LEASE
BY AND BETWEEN
BASS LAKE REALTY LLC,
as Landlord
AND
APA CABLES & NETWORKS.
INC.,
as Tenant
DATED: MAY 31 ,
2006
PROPERTY
: BASS LAKE BUSINESS CENTRE I, 5480 NATHAN LANE,
PLYMOUTH, MN
LEASE
THIS LEASE is made this 31st day of May,
2006 between Bass Lake Realty LLC, a Delaware limited liability
company ("Landlord"), and the Tenant named below.
ARTICLE
I
BASIC
TERMS
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TENANT:
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APA Cables
& Networks, Inc., a Minnesota corporation
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TENANT'S NOTICE
ADDRESS:
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5480 Nathan
Lane, Suite 120
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Plymouth,
Minnesota 55442
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Attn: Chris
B Podzimek
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LANDLORD'S
NOTICE ADDRESS:
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c/o Great Point
Investors LLC
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Two Center
Plaza, Suite 410
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Boston, MA
02108
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Attn: Joseph A.
Versaggi
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with a copy
to:
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United
Properties LLC
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3500 American
Boulevard West
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Suite
200
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Bloomington, MN
55431
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Attn: Lisa
Dongoske
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Rent payments
to be sent to:
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United
Properties
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MI
65
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PO Box
1150
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Minneapolis, MN
55480-1150
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PROPERTY:
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Bass Lake
Business Centre, 5480 Nathan Lane, Plymouth, MN (the "Building"),
together with the parking areas, landscaping, walkways and other
improvements related to the Building, as described on Exhibit
A .
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PREMISES:
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Approximately
Twenty-Nine Thousand Seven Hundred Thirty-Eight (29,738) rentable
square feet (9,284 square feet of which is office space, 4,499
square feet of which is warehouse space, and15,955 space) located
at the Building, as shown on square feet of which is
production/tech Exhibit B .
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PROPERTY
RENTABLE AREA:
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Approximately
Sixty-Three rentable square feet.
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TENANT'S PRO
RATA SHARE:
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47.2%
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LEASE
TERM:
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Approximately
eighty-nine (89) months beginning on the Lease Commencement Date
and ending on November 30, 2013.
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LEASE
COMMENCEMENT DATE:
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July 1,
2006.
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RENT
COMMENCEMENT DATE:
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November 1,
2006.
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BASE
RENT:
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(a) From the
Rent Commencement Date through and including the last day of the
first Lease Year, $203,110.54 per year; $16,925.88 per
month;
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(b) For the
second Lease Year, $210,247.66 per year; $17,520.64 per
month;
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(c) For the
third Lease Year, $217,384.78 per year; $18,115.40 per
month;
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(d) For the
fourth Lease Year, $225,116.66 per year; $18,759.72 per
month;
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(e) For the
fifth Lease Year, $232,551.16 per year; $19,379.26 per
month;
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(f) For the
sixth Lease Year, $239,985.66 per year; $19,998.81 per
month;
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(g) For the
seventh Lease Year, $247,122.78 per year; $20,593.56 per month;
and
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(h) For the
last five months of the Term, five monthly payments, each in the
amount of $21,237.89.
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LEASE
YEAR:
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Each successive
twelve (12) month period comprising the Term, except that the first
(1 st ) Lease Year of the Term may be greater than
twelve (12) months and shall commence on the Lease Commencement
Date and end on the last day of the month in which the first (1st)
anniversary of the Lease Commencement Date occurs (unless the Lease
Commencement Date occurs on the first day of a month, in which case
the first Lease Year shall end on the day before the first (1st)
anniversary of the Lease Commencement Date). Subsequent Lease Years
shall commence on the day after the last day of the first (1
st ) Lease Year or an anniversary thereof, and shall end
on each anniversary of the last day of the first (1 st )
Lease Year.
