LEASE
This Lease Agreement made and entered into this 17th day of July, 1990,
effective as of March 31, 1990, between MEDICORE, INC., a Florida corpora-
tion with offices at 0000 Xxxx 00xx Xxxxxx, Xxxxxxx, Xxxxxxx 00000, here-
inafter called "Lessor" and TECHDYNE, INC., a Florida corporation, with
offices at 0000 Xxxx 00xx Xxxxxx, Xxxxxxx, Xxxxxxx 00000, hereinafter
called "Lessee."
1. Leased Premises. Lessor hereby leases to Lessee, and Lessee
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hereby leases from Lessor the following properties situated and being in
the City of Hialeah, County of Dade, State of Florida: (a) described as
that approximately 13,000 square feet comprising all of the space in the
building located at 0000 Xxxx 00xx Xxxxxx, Xxxxxxx, Xxxxxxx 00000 used for
offices and manufacturing and (b) described as that approximately 10,000
square feet comprising all of the space in the building located at 0000
Xxxx 00xx Xxxxxx, Xxxxxxx, Xxxxxxx 00000 used for a warehouse. The two
properties described in (a) and (b) are hereinafter collectively referred
to as "Leased Premises."
2. Term. The term of this lease shall be for five (5) years,
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commencing April 1, 1990 and ending March 31, 1995 ("Lease Term").
3. Rent.
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A. The Lessee shall pay to the Lessor as rent for the Leased
Premises during the term of this Lease the sum of One Hundred Thirty
Thousand ($130,000) Dollars per annum or Ten Thousand Eight Hundred Thirty-
three and 34/100 ($10,833.34) Dollars per month, plus Florida sales tax,
said rental to be paid in
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advance on the first day of each month during the Lease Term. Late payments
shall be subject to a ten (10%) percent late charge per month subject to
paragraph 17B. Payments, when received by Lessor, shall be applied first
to late charges, if any, and then delinquent rents.
B. Lessee further agrees to pay as additional rent all real
estate taxes, assessments for local, district and special district
improvements that may be assessed against or become a lien upon the Leased
Premises or any part thereof by virtue of any present or future law or
regulation of any governmental authority, the utility charges for water,
gas, fuel, oil and electricity consumed on the Leased Premises, and
insurance premiums respecting the Leased Premises. It is the intention
of the Lessor and the Lessee that the rent herein specified shall be net,
net to the Lessor in each year during the Lease Term; provided, however,
that the Lessee shall be under no obligation to make any payments on any
mortgage encumbering the Leased Premises, any franchise, inheritance or
income taxes which are or may become payable by or which may be imposed
against the Lessor, except to the extent Lessor and Lessee based on their
relationship file consolidated returns, then Lessee shall be responsible
for such income taxes attributable to it, or against any rents payable
hereunder or any gift, inheritance, transfer, estate or succession tax by
reason of any present or future law which may be enacted during the Lease
Term or any renewal thereof. Payment of the real estate taxes, as part
of the
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additional rent under this Lease, shall be made within fifteen (15) days
after the receipt of the invoice for the same by Lessee.
C. All payments to be made to the Lessor as set forth herein
shall be made at the address of Lessor as set forth in paragraph 25
hereunder or at such other place and to such other person as the Lessor
may from time to time designate in writing.
4. Use of Premises. The Leased Premises shall be used and occupied
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by the Lessee for the operation of a light manufacturing facility, offices
and warehousing or for any other lawful use, which as to the latter is
subject to the consent of the Lessor. The Lessee hereby covenants and
agrees to comply with all the rules and regulations of the Board of Fire
Underwriters, Officers or Boards of the City, County or State having
jurisdiction over the Leased Premises, and with all ordinances and regu-
lations of governmental authorities wherein the Leased Premises are
located, at Lessee's sole cost and expense. Lessee, at its sole expense,
shall obtain all licenses or permits which may be required for the conduct
of its business within the terms of this Lease.
5. Option to Extend. Provided that the Lessee is not in default
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of the Lease, the Lessee shall have the option to extend the Lease for an
additional period of five (5) years on the same terms and conditions
provided in the Lease at an additional rental to that required during the
Lease Term to be negotiated between the parties.
