INDENTURE OF LEASE
INDENTURE
OF LEASE
THIS
INDENTURE OF LEASE (this “Lease”), made and executed in duplicate as of the 1st
day of June, 2006, by and between TOLEDO REALTY, LLC, a New York Limited
Liability Corporation (“Landlord”), and JUMA TECHNOLOGY, LLC, a New York Limited
Liability Corporation (“Tenant”).
WITNESSETH:
Landlord,
for and in consideration of the rents hereinafter reserved and of the covenants
and agreements hereinafter mentioned to be kept and performed by Tenant, does
by
these presents lease and let unto Tenant, and Tenant does hereby hire and take
from Landlord the entire 7,000 square foot Building (the “Building”) inclusive
of the office space and garaged warehouse space (the “Premises”), on that
certain lot, parcel or piece of real estate, together with the appurtenances
thereto (including any easements for ingress, egress, rights-of-way, or
otherwise which are or may be appurtenant thereto in common with others entitled
to the use thereof) situated at 000 Xxxxxx Xxxxxx, Xxxxxxxxxxx, Xxx Xxxx said
parcel being more particularly described in Exhibit “A” attached hereto and made
a part hereof (the “Land”) (the Land and the Building and any other current or
future improvements collectively, the “Property”);
It
is
hereby mutually covenanted and agreed that (a) delivery of the Premises is
being
made by Landlord to Tenant in its present condition “as is” and “where is” and
that Landlord has made no representation with respect to the physical condition
thereof, and (b) this Lease is made upon the following agreements, conditions,
covenants and terms:
ARTICLE
I. HEADINGS
Section
1.01.
The
various headings and numbers herein, and the grouping of the provisions of
this
Lease into separate Articles and Sections, are for the purpose of convenience
only and in no way define, limit, construe, or describe the scope or intent
of
such Sections or Articles nor in any way affect this Lease.
ARTICLE
II. TERM
OF THIS LEASE AND EXTENSION PERIODS
Section
2.01.
The
term of this Lease shall commence on the 1st day of June, 2006, (the
“Commencement Date”), and shall continue for a term of ten (10) years (the
“Primary Term”), commencing on the Commencement Date and expiring the last day
of May, 2016, (the “Termination Date”), unless sooner terminated in accordance
with this Lease (the Primary Term as may be extended or renewed is hereinafter
referred to as the “Term”) , and two (2) separate five (5) year options (from
June 1, 2016 to May 31, 2021 - first Option, and from June 1, 2021 to May 31,
2026 - second Option (the “Options”). For the purpose of this Lease, the term
“Lease Year” shall mean any twelve (12) month period beginning on the first day
of the month next following the Commencement Date unless the Primary Term
commences on the first day of a month in which event the twelve (12) month
period shall commence on the Commencement Date.
ARTICLE
III. RENT
Section
3.01.
Tenant
covenants and agrees to pay without demand, set-off or abatement, except as
specifically otherwise set forth herein, and Landlord agrees to accept as
“Minimum Annual Rent” (herein so called) for the Premises during the Primary
Term the following sums: Eighteen and 00/100 Dollars ($18.00) per square foot
for the entire building for a total Minimum Annual Rent of One Hundred Twenty
-Six Thousand and 00/100 Dollars ($126,000.00) per annum for the first Lease
Year, which sums shall be payable in equal monthly installments of Ten Thousand
Five Hundred and 00/100 Dollars ($10,500.00) each (“Minimum Monthly Rent”), on
the first day of each calendar month in advance (prorated according to the
Minimum Monthly Rent for the First Lease Year on a thirty-day month per diem
basis in the event the Commencement Date is other than the first day of a
month). Thereafter, the Minimum Annual Rent shall increase three (3%) percent,
annually, during each year of the Primary Term and each Option (Attached as
Exhibit “B” is the schedule of Rent
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Payments
due from Tenant). Tenant understands that utilities consumed by the Premises
are
Tenant’s responsibility and are in addition to the Minimum Monthly
Rent.
All
rental payments hereunder shall be made to Landlord, or at such other place
or
person as Landlord may designate in writing from time to time.
Section
3.02.
All
payments other than Minimum Annual Rent required to be made by Tenant under
any
of the terms or conditions of this Lease shall be collectible as “Additional
Rent” hereunder whether or not the provision requiring such payment specifically
so states (Minimum Annual Rent and Additional Rent are collectively referred
to
herein as “Rent”). Any payment of Rent not made by Tenant on the date or time
herein specified for such payment shall bear interest at the lesser of eighteen
percent (18%) per annum or the highest rate permitted by law (the “Lease
Interest Rate”), from such date or time until such payment shall be made by
Tenant.
Section
3.03.
The
parties intend that this Lease shall provide for a net return to Landlord in
the
amount of the Minimum Annual Rent. The parties, therefore, agree that all costs,
expenses or obligations of whatever nature, whether ordinary or extraordinary,
arising in connection with this Lease or by reason of the use or occupancy
of
the Premises, shall be paid and discharged by Tenants of the Building and shall
be collectible as Additional Rent for all purposes of this Lease. Landlord
and
Tenant agree that Tenant is leasing (100%) of the total square footage of the
Building and therefore shall be responsible for (100%) of such costs, expenses
and obligations for the Property (“Tenant's Proportionate Share”).
Section
3.04.
Upon
execution of this Lease, Tenant shall pay to Landlord two (2) months Security
Deposit and one (1) month Minimum Monthly Rent in advance, for a total due
of
Thirty One Thousand Five Hundred ($31,500.00) Dollars.
ARTICLE
IV. ADDITIONS,
CHANGES AND ALTERATIONS; EQUIPMENT
Section
4.01.
At any
time, and from time to time, with Landlord's prior written approval, which
will
not be unreasonably withheld, Tenant, at its sole cost and expense, may make
additions to and nonstructural changes and alterations in and upon any or all
of
the Premises and may make additional improvements to the Premises provided
that:
(a)
Such
additions, changes, alterations or improvements, when completed, shall not
materially impair the strength or value of the Improvements and shall be in
conformity and compliance with all applicable laws, building ordinances and
regulations;
(b)
Whenever the contemplated cost of such additions, changes, alterations, or
improvements exceeds $50,000.00, Tenant shall first deliver to Landlord detailed
plans and specifications therefore and Tenant shall grant Landlord a period
of
thirty (30) days during which Landlord may approve such plans and specifications
or indicate the reasons for its disapproval of same. Provided that the work
to
be constructed is, in Landlord's sole judgment, in accordance with Subsection
4.01(a) hereof, Landlord shall approve such plans and specifications. If
Landlord has not acted within thirty (30) days of the date of delivery of such
plans and specifications, it will be deemed to have approved the same, subject,
however, to Subsection 4.01(a) hereof. Nothing in the Lease shall imply or
be
deemed to be a consent or agreement by Landlord to subject Landlord's estate
or
the Premises to liability under any mechanics or other lien law. All such
additions, changes, alterations or improvements shall be and remain part of
the
realty and the property of the Landlord and subject to this Lease unless the
Landlord notifies Tenant within thirty (30) days after the expiration of the
Term that it wishes same or a portion thereof to be removed, in which event,
Tenant shall cause such removal and restore the Premises to its original
condition.
Section
4.02.(a).
At any
time, and from time to time, Tenant may, at its sole cost and expense, install,
assemble or place upon the Premises any items of Equipment (as defined in
Subsection 4.02(b), which Equipment shall be and remain the property of Tenant
or other owner thereof and shall not become part of the
Premises.
