Exhibit 10.2
OFFICE LEASE
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BUILDING:
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7
Kingsbridge Road, Fairfield, NJ
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LANDLORD:
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Faircorp
Associates, LLC
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OFFICE LEASE
This
Lease, dated for reference purposes only March____, 2005, is made
by and between Faircorp Associates, LLC, ("Landlord"), and
Infotech, Inc., ("Tenant").
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1.
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CERTAIN LEASE
PROVISIONS
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The
description and amounts set forth below are qualified by their
usage elsewhere in this Lease, including those Sections referred to
in parentheses following such descriptions:
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1.1
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Tenant's address and telephone
number. (Section 19):
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Tenant
Name:
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Infotech,
Inc.
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Address:
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7 Kingsbridge
Road, Fairfield, NJ
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1.2
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Premises. (Section
2.1):
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Building
Address:
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7
Kingsbridge Road, Fairfield, NJ
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1.3
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Leased Area. (Section
2.1):
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Approximately 9,660 Usable
square feet plus an additional 5% for common area for a total of
10,143 rentable square feet.
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1.4
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Total Building Area. (Section
2.1): 19,723 rentable square feet.
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1.5
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Tenant's Pro-Rata Share of
Building Area. (Section 2.1): 49%
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1.6
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Lease Term. (Section 3.1):
Five years
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1.7
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Rent Commencement Date. (Section
3.1): The earlier of: January 1, 2006 or the termination date of
the sublease between Tenant and Sungard.
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1.8
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Expiration Date. (Section 3.1,
3.2): December 31, 2010
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Base Rent for Lease Term
(exclusive of electricity and other utility charges) (Section
4.1):
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TERM
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MONTHLY
BASE RENT
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ANNUAL
BASE RENT
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PER
SQ. FT
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1/1/2006 -
12/31/2010
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$12,678.75.00
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$152,145.00
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$15.00
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1st months
rent to be submitted upon execution of the lease.
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1.9
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Option To Renew: Section
22
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1.11
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(a) Address of Landlord for rent
payments (Sections 4.1, 4.2):
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Faircorp Associates, LLC
c/o Hudson Equities Management Corp.
115 Christopher Columbus Drive, Jersey City, NJ
07302
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(b) Address of Landlord for
notices. (Sections 6.3, 19):
Same as 1.11a; and with a copy to:
Harry J. Reidler, Attorney at Law, 263 Hutchinson Road, Englewood,
NJ 07631; (201) 567-0797; fax (201) 871-4847
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(c) Address of Tenant for notices
(Sections 6.3, 19):
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1.14
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Landlord’s Share of
Operating Expenses. (Section 6.2):
2004 Base Year Operating Expenses per rentable square foot
per year, hereby determined to be $4.50 /ft. (In that the
lease does not start until 2006 this will be adjusted to
2006.
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1.15
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Landlord's Share of Real Estate
Taxes. (Section 6.2): 2004 Base Year Real Estate Taxes
hereby determined to be $1.38 /ft.
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1.16
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Electricity. (Section 6.4):
Initial cost per foot shall be $1.50 . The initial monthly
installment shall be $1,207.50
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1.17
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Security Deposit. (Section 7):
$24,000.00 to be submitted by December 1, 2005 .
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1.18
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Use. (Section 8.1): Standard
office use and computer repair and assembly
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1.19
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Brokers. (Section
25.20):
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1.20
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Prepaid Rent. NONE
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1.22
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Addendum(s). (Sections 3.2, 4.3,
9.2, 22): The following addendum(s) are attached to this Lease:
NONE .
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This Lease consists of _____
articles on _____ pages, plus Exhibits A, B, C, and D.
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Faircorp
Associates, LLC
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Infotech
USA, Inc., Tenant
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By:
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/s/
Ephraim Hasenfeld
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By:
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/s/ J.
Robert Patterson
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Ephraim
Hasenfeld, Member
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Date:
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4/14/05
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Date:
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4/14/05
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2.1
Definition . Landlord hereby leases to Tenant and Tenant
leases from Landlord for the term, at the rental, and upon all of
the conditions set forth herein, that certain real property known
by suite number and address specified in Section 1.2 hereof,
consisting of the approximate amount of rentable square feet
specified in Section 1.3 hereof, and which is referred to herein as
the Premises. The Premises are located in an office building
presently consisting of the total number of rentable square feet
specified in Section 1.4 hereof, which office building, the real
property on which it is situated (the legal description of which is
attached hereto as Exhibit A), and any parking facilities or
structures appurtenant thereto are hereinafter collectively
referred to as the “Building”. The Premises are
depicted in Exhibit B attached hereto and incorporated herein by
this reference, but the depiction of possible uses, tenants or
locations on Exhibit B shall not be construed to be a warranty or
representation by Landlord that any such uses, tenants or locations
presently exist or will continue to exist. Tenant’s share of
the total amount of square feet of the Building is equal to the
pro-rata share specified in Section 1.5 hereof, and said percentage
shall hereinafter be referred to as the Tenant’s
“Pro-Rata Share”.