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SECURITY
DEPOSIT:
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An
unconditional, irrevocable letter of credit in the amount of One
Hundred Thousand ($100,000) Dollars in the form attached hereto as
Exhibit E , subject to reduction as set forth in Section
14.14.
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PERMITTED
USES:
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Subject to
applicable zoning, for general office, warehouse and
production/technical use, and for no other purpose
whatsoever.
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BROKERS:
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United
Properties LLC
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3500 American
Boulevard West
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Suite
200
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Bloomington, MN
55431
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Attn: Mark
Sims, Jon Yanta, and Bruce Hoberman
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PARKING
SPACES:
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Eighty-Nine
(89) unreserved spaces.
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ARTICLE
II
LEASE
TERM
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2.1
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LEASE OF
PREMISES FOR LEASE TERM.
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Landlord hereby
leases the Premises to Tenant and Tenant leases the Premises from
Landlord for the Lease Term, unless sooner terminated pursuant to
the terms hereof. Additionally, from June 1, 2006 until the date
that is two (2) weeks after substantial completion of Landlord's
Work (as hereinafter defined), Landlord grants to Tenant a license
to use approximately 5,000 square feet of warehouse space in a
location determined by Landlord at the property known as Eagle Lake
Business Centre II, 10200 73 rd Avenue, Maple Grove, MN,
or Parkers Lake Point III, 14305 21 st Avenue. Plymouth,
MN. Tenant's use and occupancy of such warehouse space shall be
subject to all of the terms and conditions of this Lease, provided,
however, Tenant shall not be required to pay any rent for such use
and occupancy, and Landlord may immediately terminate such license
in the event of any default by Tenant hereunder.
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2.2
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DELAY IN
COMMENCEMENT.
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If Landlord is
unable to deliver the Premises on the Lease Commencement Date, such
date will be postponed to the date possession of the Premises is
delivered to Tenant (and all other dates herein shall likewise be
recalculated). At Landlord's request, Landlord and Tenant will
execute a Memorandum of Acceptance of Lease, in Landlord's
customary form, setting forth the Lease Commencement Date, Rent
Commencement Date and Expiration Date of this Lease.
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2.3
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EARLY
TERMINATION OPTION.
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Provided no
default exists or would exist but for the passage of time or the
giving of notice, or both, Tenant shall have the right to send to
Landlord, on or before March 1, 2011, written notice (the
"Termination Notice") that Tenant has elected to terminate the Term
effective on November 30, 2011 (the "Early Termination Date"). If
Tenant elects to terminate the Term pursuant to the immediately
preceding sentence, the effectiveness of such termination will be
conditioned upon Tenant's paying to Landlord, contemporaneously
with Tenant's delivery of the Termination Notice to Landlord, an
early termination fee (the "Early Termination Fee") equal to the
sum of (a) $77,517.04, (b) four (4) months of Additional Rent due
to Landlord pursuant to the terms hereof at the rate payable during
such fifth (5th) Lease Year, and (c) all unamortized transaction
costs, including but not limited to the four months free Base Rent
provided hereunder, brokerage commissions, costs of tenant
improvements made by Landlord, and legal fees; provided, however,
if a replacement tenant occupies, pursuant to the terms of a lease,
the entire Premises, by February 1, 2012, Landlord will refund to
Tenant $38,758.52, plus two (2) months of Additional Rent due to
Landlord pursuant to the terms hereof at the rate payable during
the fifth (5 th ) Lease Year. The Early Termination Fee
is consideration for Tenant's option to terminate and will not be
applied to rent or any other obligation of Tenant. If Tenant
exercises this early termination option, on or before the Early
Termination Date, Tenant shall vacate and surrender the Premises to
Landlord pursuant to the terms of the Lease, and, as of such Early
Terminate Date, Tenant shall no longer be responsible for Tenant's
obligations under the terms of the Lease, except for those
provisions of the Lease that survive termination of the Lease, and
any obligations arising prior to the Early Termination
Date.