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(b)
As
used herein, the term “Equipment” shall mean all equipment, appliances,
machinery, signs, furniture and trade fixtures now or hereafter installed or
placed on the Premises, whether or not physically attached thereto, and used
or
useable in the operation and maintenance of the business of Tenant or any
Permitted Subtenant (as defined in Article XIII) or any other entity on the
Premises. Equipment shall not include heating and ventilating air-conditioning
plants and systems, electrical (except installed by Tenant), sprinkler and
plumbing fixtures and systems and other like equipment and fixtures which
constitute an integral part of the building constructed on the
Premises.
(c)
Tenant may remove the Equipment at any time at or prior to the Expiration Date
or earlier termination of this Lease, provided that Tenant shall repair any
and
all damage to the Premises resulting from such removal. For the purposes of
this
Subsection 4.01(c), the term “Tenant” shall be deemed to include subsidiaries of
Tenant and any other Permitted Subtenant.
ARTICLE
V. RECONSTRUCTION
OF DAMAGED, DESTROYED OR REMOVED IMPROVEMENTS;
REPAIR AND MAINTENANCE
Section
5.01.
Subject
to the provisions of Article IV hereof, Landlord will repair, replace or
reconstruct any building or other of the Improvements, located on the Land
which
is damaged or destroyed by fire or other casualty. Such repair, replacement
or
reconstruction shall be accomplished within such time as may be reasonable
under
the circumstances after allowing for delays caused by strikes, lockouts, acts
of
God, fire, unavailability of materials or labor, or any other cause or casualty
beyond the reasonable control of Tenant. The design and specifications of such
repair, replacement or reconstructions shall be as determined by Landlord;
but
such work shall restore the Premises to not less than their value immediately
prior to the damage, destruction, demolition or removal. Tenant shall pay
Tenant’s Proportionate Share of the cost of insurance purchased by Landlord to
insure against such fire and other casualty.
Section
5.02.(a).
Landlord will keep and maintain the Land and all of the Improvements from time
to time located thereon and all appurtenants thereof and the sidewalks,
passageways, landscaping, parking areas, private roadways, drainways, sewers
and
trackage rights (to the extent the same are subject to Landlord's control)
on,
adjacent and appurtenant thereto, in good repair and in safe and sanitary
condition and will make all necessary repairs (structural and non-structural),
replacements and renewals, which shall be substantially equal in quality and
class to the original work. Tenant shall pay Tenant's Proportionate Share of
the
cost of such maintenance, repairs, replacements and renewals.
(b)
Tenant will conform with and do all things necessary to comply with every valid
law, regulation, order and requirement of any governmental authority relating
to
the Premises and will hold and save Landlord free and harmless of all losses,
costs, expenses, claims or liabilities for the breach thereof, or failure to
comply therewith and for the breach of or failure to comply with any valid
law,
regulation, order and requirement of any governmental authority relating to
the
conduct of Tenant's business in the Premises.
ARTICLE
VI. USE
OF THE PREMISES
Section
6.01.
The
Premises shall be used only for lawful, proper and legitimate purposes, and
Tenant shall not use, nor suffer nor permit any person to use, the same or
any
part thereof for any purpose or in violation of the laws of the United States
or
of the State in which the Premises are located, or of the ordinances of any
political subdivision of the State, or any covenant, restriction or condition
affecting the Premises, nor for any immoral or unlawful purpose
whatsoever.
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ARTICLE
VII. CONSTRUCTION
LIENS
Section
7.01.
Tenant
will keep the Premises free and clear of mechanics', laborers', or material
men’s liens, and other liens of similar nature, which may arise in connection
with any work performed on the Premises by or at the direction or sufferance
of
Tenant; provided, however, that Tenant shall have the right to contest the
validity or the amount of any such lien or claimed lien, if Tenant shall, within
ten (10) days after the lien is filed against the Premises, give to Landlord
or
any mortgagee of the Premises (a "Mortgagee"), such reasonable security as
may
be demanded by Landlord or a Mortgagee to insure payment of such lien and
prevent any sale, foreclosure or forfeiture of the Premises by reason of such
nonpayment. On final determination of the lien or claimed lien, Tenant shall
immediately pay any judgment rendered, with all proper costs and charges, and
shall have the lien released or judgment satisfied at Tenant’s own expense.
Should any such lien be placed on the Premises and the same ripen into a
judgment which has become final, Landlord, at its option, may pay any such
final
judgment and clear the Premises there from, and any monies so paid out by
Landlord on account of any such judgment shall be repaid by Tenant to Landlord
at the next ensuing rent day and shall draw interest at the Lease Interest
Rate
from time of payment by Landlord until repaid by Tenant.
Section
7.02.
In the
event any lien is filed against the Premises or any action is commenced
affecting the title hereto, as between Landlord and Tenant, the notified party
shall give the other prompt written notice thereof.
Section
7.03.
Nothing
in this Lease shall authorize Tenant to, and Tenant shall not, do any act which
will in any way encumber the title of Landlord in and to the Premises, nor
shall
the interest or estate of Landlord in the Premises be in any way subject to
any
claim whatsoever by virtue of any act or omission of Tenant. Any claim to a
lien
upon the Premises arising from any act or omission of Tenant shall be valid
only
against Tenant and shall in all respects be subordinate to the title and rights
of Landlord and any person claiming by, through or under Landlord in and to
the
Premises. Tenant shall remove any lien or encumbrance on its interest in the
Premises within ten (10) days after it has received notice thereof; provided,
however, that Tenant may in good faith contest any such item if it posts a
bond
or other adequate security with Landlord.
ARTICLE
VIII. TAXES,
ASSESSMENTS, AND UTILITY CHARGES
Section
8.01.
Landlord and Tenant agree that Landlord shall provide and/or pay for any
services as set forth herein (but expressly excluding all utilities). Landlord
will pay when due all taxes, use and occupancy taxes, assessments and levies,
whether general or special, ordinary or extraordinary, of every nature or kind
whatsoever, (excluding water, sewer, gas and electric rates which are Tenant's
sole responsibility), which may be taxed, charged, assessed, levied or imposed
at any time or from time to time during the Term of this Lease (including taxes
for the tax year in which such term begins) by the State, any political
subdivision thereof or any governmental or quasi-governmental body having
jurisdiction thereover, upon or against (i) this Lease; (ii) the Premises or
the
occupancy, use or possession thereof; or (iii) any estate, right, title or
interest of Landlord and of Tenant or of either of them in or to the Premises.
Tenant shall pay to Landlord, Tenant’s Proportionate Share of such taxes, etc.
It is agreed, however, that (a) taxes for the years in which the commencement
and the termination of this Lease occur shall be prorated, and Tenant shall
be
required to pay as its prorated share only that portion of the taxes levied
for
the period of the taxable year for which this Lease shall have been in effect,
and (b) Tenant shall not be obligated to pay any installment of any special
assessment which may be levied, assessed or confirmed during the Term, but
which
does not fall due and is not required to be paid until after its termination,
unless the special assessment is attributable to Tenant's use, occupancy or
possession of the Premises. All amounts payable by Tenant hereunder may be
collectible by Landlord as though the same were Additional Rent
hereunder.
Section
8.02.
Nothing
contained herein shall be construed to require Tenant to pay any transfer,
estate, inheritance, succession, or gift tax or taxes imposed in respect of
any
devise or gift of any interest of Landlord or its successors or assigns in
the
Premises, nor any income tax imposed in respect of Landlord's income from the
Premises, except as stated in Section 8.03, and except for any transfer tax
or
other expense in the event the Premises are sold to Tenant or its assigns
pursuant to this Lease.