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2.3 Public
Areas . As long as this Lease remains in effect and Tenant is
not in default hereunder, Tenant shall have the nonexclusive right,
in common with the Landlord, other tenants, subtenants and
invitees, to use the public areas of the Building which consist of
the entrance foyer and lobby of the Building, the common corridors
on the floor of the Building on which the Premises are situated and
other areas appurtenant to or servicing the elevators, shipping and
receiving areas and lavatories in the Building, provided that
Landlord shall have the right at any time and from time to time to
exclude therefrom such areas as Landlord may determine so long as
access to the Premises is not unreasonably denied.
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3.1 Term .
The term of this Lease shall be the term specified in Section 1.6
hereof, commencing on the Commencement Date specified in Section
1.7 hereof and ending on the Expiration Date specified in Section
1.8 hereof unless sooner terminated pursuant to any provision of
this Lease.
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3.2 Delay in
Commencement . Notwithstanding said Commencement Date, if for
any reason Landlord cannot deliver possession of the Premises to
Tenant on said date, Landlord shall not be subject to any liability
therefor, nor shall such failure affect the validity of this Lease
or the obligations of Tenant hereunder. However, in such case
Tenant shall not be obligated to pay rent until possession of the
Premises is tendered to Tenant, which date shall be the new
Commencement Date, and the Expiration Date shall be adjusted to
reflect the term listed in 1.6. Upon Landlord’s request, the
parties agree to execute in writing an Addendum to certify the
Commencement Date and Expiration Date hereof, but this Lease shall
not be affected in any manner if either party fails or refuses to
execute such Addendum.
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3.3 Prior to the
Commencement Date, Landlord at its cost and expense shall do the
work set forth in Exhibit C attached hereto.
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3.5 Holding
Over . If Tenant remains in possession of the Premises or any
part thereof after the expiration date specified in Section 1.8,
such occupancy shall be a tenancy from month to month at a monthly
rental equal to one hundred fifty percent (150%) of the Base Rent
and Additional Rent payable hereunder. The foregoing provisions of
this Section 3.5 shall neither be construed to give the Tenant any
right to remain in possession of the Premises or any part thereof
after the expiration of the term hereof nor to waive any of the
Landlord’s rights under this Lease to collect any damages to
which it may be entitled, whether direct or
consequential.
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4.1 Base
Rent . The Base Rent for the Premises for the term of this
Lease shall be as specified in Section 1.9, payable in the monthly
installments specified therein, in advance, on the first day of
each month of the term hereof; Tenant shall pay Landlord upon the
execution of this Lease the sum specified in Section 1.9 as the
installment of Base Rent for the first full calendar month of the
term of the Lease. Provided, however, that if the Commencement Date
does not occur on the first day of a month, the aforesaid payment
shall be for the initial thirty (30) days of the Lease and the next
monthly installment of
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Base Rent shall
be due on the first day of the first full calendar month of the
term but shall be prorated to cover only those days of said
calendar month not previously paid by the Tenant by its initial
payment. Base Rent for any period during the term hereof which is
less than one (1) calendar month shall be a pro rata portion of the
monthly installment based upon the actual number of days the Lease
is in effect during said calendar month. All rents shall be payable
in lawful money of the United States of America without notice or
demand and without any deduction, offset or abatement, and shall be
payable to Landlord at the address stated in Section 1.11(a) or to
such other persons or at such other places as Landlord may
designate in writing. The payment of Base Rent hereunder shall be
an independent covenant.
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4.2 Additional
Rent . Both Tenant and Landlord expressly understand and agree
that all other sums, excepting Base Rent as described in Sections
4.1 and 5, which may from time to time become due under this Lease,
shall be deemed Additional Rent. Additional Rent shall include, but
not be limited to, late charges, interest, Shared Expenses as
described in Section 6, attorneys’ fees, security deposits
and any cash bonds which may by circumstance be required to be
posted hereunder. Both Tenant and Landlord expressly understand and
agree that all monies paid by Tenant hereunder shall be first
credited to Additional Rent (and allocated among different items of
Additional Rent as Landlord may determine), and only then to Base
Rent. All payments of Additional Rent shall be in lawful money of
the United States of America, shall be paid without any deduction,
offset or abatement, and shall be payable to Landlord at the
address stated in Section 1.11(a) or to such other persons or at
such other places as Landlord may designate in writing. The
obligation to make payments of Additional Rent hereunder shall be
an independent covenant.
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4.3 Storage
. Tenant agrees to pay to Landlord the amount of Additional Rent
for storage as set forth in any Storage Space Addendum incorporated
in this Lease, in advance for each month on the first day of each
month of the term hereof. Unless Tenant executes a Storage Space
Addendum, Tenant shall have no right to use any storage facilities
of the Building.
