Exhibit 10.18
OFFICE LEASE
FOR
ADDUS HEALTHCARE,
INC.
THIS LEASE is made this 1st day of
April, 1999 between W. Andrew Wright, having an address at 6030 N.
Sheridan Road, Chicago, Illinois 60660 (“Landlord”) and
Addus HealthCare, Inc., having an address at 2401 South Plum Grove
Road, Palatine, Illinois 60067 (“Tenant”), for space in
the building known as or located at 2401 South Plum Grove Road,
Palatine, Illinois 60067 (such building, together with the land
upon which it is situated, being herein referred to as the
“Building”). The following schedule (the
“Schedule”) sets forth certain basic terms of this
Lease:
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1. Premises:
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Suites # 114,
118, 120, 121, 200, 208, 210 & 212
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2. Annual
Base Rent:
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$384,000.00
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3. Monthly
Base Rent:
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$32,000.00
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4. Tenant’s
Proportionate Share:
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Balance of
building not under lease
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5. Base
Expenses or Base Expense Year:
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1999
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6. Base
Taxes or Base Tax Year:
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1999
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7. CPI
Factor:
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N/A
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8. CPI Base
Month:
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N/A
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9. Security
Deposit:
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None
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10. Broker:
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N/A
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11. Commencement
Date:
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April 1,
1999
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12. Expiration
Date:
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March 31,
2002
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13. Guarantor:
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None
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1.
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DEMISE AND
TERM. Landlord leases to Tenant and Tenant leases from Landlord the
premises (the “Premises”) described in Item 1 of
the Schedule and shown on the plan, if any, attached hereto,
subject to the covenants and conditions set forth in this Lease,
for a term (the “Term”) commencing on the date (the
“Commencement Date”) described in Item 11 of the
Schedule and expiring on the date (the “Expiration
Date”) described in Item 12 of the Schedule, unless
terminated earlier as otherwise provided in this Lease.
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A.
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Definitions . For the purposes of this Lease, the following
terms shall have the following meanings:
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(i)
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“Base
Taxes” or “Base Tax Year” shall mean the amount
or the year set forth in Item 6 of the Schedule.
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(ii)
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“Rent” shall mean Base Rent,
Adjustment Rent, Index Rent and any other sums or charges due by
Tenant hereunder.
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(iii)
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“Taxes” shall mean
all taxes, assessments and fees levied upon the Building, the
property of Landlord located therein or the rents collected
therefrom, by any
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governmental entity based upon
the ownership, leasing, renting or operation of the Building,
including all costs and expenses of protesting any such taxes,
assessments or fees. Taxes shall not include any net income,
capital stock, succession, transfer, franchise, gift, estate or
inheritance taxes; provided, however, if at any time during the
Term, a tax or excise on income is levied or assessed by any
governmental entity, in lieu of or as a substitute for, in whole or
in part, real estate taxes or other ad valorem taxes. Such
tax shall constitute and be included in Taxes. For the purpose of
determining Taxes for any given year, the amount to be included for
such year (a) from special assessments payable in installments
shall be the amount of the installments (and any interest) due and
payable during such year, and (b) from all other Taxes shall
at Landlord’s election either be the amount accrued, assessed
or otherwise imposed for such year or the amount due and payable in
such year.
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(iv)
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“Tenant’s Proportionate Share”
shall mean the percentage set forth in Item 4 of the Schedule
which has been determined by dividing the rentable square feet in
the Premises by the rentable square feet in the
Building.
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B.
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Components
of Rent . Tenant agrees
to pay the following amounts to Landlord at the office of the
Building or at such other place as Landlord designates:
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(i)
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Base rent
(“Base Rent”) to be paid in monthly installments in the
amount set forth in Item 3 of the Schedule in advance on or
before the first day of each month of the Term, except that Tenant
shall pay the first month’s Base Rent upon execution of this
Lease.
