OFFICE LEASE
This
Office Lease ("Lease") made on February
15, 2006, by and between VSI
REAL ESTATE
HOLDING, INC., a Florida corporation (hereinafter
referred to as
"Landlord"), and
VIASYS SERVICES, INC., a Florida corporation
(hereinafter
referred to
as "Tenant").
WITNESSETH:
ARTICLE 1
DEMISED PREMISES AND TERM
Landlord does
hereby demise and lease to Tenant, and Tenant
accepts all
lease space ("Premises") in the building known as
______________________________
("Building"), located
at 7750 Professional Place, in Tampa, Florida
("Property"), upon
real property more particularly described in SCHEDULE A
annexed hereto and hereby made a part hereof (the "Land"), for a
term commencing
on the 15th day of
February, 2006, and ending on the 14th day of February, 2007
("Term"), unless sooner terminated as provided herein, subject to
the agreements
herein contained.
ARTICLE 2
BASE RENT
Tenant shall
pay to Landlord at the office of
Landlord, or at such other
place as Landlord may designate, the annual "Base Rent"
of One Hundred Fifty
Thousand and
NO/100 Dollars ($150,000.00) in equal monthly installments of
Twelve Thousand Five
Hundred and NO/100 Dollars ($12,500.00) each in advance on
the first day of each and every calendar month during
the Term. If the Term
commences on
a day other than the first day of a
calendar month, or ends on a
day other than the last day of a calendar month, then
the Base Rent for such
fractional month
shall be prorated on the basis of
1/365th of the annual Base
Rent for each day of such fractional month.
Base Rent shall be payable without
any prior demand therefor and without any deductions or setoffs
whatsoever.
ARTICLE 3
RENT ADJUSTMENTS
Landlord and Tenant agree that the following rent adjustments shall
be made
with respect
to each calendar year of the Term, or
portion thereof, including
the calendar
year in which the
Lease terminates, beginning with the Base Year,
which Base
Year shall be the calendar year 2006.
A.
Tenant shall
pay to Landlord an amount equal to the amount of
Ownership Taxes
due and payable or paid in any calendar year by
Landlord,
beginning with
the Base Year. Tenant's -
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Proportionate Share
of such Ownership Taxes is agreed to be 100%.
"Ownership Taxes"
shall mean all taxes of every kind and nature which
Landlord shall
pay in respect of a calendar year,
because of or in connection
with the ownership, leasing, and operation of the Building and
the Property,
subject to
the following:
(1)
The amount
of ad valorem real and personal property
taxes
against Landlord's
real and personal property to be included in Ownership Taxes
shall be the amount
shown by the latest available tax bills required to be paid
in the calendar year in respect of which
Ownership Taxes are being determined.
The amount of any tax refunds shall be deducted from Ownership
Taxes in the year
they are received by Landlord;
(2)
The amount
of special taxes or special assessments to be
included shall be
limited to the amount of the installments (plus any interest,
other than
penalty interest, payable thereon) of such special
tax or special
assessment required
to be paid during the calendar year in
respect of which
Ownership Taxes
are being determined;
(3)
The amount
of any tax or excise levied by the State of
Florida, the City of Tampa, or any political subdivision of either,
or any other
taxing body, on rents or other income from the Property to be
included shall not
be greater than the
amount which would have been payable on account of such tax
or excise by Landlord during the calendar year in
respect of which Ownership
Taxes are being determined, had the income received by Landlord from the
Building [excluding
amounts payable under
this subparagraph (3)] been the sole
taxable income
of Landlord for such calendar year;
(4)
Ownership Taxes
shall also include and
transfer taxes, stamp
taxes or other taxes charged or levied upon this Lease or relating
to this Lease
transaction;
(5)
Ownership Taxes shall also include Landlord's reasonable costs
and expenses
(including reasonable attorney's fees) in contesting or
attempting
to reduce any Ownership Taxes; and
(6)
There shall be
excluded from Ownership Taxes all income taxes
[except those
that may be included
pursuant to subparagraph (3) above], excess
profits taxes,
franchise,
capital stock and inheritance or estate taxes.
B.
