OFFICE LEASE AGREEMENT
XXXXXX
COUNTY, GEORGIA
THIS
OFFICE LEASE AGREEMENT
(the
“Lease”)
is
made and entered into as of the last
date
of execution hereof by the parties as indicated on the signature page hereto
(the “Effective Date”),
by and
between Xxxxx
Atlanta Portfolio, LLC,
a
Georgia
limited liability company, (hereinafter “Landlord), party of the first part and
ForgeHouse,
Inc., a Nevada corporation
(hereinafter “Tenant”),
party
of the second part. Pursuant
to the terms of this Lease, Landlord agrees to lease the Premises (hereinafter
defined) to Tenant and Tenant agrees to lease the Premises from Landlord
subject
to all matters of record
and the
terms of this Lease.
The
Lease includes the following exhibits and attachments: Exhibit
A
(Outline
and Location of Premises), Exhibit
B
(Expenses and Taxes), Exhibit
C (Special
Stipulations), and Exhibit
D
(Building Rules and Regulations).
1. Basic
Lease Information
1.01
“Building”
shall
mean the building located at 0000
Xxxxxxxxx Xxxxx, Xxxxxxxxxx, Xxxxxx
Xxxxxx, XX
00000,
commonly known as Brookside
Court.
“Rentable
Square Footage of the Building”
is
deemed to be
42,995
rentable square feet. “Property”
shall
mean the Building and the parcel(s) of land on which it is located.
“Common
Areas”
shall
mean the portion of the Building and Property that are designated by Landlord
for the common use of tenants and others.
1.02
“Premises”
shall
mean the area shown on Exhibit
A
to this
Lease. The Premises are located on the first
(1st) floor
and
known as suite(s) 150 / 155. The “Rentable
Square Footage of the Premises”
is
deemed to be 2,760
square
feet.
1.03
(a.)
“Base
Rent”:
Period
or Months of Term
|
Monthly
Base Rent
|
Annual
Base Rent
|
6/1/08
- 5/31/09
|
$3,622.50*
|
$43,470.00
|
6/1/09
- 5/31/10
|
$3,737.50
|
$44,850.00
|
6/1/10
- 5/31/11
|
$3,852.50
|
$46,230.00
|
6/1/11
- 8/31/11
|
$3,967.50
|
$11,902.50
|
*1.03
(b) “ Rent Abatement”.
Landlord
shall conditionally excuse Tenant’s obligation to pay Base Rental for the first
three
(3)
months
of the Term (“Abated Rent”), provided, however, that the Abated Rent shall
become due and payable to Landlord in the event of any monetary or other
Tenant
default under this Lease beyond any applicable notice and cure period. This
provision shall not be deemed to excuse payment of any rents or charges due
other than the Abated Rent specifically described above.
1.04
“Tenant’s
Pro Rata Share”:
6%.
Tenant
shall pay Tenant’s Pro Rata Share of Taxes and Operating Expenses in accordance
Exhibit
B
of this
Lease
1.05
“Base
Year”
for
“Operating
Expenses”
and
taxes: 2008.
1.06
“Term”:
A
period of thirty-nine ( 39 ) months and
0
days.
Subject to Section 2, the Term shall commence on June 1,
2008
(the
“Commencement
Date”)
and,
unless terminated early in accordance with this Lease, end on August 31,
2011
(the
“Termination
Date”).
Landlord shall provide rent free possession of the Premises
on the
Effective Date.
1.07
“Security
Deposit”:
$3,622.50.
Initial
month’s Rent of $3,622.50
is due on
the Effective Date.
1.08
“Broker(s)”:
Xxxxxx
Commercial Real Estate Partners, LLC and Xxxxxxx Xxxxxx &
Co.
1.09
“Permitted
Use”:
General
Office.
Page
1 of 16
1.10
“Notice
Addresses”:
Landlord:
|
Tenant:
|
XXXXX
ATLANTA PORTFOLIO, LLC
0000
Xxxx Xxxxxxxx Xxxxx
Xxxxx
000
Xxxxxxxxxx,
XX 00000
Attention:
Xxxxx Xxxxx XX
|
ForgeHouse,
Inc
0000
Xxxxxxxxx Xxxxx
Xxxxx
000
Xxxxxxxxxx,
XX 00000
Attn:
Xxxx Xxxxxx
|
1.11
“Landlord
Work”
means
the work, if any that Landlord is obligated to perform in the Premises
at
Landlord’s sole cost, expense and liability, pursuant
to the Special Stipulations
attached
to this Lease as Exhibit
C.
2. Adjustment
of Commencement Date; Possession.
2.01
If
Landlord is required to perform Landlord Work prior to the Commencement Date:
(a) the date set forth in Section 1.06 as the Commencement Date shall instead
be
defined as the “Target
Commencement Date”;
(b)
the actual Commencement Date shall be the date on which the Landlord Work
is
substantially complete, as reasonably determined jointly
by
Landlord
and
Tenant;
and (c)
the Termination Date will be the last day of the Term as determined based
upon
the actual Commencement Date. If the Termination Date does not fall on the
last
day of a calendar month, Landlord and Tenant may elect to adjust the Termination
Date to the last day of the calendar month in which Termination Date occurs
by
the mutual execution of a commencement letter agreement setting forth such
adjusted date.
Unless
caused by Landlord’s gross negligence or willful misconduct,
Landlord’s failure to substantially complete the Landlord Work by the Target
Commencement Date shall not be a default by Landlord or otherwise render
Landlord liable for damages. If Landlord is delayed in the performance of
the
Landlord Work as a result of the acts or omissions of Tenant, the Tenant
Related
Parties (defined in Section 12) or their respective contractors or vendors,
including, without limitation, changes requested by Tenant to approved plans,
Tenant’s failure to comply with any of its obligations under this Lease, or the
specification of any materials or equipment with long lead times (a
“Tenant
Delay”),
the
Landlord Work shall be deemed to be Substantially Complete on the date that
Landlord could reasonably have been expected to Substantially Complete the
Landlord Work absent any Tenant Delay.
2.02
Subject
to the Landlord’s obligation to perform and complete Landlord Work in accordance
with the terms of this lease, Premises
are accepted by Tenant in “as is” condition and configuration, as
determined at the time of Lease Execution, without
any representations or warranties by Landlord.
Landlord
shall not be liable for any failure to deliver possession of the Premises
or any
other space due to the holdover or unlawful possession of such space by any
party. In such event, the commencement date for such space shall be postponed
until the date Landlord delivers possession of the Premises to Tenant free
from
occupancy by any party.
2.03 Tenant,
and its licensees, employees, and customers shall have non-exclusive right
to
use Common Areas, as constituted from time to time, such use to being common
with Landlord, other tenants of the Building and other persons entitled to
use
the Common Areas subject to all encumbrances and the Building rules and
regulations. Provided the Tenant performs all of its obligations hereunder,
Tenant shall have and peaceably enjoy the Premises during the Lease Term
free of
claims by or through Landlord, subject to all the terms and conditions contained
in this Lease.
2.04 If
Tenant
shall enter into possession of all or any part of the Premises prior to the
Commencement Date fixed above, all the covenants and conditions of this Lease
shall be binding upon the parties hereto in respect of such possession the
same
as if the first day of the Term had been fixed as the date when Tenant entered
such possession, except that unless otherwise indicated in the Special
Stipulations, Tenant not shall not be obligated to pay Base Rent during such
early occupancy.
3. Rent.
Tenant
shall pay Landlord, without any setoff or deduction, all Base Rent and
Additional Rent due for the Term (collectively referred to as “Rent”).
“Additional
Rent”
means
all sums,
except
as specifically provided elsewhere in this Lease
(other
than Base Rent) that Tenant is required to pay Landlord under this Lease,
including late fees and interest. Tenant shall pay and be liable for all
rental,
sales and use taxes (but excluding income taxes), if any, imposed upon or
measured by Rent. Base Rent and recurring monthly charges of Additional Rent
shall be due and payable in advance on the first (1st) day
of
each calendar month without notice or demand. All other items of Rent shall
be
due and payable by Tenant on or before 30 days after billing by
Landlord,
provided
that the installment of Base Rent and Additional Rent for the first full
calendar month of the Term shall be payable upon the Effective
Date hereof as provided in Section 5 below.
Rent
shall be made payable to the entity and sent to the address Landlord designates.