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4.4 Acceptance
of Rental Payments . No acceptance by Landlord of a lesser sum
than the Base Rent and/or Additional Rent then due shall be deemed
to be other than on account of the earliest amount of such rental
due (unless Landlord elects otherwise), nor shall any endorsement
or statement on any check or any letter accompanying any check or
payment as rent be deemed an accord and satisfaction or compromise
and settlement, and Landlord may accept such check or payment
without prejudice to Landlord’s right to recover the balance
of such payments due or to pursue any other remedy as provided in
this Lease.
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5.1
Determination . Intentionally Omitted
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5.2
Indexing . Intentionally Omitted
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6.1
Determination . The monthly obligations for Additional Rent
as described in Section 4.2 shall be annually adjusted in
accordance with the provisions of Section 6.2 below.
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6.2
Escalations . (a) Landlord agrees to expend as its share of
Operating Expenses paid for and sustained by the Landlord during
any calendar year an amount not greater than that specified in
Section 1.14. Said sum shall constitute the maximum payable by
Landlord as its contribution toward Operating Expenses. The term
“Operating Expense” means the total amounts paid or
payable, whether by the Landlord, or otherwise, on behalf of the
Landlord, in connection with the ownership, leasing, management,
maintenance, repair and operation of the Building, other than those
expenses described in Section 6.2(b). Operating Expense shall
include, without limiting the generality of the foregoing, the
aggregate of the amount paid for heating, air conditioning, and
providing electricity and water and sewer charges to the Building,
other than that paid by individual tenants, the amount paid to any
persons or entities for all labor and/or wages (including the cost
to Landlord of workmen’s compensation and disability
insurance, payroll taxes, welfare and fringe benefits), for
services rendered, and materials provided to the Building;
administrative expenses related to the Building; any costs incurred
for any capital improvements or structural repairs to the Building
to effect labor savings or otherwise reduce Operating Expenses, or
required by law or by any governmental or quasi-governmental
authority having jurisdiction over the Building, which costs shall
be amortized over the useful life of the applicable capital
improvements or structural repairs;
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the cost of
accounting services necessary to compute the rent and charges
payable by tenants of the Building; fees for management services
pertaining to the Building; the cost of guards and other protection
services; and the amount paid for premiums for all insurance
procured by Landlord to insure the Building as may be required or
permitted under this Lease (including, without limitation, business
interruption insurance (why?), and if there is a mortgage or deed
of trust on the Building, such insurance as may be required by the
holder of such mortgage or deed of trust). Notwithstanding the
foregoing, Operating Expenses shall not include the costs of
special services rendered to tenants (including Tenant) for which a
special or separate charge is made, any costs of preparation of
space for new tenants in the Building, any costs borne directly by
Tenant under this Lease, leasing commissions, depreciation or
interest payments, or debt service payments made to a mortgagee.
Notwithstanding anything to the contrary contained in this Lease,
Landlord’s obligation to pay in any calendar year, as
Landlord’s share of Operating Expenses paid for and sustained
by the Landlord during any calendar year, an amount not greater
than that specified in Section 1.14, is subject to and contingent
upon the Building being fully occupied at the end of the calendar
year in question. If the Building is not fully occupied at the end
of any calendar year of the term of this Lease, then
Landlord’s obligation to pay Operating Expenses in such
calendar year in an amount not greater than that specified in
Section 1.14, for purposes of this Section 6.2, shall be determined
as if the Building had been fully occupied during that entire
calendar year (“grossed up”) and Operating Expenses had
been in an amount which would be normal if the Building were fully
occupied. For the purposes of this Lease, the term “fully
occupied” means the occupancy of 90% of the Total Building
Area (as specified in Section 1.4 hereof). Landlord, in its sole
discretion, will determine which Operating Expenses are appropriate
to “gross up” for purposes of this Section 6.2.
Landlord shall consistently apply all “gross
ups”.
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(b) Landlord agrees to expend
as its share of Real Estate Taxes paid for and sustained by the
Landlord during any calendar year an amount not greater than that
specified in Section 1.15. Said sum shall constitute the maximum
payable by Landlord as its contribution toward Real Estate Taxes.
Real Estate Taxes shall include general and special taxes,
assessments, duties and levies, charged and levied upon or assessed
against the Building and/or any improvement situated on the real
property on which the Building stands, any leasehold improvement,
fixtures, installations, additions and equipment used in the
maintenance or operation of the Building, whether owned by Landlord
or Tenant, not paid directly by the Tenant. Further, if at any time
during the term of this Lease, the method of taxation of real
estate prevailing at the time of execution hereof shall be or has
been altered so as to cause the whole or any part of the taxes now
or hereafter levied, assessed or imposed on real estate to be
levied, assessed or imposed upon Landlord, wholly or partially, as
a capital levy or otherwise, or on, or measured by the rents
received from the Building, then such new or altered taxes
attributable to the Premises shall be deemed to be included within
the term “Real Estate Taxes” for purposes of this
paragraph. The reference to “Building” in this
subparagraph shall include, as allocated by the Landlord,
improvements or facilities utilized in common by the Building and
other buildings upon or adjacent to the real property on which the
Building stands.
