procured and maintained by
Tenant. Tenant’s insurance policy shall contain a provision
that the insurer will give Landlord at least 30 days’
written notice prior to canceling, terminating, or reducing the
amount of Tenant’s insurance.
17.2.
Landlord’s Insurance Landlord shall maintain
comprehensive general liability insurance, casualty insurance, rent
insurance, and such other insurance as landlord may deem reasonably
necessary or desirable to protect it against loss with respect to
the Building or to protect it against claims which may arise out of
the operation of the Building. Tenant shall have no rights in any
policy or policies maintained by Landlord and shall not be entitled
to be a named insured thereunder.
18.1. If the
Demised Premise, or any portion of the Building shall be damaged or
destroyed by fire or other casualty Landlord shall, except as
otherwise provided herein, repair and restore the same to
substantially the same condition thereof existing immediately prior
to such damage or destruction, or to the condition thereof existing
as of the Commencement Date, in Landlord’s discretion. If by
reason of such occurrence:
18.1.1.
The Building is damaged in whole or in part as a result of a risk
which is not covered by Landlord’s insurance policies, or is
damaged to such an extent that rebuilding or restoring the Building
is not feasible in Landlord’s discretion: or
18.1.2.
The Demised Premises is damaged in whole or in part during the last
year of the Term: or
18.1.3.
The Building containing the Demised Premises is damaged to such an
extent that the Building cannot in the sole but reasonable judgment
of Landlord be operated as an integral unit:
Then or in any
such events, Landlord may elect either to repair the damage as
aforesaid, or to terminate this Lease by written notice of
termination to Tenant, within one hundred twenty (120) days after
the date of such occurrence, and thereupon this Lease shall cease
and terminate with the same force and effect as though the date of
Landlord’s notice was the date herein fixed for the
termination of this Lease and Tenant shall vacate and surrender the
Demised Premises to Landlord. Upon the termination of this Lease as
aforesaid. Tenant’s liability for all Tenant Payments
reserved hereunder shall cease as of the effective date of the
termination of this Lease, subject, however, to the provisions for
the prior abatement hereinafter set forth. Unless this Lease is
terminated by Landlord as aforesaid, this Lease shall remain in
full force and effect.
18.2. If by reason
of fire or ot
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