Tenant shall pay Landlord an administration fee equal to 10%
of the
amount of any Rent payments not paid on or before the sixth (6th)
day of
the month. In
addition, past
due Rent
payments
not paid on or before the sixth (6th)
day of
the month
shall
accrue interest at 12% per annum. Rent for any partial month during the Term
shall be prorated. Tenant shall pay Landlord an administrative fee of $50
if any
check submitted by Tenant is returned unpaid for insufficient funds or any
other
reason. No endorsement or statement on a check or letter accompanying payment
shall be considered an accord and satisfaction. In the event Tenant makes
a
partial payment of past due amounts, the payment shall be applied first to
reduce all accrued unpaid late charges and interest, in inverse order of
maturity, and then to reduce all other past due amounts, in inverse order
of
maturity.
Page
2 of 16
4.
Compliance with Laws; Use. The
Premises shall be used for the Permitted Use stated in Section 1.09 and for
no
other use whatsoever. Tenant shall comply with all statutes, codes, ordinances,
orders, rules and regulations of any municipal or governmental entity
(“Laws”),
regarding the operation of Tenant’s business and the use, condition,
configuration and occupancy of the Premises. Tenant shall comply with the
rules
and regulations of the Building attached as Exhibit D and such other reasonable
rules and regulations adopted by Landlord from time to time.
Tenant
shall not permit any objectionable or unpleasant orders, smoke, dust, gas,
noise, vibrations to emanate from the Premises, nor take any other action
that
would constitute a nuisance or would disturb or endanger any other tenants
of
the Building or unreasonably interfere with their use of their respective
premises.
Landlord
hereby represents and warrants to Tenant that, to the best of Landlord’s
knowledge, (a) no portion of the Property, including the Building and the
Premises, has been used by Landlord, or by any other person or entity, for
the
storage or disposal of any Hazardous Substances in violation of any applicable
laws or regulations of any federal, state or local governmental agency empowered
to regulate Hazardous Materials, (b) no portion of the Property has ever
been
used as a landfill or dump for the storage or disposal of any Hazardous
Substances in violation of any of the aforesaid laws or regulations, (c)
there
are no underground storage tanks or similar structures now located anywhere
on
the Property, (d) the entire Property complies in all respects with all
applicable laws, and (e) Landlord has not received any notice of any violation
of any of the aforesaid laws.
No
Hazardous Substances shall be used or kept by Tenant in the Premises, Building
or about the Property, except for those substances as are typically found
in
similar premises used for general office purposes and are being used by Tenant
in a safe manner and in accordance with all applicable laws, rules and
regulations. The
term
"Hazardous Substance" as used in this Lease shall mean any product, substance,
chemical, material or waste whose presence, nature, quantity and/or intensity
of
existence, use, manufacture, disposal, transportation, spill, release or
effect,
either by itself or in combination with other materials, is either: (i)
potentially injurious to the public health, safety or welfare, the environment,
or the Premises; (ii) regulated or monitored by any governmental authority;
or
(iii) a basis for potential liability of Landlord to any governmental agency
or
third party under any applicable statute or common law theory and shall include,
but not be limited to, hydrocarbons, petroleum, gasoline, crude oil or any
products or by-products thereof.
5.
Security Deposit and First Month’s Rent. Tenant
shall pay the first month’s installment of Base Rent on the Effective
Date
of this
Lease. The Security Deposit shall be delivered to Landlord on
the
Effective Date
and held
by Landlord without liability for interest (unless required by Law) as security
for the performance of Tenant’s obligations. The Security Deposit is not an
advance payment of Rent or a measure of damages. Landlord may use all or
a
portion of the Security Deposit to satisfy past due Rent or to cure any Default
(defined in Section 17) by Tenant. If Landlord uses any portion of the Security
Deposit, Tenant shall on demand restore the Security Deposit to its original
amount. Landlord shall return any unapplied portion of the Security Deposit
to
Tenant within 45 days after the later to occur of: (a) determination of the
final Rent due from Tenant; or (b) the later to occur of the Termination
Date or
the date Tenant surrenders the Premises to Landlord in compliance with Section
24. Landlord shall not be required to keep the Security Deposit separate
from
its other accounts. Tenant hereby grants the Landlord a security interest
in the
Security Deposit.
6. Building
Services. Landlord
shall furnish Tenant with the following services: (a) water service for use
in
the base building lavatories
and all
kitchen facilities;
(b)
customary heat and air conditioning in season during standard Building service
hours. Tenant shall have the right to receive HVAC service during hours other
than standard service hours by paying Landlord’s then standard charge for
additional HVAC service and providing such reasonable prior notice as is
specified by Landlord; (c) standard janitor service; (d) Elevator service;
and
(e) Electricity. Unless
caused by the gross negligence or willful misconduct of Landlord or any Landlord
Related Parties (as defined in Section 12),
or any
interruption, diminishment or termination of, services due to the application
of
Laws, the failure of any equipment, the performance of repairs, improvements
or
alterations, utility interruptions or the occurrence of an event of Force
Majeure (defined in Section 25.03) shall not render Landlord liable to Tenant,
constitute a constructive eviction of Tenant, give rise to an abatement of
Rent,
nor relieve Tenant from the obligation to fulfill any covenant or agreement.
Standard Building service hours shall be 7:00 a.m. - 6:00 p.m. Monday through
Friday, 7:00 a.m. - 1:00 p.m. Saturdays, excepting the following: New Years
Day,
Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, and Christmas
Day.
7. Leasehold
Improvements. All
permanent
or structural improvements
in and to in the Premises, including any Alterations (collectively,
“Leasehold
Improvements”)
shall
remain upon the Premises at the end of the Term without compensation to Tenant.
Landlord, however, by written notice to Tenant at least 30 days prior to
the
Termination Date, may require Tenant, at its expense, to remove any electronic,
phone and data cabling and related equipment (collectively, “Cable”)
installed by or for the benefit of Tenant and any Landlord Work or Alterations
that, in Landlord’s reasonable judgment, are not standard office improvements
and are of a nature that would require material removal and repair costs
(collectively referred to as “Required
Removables”).
Page
3 of 16
8. Repairs
and Alterations.
8.01
Tenant
shall periodically inspect the Premises to identify any conditions that are
dangerous or in need of maintenance or repair and shall promptly provide
Landlord with notice of any such conditions. Tenant
agrees to promptly report to Landlord in writing any maintenance problems
involving water, moist conditions, or mold
and
agrees to not block or inhibit the flow of return or make-up air into the
HVAC
system serving the Premises
and to
otherwise conduct all activities in the Premises in a manner that prevents
unusual moist conditions or mold growth. Tenant
shall, at its sole cost and expense, promptly perform all maintenance and
repairs to the Premises that are not Landlord’s express responsibility under
this Lease, and shall keep the Premises in reasonably
good
condition and repair, reasonable wear and tear and
damage by casualty or condemnation excepted.
If Tenant fails to make any repairs to the Premises for more than fifteen
(15)
days
after written
notice
from Landlord (although written
notice
shall not
be
required in an emergency), Landlord may make the repairs, and Tenant shall
pay
the actual
and reasonable
cost of the repairs,
together with an administrative charge in an amount equal to 10% of the cost
of
the repairs.
At its
sole cost, expense and liability,
Landlord
shall perform all maintenance and repairs upon the: (a) structural elements
of
the Building; (b) mechanical, electrical, plumbing and fire/life safety systems
serving the Building in general; (c) Common Areas; (d) roof of the Building;
(e)
exterior windows of the Building; and (f) elevators serving the Building.
8.02
Alterations.
Tenant shall not permit alterations in or to the Leased Premises unless and
until Landlord has approved the plans therefore in writing, which shall not
be
unreasonably witheld; provided, however, that Tenant shall have the right
to
make alterations to the Leased Premises without obtaining Landlord’s prior
written consent provided that (a) such alterations do not exceed Two Thousand
and No/100 Dollars ($2,000.00) in cost in any one instance during the Lease
Term; (b) such alterations are non-structural and non-mechanical, non-electrical
in nature; (c) such alterations do not require a permit; and (d) Tenant provides
Landlord with prior written notice of its intention to make such alterations
stating in reasonable detail the nature, extent and estimated cost of such
alterations together with the plans and specifications for the same. As a
condition of such approval, Landlord may require Tenant to remove the
alterations and restore the Leased Premises upon termination of this Lease;
otherwise, all such alterations shall at Landlord's option become a part
of the
realty and the property of Landlord, and shall not be removed by Tenant.