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(c) Commencing one (1) year
after the Commencement Date, and continuing thereafter during the
term of this Lease, Tenant shall pay to Landlord monthly in advance
on the first day of each month, without notice or demand and
without any deduction, offset or abatement, in lawful money of the
United States of America, the amount of the Tenant’s Pro-Rata
Share of the Shared Expenses as estimated by Landlord to be
incurred for the calendar year in which the monthly payments are to
be made. If the Expiration Date is not December 31, the monthly
payments owing hereunder during the last partial calendar year of
the Lease shall be appropriately adjusted. The term “Shared
Expenses” shall mean the amount by which Operating Expenses
and Real Estate Taxes incurred in any period exceed the amount of
Landlord’s obligation for the same as specified in Section
1.14 and 1.15.
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(d) In each calendar year after
the year in which the Commencement Date occurs, Landlord shall send
to Tenant a Landlord’s Statement which shall set forth the
actual amount of Shared Expenses, with the exception of those
States in which real estate taxes are billed on other than a
calendar year basis, in that event Landlord’s statement of
Real Estate Taxes will be based on the Real Estate Tax Fiscal Year
and sent within a reasonable time after receipt of Real Estate Tax
Statements, and Tenant’s Pro-Rata Share thereof for the
preceding calendar year or portion thereof and the estimated amount
of Shared Expenses and Tenant’s Pro-Rata Share thereof for
the calendar year in which the Landlord’s Statement is given.
Landlord’s failure to render a Landlord’s Statement
with respect to any period shall not eliminate or reduce
Tenant’s obligation to pay Shared Expenses and shall not
prejudice Landlord’s right to render a Landlord’s
Statement with respect to any subsequent period. The obligations of
Tenant under the provisions of this paragraph with respect to any
increase in rent shall survive the expiration or any sooner
termination of the term of the Lease. Within fifteen (15) days next
following the
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notification by
Landlord of the contents of its Landlord’s Statement, Tenant
shall pay to Landlord the entire amount of Tenant’s Pro-Rata
Share of actual Shared Expenses for the prior period covered by the
Landlord’s Statement less the amount of Shared Expenses
actually paid by Tenant for said period, plus Tenant shall also
then pay to Landlord such amount as is necessary to assure that,
through the calendar month in which the Landlord’s Statement
is given, the Tenant has paid to Landlord the full amount of
estimated Shared Expenses for the calendar year in which
Landlord’s Statement is given, as if the Landlord’s
Statement were given on January 1 of said calendar year. For each
month following for the remainder of said calendar year, Tenant
shall pay the monthly estimated Shared Expenses set forth in the
Landlord’s Statement. In the event that the estimated
payments made by the Tenant in the calendar year preceding the date
on which the Tenant is given notice of the Landlord’s
Statement exceed the Tenant’s Pro-Rata Share of actual Shared
Expenses for such calendar year, then should the Tenant not be
otherwise in default hereunder, the amount of such excess shall be
applied by the Landlord to the next succeeding installments of
monthly estimated payments of Shared Expenses.
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6.3
Statements . Nothing in this Lease shall be construed to
require Landlord to render the statements described in Sections 5.2
and 6.2 simultaneously or in any particular order. All reasonable
determinations by Landlord pursuant to Section 6 shall be presumed
to be correct. Until Tenant is advised of the adjustment in its
obligation to pay Shared Expenses, if any, pursuant to the
provisions of Section 6.2, Tenant’s monthly rental shall
continue to be paid at the then current rent (including all prior
adjustments thereto pursuant to this Lease). Upon written notice to
Landlord of not less than fifteen business days, Tenant shall have
the right to review the documentation relied upon by Landlord
relating to the computation of Shared Expenses, which review shall
occur at the location specified in Section 1.11(b). All Shared
Expenses shall be computed on the actual basis. In computing Shared
Expenses, no cost or expense may be accounted more than once, any
expenses which are paid by the proceeds of insurance shall be
excluded, and any expenses which are separately metered or billed
directly to and separately paid by any other tenant shall be
excluded. Tenant shall have the right to cause an audit to be made
of Landlord’s computation of Shared Expenses, at the location
of the Corporate Office in Jersey City, NJ, at Tenant’s sole
expense, not more frequently than once per calendar year. Tenant
shall not be entitled to withhold or deduct any portion of Base
Rent or Additional Rent during the pendency of any such audit. Any
errors disclosed by such audit shall be promptly corrected,
provided that Landlord shall have the right to cause another
independent audit to be made of such computations. In the event
that there is a disagreement between such audits, the parties shall
submit such matter to binding mediation.
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6.4
Electricity . Beginning on the earlier of the date that
Tenant first occupies the Premises or the Commencement Date, and
continuing thereafter during the term of this Lease, Tenant shall
pay to Landlord monthly in advance on the first day of each month,
without notice or demand and without any deduction, offset or
abatement, in lawful money of the United States of America, the
amount per foot set forth in Section 1.16 multiplied by the Usable
area in the Premises, for electrical usage in the Premises, payable
in 12 equal monthly installments per annum. In the event electrical
rates charged by the local utility are increased, or if it is
determined by an electrical usage survey that the Tenant is using
more electricity that it is currently paying for, then the Landlord
shall have the right to increase the charge for electricity
commensurate with the rate increase or the determination of the
survey.