Tenant shall
pay to Landlord an amount equal to Tenant's
Proportionate Share
of all Operating
Expenses for any calendar year, beginning
with the Base Year. Tenant's Proportionate
Share of such Operating Expenses is
agreed to be 100%.
"Operating Expenses"
shall mean all expenses, costs, and
disbursements
(other than Ownership Taxes) of every kind and nature that Landlord
shall pay or
become obligated
to pay in respect of a calendar year, because of or in
connection with the ownership, management, maintenance, repair, and
operation of
the Building
and the Property, except the following:
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(1)
Costs of alterations of other tenant spaces, if any;
(2)
Costs of capital improvements, except for such costs,
including interest
thereon, as are reasonably amortized and determined by
Landlord, where
one of the purposes of
such capital improvements was to reduce
Operating
Expenses;
(3)
Depreciation, interest and principal payments on mortgages and
other debt
costs, if any; and
(4)
Real estate
brokers' leasing commissions or compensation.
In
the event the Building is not fully occupied during the Base Year
or any
succeeding calendar year, the variable Operating Expenses for that
year shall be
equitably adjusted to reflect the Operating Expenses as though the
Building were
fully occupied.
C.
Tenant shall
pay to Landlord an amount equal to Tenant's
Proportionate Share
of all Insurance Expenses incurred by Landlord for any
calendar year,
beginning with the Base Year. Tenant's
Proportionate Share of
such Insurance
Expenses agreed to be 100%.
"Insurance Expenses"
shall mean all premiums, costs and disbursements that
Landlord shall
pay or become obligated to pay in respect
of a calendar year,
because of
or in connection with
the insurance relating to the Building and/or
the Property,
including, without limitation, all liability insurance carried
by
Landlord and extended
coverage insurance insuring the Building against fire and
such other risks as Landlord may decide to insure from time to
time, at its sole
discretion.
D.
In
order to provide for current payments on account of
Ownership
Taxes, Operating
Expenses and Insurance Expenses payable in the Base Year,
Tenant agrees,
at Landlord's request, to pay as additional rent Tenant's
Proportionate Share
due for the ensuing
calendar year as estimated by Landlord
from time to time, in
twelve (12) monthly installments, each in an amount equal
to one-twelfth (1/12th) of Tenant's Proportionate Share so
estimated by Landlord
commencing on
the first day of the
month following the month in which Landlord
notifies Tenant
of the amount of such estimated
Tenant's Proportionate Share.
If, as finally determined (whether in the
succeeding calendar year at the time
of delivery
of the annual report provided for in
subparagraph E hereof, or in
the current
calendar year when the final amount of any portion of
Ownership
Taxes becomes
known to Landlord), Tenant's Proportionate Share of
Operating
Expenses, Ownership
Taxes or Insurance Expenses shall be
greater than or less
than the aggregate of all installments so
paid on account to Landlord prior to
receipt of
an invoice from Landlord, then Tenant
upon receipt of such invoice
shall pay to Landlord
the amount of such underpayment, or Landlord shall credit
Tenant for
the amount of such overpayment, as the case may be. It is the
intention hereunder
to estimate the amount of Ownership Taxes, Operating
Expenses and
Insurance Expenses from time to time for each year and
then to
adjust such
estimate from time to time based on actual Ownership Taxes,
Operating Expenses
and Insurance Expenses incurred or paid by Landlord.
(E)
Landlord agrees
to keep books and records showing the
Operating
Expenses in
accordance
with a system of accounts and accounting
practices
consistently
maintained on
a year-
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to-year basis
in compliance with such provisions of this Lease
as may affect
such accounts.
Landlord shall
deliver to Tenant after the close of each calendar
year
(including the
calendar year in which this Lease terminates) a report signed
by
an officer
or agent of Landlord. The report shall contain the following:
(1)
The officer's or
agent's statement that the books and records
covering the
operation of the
Building have been maintained in accordance with
the requirements
in this subparagraph (E);
(2)
The amount
by which the Operating
Expenses for such calendar
year exceed
the Operating Expenses for the Base year; and
(3) The amount of Ownership Taxes and
Insurance Expenses for such
calendar year.