Notwithstanding anything contained herein to the contrary, Tenant shall have
no
obligation hereunder to remove any alterations or improvements which have
been
made by Tenant with the express written consent of Landlord, unless, at the
time
of granting such consent, Landlord has expressly required the removal of
any
such proposed alterations or improvements as a condition to granting such
consent. Tenant shall ensure that all alterations shall be made in
accordance with all applicable laws, regulations and building codes, in a
good
and workmanlike manner and of quality equal to or better than the original
construction of the Building. No person shall be entitled to any lien
derived through or under Tenant for any labor or material furnished to the
Leased Premises, and nothing in this Lease shall be construed to constitute
Landlord's consent to the creation of any lien. If any lien is filed
against the Leased Premises for work claimed to have been done for or material
claimed to have been furnished to Tenant, Tenant shall cause such lien to
be
discharged of record within thirty (30) days after filing. Tenant shall
indemnify Landlord from all costs, losses, expenses and attorneys' fees in
connection with any construction or alteration and any related lien.
Tenant agrees that at Landlord's option, Landlord or affiliate of Landlord,
who
shall receive a fee as Landlord's construction manager not to exceed five
percent (5%), shall provide over site, coordination and approval of
Tenant’s alterations to the Leased Premises.
9. Entry
by Landlord. Landlord
may enter the Premises at
reasonable times to
inspect or show the Premises, to clean and make repairs, alterations or
additions and to perform or facilitate maintenance, repairs, alterations
or
additions to any portion of the Building. Except in emergencies or to provide
Building services, Landlord shall provide Tenant with reasonable prior verbal
notice of entry.
Landlord
agrees that, while exercising such right of entry or making such repairs,
replacements or improvements, Landlord shall use reasonable efforts to avoid
interfering with Tenant’s business or disrupting the same. Provided such entry
is done in a reasonable manner and extends only for a reasonable period of
time
and does not materially or adversely interfere with or affect the business
operations of Tenant in the Premises, entry
by
Landlord shall not constitute a constructive eviction or entitle Tenant to
an
abatement or reduction of Rent.
10. Assignment
and Subletting. Tenant
shall not assign, sublease, transfer or encumber any interest in this Lease
or
allow any third party to use any portion of the Premises (collectively or
individually, a “Transfer”)
without the prior written consent of Landlord, which consent shall not be
unreasonably withheld if Landlord does not exercise its recapture rights.
Any
attempted Transfer in violation of this Article shall, at Landlord’s option, be
void. Within 15 Business Days after receipt of executed copies of the transfer
documentation and such other information as Landlord may request, Landlord
shall
either: (a) consent to the Transfer by execution of a consent agreement in
a
form reasonably designated by Landlord; (b) refuse to consent to the Transfer;
or (c) recapture the portion of the Premises that Tenant is proposing to
Transfer. If Landlord exercises its right to recapture, the Lease shall
automatically be amended to delete the applicable portion of the Premises
effective on the proposed effective date of the Transfer. In no event shall
any
Transfer release or relieve Tenant from any obligation under this Lease.
Tenant
agrees to pay Landlord, on demand, reasonable costs incurred by Landlord
in
connection with any request by Tenant for Landlord to approve the assignment
of
this Lease or the subletting of the Premises by Tenant.
Tenant
shall pay Landlord as Additional Rent 50% of all rent and other consideration
which Tenant receives as a result of a Transfer that is in excess of the
Rent
payable to Landlord for the portion of the Premises and Term covered by the
Transfer. If Tenant is in Default, Landlord may require that all sublease
payments be made directly to Landlord, in which case Tenant shall receive
a
credit against Rent in the amount of Tenant’s share of payments received by
Landlord. Any Transfer shall be accomplished using a writing approved by
Landlord.
Page
4 of 16
11. Liens. Tenant
shall not permit mechanic’s or other liens to be placed upon the Property or
Premises in connection with any work purportedly done by or for the benefit
of
Tenant or its transferees. Tenant shall, within 10 days of notice from Landlord,
fully discharge any lien by settlement, by bonding or by insuring over the
lien
in the manner prescribed by Law. If Tenant fails to do so, Landlord may bond,
insure over or otherwise discharge the lien. Tenant shall reimburse Landlord
for
any amount paid by Landlord, including, without limitation, reasonable
attorneys’ fees.
12. Indemnity
and Waiver of Claims. (a)
Tenant
hereby waives all claims against and releases Landlord and its trustees,
members, principals, beneficiaries, partners, officers, directors, employees,
Mortgagees and agents (the “Landlord
Related Parties”)
from
all claims for any injury to or death of persons, damage to property or business
loss in any manner related to (i) acts of God, (ii) acts of third parties,
(iii)
the bursting or leaking of any tank, water closet, drain or other
pipe,
unless
caused by the gross negligence or willful misconduct of Landlord or any Landlord
Related Party;
(iv)
the inadequacy or failure of any security services, personnel or
equipment.,
unless
caused by the gross negligence or willful misconduct of Landlord or any Landlord
Related Party;
or (v)
arising out of or involving any Hazardous Substance brought onto the Premises
by
or for Tenant or by any of Tenant's employees, agents, contractors or invitees,
(vi) any matter outside of the reasonable control of Landlord.
Subject
to Section 14, and except
to the
extent caused by the gross negligence or willful misconduct of Landlord or
any
Landlord Related Parties, Tenant shall indemnify, defend and hold Landlord
and
Landlord Related Parties harmless against and from all liabilities, obligations,
damages, penalties, claims, actions, costs, charges and expenses, including,
without limitation, reasonable attorneys’ fees and other professional fees (if
and to the extent permitted by Law), which may be imposed upon, incurred
by or
asserted against Landlord or any of the Landlord Related Parties by any third
party and arising out of or in connection with any damage or injury occurring
in
the Premises or any acts or omissions (including violations of Law) of Tenant,
the Tenant Related Parties or any of Tenant’s transferees, contractors or
licensees. Tenant agrees that all of Tenant’s personal property in the Premises
or the Building shall be at the risk of Tenant only and that Landlord, except
for Landlord’s gross negligence, shall not be liable for damage to or theft
thereof.
(b)
Subject to Section 14, Landlord agrees to protect, indemnify, hold harmless
and
defend Tenant from and against any and all loss, cost, damage, liability
or
expense, including reasonable attorneys’ fees, with respect to any claim of
damage or injury to persons or property at the Premises, caused by the gross
negligence of Landlord or its authorized agents or employees.
(c)
Notwithstanding anything to the contrary contained herein, nothing shall
be
interpreted or used to in any way affect, limit, reduce or abrogate any
insurance coverage provided by any insurers to either Tenant or
Landlord.
13. Insurance. (a) Tenant
shall maintain the following insurance (“Tenant’s
Insurance”):
(a)
Commercial General Liability Insurance applicable to the Premises and its
appurtenances providing, on an occurrence basis, a minimum combined single
limit
of $2,000,000.00; (b) Property/Business Interruption Insurance written on
an All
Risk or Special Perils form, with coverage for broad form water damage including
earthquake sprinkler leakage, at replacement cost value and with a replacement
cost endorsement covering all of Tenant’s business and trade fixtures,
equipment, movable partitions, furniture, merchandise and other personal
property within the Premises (“Tenant’s
Property”)
and
any Leasehold Improvements performed by or for the benefit of Tenant; (c)
Workers’ Compensation Insurance as required by Law and in amounts as may be
required by applicable statute and Employers Liability Coverage of at least
$1,000,000.00 per occurrence. [Any company writing Tenant’s Insurance shall have
an A.M. Best rating of not less than A-VIII.] All Commercial General Liability
Insurance policies shall name Landlord (or its successors and assignees),
the
managing agent for the Building (or any successor), and their respective
members, principals, beneficiaries, partners, officers, directors, employees,
and agents, and other designees of Landlord and its successors as the interest
of such designees shall appear, as additional insureds. All policies of Tenant’s
Insurance shall contain endorsements that the insurer(s) shall give Landlord
and
its designees at least 30 days’ advance written notice of any cancellation,
termination, material change or lapse of insurance. Tenant shall provide
Landlord with a certificate of insurance evidencing Tenant’s Insurance prior to
the earlier to occur of the Commencement Date or the date Tenant is provided
with possession of the Premises, and thereafter as necessary to assure that
Landlord always has current certificates evidencing Tenant’s
Insurance.