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(ii)
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Adjustment rent
(“Adjustment Rent”) in an amount equal to
Tenant’s Proportionate Share of the increase in Taxes for any
calendar year over the Base Taxes. (If the Schedule sets forth a
Base Tax Year rather than Base Taxes, Base Taxes shall equal the
amount of Taxes for the Base Tax Year.) Prior to each calendar
year, Landlord shall estimate the amount of Adjustment Rent due for
such year, and Tenant shall pay Landlord one-twelfth of such
estimate on the first day of each month during such year. Such
estimate may be revised by Landlord whenever it obtains information
relevant to making such estimate more accurate. After the end of
each calendar year, Landlord shall deliver to Tenant a report
setting forth the actual Taxes for such calendar year and a
statement of the amount of Adjustment Rent that tenant has paid and
is payable for such year. Within thirty days after receipt of such
report, Tenant shall pay to Landlord the amount of Adjustment Rent
due for such calendar year minus any payments of Adjustment Rent
made by Tenant for such year. If Tenant’s estimated payments
of Adjustment Rent exceed the amount due landlord for such calendar
year, Landlord shall apply such excess as a credit against
Tenant’s other obligations under this Lease or promptly
refund such excess to Tenant if the Term has already expired,
provided Tenant is not then in default hereunder, in either case
without interest to Tenant.
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C.
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Payment of
Rent . The following
provisions shall govern the payment of Rent: (i) if this Lease
commences or ends on a day other than the first day or last day of
a calendar year, respectively, the Rent for the year in which this
Lease so begins or ends shall be prorated and the monthly
installments shall be adjusted accordingly; (ii) all Rent
shall be paid to Landlord without offset or deduction, and the
covenant to pay Rent shall be independent of every other covenant
in this Lease; (iii) any sum due from Tenant to Landlord which
is not paid when due shall bear interest from the date due until
the date paid at the annual rate of two (2) percentage points
above the rate then most recently announced by the First National
Bank of Chicago as its corporate base lending rate, from time to
time in effect, but in no event higher than the maximum rate
permitted by law (the “Default Rate”); and, in
addition, Tenant shall pay Landlord a late charge for any Rent
payment which is paid more than five (5) days after its due date
equal to five percent (5 %) of such payment; (iv) if changes
are made to this lease or the Building changing the number of
square feet contained in the Premises or in the Building, Landlord
shall make an appropriate adjustment to Tenant’s
Proportionate Share; (v) Tenant shall have the right to
inspect Landlord’s accounting records relative to Expenses
and taxes during normal business hours at any time following the
furnishing to Tenant of the annual statement of Rent Adjustment;
and, unless Tenant shall take written exception to any item in any
such statement within fifteen (15), such statement shall be
considered as final and accepted by Tenant; (vi) in the event
of the termination of this Lease prior to the determination of any
Adjustment Rent, Tenant’s agreement to pay any such sums and
Landlord’s obligation to refund any such sums (provided
Tenant is not in default hereunder) shall survive the termination
of this Lease; (vii) no adjustment to the Rent by virtue of
the operation of the rent adjustment provisions in this Lease shall
result in the payment by Tenant in any year of less than the Base
Rent shown on the Schedule; (viii) Landlord may at any time
change the fiscal year of the Building; (ix) each amount owed
to Landlord under this Lease for which the date of payment is not
expressly fixed shall be due on the same date as the Rent listed on
the statement showing such amount is due; and (x) if Landlord
fails to give Tenant an estimate of Adjustment Rent prior to the
beginning of any calendar year, Tenant shall continue to pay
Adjustment Rent as the case may be, at the rate for the previous
calendar year until Landlord delivers such estimate.
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3.
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USE. Tenant
agrees that it shall occupy and use the Premises only as business
offices and for no other purposes. Tenant shall comply with all
federal, state and municipal laws, ordinances and regulations and
all covenants, conditions and restrictions of record applicable to
Tenant’s use or occupancy of the Premises. Without limiting
the foregoing, Tenant shall not cause, nor permit, any hazardous or
toxic substances to be brought upon, produced, stored, used,
discharged or disposed of in, on or about the Premises without the
prior written consent of Landlord and then only in compliance with
all applicable environmental laws.
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4.
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CONDITION OF PREMISES.
Tenant’s taking possession of the Premises shall be
conclusive evidence that the Premises were in good order and
satisfactory condition when Tenant took possession. No agreement of
Landlord to alter, remodel, decorate, clean or
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improve the premises or the
Building (or to provide Tenant with any credit or allowance for the
same), and no representation regarding the condition of the
Premises or the Building, have been made by or on behalf of
Landlord or relied upon by Tenant, except as stated herein or in a
separate work letter, if any, executed by Landlord and
Tenant.