In
the event any rent
adjustment results in a net increase in the rent due
Landlord, Tenant
shall, and agrees to, pay to Landlord
immediately following
Tenant's receipt of an
invoice from time to time by Landlord an amount equal to
such rent adjustment for such prior calendar year or portion thereof.
F.
The
obligation
of Tenant with respect
to the payment of Base
Rent
and rent adjustments
due hereunder shall survive the termination of this Lease.
Any payment,
refund, or credit made pursuant to this Section shall be
made
without prejudice to
any right of Tenant to dispute, or of Landlord to correct,
any items as billed pursuant to the
provisions hereof. In the event this Lease
shall have
been in effect for less than the full calendar year
immediately
preceding Tenant's receipt of the invoices provided for in
subparagraphs D and E
hereof, the
rent adjustment shall be prorated. In no event shall any rent
adjustment result
in a decrease in the Base Rent hereunder.
ARTICLE 4
USE
Tenant shall
use and occupy the Premises for
general office purposes and
for no other purpose whatsoever. Tenant shall not use or permit upon the
Premises anything
that will invalidate any policies of insurance now or
hereafter carried
on the Building, or
that will increase the rate of insurance
on the Premises or on the Building. Tenant will pay all extra
insurance premiums
that may be caused by the use Tenant shall make of the Premises.
Tenant will not
use or permit upon the
Premises anything that may be dangerous to life or limb.
Tenant will not in any
manner deface or injure the Building or any part thereof
or overload
the floors of the Premises. Tenant
will not do anything or permit
anything to
be done upon the
Premises in any way tending to create a nuisance,
or tending
to disturb any other tenant in the Building or the
occupants of
neighboring property,
or tending to injure the reputation of the
Building.
Tenant will
comply with all governmental, health, and
police requirements and
regulations respecting
the Premises. Tenant will not use the Premises
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for lodging
or sleeping purposes or for immoral or illegal
purposes. Tenant
shall not conduct nor permit to be conducted
on the Premises any business that
is contrary
to any of the laws of
the United States of America or of the State
of Florida
or that is contrary to the ordinances
of the City of Tampa. Tenant
shall not at any time manufacture, sell, use, or give away, and
shall not at any
time permit
the manufacture, sale, use, or gift of
any spirituous, fermented,
intoxicating, or
alcoholic liquors or controlled substances on the
Premises.
Tenant shall
not at any time sell,
purchase, or give away, or permit the sale,
purchase, or
gift of, food in any form on the Premises.
ARTICLE 5
SERVICES
Landlord shall provide, at Landlord's expense, except as otherwise
provided
and subject
to applicable government regulations, the following services:
A.
Air
conditioning
and heat to provide a temperature required,
in
Landlord's reasonable
judgment, for comfortable occupancy of the Premises under
normal business
operations
comparable
to other first-class
non-institutional
office buildings
located in Tampa, Florida, daily from 8:00
A.M. to 6:00 P.M.
(Saturdays to
1:00 P.M.), Sundays and holidays excepted. Whenever
heat-generating machines or equipment installed by Tenant affect
the temperature
otherwise maintained
by Landlord in the
Premises, or whenever the occupancy or
electrical load
exceeds those standards set forth in the
separate work letter
agreement signed
by Landlord and Tenant, Landlord shall be relieved of
responsibility for
maintaining the air conditioning standards set forth in such
work letter
agreement,
and in such event Landlord reserves the
right at its
option to (1) require Tenant to discontinue use of such
heat-generating machines
or equipment,
or (2) install supplementary air conditioning units in the
Premises, the
cost, installation,
operation, and maintenance of which shall be
paid by Tenant to Landlord at such rates
as Landlord charges from time to time
in the Building. Tenant agrees that at all times it will cooperate
with Landlord
and abide by all regulations and requirements
that Landlord may prescribe for
the proper
functioning
of the ventilating and air conditioning systems.
B.
Water from
City of Tampa mains for drinking,
lavatory, and toilet
purposes drawn
through fixtures installed by Landlord, or by Tenant with
Landlord's written
consent, from regular Building supply at the prevailing
temperature. Tenant
shall pay Landlord at rates fixed by Landlord for
water
furnished for
any other purpose.