(b) Landlord
shall, at all times during the Lease Term, procure and maintain “all-risk”
property insurance in the amount not less than ninety percent (90%) of the
insurable replacement cost covering the Building in which the Premises are
located and such other insurance as may be required by a Mortgagee or otherwise
desired by Landlord. Such insurance shall have minimum combined single limit
of
liability of at least Two Million Dollars ($2,000,000) per occurrence, and
a
general aggregate limit of at least Two Million Dollars
($2,000,000).
14. Subrogation. Landlord
and Tenant hereby waive and shall cause their respective insurance carriers
to
waive any and all rights of recovery, claims, actions or causes of action
against the other for any loss or damage with respect to Tenant’s Property,
Leasehold Improvements, the Building, the Premises, or any contents thereof,
including rights, claims, actions and causes of action based on negligence,
which loss or damage is (or would have been, had the insurance required by
this
Lease been carried) covered by insurance to include any deductibles,
self-insured retention, or the like.
Page
5 of 16
15. Casualty
Damage. If
the
Premises are totally destroyed by storm, fire, lightning, earthquake or other
casualty (a “Casualty”) this Lease shall terminate as of the date of such
destruction and rental shall be accounted for as between Landlord and Tenant
as
of that date. If the Premises are damaged but not wholly destroyed by any
such
casualties, rental shall xxxxx in such proportion as use of the Premises
has
been destroyed and Landlord shall restore the Premises to substantially the
same
condition as before damage as speedily as is practicable, whereupon full
rental
shall recommence.
If
this
Lease is not terminated, Landlord shall promptly and diligently, restore
the
Premises. Such restoration shall be to substantially the same condition that
existed prior to the Casualty, except for modifications required by Law.
Upon
notice from Landlord, Tenant shall assign to Landlord (or to any party
designated by Landlord) all property insurance proceeds payable to Tenant
under
Tenant's Insurance with respect to any Leasehold Improvements performed by
or
for the benefit of Tenant; provided if the estimated cost to repair such
Leasehold Improvements exceeds the amount of insurance proceeds received
by
Landlord from Tenant's insurance carrier, the excess cost of such repairs
shall
be paid by Tenant to Landlord prior
to
Landlord's commencement of repairs. Within 15 days of demand, Tenant shall
also
pay Landlord for any additional excess costs that are determined during the
performance of the repairs. Landlord
shall not be liable for any inconvenience to Tenant, or injury to Tenant's
business resulting in any way from the Casualty or the repair
thereof.
Provided that Tenant is not in Default, during any period of time that all
or a
material portion of the Premises is rendered untenantable as a result of
a
Casualty, the Rent shall xxxxx for the portion of the Premises that is untenable
and unable to be used by Tenant.
16. Condemnation. Either
party may terminate this Lease if any material part of the Premises is taken
or
condemned for any public or quasi-public use under Law, by eminent domain
or
private purchase in lieu thereof (a “Taking”).
Landlord shall also have the right to terminate this Lease if there is a
Taking
of any portion of the Building or Property which would have a material adverse
effect on Landlord’s ability to profitably operate the remainder of the
Building. The terminating party shall provide written notice of termination
to
the other party within 45 days after it first receives notice of the Taking.
The
termination shall be effective on the date the physical taking occurs. All
compensation awarded for a Taking, or sale proceeds, shall be the property
of
Landlord;
provided, however, none of the foregoing shall in any way be construed to
preclude or prevent Tenant from seeking, in its own behalf, to defend any
such
Taking or to procure damages for any and all losses occasioned thereby, provided
Tenant’s award, if any, shall not diminish Landlord’s entitlement to the
condemnation award.
17. Events
of Default. Each
of
the following occurrences shall be considered to be a “Default”:
(a)
Tenant’s failure to pay any portion of Rent when due, if the failure continues
for 5
days
after written notice to Tenant, which notice shall be in satisfaction of,
and
not in addition to, notice required by Law (“Monetary
Default”);
or
(b) Tenant’s failure (other than a Monetary Default) to comply with any term,
provision, condition or covenant of this Lease, (to include a violation of
the
Building rules and regulations) if the failure is not cured within 10 days
after written notice to Tenant, which notice shall be in satisfaction of,
and
not in addition to, notice required by Law, provided, however, if Tenant’s
failure to comply cannot reasonably be cured within 10
days,
Tenant shall be allowed additional time (not to exceed 60
days) as
is reasonably necessary to cure the failure so long as Tenant commences to
cure
within 10
days and
Tenant diligently pursues the cure to completion. Landlord shall not be
obligated to provide Tenant with any notice of any default if Landlord has
previously provided Tenant a notice of default and opportunity to cure on
more
than two occasions in any twelve month period during the Term and that the
third
or any subsequent failure during such twelve (12) month period shall constitute
an event of default without right to receive notice or cure.
18. Remedies.
18.01
Upon Default, Landlord shall have the right to terminate this Lease or Tenant’s
right to possession, in which case Tenant shall immediately surrender the
Premises to Landlord. If Tenant fails to surrender the Premises, Landlord
may,
in compliance with Law, enter upon and take possession of the Premises. Tenant
shall pay Landlord, on demand, all amounts previously due under this Lease
and
all actual
(but not consequential or punitive) damages
Landlord may incur by reason of Tenant's breach or default, including all
Costs
of Reletting(as defined below) and any deficiency that may arise from reletting
or the failure to relet the Premises, actual
and reasonable
attorneys' fees as provided for in this Lease, and all other amount to be
paid
under this Lease for the remainder of the Term .
“Costs
of Reletting” shall
include all actual
and reasonable costs
and
expenses incurred by Landlord in reletting or attempting to relet the Premises,
including, without limitation, actual
and reasonable
legal fees, brokerage commissions, the cost of alterations
reasonably required to relet the Premises
and the
value of other concessions or allowances granted to a new tenant. Landlord
may
collect and receive all rents and other income from the reletting. Landlord
shall not be responsible or liable for the failure to relet all or any part
of
the Premises or for the failure to collect any rent. Regardless
of a Default or of a termination of this Lease (or of Tenant’s right to
possession of the Premises), Tenant will remain liable for payment of all
Rent
and any other amounts due under this Lease through the remainder of the Term.
Landlord's pursuit of any one or more of the remedies provided in this Lease
shall not constitute an election of remedies excluding the election of another
remedy or other remedies, or a forfeiture or waiver of any rent or other
amounts
payable under this Lease by Tenant or of any damages or other sums accruing
to
Landlord by reason of Tenant's violation of any provision of this Lease.
Page
6 of 16
18.02
In
lieu
of calculating damages under Section 18.01 above, Landlord may elect to receive
as damages the sum of (a) all Rent accrued through the date of termination
of
this Lease or Tenant’s right to possession, and (b) an amount equal to the total
Rent that Tenant would have been required to pay for the remainder of the
Term
discounted to present value, minus the then present fair rental value of
the
Premises for the remainder of the Term, similarly discounted, after deducting
all anticipated Costs of Reletting. If Tenant is in Default of any of its
non-monetary obligations under the Lease, Landlord shall have the right to
perform such obligations. Tenant shall reimburse Landlord for the cost of
such
performance upon demand together with an administrative charge equal to 10%
of
the actual
and reasonable cost
of
the work performed by Landlord. The repossession or re-entering of all or
any
part of the Premises shall not relieve Tenant of its liabilities and obligations
under the Lease. No right or remedy of Landlord shall be exclusive of any
other
right or remedy. Each right and remedy shall be non-exclusive, cumulative
and in
addition to any other right and remedy now or subsequently available to Landlord
at Law or in equity;
provided, however, in no event shall consequential or punitive damages be
claimed, sought or awarded.
19. Limitation
of Liability.
THE
LIABILITY OF LANDLORD (AND OF ANY SUCCESSOR LANDLORD) SHALL BE LIMITED TO
THE
LESSER OF (A) THE INTEREST OF LANDLORD IN THE PROPERTY, OR (B) THE EQUITY
INTEREST LANDLORD WOULD HAVE IN THE PROPERTY IF THE PROPERTY WERE ENCUMBERED
BY
THIRD PARTY DEBT IN AN AMOUNT EQUAL TO 70% OF THE VALUE OF THE PROPERTY.