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A.
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Basic
Services . Landlord shall
furnish the following services: (i) water for drinking, for
private restrooms, and office kitchen requested by Tenant;
(ii) periodic outside window washing of the perimeter windows
in the Premises. Building will be open from 8:00 a.m. to 6:00 p.m.
Monday to Friday (holidays excepted) and 8:00 a.m. to 1:00 p.m. on
Saturdays.
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B.
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Electricity . Electricity shall be distributed to the
Premises by the electric utility company serving the Building.
Tenant at its cost shall make all necessary arrangements with the
electric utility company for metering and paying for electric
current furnished to the Premises. All electricity used during the
performance of janitor service, or the making of any alterations or
repairs in the Premises, or the operation of any special air
conditioning systems serving the Premises shall be paid for by
Tenant.
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C.
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Telephones . Tenant shall arrange for telephone service
directly with one or more of the public telephone companies
servicing the Building and shall be solely responsible for paying
for such telephone service. If Landlord acquired ownership of the
telephone cables in the Building at any time, Landlord shall permit
Tenant to connect to such cables on such terms and conditions as
Landlord may reasonably prescribe. In no event does Landlord make
any representation or warranty with respect to telephone service in
the Building, and Landlord shall have no liability with respect
thereto.
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D.
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Additional
Services . Landlord shall
not be obligated to furnish any services other than those stated
above. If Landlord elects to furnish services requested by Tenant
in addition to those stated above, Tenant shall pay
Landlord’s then prevailing reasonable charges for such
services. If Tenant shall fail to make any such payment, Landlord
may, without notice to Tenant and in addition to all other remedies
available to Landlord, discontinue any additional services. No
discontinuance of any such service shall result in any liability of
Landlord to Tenant or be considered as an eviction or a disturbance
of Tenant’s use of the Premises. In addition, if
Tenant’s concentration of personnel or equipment adversely
affects the temperature or humidity in the Premises or the
Building, Landlord may install supplementary air conditioning units
in the Premises; and Tenant shall pay for the cost of installation
and maintenance thereof.
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E.
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Failure or Delay in Furnishing
Services . Tenant agrees
that Landlord shall not be liable for damages for failure or delay
in furnishing any service stated above if such failure or delay is
caused, in whole or in part, by any one or more of the events
stated in Section 25(j) below, nor shall any such failure or
delay be
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considered to be an eviction or
disturbance of Tenant’s use of the Premises, or relieve
Tenant from its obligation to pay any Rent when due or from any
other obligations of Tenant under this Lease.
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6.
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RULES AND
REGULATIONS. Tenant shall observe and comply, and shall cause its
subtenants, assignees, invitees, employees, contractors and agents
to observe and comply, with the rules and regulations listed on
Exhibit A attached hereto and with such reasonable modifications
and additions thereto as Landlord may make from time to time.
Landlord shall not be liable for failure of any person to obey such
rules and regulations. Landlord shall not be obligated to enforce
such rules and regulations against any person, and the failure of
Landlord to enforce any such rules and regulations shall not
constitute a waiver thereof or relieve Tenant from compliance
therewith.
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7.
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CERTAIN RIGHTS
RESERVED TO LANDLORD. Landlord reserves the following rights, each
of which Landlord may exercise with reasonable notice to Tenant and
without liability to Tenant, and the exercise of any such rights
shall not be deemed to constitute an eviction or disturbance of
Tenant’s use or possession of the Premises and shall not give
rise to any claim for set-off or abatement of rent or any other
claim: (a) to change the name or street address of the
Building or the suite number of the Premises; (b) to install,
affix and maintain any and all signs on the exterior or interior of
the Building; to make repairs, decorations, alterations, additions,
or improvements, whether structural or otherwise, in and about the
Building, and for such purposes to enter upon the Premises,
temporarily close doors, corridors and other areas in Building and
interrupt or temporarily suspend services or use of common areas,
and Tenant agrees to pay landlord for overtime and similar expenses
incurred if such work is done other than during ordinary business
hours at Tenant’s request; (d) to retain at all times,
and to use in appropriate instances, keys to all doors within and
into the Premises; (e) to grant to any person or to reserve
unto itself the exclusive right to conduct any business or render
any service in the Building; (f) to show the Premises at
reasonable times during the last six months of the lease and, if
vacated or abandoned, to prepare the Premises for reoccupancy;
(g) to install, use and maintain in and through the Premises
pipes, conduits, wires and ducts serving the Building, provided
that such installation, use and maintenance does not unreasonably
interfere with Tenant’s use of the Premises; and (h) to
take any other action which Landlord deems reasonable in connection
with the operation, maintenance or preservation of the
Building.