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7.1
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Tenant agrees
to submit a security deposit upon the execution of this Lease in
the amount set forth in Section 1.17 to the Landlord. The Security
Deposit will not be held in an escrow account and Tenant shall not
be entitled to interest on it.
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7.2
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Upon fourteen
(14) days notice, the Landlord may deduct from the Security any
expenses incurred in connection with the Tenant’s violation
of any agreement in this Lease. If the amount of damage exceeds the
Security, the Tenant shall pay the additional amount to the
Landlord on demand. The amount of Security is to remain constant
throughout the Term and replenished in the event such expenses are
deducted. Security is not to be used for the payment of
Rent.
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7.3
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Tenant is to
leave the Premises in good condition upon vacating. All Rent and
Additional Rent is to be paid in full within fourteen (14) days
after leaving the Premises. In the event that the Premises is not
left in good condition, or Rent and Additional have not been paid
in full, Landlord may deduct such amounts to put the Premises in
good condition and satisfy any outstanding balances of Rent and
Additional Rent pursuant to this Lease. The Landlord shall repay to
the Tenant any balance remaining within thirty (30) days after the
end of the Term.
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8.1 Use .
The Premises shall be used and occupied only for the uses specified
in Section 1.18 hereof, provided that the foregoing shall not be
construed as a representation or guarantee by the Landlord that
such business may lawfully be conducted on the Premises.
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8.2 Compliance
With Law . In the event it is determined by the applicable
governmental unit that the Premises violates any building code,
regulation or ordinance, then it shall be the obligation of the
Landlord, after written notice from Tenant which includes a copy of
the governmental unit’s determination, to promptly, at
Landlord’s sole cost and expense, rectify any such violation.
In the event Tenant does not give to Landlord written notice of any
such violation within thirty (30) days from the date on which
Tenant is notified, then the correction of the same shall be the
obligation and expense of the Tenant.
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8.3 Waste and
Nuisance . Tenant shall not commit, suffer or permit any waste,
damage, disfiguration or injury to the Premises, the common areas
in the Building, or the fixtures and equipment located therein or
thereon. Tenant shall not permit or suffer any overloading of the
floors thereof, and shall not place therein any heavy business
machinery, safes, computers, data processing machines, or other
items heavier than customarily used for general office purposes
without first obtaining the written consent of Landlord. Tenant
shall not use or permit to be used any part of the Building for any
dangerous, noxious or offensive trade or business, and shall not
cause or permit any nuisance, noise, action, or disturbance of
other tenants, in, at or on the Premises. Tenant shall be permitted
to install a small satellite dish for use in corporate
communication with its home office. The size and location of the
dish must meet with Landlord’s approval prior to
installation, such approval not to be unreasanobly
withheld.
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8.4 Conditions
of Premises . Except as provided in Section 8.2, Tenant hereby
accepts the Premises in their condition existing as of the date of
the commencement hereof, subject to all applicable zoning,
municipal, county and state laws, ordinances and regulations
governing and regulating the use of the Premises, and accepts this
Lease subject thereto and to all matters disclosed thereby and by
any exhibits attached hereto. In addition, except as provided in
Section 8.2, Tenant shall at Tenant’s expense, comply
promptly with all applicable laws, statutes, ordinances, rules,
regulations, orders, restrictions of record, and requirements in
effect during the term or any part of the term hereof regulating
the use by Tenant of the Premises.
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8.5 Insurance
Cancellation . Notwithstanding the provisions of Section 8.2
hereinabove, no use shall be made or permitted to be made of the
Premises, nor acts done which will cause the cancellation of any
insurance policy covering said Premises or the Building, and if
Tenant’s use of the Premises causes an increase in said
insurance rates, Tenant shall pay any such increase as Additional
Rent, which, together with interest on any amount paid therefor by
Landlord, shall be payable by Tenant on the next succeeding date on
which a Base Rental payment is due.
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8.6
Landlord’s Rules and Regulations . Tenant shall
faithfully observe and comply with the reasonable rules and
regulations that Landlord shall from time to time promulgate,
including without limitation any rules and regulations attached to
this Lease, which are hereby incorporated herein by this reference.
Landlord reserves the right from time to time to make all
reasonable modifications to said rules and regulations. The
additions and modification to those rules and regulations shall be
binding upon Tenant upon Landlord giving notice of them to Tenant.
Landlord shall not be responsible to Tenant for the nonperformance
of any of said rules and regulations by any other tenants or
occupants.