TENANT
SHALL LOOK SOLELY TO LANDLORD’S INTEREST IN THE PROPERTY FOR THE RECOVERY OF ANY
JUDGMENT OR AWARD AGAINST LANDLORD OR ANY LANDLORD RELATED PARTY. NEITHER
LANDLORD NOR ANY LANDLORD RELATED PARTY SHALL BE PERSONALLY LIABLE FOR ANY
JUDGMENT OR DEFICIENCY AND IN NO EVENT SHALL LANDLORD OR ANY LANDLORD RELATED
PARTY BE LIABLE TO TENANT FOR ANY LOST PROFIT, DAMAGE TO OR LOSS OF BUSINESS
OR
ANY FORM OF SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGE. BEFORE FILING SUIT
FOR AN
ALLEGED DEFAULT BY LANDLORD, TENANT SHALL GIVE LANDLORD AND THE MORTGAGEE(S)
(DEFINED IN SECTION 22 BELOW) WHOM TENANT HAS BEEN NOTIFIED HOLD MORTGAGES
(DEFINED IN SECTION 22 BELOW), NOTICE AND REASONABLE TIME TO CURE THE ALLEGED
DEFAULT.
20. Landlord’s
Default.
Landlord’s
failure to perform or observe any of its obligations under this Lease shall
constitute a default by Landlord under this Lease only if such failure shall
continue for a period of thirty (30) days (or the additional time, if any,
that
is reasonably necessary to promptly and diligently cure the failure) after
Landlord receives written notice from Tenant specifying the default. The
notice shall give in reasonable detail the nature and extent of the failure
and
shall identify the Lease provision(s) containing the obligation(s). If
Landlord shall default in the performance of any of its obligations under
this
Lease (after notice and opportunity to cure as provided herein), Tenant may
pursue any remedies available to it under the law and this Lease, except
that,
in no event, shall Landlord be liable for punitive damages, lost profits,
business interruption, speculative, consequential or other such damages.
In recognition that Landlord must receive timely payments of Rent and operate
the Building, Tenant shall have no right of self-help to perform repairs
or any
other obligation of Landlord, and shall have no right to withhold, set-off,
or
xxxxx Rent.
21. Holding
Over.
If
Tenant fails to surrender all or any part of the Premises at the termination
of
this Lease, occupancy of the Premises after termination shall be that of
a
tenancy at sufferance. If Tenant remains in possession of the Premises after
the
expiration of the Term with Landlord’s acquiescence and without any express
written agreement, Tenant shall be a tenant-at-will, subject to removal upon
thirty (30) days written notice from Landlord. Tenant’s occupancy shall be
subject to all the terms and provisions of this Lease and Tenant shall pay
an
amount (on a per month basis without reduction for partial months during
the
holdover) equal to 150% of the sum of the Base Rent and Additional Rent due
for
the period immediately preceding the holdover. No holdover by Tenant or payment
by Tenant after the termination of this Lease shall be construed to extend
the
Term or prevent Landlord from immediate recovery of possession of the Premises
by summary proceedings or otherwise.
22. Subordination
to Mortgages; Estoppel Certificate. Tenant
accepts this Lease subject and subordinate to any mortgage(s), deed(s) of
trust,
ground lease(s) or other lien(s) now or subsequently arising upon the Premises,
the Building or the Property, and to renewals, modifications, refinancings
and
extensions thereof (collectively referred to as a “Mortgage”).
This
clause shall be self-operative, but upon request from the holder of a Mortgage
(a “Mortgagee”),
Tenant shall execute a commercially reasonable subordination agreement. As
an
alternative, a Mortgagee shall have the right at any time to subordinate
its
Mortgage to this Lease. Upon request, Tenant shall, without charge, attorn
to
any successor to Landlord’s interest in the Lease. Tenant shall, within 7 days
after receipt of a written request from Landlord, execute and deliver a
commercially reasonable estoppel certificate to those parties as are reasonably
requested by Landlord.
23.
Brokers;
The
parties recognize as the broker(s) who procured this Lease the firm(s) specified
in Section 1.08 and agree that Landlord shall be solely responsible for the
payment of any brokerage commissions to said broker(s), and that Tenant shall
have no responsibility therefore unless written provision to the contrary
has
been made a part of this Lease. If Tenant has dealt with any other person
or
real estate broker in respect to leasing, subleasing or renting space in
the
Building, Tenant shall be solely responsible for the payment of any fee due
said
person or firm and Tenant shall protect, indemnify, hold harmless and defend
Landlord from any liability in respect thereto.
24. Notice. All
demands, approvals, consents or notices shall be in writing and delivered
by
hand or sent by certified mail with return receipt requested, or sent by
hand
delivery or nationally recognized overnight delivery service (such as Federal
Express) at the party’s respective Notice Address(es) set forth in Section 1.
Each notice shall be deemed to have been received on the earlier to occur
of
actual delivery or the date on which delivery is refused, or, if Tenant has
vacated the Premises or any other Notice Address without providing a new
Notice
Address, 3 days after notice is deposited in the U.S. mail or with a courier
service in the manner described above. Either party may, at any time, change
its
Notice Address (other than to a post office box address) by giving the other
party written notice of the new address.
Page
7 of 16
25. Surrender
of Premises. At
the
termination of this Lease or Tenant’s right of possession, Tenant shall remove
Tenant’s Property and any designated Required Removables from the Premises, and
quit and surrender the Premises (and all keys to the Premises) to Landlord,
broom clean, and in reasonably
good
order, condition and repair, ordinary wear and tear
and loss
by Casualty and a Taking
and
damage which Landlord is obligated to repair hereunder excepted. If Tenant
shall
fail or refuse to remove all of Tenant’s Property and the Required Removables
from the Premises and the Building upon the expiration or termination of
this
Lease for any cause whatsoever, such Tenant’s Property and Required Removables
shall be deemed conclusively to be abandoned and may be appropriated, sold,
stored, destroyed or otherwise disposed of by Landlord without written notice
to
Tenant or any other party and without obligation to account for same. In
addition, upon the expiration or sooner termination of the Lease (and unless
waived in writing by Landlord), Tenant shall remove and dispose of any or
all of
the wires, cables, and similar installations ("Wires") installed by Tenant
within the Premises or anywhere in the Building outside the Premises in full
compliance with any applicable laws and, at its sole cost and expense, shall
restore the Premises or the Building, as the case may be, to their condition
existing prior to the installation of the Wires. Tenant shall pay Landlord
on
demand any and all actual
and reasonable expenses
incurred by Landlord in the removal of such Tenant’s Property , Wires, or
Required Removables, including, without limitation, the
actual
and reasonable
cost of
repairing any damage to the Premises or Building caused by the removal of
such
property and storage charges (if Landlord elects to store such property).
26. Miscellaneous.
26.01 If
either
party institutes a suit against the other for violation of or to enforce
any
covenant, term or condition of this Lease, the prevailing party shall be
entitled to all of its costs and expenses, including, without limitation,
reasonable attorneys’ fees actually incurred. Landlord
and Tenant hereby waive any right to trial by jury in any proceeding based
upon
a breach of this Lease. Either party’s failure to declare a default immediately
upon its occurrence, or delay in taking action for a default shall not
constitute a waiver of the default, nor shall it constitute an
estoppel.
26.02
Time is of the essence of this Lease. Whenever a period of time is prescribed
for the taking of an action by Landlord or Tenant (other than the payment
of the
Security Deposit or Rent), the period of time for the performance of such
action
shall be extended by the number of days that the performance is actually
delayed
due to strikes, acts of God, shortages of labor or materials, war, terrorist
acts, civil disturbances and other causes beyond the reasonable control of
the
performing party (“Force
Majeure”).
Force
Majeure shall not include financial difficulties of the party required to
perform.
26.03
Landlord shall have the right to transfer and assign, in whole or in part,
all
of its ownership interest, rights and obligations in the Building, Property
or
Lease, including the Security Deposit, and upon transfer,
Landlord shall be released from any further obligations hereunder, and Tenant
agrees to look solely to the successor in interest of Landlord for the
performance of such obligations and the return of any Security Deposit.