ARTICLE
III
RENT
Commencing on
the Rent Commencement Date, on the first day of each calendar month
during the Lease Term, Tenant will pay to Landlord the Base Rent in
equal monthly installments, in lawful money of the United States,
in advance and without offset, deduction prior notice or demand.
The Base Rent is payable at Landlord's Rent Payment Address or at
such other place or to such other person as Landlord may designate
in writing from time to time. Payments of Base Rent for any partial
calendar month will be prorated. Base Rent for the first month of
the Term shall be paid on the date hereof.
All sums
payable by Tenant under this Lease other than Base Rent are
"Additional Rent"; the term "Rent" includes both Base Rent and
Additional Rent. Landlord will estimate in advance and charge to
Tenant the following costs ("Total Operating Costs"), which Tenant
will pay with the Base Rent on a monthly basis throughout the
Occupancy Period: (i) all Real Property Taxes for which Tenant is
liable under Article 4, (ii) all utility costs (to the extent
utilities are not separately metered) for which Tenant is liable
under Article 5, (iii) all insurance premiums for which Tenant is
liable under Article 6 and (iv) all Operating Expenses for which
Tenant is liable under Article 7 of this Lease. Landlord may adjust
its estimates of Total Operating Costs at any time based upon
Landlord's experience and reasonable anticipation of costs. Such
adjustments will be effective as of the next Rent payment date
after notice to Tenant. "Occupancy Period" means the period from
the time Tenant first enters the Premises, throughout the Lease
Term and thereafter as long as Tenant remains in the
Premises.
After the end
of each fiscal year during the Term, Landlord will deliver to
Tenant a statement setting forth, in reasonable detail, the Total
Operating Costs paid or incurred by Landlord during the preceding
fiscal year and Tenant's Pro Rata Share of such expenses. Within 30
days after Tenant's receipt of such statement, there will be an
adjustment between Landlord and Tenant, with payment to or credit
given by Landlord (as the case may be).
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3.3
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INTEREST AND
LATE CHARGES.
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Any Rent or
other amount due to Landlord, if not paid when due, will bear
interest from the date due until paid at the rate of 10% per year,
but not to exceed the highest rate legally permitted. In addition,
if any installment of Rent or any other sums due from Tenant is not
received by Landlord within 5 days following the due date, Tenant
will pay to Landlord a late charge equal to 5% of such overdue
amount. The parties hereby agree that such late charge represents a
fair and reasonable estimate of the costs Landlord will incur by
reason of late payment by Tenant. Notwithstanding the foregoing, no
interest shall accrue and the late charge shall not be due for the
first late payment in any rolling twelve (12) month
period.
ARTICLE
IV
PROPERTY
TAXES
Tenant will pay
Tenant's Pro Rata Share of Real Property Taxes allocable to the
Occupancy Period. If Landlord receives a refund of any Real
Property Taxes with respect to which Tenant has paid Tenant's Pro
Rata Share, Landlord will refund to Tenant Tenant's Pro Rata Share
of such refund after deducting therefrom all related costs and
expenses. "Real Property Taxes" means taxes, assessments (special,
betterment, or otherwise), levies, fees, rent taxes, excises,
impositions, charges, water and sewer rents and charges, and all
other government levies and charges, general and special, ordinary
and extraordinary, foreseen and unforeseen, which are imposed or
levied upon or assessed against the Property or any Rent. Real
Property Taxes include Landlord's costs and expenses of review and
contesting any Real Property Tax. If at any time during the Lease
Term the present system of ad valorem taxation of real property is
changed so that in lieu of the whole or any part of the ad valorem
tax on real property, or in lieu of increases therein, Landlord is
assessed a capital levy or other tax on the gross rents received
with respect to the Property or a federal, state, county,
municipal, or other local income, franchise, excise or similar tax,
assessment, levy, or charge (distinct from any now in effect)
measured by or based, in whole or in part, upon gross rents or any
similar substitute tax or levy, then all of such taxes,
assessments, levies or charges, to the extent so measured or based,
will be deemed to be a Real Property Tax.