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8.
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MAINTENANCE AND
REPAIRS. Tenant, at its expense, shall maintain and keep the
Premises in good order and repair at all times during the Term,
wear and tear excluded. In addition, Tenant shall reimburse
Landlord for the cost of any repairs to the Building necessitated
by the acts or omissions of Tenant, its subtenants, assignees,
invitees, employees, contractors and agents, to the extent Landlord
is not reimbursed for such costs under its insurance policies.
Subject to the preceding sentence, Landlord shall perform any
maintenance or make any repairs to the Building as Landlord shall
desire or deem necessary for the safety, operation or preservation
of the Building, or as Landlord may be required or requested to do
by the City of Rolling Meadows, IL or by the order or decree of any
court or by any other proper authority.
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A.
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Requirements . Tenant shall not make any replacement,
alteration, improvement or addition to or removal from the Premises
(collectively an “alteration”) without the prior
written consent of Landlord, which shall not be unreasonably
withheld or delayed. In the event Tenant proposes to make any
alteration, Tenant shall, prior to commencing such alteration,
submit to Landlord for prior written approval: (i) detailed
plans and specifications; (ii) sworn statements, including the
names, addresses and copies of contracts for all contractors;
(iii) all necessary permits evidencing compliance with all
applicable governmental rules, regulations and requirements;
(iv) certificates of insurance in form and amounts required by
Landlord, naming Landlord and any other parties designated by
Landlord as additional insured; and (v) all other documents
and information as Landlord may reasonably request in connection
with such alteration. Tenant agrees to pay Landlord’s
reasonable charges for review of all such items and supervision of
the alteration. Neither approval of the plans and specifications
nor supervision of the alteration by Landlord shall constitute a
representation or warranty by Landlord as to the accuracy,
adequacy, sufficiency or propriety of such plans and specifications
or the quality of workmanship or the compliance of such alteration
with applicable law. Tenant shall pay the entire cost of the
alteration and, if requested by Landlord, shall deposit with
Landlord, prior to the commencement of the alteration, security for
the payment and completion of the alteration in form and amount
required by Landlord. Each alteration shall be performed in a good
and workmanlike manner in accordance with the plans and
specifications approved by the Landlord and shall meet or exceed
the standards for construction and quality of materials established
by Landlord for the building. In addition each alteration shall be
performed in compliance with all applicable governmental and
insurance company laws, regulations, and requirements. Each
alteration shall be performed by union contractors if required by
Landlord and in harmony with Landlord’s employees,
contractors, and other tenants. Each alteration, whether temporary
or permanent in character, made by Landlord or Tenant in or upon
the Premises (excepting only Tenant’s furniture, equipment
and trade fixtures) shall become Landlord’s property and
shall remain upon the Premises at the expiration or termination of
this Lease without compensation to Tenant; provided, however, that
Landlord shall have the right to require Tenant to remove such
alteration at Tenant’s sole cost and expense in accordance
with the provisions of Section 15 of this Lease.
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B.
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Liens . Upon completion of any alteration, Tenant
shall promptly furnish Landlord with sworn owner’s and
contractor’s statements and full and final waivers of liens
covering all labor and materials included in such alteration.
Tenant shall not permit any mechanic’s lien to be filed
against the Building, or any part thereof, arising out of any
alteration performed, or alleged to have been performed, by or on
behalf of Tenant. If any such lien is filed, Tenant shall within
ten (10) days thereafter have such lien released of record or
deliver to Landlord a bond in form, amount, and issued by a surety
satisfactory to Landlord, indemnifying Landlord against all costs
and liabilities resulting from such lien
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and the foreclosure or attempted
foreclosure thereof. If Tenant fails to have such lien so released
or to deliver such bond to Landlord, Landlord, without
investigating the validity of such lien, may pay or discharge the
same; and Tenant shall reimburse Landlord upon demand for the
amount so paid by Landlord, including Landlord’s reasonable
expenses and attorneys’ fees.