This
Lease shall only create the relationship of landlord and tenant between Landlord
and Tenant. No estate shall pass out of Landlord, and Tenant shall have only
an
usufruct, not subject to levy and sale and not assignable in whole or in
part by
Tenant (except as expressly provided herein).
26.04
Landlord has delivered a copy of this Lease to Tenant for Tenant’s review only,
and the delivery of it does not constitute an offer to Tenant or an option.
Tenant represents that it has dealt directly with and only with the Broker
as a
broker in connection with this Lease. Tenant shall indemnify and hold Landlord
and the Landlord Related Parties harmless from all claims of any other brokers
claiming to have represented Tenant in connection with this Lease.
26.05
The
expiration of the Term, whether by lapse of time, termination or otherwise,
shall not relieve either party of any obligations which accrued prior to
or
which may continue to accrue after the expiration or termination of this
Lease.
26.06
Provided Tenant pays the Rent and fully performs all of its covenants and
agreements under this Lease, Tenant shall, and may peacefully have, hold
and
enjoy the Premises, free of claims by or through Landlord, subject to the
terms
of this Lease, This covenant and all other covenants of Landlord shall be
binding upon Landlord and
its
successors only
during its or
their
respective periods
of
ownership of the Building.
26.07
This Lease constitutes the entire agreement between the parties and supersedes
all prior agreements and understandings related to the Premises. This Lease
may
be modified only by a written agreement signed by Landlord and Tenant. This
Lease shall be interpreted and enforced in accordance with the Laws of the
state
or commonwealth in which the Building is located.
26.08
Tenant and
Landlord each represents
and warrants to the
other
that
each individual executing this Lease on behalf of Tenant or
Landlord, as applicable, is
authorized to do so on behalf of such
party
and that
such
party
is not,
and the entities or individuals constituting such
party
or which
may own or control such
party
or which
may be owned or controlled by such
party
are not,
among the individuals or entities identified on any list compiled pursuant
to
Executive Order 13224 for the purpose of identifying suspected
terrorists.
Page
8 of 16
[THIS
SPACE INTENTIONALLY LEFT BLANK]
Landlord
and Tenant have executed this Lease as of the last
date
of execution by the parties as indicated below (the “Effective
Date”).
WITNESS:
|
LANDLORD:
|
|||
Xxxxx
Atlanta Portfolio, LLC
|
||||
a
Georgia limited liability company
|
||||
By:
|
Xxxxx
Atlanta Portfolio Manager, LLC.
|
|||
Signed,
sealed and delivered
|
a
Georgia corporation, as Manager
|
|||
In
the presence of:
|
||||
By:
|
|
|||
Name:
|
|
|||
Name
(print):
|
Title:
|
|
||
Date:
|
Date of Execution: | |||
WITNESS:
|
TENANT: | |||
Signed,
sealed and delivered
|
ForgeHouse,
Inc
|
|||
In
the presence of:
|
||||
By:
|
|
|||
Name:
|
|
|||
|
Title:
|
|
||
Name
(print):
|
|
|||
|
|
|||
Date:
|
|
Tenant’s
Tax ID Number (SSN or FEIN)
|
||
Date
of
Execution:
|
||||
Page
9 of 16
EXHIBIT
A
OUTLINE
AND LOCATION OF PREMISES
Page
10 of
16
EXHIBIT
B
OPERATING
EXPENSES AND TAXES
This
Exhibit is attached to and made a part of the Lease by and between _Wolff
Atlanta Portfolio,
LLC_ ("Landlord")
and ForgeHouse,
Inc. ("Tenant")
for space in the Building located at __4625
Alexander Drive, Alpharetta, GA 30005__.
1.
“Base
Year” shall mean the calendar year shown in Section 1.05.
2.
“Property Taxes” shall mean the aggregate amount of all real estate taxes,
assessments (whether they be general or special), sewer rents and charges,
transit taxes, taxes based upon the receipt of rent and any other federal,
state
or local governmental charge, general, special, ordinary or extraordinary
(but
not including income or franchise taxes, capital stock, inheritance, estate,
gift, or any other taxes imposed upon or measured by Landlord’s gross income or
profits, unless the same shall be imposed in lieu of real estate taxes or
other
ad valorem taxes), which Landlord shall pay or become obligated to pay in
connection with the Building, or any part thereof. Property
Taxes shall also include all fees and costs, including attorneys’ fees,
appraisals and consultants’ fees, incurred by Landlord in seeking to obtain a
reassessment, reduction of, or a limit on the increase in, any Property Taxes,
regardless of whether any reduction or limitation is obtained. Property
Taxes for any calendar year shall be Property Taxes which are due for payment
or
paid in such year, rather than Property Taxes which are assessed or become
a
lien during such year. Property Taxes shall include any tax, assessment,
levy,
imposition or charge imposed upon Landlord and measured by or based in whole
or
in part upon the Building or the rents or other income from the Building,
to the
extent that such items would be payable if the Building was the only property
of
Landlord subject to same and the income received by Landlord from the Building
was the only income of Landlord. Property Taxes shall also include any personal
property taxes imposed upon the furniture, fixtures, machinery, equipment,
apparatus, systems and appurtenances of Landlord used in connection with
the
Building.
3.
“Operating Expenses” shall mean all costs, fees, disbursements and expenses paid
or incurred by or on behalf of Landlord in the operation, ownership,
maintenance, insurance, management, replacement and repair of the Building
(excluding Property Taxes) including without limitation:
(a) Premiums
for property, earthquake, casualty, liability, rent interruption or other
types
of insurance carried by Landlord.
(b) Salaries,
wages and other amounts paid or payable for personnel including the Building
manager, superintendent, operation and maintenance staff, and other employees
of
Landlord
involved in
the
maintenance and operation of the Building, including contributions and premiums
towards fringe benefits, unemployment, disability and worker’s compensation
insurance, pension plan contributions and similar premiums and contributions
and
the total
charges
of any independent contractors or property managers engaged
in the
operation, repair, care, maintenance and cleaning of any portion of the
Building.
(c) Landscaping
expenses, including without limitation irrigating, trimming, mowing,
fertilizing, seeding, and replacing plants.
(d) Heating,
ventilating, air conditioning and steam/utilities expenses, including fuel,
gas,
electricity, water, sewer, telephone, and other services.
(e) Subject
to the provisions of Section 4.01(B)(xii) below, the cost of maintaining,
operating, repairing and replacing components of equipment or
machinery,
including without limitation heating, refrigeration, ventilation, electrical,
plumbing, mechanical, elevator, escalator, sprinklers, fire/life safety,
security and energy management systems, including service contracts, maintenance
contracts, supplies and parts.
(f) Other
items of repair or maintenance of elements of the Building.
(g) The
costs of
policing, security and supervision of the Building.
(h) Fair
market rental and other costs
with respect to the management office for the Building.
(i) The
cost of
the rental of any machinery or equipment and the cost
of
supplies used in
the
maintenance and operation of the Building.
(j) Audit
fees and
the cost of accounting services incurred in the preparation of statements
referred to in this Lease and financial statements, and in the computation
of
the rents and charges payable by tenants of the Building.
Page
11 of
16
(k) Capital
expenditures (i) made primarily to reduce Operating Expenses, or to comply
with
any laws or other governmental requirements, or (ii) for replacements (as
opposed to additions or new improvements) of non-structural items located
in the
common areas of the property required to keep such areas in good condition;
provided, all such permitted capital expenditures (together with reasonable
financing charges) shall be amortized for purposes of this Lease over the
shorter of (a) their useful lives, (b) the period during which the reasonably
estimated savings in Operating Expenses equals the expenditures, or (c) three
(3) years.
(l) Legal
fees and expenses.
(m) Payments
under any easement, operating agreement, declaration, restrictive covenant,
or
instrument pertaining to the sharing of costs in any planned
development.
(n) A
fee for
the administration and management of the Building as reasonably determined
by
Landlord from time to time.
Notwithstanding
anything to the contrary set forth in the Lease, as amended, when calculating
Operating Expenses for the Base Year, Operating Expenses shall exclude (a)
market-wide labor-rate increases due to extraordinary circumstances including,
but not limited to, boycotts and strikes, (b) utility rate increases due
to
extraordinary circumstances including, but not limited to, conservation
surcharges, boycotts, embargos or other shortages, and (c) amortization of
any
capital items including, but not limited to, capital improvements, capital
repairs and capital replacements (including such amortized costs where the
actual improvement, repair or replacement was made in prior years).