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The option to extend granted herein shall be exercisable by the Lessee
notifying Lessor in writing no less than three (3) nor more than five (5)
months prior to the expiration of the original Lease Term that the Lessee
wishes to exercise the option to extend the Lease Term.
6. Alterations. During the Lease Term, Lessee may, at its own
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expense make such alterations, improvements, additions, and changes to
the Leased Premises as it may deem necessary or expedient for its opera-
tions; provided, Lessee first obtains the prior written consent of the
Lessor, and provided further that Lessee, subject to paragraph 8 of this
Lease, shall not tear down or materially demolish any of the improvements
on the Leased Premises, or make any material change or alteration in such
improvements which, when completed, would substantially diminish the value
of the Leased Premises. Lessee shall not make any change in or alteration
to the Leased Premises which would violate the terms of any policy of
insurance in force with respect to the Leased Premises.
7. Covenant Against Liens. It is expressly covenanted and agreed
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by and between the parties that nothing in this Lease shall authorize
Lessee to. do any act which shall in any way encumber the title of the
Lessor in and to said Leased Premises, nor shall the interest or estate
of the Lessor therein be in any way subject to any claim by way of lien
or encumbrance, whether claimed by operation of law or by virtue of any
express or implied contract, by said Lessee. Lessee covenants and
agrees to keep the Leased
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Premises free and clear of any and all claims for mechanics' and material-
men's liens and other liens caused to be imposed on the Leased Premises by
acts of the Lessee, and to save and hold harmless the Lessor against losses
or damages resulting from any and all such claims. Lessee shall have the
right at all times and at its own expense to contest and defend on behalf
of Lessor and Lessee, any action invoking such claims or liens.
8. Reversion of Improvements to Lessors. During the Lease Term and
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any renewals thereof and upon the expiration thereof, improvements made
upon the Leased Premises by Lessee shall be the property of Lessor, except
any improvements constructed by Lessee that may be removed without any
damage to the Leased Premises. Further, Lessee shall have the right and
privilege of erecting, installing or placing equipment or other fixtures
in the Leased Premises and shall further have the right and privilege of
removing all personal property, including but not limited to removable
furniture, trade fixtures, machines and other equipment installed at the
Leased Premises at the expiration or termination of the Lease.
9. Insurance. Lessee shall, at Lessee's cost and expense, for the
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mutual benefit of the Lessor and Lessee, carry comprehensive general
liability insurance including personal injury occurring upon, in or about
the Leased Premises, such insurance to afford protection in the amount of
One Million ($1,000,000) Dollars combined single limit, said policy to
name the Lessor as an addi-
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tional insured and shall provide for thirty (30) days notice to Lessor
prior to any cancellation of such policies.
Lessee shall, at its own cost and expense, keep the Leased Premises
insured against loss or damage by fire or other casualty, including
vandalism, malicious mischief and sprinkler leakage, insured against
under the usual extended coverage endorsement available in the State of
Florida by insurance policies equal to at least the replacement cost of
the Leased Premises; and, in addition to and not limited to the foregoing,
carry such fire and other usual and available insurance and in such
amounts up to the amount of any mortgage then existing on the Leased
Premises as may from time to time be required by the holders of any
mortgage or mortgages on the fee, or leasehold, including but not by
way of limitation, extended coverage if required by such holders.
All insurance carried by Lessee as required by this paragraph 9 shall
be carried in favor of Lessor and Lessee, as their respective interests
may appear, and shall, whenever appropriate, and if requested by Lessor,
include the interest of the holders of any mortgages on the fee or
leasehold. Such insurance shall be in such form and issued by such
companies as shall be satisfactory to any institutional mortgagee of the
Leased Premises.
Lessee shall procure policies for all insurance required by this
paragraph 9 for periods of not less than one year and shall deliver to
Lessor such policies with evidence of the payment of premiums thereon
and shall procure renewals thereof from time to time at least ten days
before the expiration thereof.
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If Lessee shall fail to pay the premiums or obtain renewals for such
policies as they come due, Lessor may pay such premiums or obtain such
renewals and charge the cost thereof to Lessee as additional rent, which
shall be paid to Lessor on the next rent day. Lessee shall furnish to
Lessor certificates evidencing such policies prior to taking possession
of the Leased Premises.