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4.2
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PERSONAL
PROPERTY TAXES.
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Tenant will pay
directly all taxes charged against trade fixtures, furnishings,
equipment, inventory or any other personal property belonging to
Tenant. Tenant will use its best efforts to have personal property
taxed separately from the Property. If any of Tenant's personal
property is taxed with the Property, Tenant will pay Landlord the
taxes for such personal property within 15 days after Tenant
receives a written statement from Landlord for such personal
property taxes.
ARTICLE
V
UTILITIES
Tenant will
promptly pay, directly to the appropriate supplier, the cost of all
natural gas, heat, cooling, energy, light, power, sewer service,
telephone, water, refuse disposal and other utilities and services
supplied to the Premises, together with any related installation or
connection charges or deposits (collectively, "Utility Costs")
incurred during the Occupancy Period. If any services or utilities
are jointly metered with other premises, Landlord will make a
reasonable determination of Tenant's proportionate share of such
Utility Costs and Tenant will pay such share to Landlord. Landlord
reserves the right to participate in wholesale energy purchase
programs and to provide energy to the Premises through such
programs so long as the cost to Tenant is competitive.
ARTICLE
SIX
INSURANCE
Tenant, at its
expense, will maintain the following insurance coverages during the
Occupancy Period:
(a)
Liability Insurance
. Commercial general liability
insurance insuring Tenant against liability for bodily injury,
property damage (including loss of use of property) and personal
injury at the Premises, including contractual liability. Such
insurance will name Landlord, its property manager, any mortgagee,
Great Point Investors LLC, and such other parties as Landlord may
designate, as additional insureds. The initial amount of such
insurance will be Five Million Dollars ($5,000,000) per occurrence
and will be subject to periodic increases reasonably specified by
Landlord based upon inflation, increased liability awards,
recommendations of Landlord's professional insurance advisers, and
other relevant factors. The liability insurance obtained by Tenant
under this Section 6.1 will (i) be primary and (ii) insure Tenant's
obligations to Landlord under Section 6.4. The amount and coverage
of such insurance will not limit Tenant's liability nor relieve
Tenant of any other obligation under this Lease.
(b)
Worker's Compensation
Insurance . Worker's
Compensation Insurance in the statutory amount (and Employers'
Liability Insurance) covering all employees of Tenant employed or
performing services at the Premises, in order to provide the
statutory benefits required by the laws of the state in which the
Premises are located.
(c)
Automobile Liability
Insurance . Automobile
Liability Insurance, including but not limited to, passenger
liability, on all owned, non-owned, and hired vehicles used in
connection with the Premises, with a combined single limit per
occurrence of not less than One Million Dollars ($1,000,000) for
injuries or death of one or more persons or loss or damage to
property.
(d)
Personal Property
Insurance . Personal
Property Insurance covering leasehold improvements paid for by
Tenant and Tenant's personal property and fixtures from time to
time in, on, or at the Premises, in an amount not less than 100% of
the full replacement cost, without deduction for depreciation,
providing protection against events protected under "All Risk
Coverage," as well as against sprinkler damage, vandalism, and
malicious mischief. Any proceeds from the Personal Property
Insurance will be used for the repair or replacement of the
property damaged or destroyed, unless the Lease Term is terminated
under an applicable provision herein. If the Premises are not
repaired or restored in accordance with this Lease, Landlord will
receive any proceeds from the personal property insurance allocable
to Tenant's leasehold improvements.
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6.2
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LANDLORD'S
INSURANCE.
