TELECOM/OFFICE LEASE AGREEMENT
BETWEEN
BANK BUILDING LIMITED PARTNERSHIP, LLC.
AND
WINSONIC DIGITAL MEDIA GROUP, LTD.
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Page
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1.
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LEASED
PREMISES
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3
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2.
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DEFINITIONS
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3
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3.
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TERM OF
LEASE
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4.
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POSSESSION
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5.
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BASE MONTHLY
RENTAL
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6.
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RENTAL
ADJUSTMENT
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7.
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SECURITY
DEPOSIT
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8.
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USE AND
OCCUPANCY
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9.
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UTILITIES
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10.
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HEATING AND AIR
CONDITIONING
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11.
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ELEVATORS
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12.
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INTERRUPTION OF
SERVICES
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13.
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MAINTENANCE AND
ALTERATIONS
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14.
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RIGHT OF
ENTRY
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9
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15.
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INSURANCE
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16.
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INDEMNITY
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10
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17.
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FIRE OR OTHER
CASUALTY
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10
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18.
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DEFAULT
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18.1
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REMEDIES
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19.
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ASSIGNMENT AND
SUBLETTING
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20.
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BUILDING RULES
AND REGULATIONS
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21.
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WAIVER
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22.
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HOLDING
OVER
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23.
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SUBORDINATION
AND ATTORNMENT
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24.
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NOTICES
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25.
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SUBSTITUTE
SPACE
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26.
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EXCULPATION
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27.
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ATTORNEY'S FEES
AND HOMESTEAD
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28.
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ENTIRE
AGREEMENT
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29.
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TIME
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30.
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INTEREST
CONVEYED
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31.
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SURRENDER OF
PREMISES
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Table of
Contents
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Page
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32.
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PARTIES
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33.
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SEVERABILITY
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34.
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CAPTIONS
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35.
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ESTOPPEL
CERTIFICATE
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36.
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PERSONALTY OF
TENANT
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37.
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QUIET
ENJOYMENT
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18
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38.
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CORPORATE
AUTHORITY
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39.
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EMINENT
DOMAIN
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40.
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GOVERNMENTAL
REGULATIONS
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41.
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NO
OFFER
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42.
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NO
RECORDATION
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43.
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NO
MERGER
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44.
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AMENDMENTS
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45.
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NO CONSTRUCTION
AGAINST PREPARER OF LEASE
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46.
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WAIVER OF JURY
TRIAL
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47.
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BINDING
EFFECT
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48.
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EXHIBITS
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49.
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GOVERNING
LAW
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50.
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NO
COUNTERCLAIM
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51.
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FORCE
MAJEURE
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20
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52.
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SURVIVAL OF
OBLIGATIONS
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20
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53.
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JOINT AND
SEVERAL LIABILITY
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54.
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RIGHTS
RESERVED
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55.
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SPECIAL
STIPULATIONS
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TELECOM / OFFICE LEASE BASIC
INFORMATION
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BANK BUILDING
LIMITED PARTNERSHIP
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c/o Ultima Real
Estate Services, L.L.C.
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WINSONIC
DIGITAL MEDIA GROUP, LTD,
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Winsonic
Digital Media Group
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Centennial
Tower, Suite 2600
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c/o Ultima Real
Estate Services
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Facsimile No.
(404) 222-0910)
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Described in
Exhibit "A" attached.
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Approximately
12,080 square feet
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BASE MONTHLY
RENTAL:
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Dates
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Rate PSF
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Monthly
amount
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05/01/07 - 02/28/08
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03/01/08 - 04/30/12
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05/01/12 - 04/30/17
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The Base
Monthly Rental actually payable from time to time, shall be subject
to such adjustments as shall be made pursuant to Paragraph 6 of
this Office Lease Agreement (Rental Adjustment).
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Exhibit "A" -
Leased Premises
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Exhibit "B" -
Initial Improvement of Premises
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Exhibit "C" -
Special Stipulations
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Exhibit "D" -
Rules & Regulations
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Exhibit "E" -
Brokerage/Agency
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Exhibit
“F”- Moving/contractor policy
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Exhibit
“G” -License Agreements
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This
Telecom/Office Lease Basic Information must be read in reference to
this Telecom/Office Lease Agreement as a whole and is provided for
convenience of reference. In the event of any conflict between this
Telecom/Office Lease Basic Information and the terms and conditions
of the Telecom/Office Lease Agreement, the Telecom/Office Lease
Agreement shall control, except as to the number of square feet of
the Area of Leased Premises which shall be as stated in this
Telecom/Office Lease Basic Information.
IN WITNESS
WHEREOF, the parties have hereunto set their hands, as of the day
and year first above written.
Signed, sealed
and delivered in the presence of:
WINSONIC DIGITAL MEDIA GROUP,
LTD
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By:
/s/ Winston D.Johnson
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/s/ Janice F.
Alfred
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Witness
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Title:
Founder, Chairman
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Signed, sealed
and delivered in the presence of:
BANK
BUILDING LIMITED PARTNERSHIP, LLC, a Georgia
Partnership
By: Ultima
Marietta Holdings Ltd, General partner
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By: /s/ Thomas Bauer
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/s/ Richard Ullmann
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Witness
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Title: Attorney in Fact
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OFFICE/ TELECOM
LEASE
THIS LEASE is
made and entered into this 8th day of February , 2007 by and between BANK BUILDING
LIMITED PARTNERSHIP, LLC , (hereinafter referred to as the
"Landlord") and WINSONIC DIGITAL MEDIA GROUP, LTD.