4
Section
8.03.
If any
income tax shall be levied, assessed or imposed by the State or any political
subdivision thereof upon the income arising from Rent payable hereunder, in
lieu
of or as a substitute for a property tax upon the Premises, Tenant shall pay
Tenant’s Proportionate Share of the same; but in no event shall Tenant be
obligated to pay for any year any greater amount by way of such substituted
income tax than would have been payable by Landlord by way of such substituted
income tax had the rental upon which such tax was imposed been the sole taxable
income of Landlord for the year in question.
Section
8.04.
Except
as permitted by Section 8.05, the taxes, assessments and other impositions
to be
paid by Tenant in this Article VIII., shall be paid, before any delinquency
can
occur therein or in any part or installment thereof, and certificates of payment
shall be delivered to Landlord upon request.
Section
8.05.
Landlord shall have the right to contest the legality or validity of any of
the
taxes, assessments or other impositions.
Section
8.06.
The
Land, the Building and the Improvements covered and affected by this Lease
may
always be assessed for the purpose of taxation in the name of the owner of
the
fee.
Section
8.07.
As
between the parties hereto, Landlord alone shall have the duty of attending
to
the making and filing of any statement or report which may be provided or
required by law as a basis of or in connection with the determination,
equalization, reduction, payment or abatement of each obligation which is to
be
borne or paid by Landlord (and reimbursed by tenants) in accordance with this
Article VIII.
Section
8.08.
Landlord will promptly deliver to Tenant any and all tax notices or assessments
which it may receive relating to the Premises.
ARTICLE
IX. PUBLIC
LIABILITY AND PROPERTY DAMAGE
Section
9.01.
(a)
Tenant does hereby release Landlord and shall at all times indemnify and defend
Landlord and save it harmless from and against all claims, suits, actions,
damages, judgments, liabilities, fines, penalties, costs and expenses for loss
of life, personal injury or damage to property (i) arising from or out of
occurrences during the Term within or upon the Premises (without regard to
the
cause or claimed cause thereof whether such loss of life, personal injury or
damage to property be due to any negligence including the negligence or other
act or omission of Landlord, or its officers, agents, invitees or employees
occurring following the execution of this Lease), or (ii) by reason of the
occupancy or use of the Premises by Tenant, or (iii) occasioned wholly or in
part by any act or omission of Tenant or breach of this Lease by Tenant or
by
its agents, invitees, contractors, customers, employees, servants, lessees
or
concessionaires. If Landlord shall be made a party to any litigation commenced
by or against Tenant or by any third party and connected in any way with this
Lease or Tenant's use or occupancy of Premises, Tenant shall indemnify and
hold
Landlord harmless and shall pay all costs, expenses and reasonable attorneys'
fees incurred or paid by Landlord in connection with such
litigation.
(b)
Tenant also hereby releases Landlord from any and all liability arising from
(i)
the operation, conduct or management of or from any work or thing whatsoever
done in, on or about the Premises or any building, structure, equipment
(including, without limitation, plumbing, heating or air-conditioning equipment,
elevators, water pipes and electrical wiring) or improvement now or hereafter
erected or placed on or adjacent to the Premises, (ii) any condition of any
sidewalk, alley, or driveway adjacent to the Premises, (iii) any act or omission
of co-tenants or other occupants, including assignees and subtenants of the
Premises or of adjoining or contiguous property or buildings, and (iv) any
act
or omission of Landlord, its agents, servants or employees unless such act
or
omission shall constitute gross or willful negligence.
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Section
9.02.
Tenant
will keep in effect at its sole cost and expense and with financially
responsible insurance companies qualified to do business in the State in which
the Premises is located and acceptable to Landlord (an “Insurer”), a
comprehensive general liability policy either directly or indirectly, covering
the Premises and providing coverage with minimum limits of liability at all
times reasonably satisfactory to Landlord and which on the date hereof shall
be
not less than $1,000,000.00 for bodily injury to one person, $3,000,000.00
for
bodily injury to any group of persons as a result of one accident and
$1,000,000.00 for property damage. Such policy shall name Landlord and a
Mortgagee, if any, as additional insured and certificates that such insurance
is
in force shall be delivered to Landlord; such certificate containing an
agreement by the Insurer that such policy shall not be cancelled or modified
(as
it applies to Landlord or a Mortgagee) without thirty (30) days' prior written
notice to Landlord or a Mortgagee by registered mail, return receipt requested,
and that no act or omission by Tenant shall invalidate such policy as it applies
to Landlord or Mortgagee.
Section
9.03.
Tenant
shall bring or keep property upon the Premises solely at its own risk, and
Landlord shall not be liable for any damages thereto or any theft thereof.
Tenant shall maintain fire and extended coverage insurance, which may include
self-insurance, covering such personal property in such amounts and against
such
risks as is customarily maintained by similar businesses, and to provide
Landlord evidence of such insurance coverage. Such insurance coverage shall
contain a clause or endorsement under which the Insurer waives, or permits
the
waiver by Tenant, of all right of subrogation against Landlord, and its agents,
employees, invitees, guests, or licenses, with respect to losses payable under
such policy, and Tenant hereby waives all right of recovery which it might
otherwise have against Landlord, and its agents, employees, invitees, guests,
or
licenses, for any damage to Tenant's property which is (or by terms of this
Lease is required to be) covered by a policy of insurance, notwithstanding
that
such damage may result from the negligence or fault of Landlord, or its agents,
employees, invitees, guests, or licensees. Any deductible or self-insured amount
included in such policy shall be treated as though it were recoverable under
the
policy.
Section
9.04.
Tenant
shall deliver to Landlord certificates evidencing that all insurance which
Tenant is required to provide and maintain in effect hereunder is in force.
Should Tenant fail to provide, maintain or pay for any of the insurance
hereinbefore provided for, Landlord at its option may procure such insurance.
Any sums paid out by Landlord for any such insurance shall be repaid by Tenant
to Landlord on the first day of the calendar month next following payment
thereof by Landlord, together with interest thereon at the Lease Interest Rate
from the date of payment by Landlord until repaid by Tenant.
Section
9.05.
Landlord will keep in effect with financially responsible insurance companies
qualified to do business in the State in which the Property is located a
comprehensive general liability policy either directly or indirectly covering
the Property and providing coverage with minimum limits of liability of not
less
than $1,000,000.00 for bodily injury to one person, $3,000,000.00 for bodily
injury to any group of persons as a result of one accident and $1,000,000.00
for
property damage. Tenant shall pay Tenant's Proportionate Share of the cost
of
such insurance.
ARTICLE
X. FIRE
INSURANCE
Section
10.01.
Landlord will keep the buildings and the Improvements now or hereafter located
on the Premises insured against All Risk of Loss with an Insurer in an amount
at
least equal to replacement value, and if there is a “pressure vessel” on the
Premises, against loss by boiler explosion in an amount at least equal to
replacement value. Such insurance shall be so issued as to cover the several
interests of Landlord, a Mortgagee, and Tenant, and shall provide that in case
of loss or damage the proceeds thereof shall be payable to Landlord and a
Mortgagee to be held by it (except as hereinafter specified), as security for
the performance by Tenant of its obligation to repair, rebuild or reconstruct
the damaged Buildings and/or Improvements as provided herein. Such insurance
shall also provide for “rents coverage” insurance in the amount of actual losses
sustained. Tenant shall pay to Landlord Tenant's Proportionate Share of the
cost
of such insurance.
Section
10.02.