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During the
Lease Term, Landlord will maintain in effect all risk insurance
covering loss of or damage to the Property in the amount of its
replacement value with such endorsements and deductibles as
Landlord determines from time to time. Landlord will have the right
to obtain flood, earthquake, and such other insurance as Landlord
determines from time to time or is required by any mortgagee of the
Property. Landlord will not insure Tenant's fixtures or equipment
or building improvements installed or paid by Tenant. Landlord may
obtain commercial general liability insurance in an amount and with
coverage determined by Landlord insuring Landlord against liability
with respect to the Premises and the Property. The policy obtained
by Landlord will not provide primary insurance, will not be
contributory and will be excess over any liability insurance
maintained by Tenant. Landlord will also maintain a rental income
insurance policy, with loss payable to Landlord. Tenant will pay
Tenant's Pro Rata Share of premiums for the insurance policies
maintained by Landlord. Any increase in the cost of Landlord's
insurance due to Tenant's use or activities at the Premises will be
paid by Tenant to Landlord as Additional Rent.
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6.3
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GENERAL
INSURANCE PROVISIONS.
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(a) Any insurance which Tenant is
required to maintain under this Lease will include a provision
which requires the insurance carrier to give Landlord not less than
30 days' written notice prior to any cancellation or modification
of such coverage.
(b) Prior to the earlier of
Tenant's entry into the Premises or the Lease Commencement Date,
Tenant will deliver to Landlord an insurance company certificate
that Tenant maintains the insurance required by Section 6.1 and not
less than 20 days prior to the expiration or termination of any
such insurance, Tenant will deliver to Landlord renewal
certificates therefor. Tenant will provide Landlord with copies of
the policies promptly upon request from time to time.
(c) All insurance policies required under this Lease
will be with companies having a "General Policy Rating" of A -; X
or better, as set forth in the most current issue of the Best Key
Rating Guide.
(d) Without limiting the provisions of Section 6.4,
Landlord and Tenant, on behalf of themselves and their insurers,
each hereby waives any and all rights of recovery against the
other, the agents, advisors, employees, members, officers,
directors, partners, trustees, beneficiaries and shareholders of
the other and the agents, advisors, employees, members, officers,
directors, partners, trustees, beneficiaries and shareholders of
each of the foregoing (collectively, "Representatives"), for loss
of or damage to its property or the property of others under its
control, to the extent that such loss or damage is covered by any
insurance policy in force (whether or not described in this Lease)
at the time of such loss or damage, or required to be carried under
this Article 6. All property insurance carried by either party will
contain a waiver of subrogation against the other party to the
extent such right was waived by the insured party prior to the
occurrence of loss or injury.
To the fullest
extent permitted by law, Tenant hereby waives all claims against
Landlord and its Representatives (collectively, the "Indemnitees")
for damage to any property or injury to or death of any person in,
upon or about the Premises or the Property arising at any time and
from any cause. Tenant shall hold Indemnitees harmless from and
defend Indemnitees from and against all claims, liabilities,
judgments, demands, causes of action, losses, damages, costs and
expenses, including reasonable attorney's fees, for damage to any
property or injury to or death of any person arising from (i) the
use or occupancy of the Premises by Tenant or persons claiming
under Tenant, except such as is caused by the sole negligence or
willful misconduct of Landlord, its agents, employees or
contractors, (ii) the negligence or willful misconduct of Tenant
in, upon or about the Properly, or (iii) any breach or default by
Tenant under this Lease.