(hereinafter referred to as the "Tenant").
WITNESSETH:
That in
consideration of the mutual promises and covenants herein contained
and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:
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1.
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LEASED
PREMISES. Landlord does hereby lease and rent to Tenant,
and Tenant does hereby lease, take and rent from landlord, the
Leased Premises described in Paragraph 2d below. No easement for
light, air or view is included in this Lease of the Leased
Premises, and no diminution or shutting off of light or air or view
by any structure which may be now or hereafter erected shall affect
this Lease. Tenant acknowledges that Landlord has not made any
representation or warranty with respect to the condition of the
Leased Premises or the Building. Unless otherwise provided for in
this Lease, Tenant agrees to accept the Leased Premises in its
“as is” physical condition without any agreements,
representations, understandings or obligations on the part of
Landlord to perform any alterations, repairs or improvements (or to
provide any allowance for same) except as provided for on Exhibit
“B”.
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a.
Base Monthly Rental. The term "Base
Monthly Rental" shall mean the monthly rental amount specified in
the Office Lease Basic Information, subject to adjustments as
provided herein.
b.
Building. The term "Building" shall
mean those improvements located at 55 Marietta Street NW Atlanta,
Georgia 30303 and commonly known as "55 Marietta
Street".
c.
Common Area. The term "Common Area"
shall mean the total area on a floor consisting of rest rooms,
janitor, telephone and electrical closets, mechanical areas and
public corridors providing access to tenant space on such floor,
but excluding public stairs, elevator shafts and pipe shafts,
together with the enclosing walls thereof.
d.
Leased Premises. The term "Leased
Premises" shall mean that area of the Building shown or designated
on the floor plan attached hereto as Exhibit "A" and incorporated
herein by reference and as specified in the Office Lease Basic
Information attached hereto.
e.
Net Rentable Area. The term "Net
Rentable Area" shall mean: (i) as to a floor leased entirely by
Tenant, all areas within the exterior glass line of the Building to
the opposite exterior glass line, including restrooms, janitor,
telephone and electrical closets, mechanical areas, and columns and
projections necessary to the Building, including public stairs,
elevator shafts and pipe shafts, together with the enclosing walls
thereof; (ii) as to a floor a portion of which is leased by Tenant,
the aggregate of the Net Usable area (as defined below) of the
portion of the floor occupied by Tenant, plus the result obtained
by multiplying the areas of the Common Area on such floor times a
fraction, the numerator of which is the Net Usable Area of Tenant's
portion of the floor and the denominator of which is the Net
Useable Area of all Tenant space (whether leased or unleased,
improved or unimproved) on such floor. Tenant agrees to the Net
Rentable Area specified in the Office Lease Basic
Information.
f.
Net Usable Area. The term "Net
Usable Area" shall mean all floor area in the Leased Premises as
measured to the exterior glass line and from centerline to
centerline of all perimeter partitions, without deduction for
columns and projections necessary to the Building. Tenant agrees to
the Net Usable Area specified in the Office Lease Basic
Information.
g.
Operating Expenses. The term
"Operating Expenses" shall mean all costs of management, operation,
and maintenance of the Building, as determined by Landlord in its
sole discretion, and as calculated by Landlord in accordance with
Landlord's ordinary and customary method of accounting, including,
without limitation; (1) all costs of electricity, natural gas, fuel
oil, water, waste disposal, sewer and other utilities servicing the
Building; (2) all insurance premiums and management fees; (3) real
property taxes, general or special assessments imposed upon the
Building, personal property taxes imposed upon any personal
property used in the management, operation and maintenance of the
Building, all reasonable costs (including attorneys' fees, experts'
and witnesses' fees) incurred in contesting the validity or amount
of any taxes or assessments or in obtaining a refund thereof, and
if any tax or assessment (including, without limitation, any
franchise, income, profit, sales, use, occupancy, gross receipts or
rental tax) is imposed upon Landlord as the owner of the Building,
or the occupancy, rents or income from the Building, in
substitution for any taxes or assessments, then such other tax or
assessment, computed as if the Building were Landlord's sole asset,
will be deemed a part of taxes and assessments; (4) all costs of
maintenance, operation, and repair of the Building (including
maintenance of all elevators, HVAC, electrical, and other systems
and equipment contained therein), and the costs of replacing tools
or equipment used for such maintenance, operation or repair), (5)
all general administrative expenses regarding the operation and
maintenance of the Building (including wages, fees, payroll and
benefits of janitorial, security, grounds and building maintenance,
and administrative personnel and contractors , and accounting,
legal and other professional fees); (6) the rent or rental value of
the Building's management office; (7) the costs of licenses,
permits and similar fees and charges; and (8) amortization of
capital improvements made to the Building after Term Commencement
which are undertaken primarily for the purpose of reducing
Operating Expenses, or which are required to comply with any laws,
ordinances, rules or regulations.
h.
Percentage Share of Space. The term
"Percentage Share of Space" for purposes of Paragraph 6 shall mean
the percentage specified in the Office Lease Basic
Information.