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9.1 Basic
Services . Subject to any law, rule or governmental order or
regulation, and further subject to any circumstance beyond the
control of the Landlord, Landlord shall furnish the following
services at its cost and expense:
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(a)
Air conditioning and heat, whichever be required, from 8 a.m. to 6
p.m., Monday through Friday, excluding legal holidays;
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(b)
Hot and cold water for lavatory purposes and electric current for
lighting the Premises and for ordinary office appliances and office
machines only, provided that Tenant shall not use any electrical
equipment which in Landlord’s opinion will overload the
wiring insulations or interfere with the use thereof by Landlord or
any other tenant in the Building. If a further supply of water is
required by Tenant, then at Tenant’s expense,
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Landlord shall have the option to
install and maintain a water meter to register such consumption,
and Tenant shall pay as Additional Rent for water consumed, at the
cost to Landlord, and for sewer rents and all other rents and
charges based upon such consumption of water;
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(c)
General day-to-day janitorial service (excluding carpet shampooing
and hard surface floor waxing) five days a week, and elevator
service during the same hours for which air conditioning and heat
services are provided as set forth above, provided, however, that
in the event Tenant is delinquent in making any installment payment
of rent under this Lease for a period of fifteen (15) days or more
after it shall become due, Landlord may discontinue furnishing any
or all of the services described in this Section 9 until all
arrears of rental payments, plus interest and late charges and any
other sums due under this Lease, shall have been paid in full.
Whenever heat generating machines or equipment are used by Tenant
in the Premises which affect the temperature otherwise maintained
by the air conditioning system, as determined by Landlord, Landlord
reserves the right to install supplementary air conditioning units
in the Premises, and the costs therefor, including the cost of
installation, operation and maintenance thereof, shall be paid by
Tenant to Landlord upon demand by Landlord. If Tenant, as
determined by Landlord, requires electric current in excess of that
usually furnished or supplied to the Premises, Landlord may, at its
election, either cause an electric current meter to be installed in
the Premises so as to measure the electric current consumed for
such excess use or determine the value of such excess use by
causing an independent electrical engineer or consulting firm,
selected by Landlord, to conduct a survey of Tenant’s use of
electric current and to certify such determination in writing to
Landlord and Tenant. The cost of any such survey or installation
and maintenance of such meter shall be borne by Tenant if the
survey or meter indicates excess use by Tenant. Additionally,
Tenant agrees to pay to Landlord, as Additional Rent, promptly upon
demand therefor by Landlord, the amount determined to be due for
the electric current consumed by Tenant, as shown by said meter or
as indicated in said survey, as the case may be, at the rate
charged for such service by the local public authority or the local
public utility, as the case may be, furnishing the same, plus any
additional expenses incurred by Landlord in keeping account of the
electric current consumed.
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(d)
Notwithstanding anything in this Lease to the contrary, Tenant will
not without the prior written consent of Landlord use any apparatus
or device in the Premises that will in any way increase the amount
of electricity or water usually furnished or supplied for use of
the Premises as general office space. Tenant shall not connect with
any electric current except through existing electrical outlets in
the Premises, or to any water pipes, any apparatus or device for
the purposes of using electric current or water. If Tenant shall
require water or electric current in excess of that usually
furnished or supplied for use of the Premises, Tenant must first
procure the written consent of Landlord to the use thereof. With
the prior written consent of Landlord, Tenant may maintain and
operate data processing equipment on the Premises, but all
additional costs in connection therewith (including, but not
limited to, additional support flooring, insulation, electrical
outlets and temperature maintenance facilities) shall be borne
solely by Tenant and the utility services utilized by or for such
equipment shall be separately metered and the cost of such utility
services with metering shall be borne solely by Tenant. At
Tenant’s request and with Landlord’s prior approval,
Landlord shall furnish the services described in this Section at
times other than specified in Section 9.1 (a), provided that Tenant
shall pay the entire cost thereof as reasonably determined by
Landlord as Additional Rent, notwithstanding the fact that such
services may also benefit portions of the Building other than the
Premises (in which event Landlord shall not receive collectively
from all tenants paying for any portion of such additional services
more than the actual cost to Landlord of providing the
same).
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9.2
Interruption of Services . Landlord reserves the right from
time to time to install, use, maintain, repair, replace and
relocate service to the Premises and other parts of the Building,
and to alter or relocate any other facility in the Building.
Interruption or curtailment of any service maintained in the
Building, if caused by strikes, mechanical difficulties, actions of
the Landlord under the first sentence of this Section 9.2, or for
any other reason beyond Landlord’s control, shall not entitle
Tenant to any claim against Landlord or to any abatement in rent,
nor shall the same constitute constructive or partial eviction.
Unless due to the gross negligence of Landlord, Landlord shall not
be liable to Tenant for any injury or damage resulting from defects
in the plumbing, heating, or electrical systems in the Building or
for any damage resulting from water seepage into the Building or
for any act or failure to act by any other Tenants at the Building
or for any damage resulting from wind storm, hurricane or rain
storm.
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10.
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MAINTENANCE, REPAIRS AND
ALTERATIONS .