ARTICLE
VII
OPERATING
EXPENSES
Tenant will pay
Tenant's Pro Rata Share of all Operating Expenses allocable to the
Occupancy Period. "Operating Expenses" means all costs and expenses
incurred by Landlord with respect to the ownership, maintenance and
operation of the Property including, but not limited to:
maintenance, repair and replacement of the heating, ventilation,
air conditioning, plumbing, electrical, mechanical, utility and
safety systems, paving and parking areas, roads and driveways;
maintenance of exterior areas such as gardening and landscaping,
snow removal and signage; maintenance and repair of roof membrane,
flashings, gutters, downspouts, roof drains, skylights and
waterproofing; painting; lighting; cleaning; refuse removal;
security; utility services attributable to the Common Areas (as
defined below); Building personnel costs; personal property taxes;
rentals or lease payments paid by Landlord for rented or leased
personal property used in the operation or maintenance of the
Property; fees for required licenses and permits; a property
management fee,; and contributions to reserves for any or all of
the foregoing. Operating Expenses do not include: (a) expenditures
for capital improvements except (i) those which Landlord
anticipates will have the effect of reducing current and/or future
Operating Expenses or the rate of increase in Operating Expenses,
and (ii) those required by Legal Requirements or insurance
requirements; (b) debt service under mortgages; (c) costs of
restoration to the extent of net insurance proceeds received by
Landlord; (d) leasing commissions and tenant improvement costs; and
(e) litigation expenses relating to disputes with
tenants.
ARTICLE
VIII
USE OF
PREMISES
Tenant will use
the Premises only for the Permitted Uses. Tenant will not cause or
permit the Premises to be used in any way which (i) constitutes a
violation of any Legal Requirements (as defined below) or the rules
and regulations (the "Rules and Regulations") established by
Landlord, a copy of which is attached as Exhibit C , as they
may be amended in writing by Landlord, (ii) annoys or interferes
with the rights of tenants of the Properly, or (iii) constitutes a
nuisance or waste or will invalidate any insurance carried by
Landlord. Tenant will obtain and pay for all necessary permits,
including a certificate of occupancy, and will promptly take all
actions necessary to comply with all applicable Federal, State or
local statutes, ordinances, notes, regulations, orders, recorded
declarations, covenants and requirements (collectively, "Legal
Requirements") regulating the use by Tenant of the Premises,
including, without limitation, the Occupational Safety and Health
Act and the Americans With Disabilities Act.
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ENVIRONMENTAL
REQUIREMENTS.
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(a)
Definition of "Hazardous
Material" . "Hazardous
Material" means any flammable items, explosives, radioactive
materials, oil, hazardous or toxic substances, material or waste or
related materials, including any substances defined as or included
in the definition of "hazardous substances", "hazardous wastes",
"hazardous materials" or "toxic substances" now or hereafter
regulated under any Legal Requirements, including without
limitation petroleum-based products, paints, solvents, lead,
cyanide, DDT, printing inks, acids, pesticides, ammonia compounds
and other chemical products, asbestos, PCBs and similar compounds,
and including any different products and materials which are found
to have adverse effects on the environment or the health and safety
of persons; provided, however, "Hazardous Material" does not
include any de minimis quantities of office or other cleaning
supplies commonly used in accordance with Legal
Requirements.
(b)
Tenant's Obligations
. Tenant will not cause or permit
any Hazardous Material to be generated, produced, brought upon,
used, stored, treated or disposed of in or about the Property by
Tenant, its agents, employees, contractors, sublessees or invitees
without (i) the prior written consent of Landlord, and (ii)
complying with all applicable Legal Requirements pertaining to the
transportation, storage, use or disposal of such Hazardous Material
(collectively, "Environmental Laws"), including, but not limited
to, obtaining proper permits. Landlord is entitled to take into
account such other factors or facts Landlord deems reasonably
relevant in granting or withholding consent to Tenant's proposed
activity with respect to Hazardous Material. Landlord will not,
however, be required to consent to the installation or use of any
storage tanks on the Property.