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TERM OF
LEASE. The term of
this Lease (the "Term") shall commence on the Term Commencement
date, and unless sooner terminated as hereinafter provided, shall
end on the Term Expiration date; as such dates are respectively
specified in the Office Lease Basic Information. The terms and
conditions of this Lease shall include and govern all renewal
periods of the Lease, if any, as such dates and under such other
terms and conditions as are respectively specified in the Office
Lease Basic Information. Landlord agrees to proceed with due
diligence to complete the construction of the Leased Premises or to
otherwise prepare the Leased Premises for Tenant's occupancy on or
before the Term Commencement. In the event that Tenant, with
Landlord's consent, occupies the Leased Premises at any time prior
to Term Commencement, then Term Commencement shall be on the date
of such occupancy, and Tenant shall pay to Landlord a pro rata
share of the Base Monthly Rental for the period from such
commencement date through the first day of the month next following
or, if this Lease provides for Rental Abatement as set forth in the
Office Lease Basic Information, then the Term Commencement shall be
deemed to be the date of such occupancy and a pro rata share of the
first monthly payment of Base Monthly Rental shall be due and
payable upon expiration of the exact amount of time of Rental
Abatement specified. Thereafter, the schedule of Basic Monthly
Rental shall be unaltered.
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POSSESSION. Taking of possession by Tenant shall be deemed
conclusively to establish that the Leased Premises have been
prepared or completed in accordance with the Initial Improvement of
Premises (see Exhibit "B" attached) and that the Leased Premises
are in good, satisfactory and acceptable condition. If this
Agreement is executed before the Leased Premises herein become
ready for occupancy and Landlord cannot acquire and/or deliver
possession of the Leased Premises by Term Commencement, this Lease
shall not be void or voidable; and Tenant waives any claim for
damages due to such delay. Landlord waives the payment of any
rental or the running of any Rental Abatement until Landlord
delivers possession of the Leased Premises to Tenant, unless
specified otherwise in the Office Lease Basic Information or any
Exhibit attached hereto. No delay in delivery or possession shall
operate to terminate this Lease, but such delay shall operate to
extend the Term Commencement and the Term Expiration hereof (except
for Tenant-caused delays which shall not be deemed to delay
commencement of the Term).
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a.
Subject to the further provisions
of this Paragraph 5, Tenant shall pay to Landlord the Base Monthly
Rental specified in the Office Lease Basic Information, which shall
be payable by the first day of each month, in advance, without
prior demand and without any deduction or set-off, during the Term,
except that the payment of the first month of Base Monthly Rental
in the amount specified in the Office Lease Basic Information,
after expiration of any Rental Abatement as provided therein, shall
be paid simultaneously with the execution of this Lease by Tenant.
Base Monthly Rental shall at all times be subject to Rental
Adjustment as provided in Paragraph 6 below.
b.
It is acknowledged and agreed that
the late payment by Tenant to Landlord of Base Monthly Rental or
any other rent, additional rent, or other sums due under the Lease
shall cause Landlord to incur costs not contemplated by this Lease,
the exact amount of which would be extremely difficult and
impractical to ascertain. Such costs include, but are not limited
to, processing, clerical and accounting charges, lost interest, and
late charges which may be imposed on Landlord by the terms of any
security instrument. Therefore, if Landlord does not receive any
installment of Base Monthly Rental, or any other rent, additional
rent, or other sum by the end of the 5th day following the date
due, a late fee of five percent (5%) shall be imposed upon such
Base Monthly Rental, rent, additional rent, or other sum. In
addition, at Landlord's option, all unpaid rents will accrue
interest at the rate of eighteen per centum (18%) per annum from
the due date until paid.
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RENTAL
ADJUSTMENT. Tenant
agrees to pay Landlord as additional rent each year beginning after
the last day of the Base Year as stated in the Office Lease Basic
Information, on demand, Tenant's pro-rata share of all Operating
Expenses in excess of those for the Base Year. For purposes of this
Paragraph, Tenant's share of such Operating Expenses shall equal
the total amount of such Operating Expenses of the Building for the
applicable calendar year less the total amount of the Operating
Expenses of the Building for the Base Year multiplied by Tenant's
Percentage Share of Space as stated in the Office Lease Basic
Information. It is understood, and Tenant hereby specifically
agrees, that in no event shall the Operating Expenses for any
calendar year be calculated or deemed to equal less than those
computed for the calendar year immediately preceding. At landlord's
election, and beginning not sooner than the first day of the first
calendar month after expiration of (i) the Base Year (as specified
in the Office Lease Basic Information) or (ii) Rental Abatement
(whichever shall last occur), an amount equal to one-twelfth (1/12)
of Landlord's good faith estimate of the additional rent due
hereunder for the calendar year during which the (i) Base Year or
(ii) Rental Abatement period expires (whichever is later) shall be
payable each month in advance as additional rent, along with Base
Monthly Rental, on the first day of each month of such year, with
an adjustment to be made between Tenant and Landlord within sixty
(60) days after the end of such year to account for any differences
between such estimated additional rent and that actually due. If
the difference between such estimated additional rent and that
actually due results in an amount due Landlord from Tenant, Tenant
shall pay such amount to Landlord within ten (10) days after notice
from Landlord to Tenant, and if any such amount is due to Tenant
from Landlord, Landlord shall apply such amount against Tenant's
next due estimated additional rent payment. Tenant's obligation to
pay for increases in Operating Expenses as provided herein shall
survive any expiration or other termination of this
Lease.
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a.