After
any loss insured against pursuant to Section 10.01, Landlord shall (i) proceed
with repair or rebuilding, or (ii) elect to terminate this Lease by giving
written notice to Tenant of such election.
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Section
10.03.
All
insurance proceeds in the hands of Landlord at the time of termination of this
Lease, or the termination of the rights of Tenant hereunder, and all insurance
proceeds thereafter received by Landlord under any policy of fire insurance
shall be the sole and exclusive property of Landlord.
ARTICLE
XI. DESTRUCTION
OF THE PREMISES
Section
11.01.
Notwithstanding any other provision of this Lease or any laws to the contrary,
damage to or destruction of any portion or all of the buildings, structures
or
fixtures upon the Premises by fire, the elements, or any cause, whether or
not
without fault on the part of Tenant, shall not terminate this Lease (except
at
Landlord’s election as set forth in Section 10.02) or entitle Tenant to any
abatement of or reduction in Rent payable by Tenant, or otherwise affect the
respective obligations of the parties.
ARTICLE
XII. CONDEMNATION
Section
12.01.
In the
event that the Property, or any part thereof, shall be taken in condemnation
proceedings or by exercise of any right of eminent domain or by agreement
between Landlord and those authorized to exercise such right (any such “Partial
Taking” [herein so called] or “Full Taking” [herein so called]) being
hereinafter generically referred to as a “Taking”), Landlord and any person or
entity having an interest in the award or awards shall have the right to
participate in any such condemnation proceedings or agreement for the purpose
of
protecting their interests hereunder. Each party so participating shall pay
its
own expenses therein.
Section
12.02.
If at
any time during the Term there shall be a Taking of the whole or substantially
all of the Property, this Lease shall terminate and expire on the date of such
Taking and Minimum Annual Rent and Additional Rent shall be apportioned and
paid
to the date of such Taking. For the purpose of this Article XII, "substantially
all of the Property" shall be deemed to have been taken if Tenant and Landlord
agree, or failing such agreement, it is determined by arbitration as provided
in
Section 12.06, that the untaken part of the Premises is insufficient for the
economic and feasible operation thereof by Tenant.
Section
12.03.
If this
Lease shall have terminated as a result of such Taking, the proceeds from the
real estate award (the “Award”), shall be applied for the following purposes in
the following order:
(a)
First, pay the unpaid balance of any mortgages affecting the Premises at the
time of the Taking; and
(b)
Second, any balance of the Award remaining after payment of the amount set
forth
in Subsection 12.03(a) shall be paid to Landlord.
Tenant
shall be entitled to a separate award for removal and dislocation expenses
as
granted to tenants of real estate under the Eminent Domain Laws of the State
in
which the Property is located.
Section
12.04.
If this
Lease shall not have been terminated pursuant to Section 12.02, after any such
Taking, this Lease shall continue in full force and effect as to the portion
of
the Premises not taken and otherwise remain unaffected except:
(a)
The
Minimum Annual Rent shall be reduced by an amount which bears the same
proportion to the Minimum Annual Rent immediately prior to the Partial Taking
as
the amount of the Award paid to Landlord or a Mortgagee and not applied to
the
restoration of the Improvements located on the Property pursuant to Subsection
12.04(b) shall bear to the value of the whole Property immediately prior to
such
taking as determined in the condemnation proceedings or agreement. Until the
new
Minimum Annual Rent shall have been determined, Tenant shall continue to pay
Minimum Monthly Rent as set forth in Section 3.01 and upon such determination,
an appropriate adjustment shall be made and Tenant shall receive credit for
any
overpayment.
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(b)
The
Award shall be paid to Landlord and applied first to restoration (if this Lease
has not been terminated) and any balance of the Award shall be the property
of
Landlord subject to an obligation to make a Minimum Annual Rent adjustment
as
set forth in Subsection 12.04(a).
Section
12.05.
In the
event of a Taking of all or a part of the Premises for temporary use, this
Lease
shall continue in full force and effect without change, as between Landlord
and
Tenant, and Tenant shall be entitled to the Award made for such use; provided
that:
(a)
Tenant’s Proportionate Share of such Award shall be apportioned between Landlord
and Tenant as of the date of the expiration of the then current Term;
and
(b)
Landlord shall be entitled to file and prosecute any claim against the contemnor
for damages and to recover the same, for any negligent use, waste or injury
to
the Premises throughout the balance of the then current Term and same shall
also
be so apportioned between Landlord and Tenant.
Section
12.06.
In the
event of any dispute between Landlord and Tenant with respect to any issue
of
fact (other than one determined by the condemnation court or board of view
or
other body authorized to make the award) arising out of a Taking set forth
in
this Article XII, such dispute shall be resolved by arbitration in accordance
with the then current procedures of the American Arbitration Association in
the
State in which the Premises are located, provided that the arbitrators shall
be
persons experienced in the operation of facilities whose use is substantially
similar to the use of the Premises at the time of such arbitration.
ARTICLE
XIII.
ASSIGNMENTS, TRANSFERS, AND SUBLETTING
Section
13.01.
With
the prior written consent of Landlord, which shall not be unreasonably withheld,
Tenant shall have the right during the Primary Term to sublet all or a portion
of the Premises or to assign this Lease upon such sub lessee’s or assignee’s
execution of an instrument assuming all of the obligations of Tenant hereunder;
provided, however, that no such subletting or assignment shall relieve Tenant
of
any of the obligations under the terms, covenants and conditions of this Lease,
and Landlord shall at all times have the right to look to Tenant for the
performance of all of the covenants to be performed on the part of Tenant.
Tenant shall have the right to assign this Lease or sublet the Premises to
a
subsidiary of Tenant provided that Tenant shall continue to be liable for the
performance of all the terms, covenants and conditions of this Lease on its
part
to be performed.
Section
13.02.
To
secure the payment of all Rent due under this Lease, Landlord shall have a
first
lien upon any and all rents from Tenant’s subtenants or assignees, if
any.
Section
13.03.
This
Lease may be assigned or transferred by Landlord without limitation; provided
that (except in the case of assignments to a Mortgagee) twenty (20) days’ prior
notice of the assignment or transfer is given to Tenant; and upon such
assignment or transfer, which shall be subject to this Lease, and notice to
Tenant thereof, the individuals and corporate entity now comprising Landlord
shall be relieved of any liability hereunder thereafter accruing; provided,
further, that any successor or assignee assumes all obligations and covenants
of
Landlord under this Lease and immediately thereafter is in compliance therewith.
In the event of an assignment of this Lease by Landlord to a Mortgagee, Tenant
agrees to pay all Minimum Annual Rent and Additional Rent directly to such
Mortgagee free of any and every defense, counterclaim or setoff Tenant may
have
or assert against Landlord or any other person or entity
whatsoever.
ARTICLE
XIV. DEFAULT
Section
14.01.