10. Liability. Lessor is to be free from all liability and claim for
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damages by reason of any injury to any person or persons, Including Lessee,
or property of any kind whatsoever, and to whomsoever belonging arising
from injury wholly or in party by any act or omission of the Lessee, its
employees, customers or invitees occurring on the Leased Premises, during
the Lease Term or any extension thereof. Lessee covenants and agrees to
defend, indemnify and save harmless Lessor from all such liability, loss,
costs and obligations on account of or arising out of any injuries or
losses, however occurring, arising from any act or omission of the Lessee
and as contemplated by this paragraph 10. In the event of the failure of
the Lessee to so defend, Lessor may, at the cost and expense of Lessee,
and upon prior twenty (20) days written notice to Lessee, defend any and
all suits or actions for which Lessor is named and Lessee has liability
as contemplated in this paragraph 10, and Lessee will satisfy and pay any
and all judgments that may be recovered against Lessor in such actions as
contemplated herein.
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11. Maintenance and Repair.
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A. Lessor, at its own expense, shall be responsible for the good
condition and for all maintenance and repair of the exterior structure and
foundation of the Leased Premises, including but not limited to landscaping,
paving and structural components so that the same shall be kept in good and
substantial repair and condition, but exclusive of the roof, which shall
be the responsibility of the Lessee. Lessor further warrants that the
building will be properly maintained; provided Lessee shall be responsible
for, at its cost and expense, the maintenance and repair of all heating,
ventilating, air conditioning, plumbing, security and electrical systems
of and servicing the Leased Premises. Lessor agrees to cause to have
furnished to the Leased Premises, gas, water, electricity and other
utilities suitable for the intended use for light manufacturing, general
offices, and warehousing, provided that Lessor shall not be responsible
for any interruption of such services caused by any utility company or
governmental regulatory agency supplying the same or any events beyond
its control.
B. Lessee shall be responsible for removal of trash and garbage,
janitorial services and cleaning the parking lot. All utility charges
for the Leased Premises shall be the responsibility of the Lessee.
Lessee shall be responsible, at its own expense, to keep, repair and
maintain all other portions of the Leased Premises, other than the exterior
structure and foundation, in good and
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sanitary order, condition and repair, reasonable wear and tear and
damage by accidental fire or other casualty excepted.
C. No waste, damage or injury to the Leased Premises shall be
committed, and at the end of the Lease Term, the Leased Premises shall be
restored to the same condition in which it was at the commencement of the
Lease Term, and the cost of said restoration shall be paid by Lessee,
which cost shall be treated as additional rent due and owing under the
terms of this Lease. This paragraph is subject to the exceptions of
ordinary wear and tear and unavoidable damage by fire, elements, casualty,
or other cause or happening not due to Lessee's negligence.
12. Signs. Lessee shall have the right to place such business signs,
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whether electric or other artistic signs, upon or within the Leased
Premises, provided, however, that the Lessee shall comply in all respects
with any governmental agency orders, regulations or ordinances with respect
to the placement of all of said signs.
13. Subleasing and Assignment. The Lessee shall not assign this
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Lease, nor sublet the Leased Premises or any part thereof, nor permit
anyone other that Lessee to occupy the Leased Premises or any part thereof,
except with the prior written approval of the Lessor. Lessee may sublet
all or a portion of the Leased Premises to a wholly-owned subsidiary or
division of the Lessee. In the event of any assignment or subletting or
other occupancy through and by the Lessee, then Lessee shall remain
liable to the Lessor for the performance of all obligations imposed on
Lessee hereunder.
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14. Casualty. If the Leased Premises are damaged by fire, earth-
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quake or other casualty other than caused by the acts or omissions of
the Lessee or Lessee's employees, agents, invitees, or customers, to the
extent that the ordinary business of the Lessee cannot reasonably be
conducted therein and if such damage cannot be or is not within reasonable
diligence, repaired by the Lessor within ninety (90) days from the
happening of the injury, then either Lessor or Lessee shall have the
option of terminating this Lease by written notice delivered to the other
party within thirty (30) days following the happening of said injury.