As security for the faithful
performance by Tenant throughout the Term (and any renewals and
extensions of the Term) of all the terms and conditions of the
Lease on the part of Tenant to be performed, Tenant has deposited
with Landlord the sum shown in the Office Lease Basic Information
as the Security Deposit (hereinafter referred to as the "Security
Deposit"). Such amount shall be returned to Tenant, without
interest, within ninety (90) days after the latter of the Term
Expiration as set forth in the Office Lease Basic Information or
the day Tenant actually vacates the Leased Premises, provided
Tenant has fully and faithfully observed and performed all of the
terms, covenants, agreements, warranties and conditions hereof on
its part to be observed and performed. Landlord shall have at any
time during the Term the right to apply all or any part of the
Security Deposit toward the cure of any default of Tenant;
provided, however, that the Security Deposit will not be a
limitation on Landlord's damages or other rights under this Lease,
or a payment of liquidated damages. If all or any part of the
Security Deposit is so applied by Landlord, then Tenant shall
immediately pay to Landlord upon demand an amount sufficient to
return the Security Deposit to the balance on deposit with Landlord
prior to said application.
b.
As additional security for Tenant's
obligation to take possession of the Leased Premises on the date of
the Term Commencement and to comply with all of Tenant's covenants,
warranties, agreements and provisions on the Term Commencement,
Tenant has herewith paid to Landlord the first month of Base
Monthly Rental as provided in Paragraph 5 above, for purposes of
application in reduction, but not in satisfaction, of damages which
may be suffered by Landlord if Tenant fails to take possession or
to commence the payment of Base Monthly Rental in accordance with
Tenant's obligations under this Lease. The first month's Base
Monthly Rental paid pursuant to Paragraph 5 above, as referenced in
this Paragraph, shall be applied to the first full month of Base
Monthly Rental as provided in the Office Lease Basic Information,
provided Tenant is not then in default hereunder, subject to such
additional amount which may be due from and payable by Tenant
pursuant to Paragraph 6 above.
c.
In the event of a sale or transfer
of Landlord's interest in the Leased Premises or the Building or a
lease by Landlord of the Building, Landlord shall have the right to
transfer the Security Deposit and first month's rent to the
purchaser or lessee, as the case may be, and Landlord shall be
relieved of all liability to tenant for the return of such amounts.
Tenant shall look solely to the new owner or landlord for the
return of the same.
d.
Landlord may commingle the Security
Deposit and the first month's Base Monthly Rental along with any
other sums paid by Tenant to Landlord with other or similar
deposits made by other tenants occupants of the Building or with
Landlord's general operating funds.
e.
The Security Deposit may not be
assigned or encumbered by the Tenant, and any attempted assignment
or encumbrance by the Tenant shall be null and void.
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USE AND
OCCUPANCY. Tenant
agrees that the Leased Premises will be used only for general
office purposes and for no other purpose (unless stipulated in
differently in Exhibit C “Special Stipulations”), that
no unlawful use of the Leased Premises will be made, and that no
sign may be painted or displayed on any part of the Building,
except that the name and business or profession of Tenant may be
posted in an appropriate manner approved in advance by Landlord, in
its discretion, on or adjacent to the door or doors to the Leased
Premises. Any such sign shall be provided by Landlord, at Tenant's
expense, payable upon demand. Tenant shall not use or occupy the
Leased Premises in any manner which would violate any certificate
of occupancy issued for the Leased Premises, that would cause
damage to the Building, that would constitute a public or private
nuisance, that would disturb the quiet enjoyment of other tenants
of the Building, or that would violate any law, ordinance, order,
rule, regulation, or other governmental requirement. Tenant
affirmatively covenants and agrees to comply with all laws,
ordinances, orders, rules, regulations, and any other governmental
requirements relating to the use, condition or occupancy of the
Leased Premises, and all rules, orders, regulations and
requirements of the board of fire underwriters or insurance service
office, or any other similar body having jurisdiction over the
Building. The cost of such compliance shall be borne by Tenant.
Upon the termination of this Lease, Tenant will vacate and
surrender possession of the Leased Premises to Landlord in as good
condition as the Leased Premises were at the commencement of this
Lease, normal wear and tear excepted. Landlord disclaims any
warranty that the Leased Premises are suitable for Tenant’s
use and Tenant acknowledges that it has had a full opportunity to
make its own determination in this regard.
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UTILITIES. So long as Tenant is not in default under this
Lease, Landlord shall supply electric current for the lighting
fixtures as installed in the Leased Premises, toilets, corridors,
and restrooms, and for normal use by electrically powered office
machines requiring 110 volt general (but no dedicated) electrical
lines, but Landlord shall not be responsible for any power failure
or fluctuations. Landlord shall furnish a reasonable amount of hot
and cold running water to lavatories and toilets in or proximate to
the Leased Premises and shall keep all plumbing in good repair. It
is specifically agreed that Landlord undertakes to furnish only a
reasonable amount of electric current and water and that Landlord
reserves the right to install meters and to make extra rental
charges for any consumption of electric current or water which it
deems, in its discretion, to be greater than normal office use, or
to be excessive or wasteful as compared to other office tenants in
the Building.
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HEATING
AND AIR CONDITIONING. Landlord shall maintain and operate heating, air
conditioning and ventilation systems for all common area parts of
the Building except storage space. The heating, air conditioning
and ventilation systems shall be operated and maintained, except on
holidays and Sundays, between the hours of 8:00 a.m. and 6:00 p.m.
on weekdays and from 8:00 a.m. to 1:00 p.m. on
Saturdays.
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11.
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ELEVATORS. Landlord shall furnish non-attended elevator
service (if the Building has such equipment serving the Leased
Premises), in common with Landlord and other tenants and occupants
and their agents and invitees, to all occupied floors of the
Building during ordinary business hours and make a reasonable
number of elevators available for such persons as properly enter
the Building at other times.
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INTERRUPTION OF SERVICES.