(A) The
occurrence of any of the following shall constitute an event of default (each
an
“Event of Default”) under this Lease:
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(a)
Failure of Tenant to take possession of the Premises within thirty (30) days
after notice to Tenant that the same are ready for occupancy by
Tenant;
(b)
The
vacation or abandonment of the Premises by Tenant;
(c)
A
failure by Tenant to pay, when due, any installment of Rent hereunder or any
such other sum herein required to be paid by Tenant;
(d)
Failure of Tenant to maintain any insurance required to be maintained by Tenant
hereunder;
(e)
The
assignment, mortgaging, pledging or encumbering of this Lease or the subletting
of all or any portion of the Premises without Landlord’s prior written
consent;
(f)
Tenant’s failure to observe and perform any other provision or covenant of this
Lease to be observed or performed by Tenant, where such failure continues for
twenty (20) days after written notice thereof from Landlord to
Tenant;
(g)
The
filing of a petition by or against Tenant for adjudication as bankrupt or
insolvent, or for its reorganization, or for the appointment pursuant to any
local, state or federal bankruptcy or insolvency law of a receiver or trustee
of
Tenant's property; or an assignment by Tenant for the benefit of creditors;
or
the taking possession of the property of Tenant by any local, state or federal
governmental officer or agency or court-appointed official for the dissolution
or liquidation of Tenant or for the operating, either temporary or permanent,
of
Tenant's business; provided, however, that if any such action is commenced
against Tenant the same shall not constitute an Event of Default if Tenant
causes the same to be dismissed within thirty (30) days after the filing of
same.
(B)
If an
Event of Default shall occur, the following provisions shall apply and Landlord
shall have the rights and remedies set forth herein which rights and remedies
may be exercised upon or at any time following the occurrence of an Event of
Default unless, prior to such exercise, Landlord shall agree in writing with
Tenant that the Event(s) of Default has been cured by Tenant in all
respects:
(a) Acceleration
of Rent:
By
notice to Tenant, Landlord shall have the right to accelerate all Minimum Annual
Rent, Additional Rent and any other sums due hereunder and otherwise payable
in
installments over the remainder of the Term (which payments, to the extent
not
fixed hereunder, shall be based on the reasonable estimates of Landlord,
including, without limitation, estimates as to the total amount of Additional
Rent which would have been paid over the Term but for Tenant's default) and
the
amount of accelerated rent, without further notice or demand for payment, shall
be due and payable by Tenant within five (5) days after Landlord has so notified
Tenant.
Notwithstanding
the foregoing or the application of any rule of law based upon election of
remedies or otherwise, if Tenant defaults in its Lease obligations Landlord
may
(i) terminate Tenant's further right to possession of the Premises and (ii)
seek
to collect accelerated rents and (iii) terminate this Lease under paragraph
(b)
below; and these remedies shall not be unusually exclusive, if Tenant's shall
have paid part but not all of the accelerated rent, the portion thereof
attributable to the period equivalent to the part of the Term remaining after
Landlord's termination of possession or termination of this Lease shall be
applied by Landlord against Tenant's obligations owing to Landlord as determined
by the applicable provisions of paragraphs (c) and (d) below.
(b) Termination
of Lease.
By
notice to Tenant, Landlord shall have the right to terminate the Lease as of
a
date specified in the notice of termination and in such case, Tenant's rights,
including any based on any option to renew, to the possession and use of the
Premises shall end absolutely as of the termination date; and this Lease shall
also terminate in all respects except for the provisions thereof regarding
Landlord's damages and Tenant's liabilities arising prior to, out of and
following the Event of Default and the ensuing termination.
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(c) Tenant's
Continuing Obligations - Landlord's Reletting Rights.
(1) Unless
and until Landlord shall have terminated this Lease under paragraph (b) above,
Tenant shall remain fully liable and responsible to perform all of the covenants
and to observe all the conditions of this Lease throughout the remainder of
the
Term; and in addition, Tenant shall pay to Landlord, upon demand and as
Additional Rent, the total sum of all costs, losses and expenses, including
reasonable counsel fees, as Landlord incurs, directly or indirectly, because
of
any Event of Default having occurred.
(2) If
Landlord either terminates Tenant's right to possession without terminating
this
Lease or terminates this Lease and Tenant's leasehold estate as above provided,
Landlord shall have the unrestricted right to relet the Premises or any part(s)
thereof to such Tenant(s) on such provisions and for such period(s) as Landlord
may deem appropriate. Landlord's obligation to mitigate damages shall be limited
to such efforts as Landlord, in its sole reasonable judgment, deems
appropriate.
(d) Landlord's
Damages.
(1)
|
The
damages which Landlord shall be entitled to recover from Tenant shall
be
the sum of:
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(A)
All
Minimum Annual Rent and Additional Rent accrued and unpaid as of the
termination date; and
(B) (i)
All
costs and expenses incurred by Landlord in recovering possession of the
Premises, including removal and storage of Tenant's property, improvements
and
alterations therefrom, (ii) the costs and expenses of restoring the Premises
to
the condition in which the same were to have been surrendered by Tenant as
of
the expiration of the Term, or, in lieu thereof, the costs and expenses of
remodeling or altering the premises or any part for reletting the same, (iii)
the costs of reletting (exclusive of those covered by the foregoing (ii))
including brokerage fees and reasonable counsel fees, and (iv) any special
overhead expenses related to the vacancy of the Premises not in excess of ten
percent (10%) of the initial Minimum Annual Rent otherwise to be paid by Tenant
over the remainder of the Term, for each month or part between the date of
termination and the reletting of the entire Premises; and
(C)
All
Minimum Annual Rent and Additional Rent (to the extent that the amount(s) of
Additional Rent has been then determined or estimated by Landlord as aforesaid)
otherwise payable by Tenant over the remainder of the Term.
Less
(deducting from the total determined under subparagraphs (A), (B) and (C))
all
rent and all other Additional Rent to the extent determinable as aforesaid,
(to
the extent that like charges would have been payable by Tenant) which Landlord
receives from other Tenant(s) by reason of the leasing of the Premises or part
thereof during or attributable to any periods falling within the otherwise
remainder of the Term.
(2)
|
All
attorneys’ fees, costs and expenses incurred by Landlord as a result of
such Event of Default.
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(3)
|
The
damage sums payable by Tenant under the preceding provisions of this
paragraph (d) shall be payable on demand from time to time as the
amounts
are determined; and if from Landlord's subsequent receipt of rent
as
aforesaid from reletting, there be any excess payment(s) by Tenant
by
reason of the crediting of such rent thereafter received, such excess
payment(s) shall be refunded by Landlord to Tenant, without
interest.
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10
(e) Interest
on Damage Amounts.
Any
sums payable by Tenant hereunder which are not paid after the same shall be
due
shall bear interest from that day until paid at the rate of three percent (3%)
over the then "Prime Rate" announced or being charged by the Citibank, N.A.
for
ninety (90) day unsecured loans to major corporate borrowers (unless such rate
is usurious as applied to Tenant, in which case the highest permitted legal
rate
shall apply).
(f) Landlord's
Statutory Rights.
Landlord shall have all rights and remedies now or hereafter existing at law
with respect to the enforcement of Tenant's obligations hereunder and the
recovery of the Premises, including, without limitation, those set forth in
New
York CPLR, as amended, and all amendments, modifications and substitutions
thereof hereafter enacted. No right or remedy herein conferred upon or reserved
to Landlord shall be exclusive of any other right to remedy, but shall be
cumulative and in addition to all other rights and remedies given hereunder
or
now or hereafter existing at law. Landlord shall be entitled to injunctive
relief in case of the violation, or attempted threatened violation, of any
covenant, agreement, condition or provision of this Lease, or to a decree
compelling performance of any covenant, agreement, condition or provision of
this Lease, or to a decree compelling performance of any covenant, agreement,
condition or provision of this Lease.
(g) Remedies
Not Limited.
Nothing
herein contained shall limit or prejudice the right of Landlord to exercise
any
or all rights and remedies available to Landlord by reason of default or to
prove for and obtain in proceedings under any bankruptcy or insolvency laws,
an
amount equal to the maximum allowed by any law in effect at the time when,
and
governing the proceedings in which, the damages are to be proved, whether or
not
the amount be greater, equal to or less than the amount of the loss or damage
referred to above.