Tenant shall not waste or permit the waste of
water.
C.
Janitor service
(as outlined on Exhibit B attached
hereto) in and
about the Premises,
Saturdays, Sundays, and holidays excepted. Tenant shall not
provide any
janitor services
without Landlord's written consent, and then only
subject to supervision by Landlord and at Tenant's sole
responsibility, and by a
janitor, contractor, or employees at all times satisfactory to
Landlord, but not
as agent or servant of Landlord.
D.
Adequate passenger
elevator service at all times and freight
elevator service
subject to scheduling by Landlord, both without
operators.
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E.
Electricity for the Premises shall not be furnished by Landlord,
but
shall be furnished by
the electric utility company serving the Building. Tenant
shall make all
necessary arrangements with the utility company for metering
and
paying for electric
current furnished by it to Tenant, and Tenant shall pay for
all charges
for electric current consumed on the Premises
during the Term of
this Lease.
Tenant agrees to purchase from Landlord,
or its agent, all lamps,
bulbs, ballasts,
and starters used in the Premises.
F.
Such
additional
services on such terms and conditions as may be
mutually agreed
upon by Landlord and Tenant.
All
charges for any services shall be deemed rent reserved under this
Lease
and shall be due and payable at the same time
as the installment of rent with
which they are billed, or, if billed separately, shall be due and
payable within
ten (10) days after such billing. In the event Tenant shall fail to
make payment
for such services Landlord may, without notice to Tenant,
discontinue any or all
such services,
and such discontinuance shall not be held or pleaded as an
eviction or as a disturbance in any manner whatsoever of Tenant's
possession, or
relieve Tenant
from the payment of rent when due, or
vary or change any other
provision of
this Lease or render Landlord liable for damages of any kind
whatsoever.
Neither Landlord
nor any company, firm, or individual operating,
maintaining, managing,
or supervising the plant or facilities furnishing any of
the above services, nor any of their respective agents
or employees, shall be
liable to Tenant, or any of Tenant's
employees, agents, customers, or invitees
or anyone claiming through or under Tenant,
for any damages, injuries, losses,
expenses, claims,
or causes of action, because of any interruption or
discontinuance at any
time for any reason in the furnishing of any of the above
services; nor
shall any such interruption or discontinuance be deemed an
eviction or
disturbance
of Tenant's use or possession of the
Premises or any
part thereof;
nor shall any such
interruption or discontinuance relieve Tenant
from full performance of Tenant's obligations under this Lease.
ARTICLE 6
POSSESSION
In
the event the Premises
are not completed and ready for occupancy on the
date above
fixed for the commencement of the Term of this
Lease, this Lease
shall nevertheless
continue in full force and effect, and no
liability shall
arise against Landlord
out of any such delay beyond the abatement of rent until
the Premises
are ready for occupancy; provided, however, there shall be
no
abatement of rent if the space is not ready for occupancy because
of the failure
to complete
the installation of special equipment, fixtures, or materials
ordered by
Tenant or due to any fault of Tenant. If Tenant shall enter
possession of all or
any part of the Premises prior to the date fixed above for
the first day of the Term, all of the covenants and
conditions of this Lease
shall be binding upon
the parties hereto in respect of such possession the same
as if the first day of the Term had been fixed as of the date
when Tenant
entered such possession, and Tenant shall pay to Landlord as rent
for the period
prior to the first day of the Term of this
Lease a proportionate amount of the
rent set forth in Article 2.
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ARTICLE 7
CONDITION OF PREMISES
Tenant's taking
possession of the Premises shall be conclusive evidence as
against Tenant
that the Premises were
in good order and satisfactory condition
when Tenant took possession, except as to latent defects. No
promise of Landlord
to alter, remodel, repair, or improve the Premises or the Building and
no
representations
respecting the
condition of the
Premises or the Building have
been made by Landlord to Tenant, other than
as may be contained herein or in a
separate work
letter agreement signed by Landlord and Tenant.