Landlord shall not be liable for
damages to Tenant alleged to be caused or occasioned by or in any
way connected with or as a result of any interruption, defect or
breakdown from any cause whatever in any of the services herein
referred to in Paragraphs 8, 9, 10 and 11 above, or elsewhere
herein, and no actual or constructive eviction of Tenant shall be
deemed to have occurred hereunder by virtue of any such
interruption, defect, or breakdown. However, within a reasonable
period of time after receipt of actual written notice of any such
interruption, defect or breakdown, Landlord will take such steps as
Landlord deems reasonable to restore any such interrupted service
or to remedy any such defect.
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13.
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MAINTENANCE AND ALTERATIONS.
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a.
Any alterations, additions or
improvements permitted herein, other than the Landlord Contribution
to the Tenant Improvements as set forth in Exhibit "B" attached,
and as limited therein, shall be made at the sole expense of
Tenant. Tenant agrees that Tenant will make no alterations,
additions or improvements to the Leased Premises without the prior
written consent of Landlord. Landlord may withhold its approval, in
Landlord's sole and absolute discretion, for any alterations,
additions or improvements to the Leased Premises if such
alterations, additions or improvements affect the structural
components and elements, or the electrical, plumbing or mechanical
systems, of the Building. All alterations, additions or
improvements made by and for Tenant, including but not limited to,
any and all subdividing partitions, walls or railings of whatever
type, material or height, but excepting moveable equipment, movable
office furniture or furnishings put in at the expense of Tenant,
shall, when made, be the property of Landlord and shall remain upon
and be surrendered with the Leased Premises as a part thereof at
Term Expiration or any earlier termination of this Lease. Any
moveable equipment, moveable furniture or furnishings installed in,
or removed from, the Leased Premises shall be installed or removed
without damage to the Leased Premises or the Building, or Tenant
shall promptly repair such damage. Upon the Term Expiration or any
earlier termination of this Lease, Tenant shall remove all moveable
equipment, moveable furniture or furnishings installed in the
Leased Premises, or any such property remaining in the Leased
Premises after Term Expiration or earlier termination shall be
deemed to have been abandoned and may be removed by Landlord at
Tenant's expense. Tenant accepts the Leased Premises in its present
condition and as suited for the use and purposes contemplated by
Tenant. Landlord shall not be required to make any repairs or
improvements to the Leased Premises except as herein set forth and
shall not, under any circumstances, be required to make any repairs
necessitated by virtue of Tenant's or its agents' or visitors'
actions. Otherwise, Tenant shall keep the Leased Premises in good
order, condition and repair, including but not limited to the
floors, walls, ceilings, light fixtures, and plumbing fixtures. Any
repainting, renovation or decoration of the Leased Premises shall
be at the sole expense of Tenant. Tenant shall keep the Leased
Premises in as good a state of repair as when received, normal wear
and tear excepted. Tenant is hereby permitted to make such repairs
to the Leased Premises at its own expense that Tenant may deem
advisable during the term of this Lease and without liability on
the part of Landlord that written consent of Landlord shall first
be obtained. Tenant will pay or cause to be paid all costs and
charges for work done by it or caused to be done by it, in or to
the Leased Premises or the Building, and for all materials
furnished for or in connection with the work. Tenant will indemnify
and hold Landlord harmless from all liabilities, liens, claims,
costs, and demands on account of such work. If any mechanic's,
material man’s or other lien is filed against the Leased
Premises or the Building, Tenant will cause such lien to be
discharged of record within ten (10) days after the lien is filed.
Nothing contained in this Lease is the consent or agreement of
Landlord to subject Landlord's interest in the Leased Premises or
the Building to liability under any lien law. Tenant will fully
reimburse Landlord for any costs occasioned by the acts of Tenant
and paid by Landlord, including legal fees.
b.
With respect to work by Tenant on
the Initial Improvements of the Leased Premises as provided in
Exhibit "B" of this Lease, and with respect to any alterations,
additions, improvements, renovations, repairs or decorations which
Tenant may, in the future, be permitted to make or construct in the
Leased Premises, such work by Tenant shall be subject to the
following standards:
(i) Whenever, after the Term Commencement, Tenant
is permitted or required to maintain and repair, or make additions
or alterations to, the Leased Premises, Tenant shall commence such
work only after Landlord has approved the plans therefor and any
contractor proposed by Tenant to perform the work.
(ii)
Tenant shall cause the work to be
done and completed in a good, substantial and workman-like manner
free from faults and defects, in compliance with all laws,
ordinances, rules and regulations, and should utilize only new
materials and supplies. Tenant shall be solely responsible for
construction means, methods, techniques, sequences and procedures,
and for coordinating all activities relating to Tenant's work, and
the Landlord shall not have any duty or obligation to inspect the
work, but shall have the right to do so.
(iii) Whenever Tenant is required to perform any work
on the Leased Premises, Tenant shall promptly commence the work
and, once commenced, diligently and continually pursue the work and
complete the work in a reasonable time. Tenant shall supervise and
direct the work utilizing its best efforts and reasonable care, and
assign qualified personnel to the work in order to cause the work
to be completed in an expeditious fashion.
(iv) Except as provided in Exhibit "B" with respect
to Landlord's Contribution toward the initial improvement of the
Leased Premises, Tenant shall provide and pay for all labor,
materials, goods, supplies, equipment, appliances, tools,
construction equipment and machinery and other facilities and
services necessary for the proper execution and completion of the
work. Tenant shall promptly pay when due all costs and expenses
incurred in connection with the work, and not permit or suffer to
exist any liens against the Building. Tenant shall pay all fees and
taxes required by law in connection with the work, and procure all
permits and licenses necessary for the performance of the
work.