Operating
Expenses shall not include
costs of
alteration of the premises of tenants of the Building, depreciation charges,
interest and principal payments on mortgages, ground rental payments, real
estate brokerage and leasing commissions, expenses incurred in enforcing
obligations of tenants of the Building, salaries and other compensation of
executive officers of the managing agent of the Building senior to the Building
manager, costs of any special service provided to any one tenant of the Building
but not to tenants of the Building generally, and costs of marketing or
advertising the Building.
If
Tenant
uses any services in an amount or for a period in excess of that provided
for
herein, Landlord also reserves the right to charge Tenant reimbursement for
the
cost of such added services. Landlord reserves the right to install separate
metering devices to determine such excessive periods and/or amounts, at Tenant's
sole cost and expense. If there is disagreement as to such additional charge,
the opinion of the appropriate local utility company or an independent
professional engineering firm shall prevail.
If
the
Building does not have one hundred percent (100%) occupancy during an entire
calendar year, including the Base Year, then the variable cost component
of
“Property Taxes” and “Operating Expenses” shall be equitably adjusted so that
the total amount of Property Taxes and Operating Expenses equals the total
amount which would have been paid or incurred by Landlord had the Building
been
one hundred percent (100%) occupied for the entire calendar year. In no event
shall Landlord be entitled to receive from Tenant and any other tenants in
the
Building an aggregate amount in excess of actual Property Taxes and Operating
Expenses as a result of the foregoing provision.
4.01 Base
Rent.
(A)
During the Lease Term, Tenant shall pay to Landlord as rental for the Premises
the Base Rent described in Section 1.07 above, subject to the following annual
adjustments (herein called the “Rent Adjustments”):
(B)
During each calendar year, the Base Rent payable by Tenant to Landlord, shall
be
increased by (collectively, the “Tax and Operating Expense Adjustment”): (i)
Tenant’s Percentage Share of the dollar increase, if any, in Property Taxes for
such year over Property Taxes for the Base Year; and (ii) Tenant’s Percentage
Share of the dollar increase, if any, in any category of Operating Expenses
paid
or incurred by Landlord during such year over the respective category of
Operating Expenses paid or incurred by Landlord during the Base Year.
A
decrease in Property Taxes or any category of Operating Expenses below the
Base
Year amounts shall not decrease the amount of the Base Rent due hereunder
or
give rise to a credit in favor of Tenant.
4.02 Adjustment
Procedure; Estimates.
The Tax
and Operating Expense Adjustment specified in Section 4.02(B) shall be
determined and paid as follows:
(A)
During each calendar year subsequent to the Base Year, Landlord shall give
Tenant written notice of its estimate of any increased amounts payable under
Special Stipulations, Section 4.02(B) for that calendar year. On or before
the
first day of each calendar month during the calendar year, Tenant shall pay
to
Landlord one-twelfth (1/12th) of such estimated amounts; provided, however,
that, not more often than quarterly, Landlord may, by written notice to Tenant,
revise its estimate for such year
and,
provided Landlord has delivered to Tenant a detailed statement in writing
of
such revised estimate,
subsequent payments by Tenant for such year shall be based upon such revised
estimate.
Page
12 of
16
(B)
Within one hundred twenty (120) days after the close of each calendar year
or as
soon thereafter as is practicable, Landlord shall deliver to Tenant a statement
of that year’s Property Taxes and Operating Expenses, and the actual Tax and
Operating Expense Adjustment to be made pursuant to Special Stipulations,
Section 4.02(B) for such calendar year, as determined by Landlord (the
“Landlord’s Statement”) and such Landlord’s Statement shall be binding upon
Tenant, except as provided in Section 4.04 below. If the amount of the actual
Tax and Operating Expense Adjustment is more than the estimated payments
for
such calendar year made by Tenant, Tenant shall pay the deficiency to Landlord
upon receipt of Landlord’s Statement. If the amount of the actual Tax and
Operating Expense Adjustment is less than the estimated payments for such
calendar year made by Tenant, any excess shall be credited against Rent (as
hereinafter defined) next payable by Tenant under this Lease or, if the Lease
Term has expired, any excess shall be paid to Tenant. No delay in providing
the
statement described in this subparagraph (B) shall act as a waiver of Landlord’s
right to payment under Special Stipulations, Section 4.02(B) above.
(C)
If
this Lease shall terminate on a day other than the end of a calendar year,
the
amount of the Tax and Operating Expense Adjustment to be paid pursuant to
Special Stipulations, Section 4.02(B) that is applicable to the calendar
year in
which such termination occurs shall be prorated on the basis of the number
of
days from January 1 of the calendar year to the termination date bears to
365.
The termination of this Lease shall not affect the obligations of Landlord
and
Tenant pursuant to Special Stipulations, Section 4.03(B) to be performed
after
such termination.
4.03 Payment.
Concurrently with the execution hereof, Tenant shall pay Landlord Base Rent
for
the first calendar month of the Lease Term. Thereafter the Base Rent described
in Special Stipulations, Section 1.07, as adjusted in accordance with Section
4.02, shall be payable in advance on the first day of each calendar month.
If
the Commencement Date is other than the first day of a calendar month, the
prepaid Base Rent for such partial month shall be prorated in the proportion
that the number of days this Lease is in effect during such partial month
bears
to the total number of days in the calendar month. All Rent, and all other
amounts payable to Landlord by Tenant pursuant to the provisions of this
Lease,
shall be paid to Landlord, without notice, demand, abatement, deduction or
offset, except
as
otherwise provided herein, in
lawful
money of the United States at Landlord’s office in the Building or to such other
person or at such other place as Landlord may designate from time to time
by
written notice given to Tenant At all times that Landlord shall direct Tenant
(i) to pay Rent via electronic wire transfer or (ii) to pay Rent to a "lockbox"
or other depository whereby checks issued in payment of Rent are initially
cashed or deposited by a person or entity other than Landlord (albeit on
Landlord's authority), then, for any and all purposes under this Lease; (x)
Landlord shall not be deemed to have accepted such payment until ten (10)
days
after the date on which Landlord shall have actually received such funds,
and
(y) Landlord shall be deemed to have accepted such payment if (and only if)
within said ten (10) day period, Landlord shall not have refunded (or attempted
to refund) such payment to Tenant. Nothing contained in the immediately
preceding sentence shall be construed to place Tenant in default of Tenant's
obligation to pay Rent or subject Tenant to late charges if and for so long
as
Tenant shall timely pay the Rent required pursuant to this Lease in the manner
designated by Landlord.
4.04 Additional
Rent.
For
purposes of this Lease, all amounts payable by Tenant to Landlord pursuant
to
this Lease, whether or not denominated as such, shall constitute Base Rent.
Any
amounts due Landlord shall sometimes be referred to in this Lease as
“Rent”.
4.05 Additional
Taxes.
Notwithstanding anything in Special Stipulations, Section 4.01(B) to the
contrary, Tenant shall reimburse Landlord upon demand for any and all taxes
payable by or imposed upon Landlord upon or with respect to: any fixtures
or
personal property located in the Premises; any leasehold improvements made
in or
to the Premises by or for Tenant; the Rent payable hereunder, including,
without
limitation, any gross receipts tax, license fee or excise tax levied by any
governmental authority; the possession, leasing, operation, management,
maintenance, alteration, repair, use or occupancy of any portion of the Premises
(including without limitation any applicable possessory interest taxes);
or this
transaction or any document to which Tenant is a party creating or transferring
an interest or an estate in the Premises.
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EXHIBIT
C
SPECIAL
STIPULATIONS
This
Exhibit is attached to and made a part of the Lease dated by and between
Xxxxx
Atlanta Portfolio,
LLC_ ("Landlord")
and ForgeHouse,
Inc. ("Tenant")
for space in the Building located at 0000
Xxxxxxxxx Xxxxx, Xxxxxxxxxx, XX 00000.
1.
Space
is to be delivered to Tenant in As-is condition and Tenant agrees to submit
all
plans for improvements to the management company according to Section 8.02
of
this lease.
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EXHIBIT
D
BUILDING
RULES AND REGULATIONS
The
following rules and regulations shall apply, where applicable, to the Premises,
the Building, the parking garage (if any), the Property and the appurtenances.