If either Lessor or Lessee elects to terminate this Lease as aforesaid,
Lessee shall immediately vacate and surrender possession of the Leased
Premises to Lessor; provided, however, that if the Lessor elects to
terminate the Lease and damage to the Leased Premises is not in excess
of twenty-five (25%) percent, Lessee has the option to make repairs and
deduct costs of such repairs from rental payments or otherwise be
reimbursed by the Lessor for such repairs and Lessee shall not have to
vacate the Leased Premises. If neither Lessee nor Lessor elects to
terminate this Lease, or if the Leased Premises are not damaged to the
extent that the damage unreasonably interferes with the conduct of the
Lessee's ordinary business, Lessor shall proceed with said repairs with
all reasonable diligence. If the damage and repairs to the Leased
Premises do not unreasonably interfere with the business being conducted
by the Lessee, there shall be no reduction in rent. In all other events,
the rent shall be proportionately abated to the degree that
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Lessee's use of the Leased Premises is impaired by the damages to the
Leased Premises. Should the damage to the Leased Premises be so extensive
as to render the Leased Premises untenable and both parties elect not to
terminate the lease then, rent payments hereunder shall cease until the
Leased Premises shall be repaired by the Lessor. Nothing in this Lease
shall make Lessor liable for any compensation or damage, by reason of such
interruption of Lessee's business through any such casualty, destruction
or damage or arising from the necessity of repairing any portion of the
Leased Premises affected by such damage.
Proceeds from insurance on the building in which the Leased Premises
are situated and for improvements and betterments in the Leased Premises
shall be paid to the Lessor upon the occurrence of any loss for repair of
the Leased Premises or if this Lease is terminated in accordance with the
terms of this paragraph 14, shall be used for whatever purpose the Lessor
shall determine except that, if the damage to the Leased Premises is not
in excess of twenty-five (25%) percent, and the Lessee elects to make the
repairs, the insurance proceeds attributable to those repairs shall be paid
to the Lessee for payment of all such repairs. In addition, that portion
of the insurance proceeds specifically attributable to the personal
property and fixtures belonging to the Lessee shall be paid to the Lessee.
No losses shall be adjusted without the approval of Lessor.
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15. Condemnation. If any part of the Leased Premises should be taken
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or condemned for a public or quasi-public use, and a part thereof remains
which is susceptible for the use intended hereunder, this Lease shall, as
to the part so taken, terminate as of the date title shall vest in the
condemnor, and the rent payable hereunder shall be adjusted so that the
Lessee shall be required to pay for the remainder of the Lease Term only
such portion of such rent as the value of the part remaining after the
condemnation bears to the value of the entire Leased Premises at the date
of condemnation. If all the Leased Premises, or such part thereof be
taken or condemned so that there does not remain a portion susceptible
for occupation hereunder, this Lease shall thereupon terminate. Whether
or not a portion of the Leased Premises is susceptible for the use intended
shall be determined by arbitration if the parties cannot otherwise agree
on said portion. If a part or all of the Leased Premises be taken or
condemned, all compensation awarded upon such condemnation or taking,
shall go to the Lessor and the Lessee shall have no claim thereto.
16. Ingress and Egress. The Lessee, its agents, employees, invitees
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and customers shall have the rights of ingress and egress to and from the
Leased Premises including but not limited to ingress and egress over the
streets, alleys, sidewalks, driveways or public ways adjoining or common
areas within the building in which the Leased Premises are located.
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17. Default of Lessee.
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A. If default is made by Lessee in the observance, or per-
formance of any of the provisions, terms or conditions hereof other than
provisions providing for the payment of rents, and such default shall
continue for thirty (30) days after written demand for performance
specifying the nature of the default claimed, given by Lessor to Lessee,
or should Lessee abandon the Leased Premises or any part thereof, then,
at its option, Lessor, its successors or assigns, may, without notice or
process of law, re-enter and take possession of the Leased Premises and
remove all persons and all Lessee's property therefrom, and, if necessary,
place Lessee's personal property in storage at the expense and risk of
Lessee; and to seek enforcement by suit of the provisions hereof on the
part of the Lessee required to be kept or performed. Lessee shall not be
deemed in default if said default cannot with due diligence be cured within
the aforementioned thirty (30) day period and prior to the expiration of
such thirty (30) days, Lessee commences to eliminate the cause of such
default and proceeds diligently and with reasonable dispatch to take all
steps and do all things required to cure such default and does so cure
such default within a reasonable time thereafter.