(v) Tenant shall be responsible for the acts and
omissions of all of its employees and all other persons performing
any of the work. Tenant shall initiate, maintain and supervise all
necessary safety precautions and programs in connection with the
work, and take all reasonable protection to prevent damage, injury
or loss to, the work, all persons performing work on the Leased
Premises, all other persons who may be involved in or affected by
the work, all materials and equipment to be incorporated in the
work, and all other property on the Leased Premises or adjacent
thereto.
(vi) Tenant shall defend, indemnify and save
Landlord and its officers, employees and agents harmless from all
liabilities, damages, losses, costs, expenses, causes of action,
suits, claims, demands and judgments of any nature arising out of,
by reason of, or in connection with Tenant's work.
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RIGHT
OF ENTRY. Tenant
agrees that Landlord shall have the right to enter and to grant
licenses to enter the Leased Premises at any time, (a) to examine
the Leased Premises, (b) to make alterations and repairs to the
Leased Premises or to the Building (including the right, during the
progress of such alterations or repairs, to keep and store within
the Leased Premises all necessary materials, tools and equipment),
(c) for any purpose which Landlord may deem necessary for the
operation and maintenance of the Building, and (d) to exhibit the
Leased Premises to applicants for hire or prospective purchasers or
lenders. Such entry shall neither render Landlord liable to any
claim or cause of action (or loss of or damage to the business or
property of Tenant, by reason thereof) nor in any manner affect the
obligations and covenants of this Lease. Tenant hereby waives any
claim of injury or inconvenience to Tenant's business, interference
with Tenant's business, loss of occupancy or quiet enjoyment of the
Leased Premises, or any other loss occasioned by such
entry.
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a.
If, because of anything done,
caused to be done, permitted or omitted by Tenant, the premium rate
for any kind of insurance affecting the Building shall be raised,
Tenant agrees that the amount of the increase in premium which
Landlord shall be thereby obligated to pay for such insurance shall
be paid by Tenant to Landlord on demand as additional rent, and
that upon demand of Landlord that Tenant remedy the condition which
caused the increase in the insurance premium rate, Tenant will
remedy such condition within five (5) days after such demand.
Tenant agrees that Tenant shall not do, nor cause to be done, nor
permit on the Leased Premises, anything deemed by Landlord to be
hazardous.
b.
Tenant shall obtain and maintain
during the term of this Lease comprehensive, "all risk" general
liability coverage for bodily injury and property damage insuring
against any and all liability to Tenant and Landlord arising out of
the maintenance, and occupancy of the Leased Premises with
aggregate liability limits of not less than $2,000,000.00 for
injuries to or death of persons in any one occurrence and of not
less than $500,000.00 for damage to property. Tenant shall
additionally maintain in full force and effect during the Term full
replacement cost fire and extended coverage insurance insuring
Tenant's furniture, furnishings, equipment and other personal
property in and about the Leased Premises. Landlord and Landlord's
agents shall be named insured on all such policies, and all such
policies shall provide that they cannot be cancelled or modified
without first having given Landlord fifteen (15) days written
notice thereof. All policies of liability insurance specified in
this Lease shall specifically insure Tenant's performance of the
indemnity agreements contained in this Lease. Further, Tenant shall
give notice to its insurance carrier or carriers of coverage herein
required, and any waivers of liability and indemnity agreements
contained in this Lease and shall provide Landlord with a
certificate of insurance reflecting the coverage obtained. A
similar certificate in form acceptable to Landlord renewing
coverage for at least one (1) year shall be delivered to Landlord
not later than thirty (30) days prior to the expiration date of
such policies.
c.
At all times during the Term,
Tenant shall procure and maintain Workers’ Compensation
Insurance in accordance with the laws of the State of
Georgia.
a.
Tenant agrees to defend, indemnify
and save harmless Landlord and the agents, servants, invitees,
licensees and employees of Landlord against and from any and all
losses, costs, damages, liabilities and claims (including
attorney's fees and expenses) by or on behalf of any person, firm
or corporation arising by reason of injury to person or property
occurring in the Leased Premises or the Building, occasioned in
whole or in part by any act or omission on the part of Tenant or an
employee (whether or not acting within the scope of employment),
agent, licensee, invitee or undertenant of Tenant, or by reason of
any use by Tenant of the Leased Premises or any breach, violation
or non-performance of any covenant in this Lease on the part of
Tenant to be observed or performed, and also for any matter or
thing growing out of the occupancy or use of the Leased Premises by
Tenant or anyone holding through or under Tenant. If any action or
proceeding is brought against Landlord, or Landlord's agents,
servants, invitees, licensees and employees, by reason of any such
claim, Tenant shall defend the claim at Tenant's expense with
counsel reasonably satisfactory to Landlord. Tenant agrees to pay
for all damage to the Building, as well as all damage to tenants or
occupants thereof, caused by Tenant's misuse or neglect of said
Leased Premises, its apparatus or appurtenances. Landlord shall not
be liable to Tenant for any damage by or from any act or negligence
of any tenant or other occupant of the Building or by any owner or
occupant of adjoining or contiguous property.