(h) No
Waiver by Landlord.
No
delay or forbearance by Landlord in exercising any right or remedy hereunder,
or
Landlord’s undertaking or performing any act or matter which is not expressly
required to be undertaken by Landlord shall be construed, respectively, to
be a
waiver of Landlord's rights or to represent any agreement by Landlord to
undertake or perform such act or matter thereafter. Waiver by Landlord of any
breach by Tenant of any covenant or condition herein contained (which waiver
shall be effective only if so expressed in writing by Landlord) or failure
by
the Landlord to exercise any right or remedy in respect of any such breach
shall
not constitute a waiver or relinquishment for the future of Landlord's right
to
have any such covenant or condition duly performed or observed by Tenant, or
of
Landlord’s rights arising because of any subsequent breach of any such covenant
or condition nor bar any right or remedy of Landlord in respect of such breach
or any subsequent breach. Landlord’s receipt and acceptance of any payment from
Tenant which is tendered not in conformity with the provisions of this Lease
or
following an Event of Default (regardless of any endorsement or notation on
any
check or any statement in any letter accompanying any payment) shall not operate
as an accord and satisfaction or a waiver of the right of Landlord to recover
any payments then owing by Tenant which are not paid in full, or act as a bar
to
the termination of the Lease and the recovery of the Premises because of
Tenant’s previous default.
Section
14.02. (a)
If
following the filing of a petition by or against Tenant in a bankruptcy court,
Landlord shall not be permitted to terminate this Lease because of the
provisions of Title II of the United States Code relating to Bankruptcy, as
amended (the “Bankruptcy Code”), then Tenant (including Tenant as a
“Debtor-in-Possession”) or any trustee for Tenant agrees promptly, within no
more than twenty (20) days upon request by Landlord to the Bankruptcy Court,
to
assume or reject this Lease and Tenant agrees not to seek or request any
extension or adjournment of any application to assume or reject this Lease
by
Landlord with such Court. Tenant's or the trustee's failure to assume this
Lease
within said twenty (20) day period shall be deemed a rejection. Landlord shall
thereupon immediately be entitled to possession of the Premises without further
obligation to Tenant or the trustee, and this Lease shall terminate, except
that
Landlord's right to damages for Tenant's default shall survive such
termination.
(b)
Tenant or any trustee for Tenant may only assume this Lease if (i) it cures
or
provides adequate assurance that Tenant or the trustee will promptly cure any
default hereunder, (ii) it compensates or provides adequate assurance that
Tenant will promptly compensate Landlord for any actual pecuniary loss to
Landlord resulting from Tenant's default, and (iii) it provides adequate
assurance of future performance under this Lease by Tenant. To the extent
permitted by law, in no event after the assumption of this Lease by Tenant
or
any trustee for Tenant shall any then existing
11
default
remain uncured for a period in excess of that permitted by this Lease. Adequate
assurance of future performance of this Lease shall include, without limitation,
adequate assurance (x) of the source of Rent required to be paid by Tenant
hereunder, and (y) that assumption or permitted assignment of this Lease will
not breach any provision hereunder.
ARTICLE
XV. OWNERSHIP
AND POSSESSION WARRANTY
Section
15.01.
If
Tenant shall perform all of its covenants, agreements and obligations hereunder,
Landlord covenants and agrees that Tenant shall have the peaceful and quiet
enjoyment of the Premises throughout the Term without hindrance on the part
of
Landlord.
ARTICLE
XVI. HOLDING
OVER BY TENANT
Section
16.01.
If
Tenant holds over or remains in possession or occupancy of the Premises or
any
part thereof after the expiration of the Primary Term or the Options, (if such
option has been provided for in this Lease and has been properly exercised
by
Tenant) or after any sooner termination of this Lease, without a proper exercise
of any extension option or without another written agreement leasing the
Premises being actually made and entered into by Landlord and Tenant, and only
if Rent is paid by Tenant and accepted by Landlord for or during any period
of
time Tenant so holds over or remains in possession or occupancy, such holding
over or continued possession or occupancy shall create only a tenancy from
month
to month at a mutually agreeable rental but no less than the last Minimum
Monthly Rent in effect on the last day of the Term or any extension thereof
then
in effect and upon all the terms, covenants and conditions, (other than length
of the Term and extension thereof), set forth in this Lease, which may at any
time be terminated by either Landlord or Tenant by giving to the other thirty
(30) days prior notice of its intention to terminate the same.
ARTICLE
XVII. WAIVERS
Section
17.01.
No
waiver by Landlord of any breach by Tenant of any of its obligations or
agreements, or the terms, covenants and conditions hereunder shall be deemed
to
be a waiver of any subsequent breach of the same or any other covenants,
agreements or obligations, nor shall any forbearance by Landlord to seek a
remedy for any breach by Tenant be deemed a waiver by Landlord of its rights
or
remedies with respect to such breach.
ARTICLE
XVIII. TERMINATION
Section
18.01.
At the
termination of this Lease or upon repossession by Landlord for any reason,
Tenant and any subtenants under Tenant, and any and all persons holding or
claiming under Tenant, shall surrender possession of the Premises to Landlord
as
provided in Section 14.04 hereof, and free of any and all claims thereto by
Tenant or any party holding under Tenant.
Section
18.02.
At the
termination of this Lease for any cause, provided Rent and other charges shall
have been fully paid, Tenant and any subtenants under Tenant, and any and all
persons holding or claiming under Tenant, shall have the right to remove from
the Premises all personal property, tools, machinery and trade fixtures and
Equipment installed by Tenant or any person holding under Tenant at its own
expense, irrespective of how any of such property may be attached to the
Premises; provided, however, that Tenant shall repair to Landlord's satisfaction
any and all damage to the Premises caused by the removal of such
property.
12
ARTICLE
XIX. COVENANTS
TO RUN WITH THE LAND
Section
19.01.
All
covenants, agreements, and engagements in this Lease shall be construed as
covenants running with the land, and all rights given to and obligations imposed
upon the respective parties shall be construed as inuring to and binding upon
the successors in interest and assigns of the parties hereto,
respectively.
ARTICLE
XX. SHORT
FORM OF THIS LEASE
Section
20.01.
Upon
request of either party after the execution of this Lease, the parties agree
to
promptly execute, acknowledge and deliver a Short Form of Lease for recording
purposes if requested by one of the parties, and the terms hereof shall
constitute a part hereof as though recited at length therein.
ARTICLE
XXI. NOTICES
Section
21.01.
Any
notice provided for herein must be mailed by certified or registered United
States mail, postage prepaid, return receipt requested to the parties as
follows:
If
to
Landlord: Toledo
Realty, LLC
000 Xxxxxx Xxxxxx
Xxxxxxxxxxx, XX 00000
Attn: Xxxxx Xxxxxxxx
Managing Member
If to Tenant: JUMA Technology LLC
000 Xxxxxx Xxxxxx
Xxxxxxxxxxx, XX 00000x
Attn: Xxxxxxx Xxxxx
Member
000 Xxxxxx Xxxxxx
Xxxxxxxxxxx, XX 00000
Attn: Xxxxx Xxxxxxxx
Managing Member
If to Tenant: JUMA Technology LLC
000 Xxxxxx Xxxxxx
Xxxxxxxxxxx, XX 00000x
Attn: Xxxxxxx Xxxxx
Member
Any
and
all notices to Landlord shall also be sent to a Mortgagee if Landlord has
previously sent notice of such Mortgagee and such Mortgagee's address to Tenant.