ARTICLE 8
REPAIRS
Except as otherwise provided in Article 11 of this Lease and
subject to the
provisions of
Article 9 of this Lease, Tenant shall, at its sole cost
and
expense, keep
the Premises in good repair and
tenantable condition during the
Term, and Tenant shall
promptly arrange with Landlord at Tenant's sole cost and
expense for the repair of all damages to the Premises and for the
replacement or
repair of all damaged or broken glass, fixtures,
and appurtenances within any
reasonable period of
time specified by Landlord, provided, however, that Tenant
shall not be required to repair or replace broken or
damaged exterior window
glass, unless such
replacement or repair is necessitated by the act, failure to
act, or neglect of Tenant, its servants, employees, agents,
invitees, or guests.
If Tenant does not
promptly make such arrangements, Landlord may, but need not,
make such repairs and replacements, and the
costs paid or incurred by Landlord
for such repairs and replacements shall be deemed additional rent
reserved under
this Lease due and payable forthwith. Landlord may, but shall not
be required so
to do, enter the Premises at all reasonable times to make any repairs,
alterations,
improvements, or
additions, including,
but not limited to, ducts
and all other facilities for heating and
air conditioning service, as Landlord
shall desire
or deem necessary for the safety,
preservation or improvement of
the Building, or as Landlord may be required to do by any
governmental authority
or by the order or decree of any court or by any other proper
authority.
In
the event Landlord or its agents or contractors shall elect or
be
required to
make repairs, alterations, improvements, or additions to the
Premises or
the Building, Landlord shall be
allowed to take into and upon the
Premises all
material that may be required to make such
repairs, alterations,
improvements, or
additions and, during
the continuance of any of said work, to
temporarily close
doors, entryways, public space, and corridors in the Building
and to interrupt or temporarily suspend any services and
facilities without
being deemed
or held guilty of an eviction of
Tenant or liable for damages to
Tenant's property, business, or person, and the rent reserved
herein shall in no
way abate while said
repairs, alterations, improvements, or additions are being
made, and Tenant shall not be entitled to maintain
any setoff or counterclaim
for damages
of any kind against Landlord by reason
thereof. Landlord may, at
its option,
make all such repairs, alterations,
improvements, or additions in
and about the Building and the Premises
during ordinary business hours, but if
Tenant desires
to have the same done at any other time,
Tenant shall pay for
all overtime
and additional expenses resulting therefrom.
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ARTICLE 9
ALTERATIONS
Tenant shall
not, without the prior
written consent of Landlord, make any
repairs, replacements,
alterations, improvements, or additions to the Premises.
In the event Tenant desires to make any
alterations, improvements or additions
pursuant to this Article 9, or any repairs or replacements pursuant
to Article 8
of this Lease, Tenant shall, prior to commencing any such work:
(a)
Submit to Landlord plans and specifications showing
such work in
reasonable detail
and obtain Landlord's prior written approval;
(b)
Furnish Landlord
with the names and addresses of all
contractors
and copies
of all contracts with
such contractors, and obtain Landlord's prior
written approval;
(c)
Provide Landlord
with all necessary
permits evidencing compliance
with all ordinances and regulations of the City of
Tampa or any department or
agency thereof, and with the requirements of all statutes and
regulations of the
State of Florida or any department or any agency thereof;
(d)
Provide Landlord
with certificates of insurance in forms and
amounts satisfactory
to Landlord naming Landlord as an additional insured where
required by
Landlord; and
(e)
Comply with such other
requests as Landlord may reasonably make in
connection with
such work.
All
such work shall, at Landlord's
election, be subject to supervision by
Landlord, and Tenant shall promptly pay Landlord the reasonable
cost of all such
supervision.
TENANT HEREBY
AGREES TO PROTECT, DEFEND, INDEMNIFY, AND HOLD LANDLORD
HARMLESS FROM
ANY AND ALL LIABILITIES OF EVERY KIND AND
DESCRIPTION THAT MAY
ARISE OUT OF OR IN CONNECTION WITH SUCH REPAIRS,
REPLACEMENTS, ALTERATIONS,
IMPROVEMENTS, OR
ADDITIONS.