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FIRE OR
OTHER CASUALTY. Subject to provisions of the next sentence,
Landlord agrees that if before or during the term of this Lease the
Leased Premises shall be damaged by fire or other casualty, not
occasioned by the act of tenant or the servants, licensees,
invitees or agents of Tenant, Landlord will cause the Leased
Premises to be repaired with reasonable dispatch after actual
notice to it of the damage, due allowance to be made for any delay
resulting from any cause beyond Landlord's reasonable control;
provided, however, that Landlord shall not be required to repair or
replace any property which Tenant may be entitled to remove or
which Landlord may require Tenant to remove from the Leased
Premises pursuant to Paragraph 13, above; and provided further,
that during the time, if any, that the Leased Premises are unfit
for occupancy by Tenant, the Base Monthly Rental and additional
rent shall abate pro rata (based upon the amount of said Leased
Premises being untenantable) without the Term Expiration of the
Lease being extended. However, if Landlord in its sole discretion
decides not to cause the Leased Premises to be repaired and
restored, Landlord may terminate this Lease by notifying Tenant
within a reasonable time after such damage of Landlord's election
to terminate this lease, immediately if the Term shall not have
commenced, or on a date to be specified in such notice if during
the Term. In the event of the giving of such notice during the
Term, this Lease shall expire and all interest of Tenant in the
Leased Premises shall terminate on the date specified in such
notice, and the Base Monthly Rental shall be apportioned and paid
up to the time of such fire or other casualty if the Leased
Premises are damaged, or up to the specified date of termination if
the Leased Premises are not damaged. If the Leased Premises is not
repaired within ninety (90) days after actual written notice to
Landlord of the casualty (or such longer period as is reasonable
required by Landlord to repair such damage), Tenant may terminate
this Lease within fifteen (15) days by written notice to Landlord.
Tenant fully assumes the risk of any damage to all personal
property of Tenant from time to time situated in the Leased
Premises. Tenant shall have no right or claim to any part of any
insurance proceeds made to or received by Landlord for such fire or
other casualty or against Landlord for the value of any unexpired
term of this Lease.
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18.
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DEFAULT. Tenant shall be in default under this Lease upon
the occurrence of any one or more of the following events or
occurrences, each of which shall be deemed to be a material event
of default by Tenant;
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(a) Landlord does not actually receive payment of
the full amount of the Base Monthly Rental or additional rent or
other rent or other payment or reimbursement due hereunder
punctually on the due date thereof;
(b) Tenant fails to fully and punctually observe or
perform any of the terms of covenants of this Lease, other than the
payment of rent, or of any of the Rules and Regulations now or
hereafter established for the governing of the Building, and shall
not cure such failure within ten (10) days after notice to Tenant
of such failure;
(c) Tenant fails to take possession or occupancy
of, or deserts or abandons the Leased Premises, or the Leased
Premises become vacant;
(d) Any representation, statement, or warranty made
by Tenant orally, in this Lease, or in any information sheet or
documents furnished by Tenant or any guarantor hereof with respect
to the net worth, liabilities, assets, or financial condition of
Tenant or any guarantor hereof, or any other matters, shall be or
prove to be untrue or misleading;
(e) Tenant shall be in default, in the payment of
rent or otherwise, under another lease with Landlord in the
Building, or
(f) The filing or execution or occurrence of: (i) a
petition by or against Tenant or any guarantor hereof in bankruptcy
or seeking any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any
provision of the present or any future bankruptcy act or any other
present or future federal, state or other bankruptcy or insolvency
statute or law, (ii) adjudication of Tenant or any guarantor hereof
as a bankrupt or insolvent, or insolvency in the bankruptcy or
equity sense, (iii) an assignment by Tenant or any guarantor hereof
for the benefit of creditors, (iv) a petition or other proceeding
by or against Tenant or any guarantor hereof for, or the
appointment of a trustee, receiver, guardian, conservator or
liquidator with respect to any portion of Tenant or guarantor's
property, (v) any levy, execution, or attachment against Tenant or
any guarantor hereof, or (vi) any transfer or passage of any
interest of Tenant under this Lease by operation of law.
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18.1
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REMEDIES. Upon the occurrence of any one or more of the
events of default listed in Paragraph 18, or upon the occurrence of
any other default or defaults by Tenant under this Lease, Landlord
may, at Landlord's option, without any demand or notice whatsoever
(except as expressly required in Paragraph 18):
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(i)
Terminate this Lease by giving
Tenant notice of termination, in which event this Lease shall
expire and terminate on the date specified in such notice of
termination, and Tenant shall remain liable for all obligations
under this Lease arising up to the date of such termination, and
Tenant shall surrender the Leased Premises to Landlord on the date
specified in such notice; or
(ii)
Terminate this Lease as provided in
Subparagraph 18.1(a) (i) hereof and recover from Tenant all damages
Landlord may incur by reason of Tenant's default, including,
without limitation, a sum which, at the date of such termination
represents the present value (discounted at a rate equal to the
then average rate for Moody's "AAA" rated corporate bonds) of the
excess, if any, of (aa) the Base Monthly Rental and all other sums
which would have been payable hereunder by Tenant for the period
commencing with the day following the date of such termination and
ending with the date hereinbefore set for the expiration of the
full term hereby granted, over (bb) the aggregate reasonable rental
value of the Leased Premises for the same period, all of which
present value of such excess sum shall be deemed immediately due
and payable; provided that, Landlord must use its best efforts to
re-lease the leased Premises, in mitigation of any damage allowed
to Landlord hereunder; or
(iii)
Without terminating this Lease,