If Tenant's
transportation, storage, use or disposal of Hazardous Materials
results in the contamination of the soil or surface or ground
water, release of a Hazardous Material or loss or damage to
person(s) or property or the violation of any Environmental Law,
then Tenant agrees to: (x) notify Landlord immediately of any
contamination, claim of contamination, release, loss or damage, (y)
after consultation with Landlord, clean up the contamination in
full compliance with all Environmental Laws and (z) indemnify,
defend and hold Landlord harmless from and against any claims,
suits, causes of action, costs and fees, including, without
limitation, attorney's fees and costs, arising from or connected
with any such contamination, claim of contamination, release, loss
or damage. Tenant will fully cooperate with Landlord and provide
such documents, affidavits and information as may be requested by
Landlord (A) to comply with any Environmental Law, (B) to comply
with the request of any lender, purchaser or tenant, and/or (C) as
otherwise deemed reasonably necessary by Landlord in its
discretion. Tenant will notify Landlord promptly in the event of
any spill or other release of any Hazardous Material at, in, on,
under or about the Premises which is required to be reported to a
governmental authority under any Environmental Law, will promptly
forward to Landlord copies of any notices received by Tenant
relating to alleged violations of any Environmental Law, will
promptly pay when due any fine or assessment against Landlord,
Tenant or the Property and remove or bond any lien filed against
the Property relating to any violation of Tenant's obligations with
respect to Hazardous Material.
(c)
Landlord's Rights
. Landlord will have the right, but
not the obligation, without in any way limiting Landlord's other
rights and remedies under this Lease, to enter upon the Premises,
or to take such other actions as it deems necessary or advisable,
to investigate, clean up, remove or remediate any Hazardous
Material or contamination by Hazardous Material present on, in, at,
under or emanating from the Premises or the Property in violation
of Tenant's obligations under this Lease or under any laws
regulating Hazardous Material or that Tenant is liable under this
Lease to clean up, remove or remediate. Landlord will have the
right, at its election, in its own name or as Tenant's agent, to
negotiate, defend, approve and appeal, at Tenant's expense, any
action taken or order issued by any governmental agency or
authority against Tenant, Landlord or the Premises or the Property
relating to any Hazardous Material or under any related law or the
occurrence of any event or existence of any condition that would
cause a breach of any of the covenants set forth in this Section
8.2.
If Landlord
determines in good faith that a release or other environmental
condition may have occurred during the Occupancy Period, at
Tenant's cost, Landlord may require an environmental audit of the
Premises by a qualified environmental consultant. Tenant will, at
it sole cost and expense, take all actions recommended in such
audit to remediate any environmental conditions for which it is
responsible under this Lease.
Landlord or its
agents may enter the Premises, upon 24 hours notice to Tenant
(except in the case of an emergency), to show the Premises to
potential buyers, investors or tenants or other parties, for
routine property inspections and maintenance or for any other
purpose Landlord deems reasonably necessary. During the last 9
months of the Lease Term, Landlord may place customary "For Lease"
signs on the Premises.
(a)
Common Areas
. "Common Areas" means all areas
within the Property which are available for the common use of
tenants of the Property and which are not leased or held for the
exclusive use of Tenant or other tenants, including, but not
limited to, parking areas, driveways, sidewalks, access roads,
landscaping, and planted areas. Landlord, from time to time, may
change the size, location, nature, and use of any of the Common
Areas, convert Common Areas into leaseable areas, construct
additional parking facilities in the Common Areas, and increase or
decrease Common Area land or facilities so long as Tenant's use of
the Premises is not materially affected.
(b)
Use of Common Areas
. Tenant will have the
non-exclusive right (in common with other tenants and all others to
whom Landlord has granted or may grant such rights) to use the
Common Areas, including the Parking Spaces, for the purposes
intended, subject to such reasonable rules and regulations as
Landlord may establish or modify from time to time. Tenant agrees
to abide by all such rules and regulations and to use its best
efforts to cause others who use the Common Areas with Tenant's
express or implied permission to abide by the Rules and
Regulations. At any time, Landlord may close any Common Areas to
perform any acts as, in Landlord's reasonable judgment, are
desirable to maintain or improve the Property. Tenant will not
interfere with the rights of Landlord, other tenants, or any other
person entitled to use the Common Areas.