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10.1
Landlord’s Obligations . Subject to the provisions of
Sections 8.2 and 14, and except for damage caused by any negligent
or intentional act or omission of Tenant, Tenant’s agents,
employees, representatives, customers or invitees, in which event
Tenant shall repair the damage, at its sole expense, Landlord shall
keep in good order, condition and repair the structural portions of
the Building and those portions of the Building which are not
occupied or leased by any tenant, and all costs incurred by
Landlord in making any such repairs or performing such maintenance
shall be Operating Expenses as defined in Section 6.2, provided
that Landlord shall have no obligation to perform any act which is
the obligation of Tenant or any other tenant in the Building. Other
than as specifically provided in this Section 10.1, Landlord shall
not be obligated to make any repairs or improvements of any kind,
in, upon, about, or to the Premises or the Building.
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10.2
Tenant’s Obligations . Subject to the provisions of
Sections 8.2 and 14, Tenant, at Tenant’s expense, shall keep
in good order, condition and repair the Premises and every part
thereof including, without limiting the generality of the
foregoing, all plumbing, electrical and lighting facilities and
equipment within the Premises, fixtures, interior walls and
interior surfaces of exterior walls, ceilings, windows, doors,
plate glass and skylights located within the Premises. All repairs
made by the Tenant shall be at least of the same quality, design
and class as that of the original work. Tenant agrees that it will
abide by, keep and observe all reasonable rules and regulations
which Landlord may make from time to time for the management,
safety, care and cleanliness of the Building and grounds, the
parking of vehicles and the preservation of good order therein as
well as for the convenience of other occupants and tenants of the
Building. All damage or injury to the Building or to the Premises,
fixtures, appurtenances and/or equipment caused by the Tenant
moving property in or out of the Building or the Premises or by
Tenant’s installation or removal of furniture, fixtures, or
other property, or from any other cause of any kind or nature
whatsoever due to carelessness, omission, neglect, improper
conduct, or other cause of the Tenant, its agents, employees,
invitees, contractors or subcontractors shall be repaired,
restored, or replaced promptly by the Tenant at its sole cost and
expense to the satisfaction of the Landlord. In the event that the
Tenant fails to keep the Premises in good order, condition and
repair while this Lease remains in effect, then as soon as possible
after written demand (which written demand shall not be required in
the case of an emergency), Landlord may restore the Premises to
such good order and condition and make such repairs without
liability to Tenant for any loss or damage that may accrue to
Tenant’s property or business by reason thereof, and upon
completion thereof Tenant shall pay to Landlord upon demand and as
Additional Rent the cost of restoring the Premises to such good
order and condition, together with interest thereon from the date
paid. Bulb replacement when necessary shall be at the expense of
the Tenant.
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10.3
Surrender . On the last day of the term hereof or on any
sooner termination or date on which Tenant ceases to possess the
Premises, Tenant shall surrender the Premises to Landlord in good
and clean condition, ordinary wear and tear excepted. Prior to such
surrender Tenant shall repair any damage to the Premises occasioned
by its removal of trade fixtures, furnishings and equipment, which
repair shall include the patching and filling of holes and repair
of structural damage. Tenant agrees to indemnify Landlord and hold
Landlord harmless from and against any liability (including
reasonable attorneys’ fees) of Landlord to third parties
resulting from Tenant’s failure to timely comply with the
provisions of this Section 10.3.
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10.4
Alterations and Additions . (a) Tenant shall not, without
Landlord’s prior written consent, make any alterations,
improvements or additions (referred to collectively herein as
“Alterations”) in, on or about the Premises. Landlord
may require that Tenant remove any or all of said Alterations at
the expiration of the term or such other time at which Tenant
ceases to possess the Premises, and restore the Premises to their
prior condition. Should Tenant make any Alterations without the
prior approval of the Landlord, Landlord may require that Tenant
immediately remove any or all of such items and/or Landlord may
declare a default by Tenant under this Lease. Except in connection
with normal interior decorating of the Premises, Tenant shall not
place any holes in any part of the Premises, and in no event shall
Tenant place any exterior or interior signs or interior drapes,
blinds, or similar items visible from the outside of the Premises
without the prior written approval of Landlord.
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(b)
Any Alterations in, on or about the Premises that Tenant shall
desire to make shall be presented to Landlord in written form with
proposed detailed plans. If Landlord shall give its consent, the
consent shall be deemed conditioned upon Tenant acquiring a permit
to do the work from appropriate governmental agencies, the
furnishing of a copy thereof to Landlord prior to the commencement
of the work and the compliance by Tenant with all conditions of
said permit and with all specifications in the plans in a prompt
and expeditious manner. Tenant shall not permit any of the work to
be performed by persons not currently licensed under any applicable
licensing laws or regulations pertaining to the types of work to be
performed. Landlord shall not be deemed
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unreasonable in the exercise of
its discretion for withholding approval of any Alterations which
involve or might affect any structural or exterior element of the
Building, any area or element outside of the Premises, or any
facility serving any area of the Building outside of the Premises,
or which will require unusual expense to re-adapt the Premises to
normal office use on the termination or expiration of the Lease,
unless in the latter case Tenant either desires to or is required
to make repairs or Alterations in accordance with this Lease,
Landlord may require Tenant, at Tenant’s sole cost and
expense, to obtain and provide to Landlord a lien and completion
bond (or such other applicable bond as determined by Landlord) in
an amount equal to one and one-half (1-1/2) times the estimated
cost of such improvements, to insure Landlord against liability
including but not limited to liability for mechanic’s and
materialmen’s liens and to insure completion of the
work.