declare immediately due and payable all Base Monthly Rental and
other rents and amounts due and coming due under this Lease for the
entire remaining term hereof, together with all other amounts
previously due, at once, which total amount shall be discounted to
the present value (discounted at a rate equal to the then average
rate of Moody's "AAA" rated corporate bonds); provided, however,
that such payment shall not be deemed a penalty or liquidated
damages but shall merely constitute payment in advance of rent for
the remainder of said term. Upon making such payment, Tenant shall
be entitled to receive from Landlord all rents received by Landlord
from other assignees, tenants, and subtenants on account of said
Premises during the term of this Lease, provided that the monies to
which Tenant shall so become entitled shall in no event exceed the
entire amount actually paid by Tenant to Landlord pursuant to the
preceding sentence less all costs, expenses and attorney's fees of
Landlord incurred in connection with the reletting of the Leased
Premises; provided that, no assignment, lease or sublease by Tenant
presented by tenant to Landlord shall be unreasonably denied;
or
(iv)
Without terminating this Lease, and
with or without notice to Tenant, Landlord may in Landlord's own
name but as agent for Tenant enter into and upon take possession of
the Leased Premises or any part thereof, and, at Landlord's option,
remove persons and property therefrom, and such property, if any,
may be removed and stored in a warehouse or elsewhere at the cost
of, and for the account of, Tenant, all without being deemed guilty
of trespass or becoming liable for any loss or damage which may be
occasioned thereby, and Landlord may rent the Leased Premises or
any portion thereof as the agent of Tenant with or without
advertisement, and by private negotiations and for any term upon
such terms and conditions as Landlord may deem necessary or
desirable in order to relet the Leased Premises. Landlord shall in
no way be responsible or liable for any rental concessions or any
failure to rent the Leased Premises or any part thereof, or for any
failure to collect any rent due upon such reletting. Upon each such
reletting, all rentals received by Landlord from such reletting
shall be applied: first, to the payment of any indebtedness (other
than any rent due hereunder) from Tenant to Landlord; second, to
the payment of any costs and expenses of such reletting, including,
without limitation, brokerage fees and attorney's fees and costs of
alterations and repairs; third, to the payment of rent and other
charges then due and unpaid hereunder, and the residue, if any,
shall be held by Landlord to the extent of and for application in
payment of future rent as the same may become due and payable
hereunder. If such rentals received from such reletting shall at
any time or from time to time be less than sufficient to pay to
Landlord the entire sums then due from Tenant hereunder, Tenant
shall pay any such deficiency to Landlord. Such deficiency shall,
at Landlord's option, be calculated and paid monthly. No such
reletting shall be construed as an election by Landlord to
terminate this Lease unless a written notice of such election has
been given to Tenant by Landlord. Notwithstanding any such
reletting without termination, Landlord may, at any time
thereafter, elect to terminate this Lease for any such previous
default provided the same has not been cured; provided that,
Landlord must use its best efforts to mitigate any damage or rent
allowed to Landlord hereunder; or
(v)
Pursue such other remedies as are
available at law or equity, including, without limitation, an
action for specific performance requiring Tenant to perform
Tenant's obligations under this Lease.
b.
Landlord's pursuit of any remedy or
remedies, including, without limitation, any one or more of the
remedies stated in the foregoing Subparagraph 18.1(a), shall not
(i) constitute an election of remedies or preclude pursuit of any
other remedy or remedies provided in this Lease or any other remedy
or remedies provided by law or in equity, separately or
concurrently or in any combination, or (ii) serve as the basis for
any claim of actual or constructive eviction, or allow Tenant to
withhold any payments under this Lease.
c.
If this Lease shall terminate as a
result of, or while there exists, a default hereunder, any funds of
Tenant held by Landlord may be applied by Landlord to any damages
payable by Tenant (whether provided for herein or by law) as a
result of such termination or default.
d.
Tenant covenants and agrees that
Tenant shall not interpose any counterclaim or claim for offset or
deduction in any summary proceeding brought by Landlord to recover
possession of the Leased Premises.
e.
Neither the commencement of any
action or proceeding, nor the settlement thereof, nor entry of
judgment thereon shall bar Landlord from bringing subsequent
actions or proceedings from time to time, nor shall the failure to
include in any action or proceeding any sum or sums then due be a
bar to the maintenance of any subsequent actions or proceedings for
the recovery of such sum or sums so omitted.
f.
No termination of this Lease prior
to the normal expiration thereof, by lapse of time or otherwise,
shall affect Landlord's right to collect rent for the period prior
to termination thereof. Tenant covenants and agrees not to vacate
the Premises or exercise any right of termination arising out of
any breach by Landlord of any provision of this Lease or the
condition or state of repair of the Premises. No surrender of the
Premises or any part thereof by delivery of keys or otherwise shall
operate to terminate this Lease unless and until expressly accepted
in writing by a authorized officer of Landlord.
g.
If Landlord terminates this Lease
or Tenant’s right to possession of the Leased Premises,
Landlord shall have no obligation to mitigate Landlord’s
damages except to the extent required by applicable law. If
Landlord has not terminated this Lease or Tenant’s right to
possession of the Leased Premises, Landlord shall have no
obligation to mitigate under any circumstances and may permit the
Leased Premises to remain vacant or abandoned. If Landlord is
required to mitigate damages as provided herein: (i) Landlord shall
be required only to use reasonable efforts to mitigate, which shall
not exceed such efforts as Landlord generally uses to lease other
space in the Building; (ii) Landlord will not be deemed to have
failed to mitigate if Landlord or its affiliates lease any other
portions of the Building or other affiliates in the same geographic
area, before re-letting all or any portion of the Leased Premises,
and (iii) any failure to mitigate as described herein with respect
to any period of time shall only reduce the Ba
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