In the event of a conflict between the following rules and regulations and
the
remainder of the terms of the Lease, the remainder of the terms of the Lease
shall control. Capitalized terms have the same meaning as defined in the
Lease.
1.
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Sidewalks,
doorways, vestibules, halls, stairways and other similar areas
shall not
be obstructed by Tenant or used by Tenant for any purpose other
than
ingress and egress to and from the Premises. No rubbish, litter,
trash, or
material shall be placed, emptied, or thrown in those areas. At
no time
shall Tenant permit Tenant’s employees to loiter in Common Areas or
elsewhere about the Building or
Property.
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2.
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Plumbing
fixtures and appliances shall be used only for the purposes for
which
designed, and no sweepings, rubbish, rags or other unsuitable material
shall be thrown or placed in the fixtures or appliances. Damage
resulting
to fixtures or appliances by Tenant, its agents, employees or invitees,
shall be paid for by Tenant, and Landlord shall not be responsible
for the
damage.
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3.
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No
signs, advertisements or notices shall be painted or affixed to
windows,
doors or other parts of the Building, except those of such color,
size,
style and in such places as are first approved in writing by Landlord.
All
tenant identification and suite numbers at the entrance to the
Premises
shall be installed by Landlord, at Tenant’s cost and expense, using the
standard graphics for the Building. Except in connection with the
hanging
of lightweight pictures and wall decorations, no nails, hooks or
screws
shall be inserted into any part of the Premises or Building except
by the
Building maintenance personnel without Landlord’s prior approval, which
approval shall not be unreasonably withheld.
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4.
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Landlord
may provide and maintain in the first floor (main lobby) of the
Building
an alphabetical directory board or other directory device listing
tenants,
and no other directory shall be permitted unless previously consented
to
by Landlord in writing.
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5.
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Tenant
shall not place any lock(s) on any door in the Premises or Building
without Landlord’s prior written consent, which consent shall not be
unreasonably withheld, and Landlord shall have the right to retain
at all
times and to use keys or other access codes or devices to all locks
within
and into the Premises. A reasonable number of keys to the locks
on the
entry doors in the Premises shall be furnished by Landlord to Tenant
at
Tenant’s cost, and Tenant shall not make any duplicate keys. All keys
shall be returned to Landlord at the expiration or early termination
of
this Lease.
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6.
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All
contractors, contractor’s representatives and installation technicians
performing work in the Building shall be subject to Landlord’s prior
approval, which approval shall not be unreasonably withheld, and
shall be
required to comply with Landlord’s standard rules, regulations, policies
and procedures, which may be revised from time to time.
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7.
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Movement
in or out of the Building of furniture or office equipment, or
dispatch or
receipt by Tenant of merchandise or materials requiring the use
of
elevators, stairways, lobby areas or loading dock areas, shall
be
restricted to hours reasonably designated by Landlord. Tenant shall
obtain
Landlord’s prior approval by providing a detailed listing of the activity.
If approved by Landlord, the activity shall be under the supervision
of
Landlord and performed in the manner required by Landlord. Tenant
shall
assume all risk for damage to articles moved and injury to any
persons
resulting from the activity. If equipment, property, or personnel
of
Landlord or of any other party is damaged or injured as a result
of or in
connection with the activity, Tenant shall be solely liable for
any
resulting damage or loss.
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8.
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Landlord
shall have the right to approve the weight, size, or location of
heavy
equipment or articles in and about the Premises, which approval
shall not
be unreasonably withheld. Damage to the Building by the installation,
maintenance, operation, existence or removal of Tenant’s Property shall be
repaired at Tenant’s sole expense.
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9.
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Corridor
doors, when not in use, shall be kept
closed.
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10.
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Tenant
shall not: (1) make or permit any improper, objectionable or unpleasant
noises or odors in the Building, or otherwise interfere in any
way with
other tenants or persons having business with them; (2) solicit
business
or distribute, or cause to be distributed, in any portion of the
Building,
handbills, promotional materials or other advertising; or (3) conduct
or
permit other activities in the Building that might, in Landlord’s sole
opinion, constitute a nuisance.
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11.
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No
animals, except those assisting handicapped persons, shall be brought
into
the Building or kept in or about the
Premises.
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12.
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No
inflammable, explosive or dangerous fluids or substances shall
be used or
kept by Tenant in the Premises, Building or about the Property
without
Landlord’s prior written consent. Tenant shall comply with all Laws
pertaining to and governing the use of these materials and Hazardous
Substances by Tenant, and shall remain solely liable for the costs
of
abatement, clean up, and
removal.
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13.
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Tenant
shall not use or occupy the Premises in any manner or for any purpose
which might injure the reputation or impair the present or future
value of
the Premises or the Building. Tenant shall not use, or permit any
part of
the Premises to be used, for lodging, sleeping or for any illegal
purpose.
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14.
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Tenant
shall not take any action which would violate Landlord’s labor contracts
or which would cause a work stoppage, picketing, labor disruption
or
dispute, or interfere with Landlord’s or any other tenant’s or occupant’s
business or with the rights and privileges of any person lawfully
in the
Building (“Labor Disruption”). Tenant shall take the actions necessary to
resolve the Labor Disruption, and shall have pickets removed and,
at the
request of Landlord, immediately terminate any work in the Premises
that
gave rise to the Labor Disruption, until Landlord gives its written
consent for the work to resume. Tenant shall have no claim for
damages
against Landlord or any of the Landlord Related Parties, nor shall
the
Commencement Date of the Term be extended as a result of the above
actions.
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15.
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Tenant
shall not install, operate or maintain in the Premises or in any
other
area of the Building, electrical equipment that would overload
the
electrical system beyond its capacity for proper, efficient and
safe
operation as determined solely by Landlord. Tenant shall not furnish
cooling or heating to the Premises, including, without limitation,
the use
of electronic or gas heating devices, without Landlord’s prior written
consent. Tenant shall not use more than its proportionate share
of
telephone lines and other telecommunication facilities available
to
service the Building.
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16.
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Tenant
shall not operate or permit to be operated a coin or token operated
vending machine or similar device (including, without limitation,
telephones, lockers, toilets, scales, amusement devices and machines
for
sale of beverages, foods, candy, cigarettes and other goods), except
for
machines for the exclusive use of Tenant’s employees and
invitees.
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17.
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Bicycles
and other vehicles are not permitted inside the Building or on
the
walkways outside the Building, except in areas designated by
Landlord.
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18.
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Landlord
may from time to time adopt systems and procedures for the security
and
safety of the Building, its occupants, entry, use and contents.
Tenant,
its agents, employees, contractors, guests and invitees shall comply
with
Landlord’s systems and procedures.
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19.
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Landlord
shall have the right to prohibit the use of the name of the Building
or
any other publicity by Tenant that in Landlord’s sole opinion may impair
the reputation of the Building or its desirability. Upon written
notice
from Landlord, Tenant shall refrain from and discontinue such publicity
immediately.
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20.
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Neither
Tenant nor its agents, employees, contractors, guests or invitees
shall
smoke or permit smoking in the Common Areas, unless the Common
Areas have
been declared a designated smoking area by Landlord, nor shall
the above
parties allow smoke from the Premises to emanate into the Common
Areas or
any other part of the Building. Landlord shall have the right to
designate
the Building (including the Premises) as a non-smoking
building.
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21.
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Landlord
shall have the right to designate and approve standard window coverings
for the Premises and to establish rules to assure that the Building
presents a uniform exterior appearance. Tenant shall ensure, to
the extent
reasonably practicable, that window coverings are closed on windows
in the
Premises while they are exposed to the direct rays of the
sun.
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22.
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Deliveries
to and from the Premises shall be made only at the times, in the
areas and
through the entrances and exits reasonably designated by Landlord.
Tenant
shall not make deliveries to or from the Premises in a manner that
might
interfere with the use by any other tenant of its premises or of
the
Common Areas, any pedestrian use, or any use which is inconsistent
with
good business practice.
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23.
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The
work of cleaning personnel shall not be hindered by Tenant after
5:30
p.m.,
and cleaning work may be done at any time when the offices are
vacant.
Windows, doors and fixtures may be cleaned at any time. Tenant
shall
provide adequate waste and rubbish receptacles to prevent unreasonable
hardship to the cleaning service.
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