Each party shall have the right to specify any other address in the United
States by giving to the other party at least fifteen (15) days prior written
notice thereof.
ARTICLE
XXII. SUBORDINATION,
ATTORNMENT AND NON-DISTURBANCE
Section
22.01.
This
Lease and Tenant's leasehold estate shall be subordinate and subject in all
respects to any present and future mortgage or mortgages which are liens against
the Premises and, at Landlord's request, Tenant shall execute and deliver to
Landlord an instrument in recordable form confirming such subordination;
provided that such subordination shall not affect the respective rights of
Landlord, Tenant and any mortgagee under Article XII. hereof; and, provided
further, that Landlord will use its best efforts to secure for Tenant at such
time an instrument executed by all necessary parties in recordable form whereby
any Mortgagee or proposed mortgagee agrees that Tenant shall not be interfered
with or disturbed in its use, possession and enjoyment of the Premises by the
mortgagee, or any person or firm claiming under the mortgagee, such instrument
to be binding upon any successor of a Mortgagee or any purchaser at judicial
sale upon foreclosure of the mortgage, so long as Tenant is not in default
hereunder.
13
If
at any
time during the Term any Mortgagee or proposed mortgagee shall become owner
of
the Premises as a result of foreclosure or otherwise or becomes a “Mortgagee in
Possession” of the Premises, Tenant shall, upon request and upon assumption by
said mortgagee of Landlord's obligations hereunder, attorn to such mortgagee
from time to time upon the then terms and conditions of this Lease and shall
execute instruments in confirmation of such attornment.
ARTICLE
XXIII. ESTOPPEL
CERTIFICATE
Section
23.01.
At any
time, and from time to time, Tenant shall execute, acknowledge and deliver
to
Landlord a statement in writing in form satisfactory to Landlord certifying
that
this Lease is unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as modified and stating
the modifications), and the dates to which Minimum Monthly Rent and Additional
Rent have been paid in advance, if any, and stating whether or not to the best
knowledge of the signer of such certificate Landlord is in default in
performance of any term, covenant or condition contained in this Lease.
ARTICLE
XXIV. ENTRY
AND INSPECTION
Section
24.01.
Tenant
shall permit Landlord and Landlord's authorized agents to enter upon the
Premises at reasonable times during Tenant’s business hours for the purpose of
inspecting the same and of ascertaining Tenant's compliance with the terms
and
conditions of this Lease.
Section
24.02.
In
entering upon the Premises, Landlord will observe Tenant’s prevailing security
arrangements and will make such entries so as to cause as little inconvenience,
annoyance or disturbance as possible.
ARTICLE
XXV. CUMULATIVE
REMEDIES; NO WAIVER; ENTIRE AGREEMENT, NO ORAL CHANGE;
GOVERNING LAW; SEVERABILITY; EXHIBITS; SIGNS
Section
25.01.
The
specific remedies to which Landlord or Tenant may resort under the terms of
this
Lease are cumulative and are not intended to be exclusive of any other remedies
or means of redress to which they may be lawfully entitled in case of any breach
or threatened breach by either of them of any provision of this Lease. The
failure of either party to insist in any one or more cases upon the strict
performance of any of the covenants of this Lease, or to exercise any option
herein contained, shall not be construed as a waiver or relinquishment for
the
future of such covenant or option. A receipt by Landlord of any installment
of
Rent with knowledge of the breach of any covenant hereof shall not be deemed
a
waiver of such breach. This Lease and the Exhibits and Riders if any, attached
to this Lease and made a part hereof set forth all the covenants, promises,
agreements, conditions and understandings between Landlord and Tenant concerning
the Property, and there are no covenants, promises, agreements, conditions
or
understandings, heretofore made, either oral or written, between them other
than
as herein set forth. No waiver, change, modification or discharge by either
party hereto of any provision in this Lease shall be effective unless expressed
in writing and signed both by Landlord and Tenant.
Section
25.02.
This
Lease shall be construed and enforced in accordance with the laws of the New
York State.
Section
25.03.
If any
provision of this Lease or the application thereof to any person or circumstance
shall, to any extent, be invalid or unenforceable, the remainder of this Lease
shall not be affected thereby and each remaining provision of this Lease shall
be valid and enforceable to the fullest extent permitted by law.
Section
25.04.
Any
signs which Tenant desires to use on the Premises must be approved by Landlord
and meet any and all applicable laws, ordinances, regulations, etc.
14
ARTICLE
XXVI. SUCCESSORS
AND ASSIGNS
Section
26.01.
This
Lease shall be binding upon and inure to the benefit of the parties hereto
and
their successors and assigns.
ARTICLE
XXVII. SECURITY
DEPOSIT
Section
27.01.
Tenant,
upon the execution of this Lease, shall deposit with Landlord Ten Thousand
Five
Hundred and 00/100 Dollars ($10,500.00) (the "Security Deposit"), which sum
shall be retained by Landlord (without interest and not in trust or in a
separate account) as security for the payment by Tenant of Rent to be paid
hereunder and the performance of the terms, covenants and obligations contained
herein. If at any time Tenant shall be in default under the provisions of this
Lease, Landlord shall be entitled, at its sole discretion, to apply the Security
Deposit: (i) to payment of (a) any Rent for the payment of which Tenant shall
be
in default, (b) any expense incurred by Landlord in curing any default of
Tenant, and/or (c) any other sums due to Landlord in connection with any default
or the curing thereof, including, without limitation, any damages incurred
by
Landlord by reason of such default; or (ii) to retain the Security Deposit
in
liquidation of all or a part of the damages suffered by Landlord by reason
of
such default.
Section
27.02.
If any
portion of the Security Deposit is used, applied or retained by Landlord for
any
purpose set forth in Section 27.01., Tenant shall, within ten (10) days after
demand therefore is made by Landlord, deposit cash with Landlord in an amount
sufficient to restore the Security Deposit to its original amount. Any portion
of the Security Deposit which shall not be utilized for any such purpose or
as
otherwise may be provided for in this Lease shall be returned to Tenant
following the expiration of this Lease and surrender of the Premises to Landlord
as provided in this Lease. The Security Deposit shall not be mortgaged, assigned
or encumbered in any manner whatsoever by Tenant.
ARTICLE
XXVIII. HAZARDOUS
MATERIALS AND WASTE
Section
28.01.
Tenant
covenants and agrees that it will use the Premises in compliance with any local,
state or federal hazardous material and waste laws or other environmental laws
or regulations and Tenant specifically shall indemnify and hold Landlord
harmless for any costs, expenses, etc. incurred by Landlord in default of this
covenant by Tenant; provided, however, that any work or expense for such
compliance shall be the sole responsibility of Tenant from and after the
Commencement Date. If required, Tenant shall file reports on any such activities
with the appropriate authority.
Section
28.02.
At the
termination of this Lease, Tenant shall remove any tanks or storage of any
hazardous material or waste substances (as so defined by any local, state or
federal authority) installed by Tenant or installed by Landlord at the written
request of Tenant.
Section
28.03.
If, at
any time during the term of this Lease, any local, state or federal authority
or
any of Landlord's mortgagees should request a report on any such hazardous
substances Tenant has stored or allowed to be stored on the Premises, Tenant
will either cause said report to be made as soon as practicable at its own
cost
and expense, or if not made within thirty (30) days of Landlord's request for
the same, will reimburse Landlord, as Additional Rent, for Landlord's cost
of
obtaining said report.
Section
28.04.