(c)
Parking . Tenant shall be entitled to park in common
with other tenants of Landlord, and receive three (3) nonreserved,
unassigned parking spaces for every 1,000 square feet of rentable
area of the Premises (i.e., eighty-nine (89) spaces as of the date
hereof). Tenant agrees not to overburden the parking facilities,
agrees to cooperate with Landlord and other tenants in the use of
parking facilities, and to abide by all rules and regulations
regarding the use of such parking facilities as may now exist, or
as may hereinafter be promulgated by Landlord. Said parking spaces
shall be used for parking by vehicles no larger than full-size
passenger automobiles or pick-up trucks, herein called "Permitted
Size Vehicles." Vehicles other than Permitted Size Vehicles shall
be parked and loaded or unloaded as directed by Landlord. Landlord
reserves the right, in its absolute discretion, to determine
whether parking facilities are becoming overcrowded, and in such
event, to allocate parking spaces among tenants or to designate
areas within which Tenant must park. Landlord further reserves the
right to modify, restripe, and otherwise change the location of
drives and parking spaces. Tenant and Tenant's employees, visitors
and customers assume all responsibility for damage and theft to
vehicles. Tenant shall repair or cause to be repaired, at Tenant's
sole cost and expense, any and all damage to the buildings on the
Property caused by Tenant's, or Tenant's employees', visitors' or
customers' use of such parking areas thereon.
ARTICLE
IX
CONDITION AND MAINTENANCE OF
PREMISES
Tenant hereby
accepts the Property and the Premises in their present condition,
subject to all Legal Requirements. Tenant acknowledges that neither
Landlord nor any agent of Landlord has made any representation as
to the condition of the Property or the suitability of the Property
for Tenant's intended use, and except as specifically set forth
herein, no agreement of Landlord to alter, remodel, decorate, clean
or improve the Premises or Property (or to provide Tenant with any
credit or allowance for the same), have been made by or on behalf
of Landlord or relied upon by Tenant. Tenant represents and
warrants that Tenant has made its own inspection of and inquiry
regarding the condition of the Property and is not relying on any
representations of Landlord or any broker with respect thereto.
Notwithstanding the foregoing, Landlord, at Landlord's sole cost
and expense, shall perform the improvements to the Premises as
described on Exhibit D attached hereto and made a pail
hereof using building standard materials and finishes ("Landlord's
Work"). Landlord estimates that the cost of Landlord's Work is Two
Hundred Five Thousand Five Hundred Fifteen and 00/100 ($205,515.00)
Dollars. In the event that Tenant requests changes to Landlord's
Work which will increase the cost thereof, Tenant shall pay to
Landlord any such additional costs (the " Excess Costs ")
upon demand by Landlord. Tenant shall provide its own furniture,
fixtures, equipment and appliances for the Premises.
Subject to the
provisions of Article 10 (Casualty and Condemnation) and Tenant's
obligation to pay Additional Rent pursuant to Section 3.2, and
except for damage caused by any act or omission of Tenant or
Tenant's employees, agents, contractors or invitees, Landlord will
maintain the Common Areas in good order, condition and repair and
will keep the foundation, roof, building systems (including the
heating, ventilating and air conditioning system), structural
supports and exterior walls of the improvements on the Property in
good order, condition and repair. Landlord will not be obligated to
maintain or repair windows, doors or plate glass. Tenant will
promptly report in writing to Landlord any defective condition
known to it which Landlord is required to repair. Landlord will
repair, at Tenant's expense, any damage to the Property caused by
Tenant's acts or omissions which is Landlord's maintenance
responsibility. In the event that Landlord replaces the heating,
ventilating and air conditioning system serving the Premises (after
its determination that such replacement is necessary), the cost
thereof shall accrue interest at a rate reasonably determined by
Landlord and shall be amortized over a term often (10) years, with
payments of principal and interest with respect to such replacement
cost to be made by Tenant to Landlord
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