B. In case the Lessee shall fail to pay when due any rent or
other money coming due to Lessor hereunder, the Lessor shall have the
right after five (5) days written notice of such default, to terminate
this Lease to the same extent and with all legal incidents as though the
Lease Term had expired by efflux of
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time, except that the Lessee shall have the right to reinstate said Lease
by payment in full of all rents and monies due and owing within said five
(5) day period; and if Lessee fails to cure said default, it shall be
lawful for the Lessor or its agents, to re-enter the Leased Premises and
repossess itself of said Leased Premises as of its original estate, and
the Lessor may have any other remedies available to it either in equity
or at law.
C. No re-entry upon the Leased Premises by the Lessor shall be
construed as an election on its part to terminate this Lease unless written
notice of such intention is given to the Lessee.
D. No receipt of monies by Lessor f from Lessee, after the
termination for any cause of this Lease shall reinstate, continue or
extend the terms of this Lease, it being agreed that, after the commence-
ment of a suit or after final judgment for possession of the Leased
Premises, the payment of any monies shall not waive or affect said suit
or judgment, except by mutual written agreement between Lessor and Lessee.
18. Default of Lessor. In the event of a default under the terms of
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this Lease on the part of the Lessor, the Lessee shall notify the Lessor
in writing of said default and the Lessor shall have thirty (30) days to
cure or commence to cure said default; provided that if the nature of the
default is such that it cannot be reasonably cured within thirty (30)
days, Lessor shall not be deemed to be in default if it shall commence
performance within said thirty (30) day period and by diligently proceeding
to so cure
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the default thereafter. If the Lessor shall not cure or commence to cure
the said default within the thirty (30) day period, the Lessee has the
option to either terminate this Lease and vacate the Leased Premises
immediately without any further liability under the Lease and take whatever
other remedies, either at law or equity, that may be available to it upon
such default, or cure the default and deduct costs and expenses from rental
payments and/or otherwise be reimbursed by the Lessor for such cure.
19. Termination if Legal Proceedings Filed. If Lessee shall at any
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time during the term of this Lease be or become insolvent or if Lessee
shall be adjudged bankrupt, or if any sheriff, marshal, constable or other
officer takes possession of substantially all of Lessee's property by
virtue of any execution or attachment, or if a receiver or trustee shall
be appointed for substantially all of Lessee's property, and in the event
any of the happenings herein set forth occur and shall not be released,
stayed, bonded, insured, satisfied or vacated within sixty (60) days
after the occurrence of any of the events herein set forth, then and in
each of said cases, Lessee shall be deemed in default hereunder and it
shall and may be lawful for the Lessor, at Lessor's election, to enter
into and upon the Leased Premises, or any part thereof, and to have, hold,
possess and enjoy the Leased Premises, and this Lease may thereupon be
terminated, at Lessor's option. Lessor may, however, take possession
without electing to terminate this Lease, and in any of the above events,
Lessor shall have accorded to Lessor all rights under this Lease or
pursuant to law for Lessee's default.
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20. Remedies Cumulative-Waiver Not To Be Inferred.
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A. No remedy herein or otherwise conferred upon or reserved to
the Lessor or Lessee shall be considered exclusive of any other remedy,
but the same shall be cumulative and shall be in addition to every other
remedy given hereunder, or now or hereafter existing at law or in equity
or by statute; and every power and remedy given by this Lease to the Lessor
or the Lessee may be exercised from time to time and as often as occasion
may arise or as may be deemed expedient.
B. No waiver of any breach of any of the covenants of this Lease
shall be construed, taken or held to be a waiver of any other breach, or
waiver of, acquiescence in, or consent to any further or succeeding breach
of the same covenant.