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(c)
Tenant shall pay, when due, all claims for labor or materials
furnished or alleged to have been furnished to or for Tenant at or
for use in the Premises, which claims are or may be secured by any
mechanic’s or materialmen’s lien against the Premises
or the Building. Tenant shall give Landlord not less than ten (10)
days notice prior to the commencement of any work in, on or about
the Premises, and Landlord shall have the right to post notices of
non-responsibility in, on or about the Premises as provided by law.
Tenant shall have no power or authority to do any act or make any
contract that may create or be the basis for any lien upon the
interest of the Landlord, the Premises or the Building, or any
portion thereof. If any mechanics or other lien or any notice of
intention to file a lien shall be filed or delivered with respect
to the Premises or the Building, based upon any act of the Tenant
or of anyone claiming through the Tenant, or based upon work
performed or materials supplied allegedly for the Tenant, Tenant
shall cause the same to be canceled and discharged of record within
fifteen (15) days after the filing or delivery thereof. If Tenant
has not so canceled the lien within fifteen (15) days as required
herein, Landlord may pay such amount, and the amount so paid
together with interest thereon from the date of payment and all
legal costs and charges, including attorneys fees, incurred by
Landlord in connection with said payment and cancellation of the
lien or notice of intent shall be Additional Rent and shall be
payable on the next succeeding date on which a Base Rental
installment is due. Landlord may, at its option and without waiving
any of its rights set forth in the immediately preceding sentence,
permit Tenant to contest the validity of any such lien or claim,
provided that in such circumstances the Tenant shall at its expense
defend itself and Landlord against the same and shall pay and
satisfy any such adverse judgment that may be rendered thereon
before the enforcement thereof against the Landlord, the Premises
or the Building, provided further that Landlord may at any time
require the Tenant to deposit with the court exercising
jurisdiction over such claim, such amount as may be necessary under
applicable statutes to cause the release and discharge of the lien,
and if Tenant shall not immediately make such payment upon the
request of Landlord, Landlord may make said payment and the amount
so paid, together with interest thereon from the date of payment
and all legal costs and charges, including attorneys fees, incurred
by Landlord in connection with said payment shall be deemed
Additional Rent and shall be payable on the next succeeding date on
which a Base Rental installment is due. In addition, Landlord may
require Tenant to pay Landlord’s attorney fees and costs in
participating in such action if Landlord shall decide it is in its
best interest to do so. Nothing herein contained shall be construed
as a consent on the part of Landlord to subject the interest and
estate of Landlord to liability under any lien law of the state in
which the Premises are situated, for any reason or purpose
whatsoever, it being expressly understood that Landlord’s
interest and estate shall not be subject to such liability and that
no person shall have any right to assert any such lien.
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(d)
Unless Landlord requires their removal, as set forth in Section
10.4(a), all Alterations which may be made on the Premises shall,
at the expiration of the term or such other time at which Tenant
ceases to possess the Premises, become the property of Landlord and
remain upon and be surrendered with the Premises. Notwithstanding
the provisions of this Section 10.4(d), Tenant’s machinery
and equipment, other than that which is affixed to the Premises so
that it cannot be removed without material damage to the Premises,
shall remain the property of Tenant and may be removed by Tenant
subject to the provisions of Section 10.3 hereof and provided
further that Tenant is not in default under this Lease at the time
Tenant ceases to possess the Premises.
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11.
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TENANT’S USE OF
PUBLIC AREAS .
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Tenant’s
non-exclusive use of the public areas described in Section 2.3
shall be subject to such Reasonable Rules and Regulations
promulgated by Landlord pursuant to Section 8.6. Tenant agrees to
repair at its cost all deteriorations or damages to the public
areas occasioned by its negligence or intentional misconduct or
that of its officers, agents, representatives, customers, employees
or invitees.
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12.
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TAXES AND
TELEPHONE .
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12.1 Personal
Property Taxes . Tenant shall pay prior to delinquency all
taxes assessed against and levied upon leasehold improvements,
fixtures, furnishings, equipment and all other personal property of
Tenant contained in the Premises or elsewhere. If Tenant shall
cause said leasehold improvements, trade fixtures, furnishings,
equipment and all other personal property to be assessed with
Landlord’s real property, Tenant shall pay Landlord the taxes
attributable to Tenant within ten (10) days after receipt of a
written notice from Landlord setting forth the taxes applicable to
Tenant’s property, and if Tenant fails to do so, Landlord may
make such payment and the amount so paid, together with interest
thereon from the date paid, shall be Additional Rent and shall be
due and payable to Landlord on the next succeeding date on which a
Base Rental installment is due.
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12.2 Evidence
of Payment . Tenant shall promptly deliver to La
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