Upon
completing
any of such repairs, replacements, alterations,
improvements, or
additions,
Tenant shall furnish Landlord with
contractors'
affidavits and
full and final waivers
of lien and receipted bills covering all
labor and material expended and used. All repairs,
replacements, alterations,
improvements, and
additions shall comply with all insurance
requirements and
with all ordinances and regulations of the City of
Tampa or any department or
agency thereof and
with the requirements of all statutes and regulations of the
State of Florida or of any department or agency thereof. All repairs,
replacements, alterations, improvements, and additions shall be
constructed in a
good and workmanlike manner and only good grades of material shall
be used.
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All
alterations,
improvements,
additions,
repairs, and replacements,
whether temporary or permanent in character, including, but not
limited to, wall
coverings, carpeting
and other floor coverings, special lighting installations,
built-in or attached shelving, cabinetry and mirrors, made by
Landlord or Tenant
in or upon the
Premises, shall become Landlord's property and shall remain
upon
the Premises
at the termination of this Lease by lapse of time or
otherwise
without compensation
to Tenant (excepting only Tenant's movable office
furniture, trade
fixtures, and office equipment); provided, however, that
Landlord shall
have the right to require Tenant to remove such
alterations,
improvements,
additions, repairs,
or replacements at Tenant's sole cost and
expense in
accordance
with the provisions of Article 19 of this Lease.
ARTICLE 10
COVENANT AGAINST LIENS
Nothing contained
in this Lease shall
authorize Tenant to do any act that
shall in any way encumber Landlord's title to the Building, Property, or
Premises, nor
in any way subject
Landlord's title to any claims by way of lien
or encumbrance,
whether claimed by operation of law or by virtue of any express
or implied
contract of Tenant, and any claim to a lien upon the
Building,
Property, or
Premises arising from any act or omission
of Tenant shall attach
only against
Tenant's interest and shall in all respects be subordinate
to
Landlord's title
to the Building, Property, and Premises. If Tenant
has not
removed any
such lien or encumbrance within fifteen (15)
days after written
notice to Tenant by Landlord, Landlord may pay the
amount necessary to remove
such lien or
encumbrance without being responsible for making any
investigation
as to the validity thereof, and the amount
so paid shall be deemed additional
rent reserved
under this Lease due and payable forthwith.
ARTICLE 11
DAMAGE OR DESTRUCTION BY FIRE OR CASUALTY
If
the Premises or the
Building (including machinery and equipment used in
its operation)
shall be destroyed or
damaged by fire or other casualty, and if
the Premises or
Building may be repaired and restored within one hundred twenty
(120) days
(plus such additional time during which
Landlord may be prevented
from completing the repairs for causes beyond its reasonable
control) after such
damage, then Landlord
shall have the option to: (a) repair and restore the same
with reasonable promptness, or (b) demolish the Building or cease
its operation,
in which event this Lease shall
automatically be canceled and terminated as of
the date of such damage. In the event any
such damage not caused by the act or
neglect of
Tenant, its agents, contractors, servants, employees, guests,
licensees, or
invitees renders the
Premises untenantable, in whole or in part,
and if this Lease shall not be canceled and terminated by reason of
such damage,
then rent shall abate
during the period beginning with the date of such fire or
other casualty and
ending with the date when Landlord's work in the Premises is
completed, such abatement to be in an amount bearing the same ratio
to the total
amount of rent for such period as the untenantable portion of the
Premises bears
to the entire Premises. Landlord's work shall not include the repair,
replacement, or
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restoration of
Tenant's fixtures or tenant improvements, including,
but not
limited to,
special wall and floor coverings, special lighting fixtures,
built-in cabinets
and bookshelves.
If
such damage renders the Premises
untenantable in whole or in part, and
if, in Landlord's judgment, such damage cannot reasonably be repaired and
restored within one
hundred twenty (120) days (plus such additional time during
which Landlord
may be prevented from completing the
repairs for causes beyond
its reasonable
control), either party shall have the right to cancel and
terminate this
Lease as of the date of such damage, provided,
however, that
Tenant may
not elect to terminate this Lease if
such damage was caused by the
act or neglect of Tenant, its agents, servants, employees, guests,
licensees, or
invitees.
Any
right to terminate