21. Quiet Enioyment. Lessor warrants that the Lessee, upon payment of
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the rents herein reserved and upon the performance of all the terms of this
Lease shall at all times during the Lease Term and during any extension or
renewal term, quietly and peaceably have, hold, occupy, enjoy and use the
Leased Premises without interruption by or disturbance from Lessor.
22. Right of Re-Entry. The Lessor, or any of its agents, employees
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or representatives, shall have the right upon reasonable notice to the
Lessee, to enter the Leased Premises during reasonable hours and without
interfering with the Lessee's operations, to exhibit the Leased Premises
or to put or keep upon the doors or windows of the Leased Premises a
notice "For Rent" at any time within ninety (90) days before the
expiration of the Lease Term or
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any renewal thereof, or to determine whether Lessee is complying with
the terms of this Lease.
23. Surrender of Premises Upon Expiration of Term. Upon the expira-
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tion of the Lease Term, or its earlier termination in accordance with the
terms and conditions hereof, and subject to paragraphs 8 and 11C, the
Lessee will forthwith surrender and deliver the said Leased Premises to
the Lessor in good order, reasonable use, ordinary decay, wear and tear
and damage by fire or other unavoidable casualty excepted.
24. Subordination. The rights and interests of Lessee under this
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Lease shall be subject and subordinate to any mortgage that may be placed
upon the Leased Premises and to any and all advances to be made thereunder,
and to the interest thereon, and all renewals, replacements, and extensions
thereof. Whether this Lease is dated prior to or subsequent to the date
of said mortgage, Lessee shall execute and deliver whatever instruments
may be required for such purposes and in the event Lessee fails to do so
within ten (10) days after demand in writing, Lessee does hereby make,
constitute and irrevocably appoint Lessor as its attorney-in fact and in
its name, place and stead so to do. Lessor may assign its interest in
this Lease or any part thereof, and such assignee shall thereupon be
deemed Lessor hereunder.
25. Notice. In every case where, under any of the provisions of
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this Lease, or in the opinion of either the Lessor or Lessee, or other-
wise, it shall or may become necessary or desirable to make, give, serve
or deliver any declaration, demand or notice of any
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kind or character, or for any purpose whatsoever, it shall be sufficient
to send or cause to be sent a copy of any such declaration, demand or
notice by United States registered or certified mail, return receipt
requested, postage prepaid, properly addressed to the Lessor at 0000
Xxxx 00xx Xxxxxx, Xxxxxxx, Xxxxxxx 00000 and to the Lessee at 0000 Xxxx
00xx Xxxxxx, Xxxxxxx, Xxxxxxx 00000, or at such other address as either
party may hereafter furnish to the other party, in writing, for the
declared and express purpose of receiving notices.
26. Amendment. No provision of this Lease may be amended or added to
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except by an agreement in writing signed by the parties or their respective
successors in interest.
27. Binding on Successors. This Lease shall be binding upon the
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Lessor and Lessee and their respective assigns, successors, heirs,
administrators, legal or personal representatives or executors, as the
case may be.
28. Space Preparation. It is clearly understood that the Leased
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Premises shall be leased by the Lessee on an "as is" basis and that Lessee
presently occupies the Leased Premises.
29. Governing Law. The Lease shall be governed by and construed
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pursuant to the laws of the State of Florida.
30. Hold Over. If the Lessee shall occupy the Leased Premises with
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or without the consent of the Lessor, after the expiration of the Lease
Term and any renewal thereof, and the rent is accepted from the Lessee,
such occupancy and payment shall be construed as an extension of this
Lease for the term of one year
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only from the date of such expiration, and occupation, thereafter shall
operate to extend the Lease from year to year under the terms hereof,
unless other terms of such occupancy are endorsed herein or hereon in
writing and signed by the parties.
IN WITNESS WHEREOF, the parties have hereunto set their hands and
seals as of the day and year first above written.
MEDICORE, INC., Lessor
By /s/ Xxxxxx X. Xxxxxxxx
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XXXXXX X. IANGBEIN, President
TECHDYNE, INC., Lessee
By /s/ Xxxxx Xxxxxx
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XXXXX XXXXXX, Executive Vice
President