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10.
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INSURANCE.
Tenant, at its expense, shall maintain at all times during the Term
the following insurance policies: (a) fire insurance,
including extended coverage, vandalism, malicious mischief,
sprinkler leakage and water damage coverage and demolition and
debris removal, insuring the full replacement cost of all
improvements, alterations or additions to the Premises made at
Tenant’s expense, and all other property owned or used by
Tenant and located in the Premises; (b) commercial general
liability insurance, contractual liability insurance and property
damage insurance with respect to the Building and the Premises,
with limits to be set by Landlord from time to time but in any
event not less than $1,000,000 combined single limit for personal
injury, sickness or death or for damage to or destruction of
property for any one occurrence; and insurance against such other
risks and in such other amounts as Landlord may from time to time
require. The form of all such policies and deductibles thereunder
shall be subject to Landlord’s prior approval. All such
policies shall be issued by insurers reasonably acceptable to
Landlord and licensed to do business in the State of Illinois and
shall contain a waiver of any rights of subrogation thereunder. In
addition, the policies shall name Landlord and any other parties
designated by Landlord as additional insured, shall require at
least thirty (30) days’ prior written notice to Landlord
of termination or modification and shall be primary and not
contributory. Tenant shall, at least ten (10) days prior to
the Commencement Date, and within ten (10) days prior to the
expiration of each such policy, deliver to Landlord certificates
evidencing the foregoing insurance or renewal thereof, as the case
may be.
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11.
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WAIVER AND
INDEMNITY.
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A.
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Waiver . Tenant releases Landlord, Landlord’s
beneficiaries and their respective agents and employees from, and
waives all claims for, damage or injury to person or property and
loss of business sustained by Tenant resulting from the Building or
the Premises or any part thereof or any equipment therein becoming
in disrepair, or resulting from any accident in or about the
Building. This paragraph shall apply particularly, but not
exclusively, to flooding, damage caused by Building equipment and
apparatus, water, snow, frost, steam, excessive heat or cold,
broken glass, sewage, gas, odors, excessive noise or vibration or
the bursting or leaking of pipes, plumbing fixtures or sprinkler
devices. Without limiting the generality of the foregoing, Tenant
waives all claims and rights of recovery against Landlord,
Landlord’s beneficiaries and their respective agents and
employees for any loss or damage to any property of Tenant, which
loss or damage is insured against, or required to be insured
against, by Tenant pursuant to Section 10 above, whether or
not such loss or damage is due to the fault or negligence of
Landlord or such beneficiaries, agents, or employees, and
regardless of the amount of insurance proceeds collected or
collectible under any insurance policies in effect.
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B.
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Indemnity . Tenant agrees to indemnify, defend and hold
harmless Landlord, Landlord’s beneficiaries and their
respective agents and employees, from and against any and all
claims, demands, actions, liabilities, damages, costs and expenses
(including attorneys’ fees), for injuries to any persons and
damage to or theft or misappropriation or loss of property
occurring in or about the Building and arising from the use and
occupancy of the Premises or from any activity, work, or thing
done, permitted or suffered by Tenant in or about the Premises
(including, without limitation, any alteration by Tenant) or from
any breach or default on the part of Tenant in the performance of
any covenant or agreement on the part of Tenant to be performed
under this Lease or due to any other act or omission of Tenant, its
subtenants, assignees, invitees, employees, contractors and agents.
Without limiting the foregoing, Tenant shall indemnify, defend and
hold Landlord harmless from any claims, liabilities, damages, costs
and expenses arising out of the use or storage of hazardous or
toxic materials in the Building by Tenant. If any such proceeding
is filed against Landlord or any such indemnified party, Tenant
agrees to defend Landlord or such party in such proceeding at
Tenant’s sole cost by legal counsel reasonably satisfactory
to Landlord, if requested by Landlord.
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12.
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FIRE AND
CASUALTY. If all or a substantial part of the
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