Tenant
shall dispose of any cleaning materials, including rags, cloths, liquids, gases
or chemical compounds off of the Premises promptly and according to any
applicable laws, regulations, etc. after use, and will not store or allow its
employees to store any of the same at the Premises.
15
Section
28.05.
At any
time during the Term, or within one hundred eighty (180) days thereafter,
Landlord may enter upon the Premises and inspect the Premises for any evidence
of any hazardous waste or hazardous substances. In the event that there exists
any such hazardous waste or hazardous substances, Tenant shall promptly remove
the same in accordance with all applicable federal or local laws, regulations,
etc. This Section, 28.05, shall survive the termination or expiration of this
Lease.
Section
28.06. Tenant
represents that it’s Standard Industrial Classification (“SIC”) number as
designated in the Standard Classification Manual prepared by the Office of
Management and Budget, Executive Office of the President of the United States
is
________________. Tenant recognizes that for purposes of the Act, Tenant will
acquire the SIC number of any entity for which it provides all or substantially
all of its services or products. Tenant represents the specific activities
intended to be carried on at the Premises are solely general office uses and
Tenant covenants that it will do or suffer nothing which will cause its SIC
number to fall within any of the following “major group” classifications of SIC
numbers during the term of this Lease: 22 through 39, inclusive, 46 through
49,
inclusive, 51 through 76 (together “Covered Numbers”). Tenant further covenants
to notify Landlord in writing at least thirty (30) days prior to any change
of
facts which would result in the change of Tenant’s SIC number from that stated
above to any of the Covered Numbers. Upon such notice, Landlord shall have
the
right, at its option, to terminate this Lease within thirty (30) days of receipt
of such notice by notifying the Tenant in writing.
ARTICLE
XXIX. BROKERS
Section
29.01.
Landlord and Tenant each represent that it has not dealt with any broker in
connection with the negotiation, execution, or delivery of this Lease. Each
party shall defend, indemnify and hold harmless the other party from and against
any claims or demands for brokerage commissions or finder's fees alleged to
arise from the acts of the first mentioned party and Landlord shall defend,
indemnify and hold harmless Tenant for brokerage fees or finders fees owed
to or
claimed by Broker or any party claiming by, through or under
Broker.
Section
29.02.
This
Article XXIX is a covenant to run with the land and shall be binding on any
subsequent Owner of Landlord's estate, including, but not limited to, any
mortgagee or subsequent owner of the Building.
Section
29.03.
The
term “Tenant” as used in this Article XXIX shall mean Tenant and any person,
firm, corporation or other entity having an interest, relationship or connection
in or with Tenant or any successor-in-interest to Tenant's estate granted
hereunder or under any other document substituted for or replacing this
Lease.
ARTICLE
XXX. COMPLIANCE
WITH LAW
Section
30.01.
Tenant
shall, at its sole cost and expense, comply or cause compliance with any notices
of violations of any laws and regulations of federal, state, municipal and
local
governments, departments, commissions and boards, pursuant to law, which may
impose any violation, order or duty upon Tenant with respect to the Premises,
arising out of Tenant's use thereof. Notwithstanding the foregoing, Tenant
may
contest or appeal such violations, requirements or orders and shall not be
required to comply therewith if Tenant shall contest same by appropriate
proceedings and shall not subject Landlord to criminal liability or material
civil liability provided Tenant shall give such reasonable security during
the
pendency of such contest as shall be requested by Landlord with respect to
any
costs, fines, expenses, penalties or damages which may be imposed on Landlord
by
reason of Tenant's contest; provided, however, that during any such contest,
Tenant shall, unless prohibited by law (i) continue to pay all rentals due
under
this Lease to Landlord and, (ii) continue operations of the Premises in
accordance with the terms and conditions of this Lease. Upon final resolution
of
any such contest, Tenant shall promptly comply with the judgment, finding,
or
order.
16
ARTICLE
XXXI. RELATIONSHIP
OF PARTIES; DEFINITION OF LANDLORD; DEFINITION
OF TENANT
Section
31.01.
Nothing
contained in this Lease shall be construed to create the relationship of
principal and agent, partnership, joint venture, or any other relationship
between the parties hereto other than the relationship of Landlord and Tenant.
Nothing contained in this Lease shall in any way impose any liability upon
the
members, stockholders, officers or directors of Landlord or members,
stockholders, officers, directors or trustees of Tenant, should such parties
be
corporate entities.
Section
31.02.
The
term “Landlord” as used herein, means Landlord named herein and any subsequent
owner of Landlord's estate hereunder, but any owner of Landlord’s estate shall
be relieved of all liability under this Lease, after the date it ceases to
be
the owner of Landlord’s estate (except for any liability arising prior to such
date) provided the party succeeding to Landlord’s estate shall have executed an
agreement of assumption and assignment of Landlord's estate.
Section
31.03.
The
term “Tenant” as used herein, means Tenant named herein and any subsequent owner
of Tenant’s estate hereunder.
END
OF
SECTION
17
IN
WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly executed
the day and year first above written.
LANDLORD:
|
|
WITNESS/ATTEST:
|
TOLEDO
REALTY, LLC
|
____________________________
|
/s/
Xxxxx
Xxxxxxxx
|
By:
Xxxxx Xxxxxxxx
|
|
Managing Member
|
|
TENANT:
|
|
JUMA
TECHNOLOGY, LLC
|
|
____________________________
|
/s/
Xxxxxxx
Xxxxx
|
By:
Xxxxxxx Xxxxx
|
|
Member
|
18
EXHIBIT
“A”
Legal
Description of the Property
A
-
1
EXHIBIT
“B”
RENT
SCHEDULE
RENT
PERIOD - YEAR
|
ANNUAL
RENT (w/3%annual increase
|
MONTHLY
RENT
|
PRIMARY
TERM:
|
||
6/1/06
- 5/31/07
|
$126,000.00
|
$10,500.00
|
6/1/07
- 5/31/08
|
$129,780.00
|
$10,815.00
|
6/1/08
- 5/31/09
|
$133,673.40
|
$11,139.45
|
6/1/09
- 5/31/10
|
$137,683.60
|
$11,473.63
|
6/1/10
- 5/31/11
|
$141,814.11
|
$11,817.84
|
6/1/11
- 5/31/12
|
$146,068.53
|
$12,172.38
|
6/1/12
- 5/31/13
|
$150,450.59
|
$12,537.55
|
6/1/13
- 5/31/14
|
$154,964.11
|
$12,913.68
|
6/1/14
- 5/31/15
|
$159,613.03
|
$13,301.09
|
6/1/15
- 5/31/16
|
$164,401.42
|
$13,700.12
|
FIRST
OPTION PERIOD:
6/1/16
- 5/31/17
|
$169,333.46
|
$14,111.12
|
6/1/17
- 5/31/18
|
$174,413.46
|
$14,534.46
|
6/1/18
- 5/31/19
|
$179,645.86
|
$14,970.49
|
6/1/19
- 5/31/20
|
$185,035.24
|
$15,419.60
|
6/1/20
- 5/31/21
|
$190,586.30
|
$15,882.19
|
SECOND
OPTION PERIOD:
6/1/21
- 5/31/22
|
$196,303.89
|
$16,358.66
|
6/1/22
- 5/31/23
|
$202,193.01
|
$16,849.42
|
6/1/23
- 5/31/24
|
$208,258.80
|
$17,354.90
|
6/1/24
- 5/31/25
|
$214,506.56
|
$17,875.55
|
6/1/25
- 5/31/26
|
$220,941.76
|
$18,411.81
|
B
-
1