LEASE AGREEMENT
LEASE AGREEMENT
THIS LEASE AGREEMENT (this "Lease") is entered into as of June 20, 2016, between Paradigm Realty Advisors, L.L.C., Agent for Eagle I Investments, L.L.C., ("Landlord"), and ClearSign Combustion Corporation ("Tenant").
(a) | Lease Date: The date set forth above. |
(e) | Basic Rental: $2,147 per month. |
(t)Security Deposit: $2,147.00
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Date), (c) Landlord shall not be in default hereunder or be liable for damages therefore, and (d) Tenant shall accept possession of the Premises when Landlord tenders possession thereof to Tenant. By occupying the Premises, Tenant shall be deemed to have accepted the Premises in their condition as of the date of such occupancy, subject to the performance of punch-list items that remain to be performed by Landlord, if any.
4. | RENT. |
For the purposes of this Section 4.(b), the term "Basic Cost" shall mean all expenses and disbursements of every kind (subject to the limitations set forth below) which Landlord incurs, pays or becomes obligated to pay in connection with the ownership, operation, and maintenance of the Project, determined in accordance with generally accepted federal income tax basis accounting principles consistently applied, including but not limited to the following:
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(7) | Cost or repairs, replacementsand general maintenance of the Project; |
and
There are specifically excluded from the definition of the term "Basic Cost" costs (A) for repair, replacements and general maintenance paid by proceeds of insurance or by Tenant or other third parties, and alterations attributable solely to tenants of the Project other than Tenant; (B) for interest, amortization or other payments on loans to Landlord; (C) for depreciation of the Project; (D) for third party leasing commissions; (E) for legal expenses, other than those incurred for the general benefit of the Project's tenants (e.g., tax disputes); (F) for renovating or otherwise improving space for occupants of the Project or vacant space in the Project; (G) for correcting defects in the construction of the Project; (H) for overtime or other expenses of Landlord in curing defaults or performing work expressly provided in this Lease to be borne at Landlord's expense; (I) for income taxes imposed on or measured by the income of Landlord from the operation of the Project·; and (J) for that portion, if any, of the Land that is not improved, developed, landscaped, or otherwise used in connection with the Project.
The Annual Cost Statement shall include a statement of Landlord's actual Basic Cost for the previous year adjusted as provided in Section 4.(b) of this Exhibit. If Tenant paid less than the actual Excess, then Tenant shall pay Landlord such deficiency within 30 days after delivery of the Annual Cost Statement.
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(18%) per annum or, (ii) the maximum lawful rate. Alternatively, Landlord may charge Tenant a fee equal to 10% of the delinquent payment to reimburse Landlord for its cost and inconvenience incurred as a consequence of Tenant's delinquency. In no event, however, shall the charges permitted under this Section 5 or elsewhere in this Lease, to the extent the same are considered to be interest under applicable law, exceed the maximum lawful rate of interest.
7. | LANDLORD'S OBLIGATIONS. |
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consumption by either or both: (1) a survey of standard or average tenant usage of electricity in the Building performed by a reputable consultant selected by Landlord and paid for by Tenant; or (2) a separate meter in the Premises installed, maintained, and read by Landlord, at Tenant' s expense. Tenant shall not install any electrical equipment requiring special wiring or requiring voltage in excess of 110 volts or otherwise exceeding Building capacity unless approved in advance by Landlord. The use of electricity in the Premises shall not exceed the capacity of existing feeders and risers to or wiring in the Premises. Any risers or wiring required to meet Tenant's excess electrical requirements shall, upon Tenant's written request, be installed by Landlord, at Tenant's cost, if, in Landlord's sole and absolute judgment, the same are necessary and shall not cause permanent damage or injury to the Building or the Premises, cause or create a dangerous or hazardous condition, entail excessive or unreasonable alterations, repairs, or expenses, or interfere with or disturb other tenants of the Building. If Tenant uses machines or equipment (other than general office machines, excluding computers and electronic data processing equipment) in the Premises which affect the temperature otherwise maintained by the air conditioning system or otherwise overload any utility, Landlord may install supplemental air conditioning units or other supplemental equipment in as for the Premises, and the cost thereof, including the cost of installation, operation, use, and maintenance, shall be paid by Tenant to Landlord within ten (10) days
after Landlord has delivered to Tenant an invoice therefore.
8. | IMPROVEMENTS; ALTERATIONS; REPAffiS; MAINTENANCE. |
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damage to the Project caused by Tenant or Tenant's agents, employees, contractors, or invitees. If Tenant fails to make such repairs or replacements within fifteen (15) days after the occurrence of such damage, then Landlord may make the same at Tenant's cost. In lieu of having Tenant repair any such damage outside of the Premises, Landlord may repair such damage at Tenant's cost. The cost of any repair or replacement work performed by Landlord under this Section 8 shall be paid by Tenant to Landlord within ten ( I0) days after Landlord has delivered to Tenant an invoice therefore.
· Building for any purpose.
10. | ASSIGNMENT AND SUBLETTJNG. |
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a written description of all terms and conditions of the proposed Transfer, copies of the proposed documentation, and the following information about the proposed transferee: name and address; reasonably satisfactory information about its business and business history; its proposed use of the Premises; banking, financial, and other credit information; and general references sufficient to enable Landlord to determine the proposed transferee's creditwo1thiness and character. Tenant shall reimburse Landlord for its attorneys' fees and other expenses including a transfer, which will not exceed $500 per transfer incurred in connection with considering any request for its consent to a Transfer. If Landlord consents to a proposed Transfer, then the proposed transferee shall deliver to Landlord a written agreement whereby it expressly assumes Tenant's obligations hereunder; however, any transferee of less than all of the space in the Premises shall be liable only for obligations under this Lease that are properly allocable to the space subject to the Transfer, and only to the extent of the rent it has agreed to pay Tenant therefore. Landlord's consent to a Transfer shall not release Tenant from performing its obligations under this Lease, but rather Tenant and its transferee shall be jointly and severally liable therefore. Landlord's consent to any Transfer shall not waive Landlord's rights as to any subsequent Transfers. If an Event of Default occurs while the Premises or any part thereof are subject to a Transfer, then Landlord, in addition to its other remedies, may collect directly from such transferee all rents becoming due to Tenant and apply such rents against Rent. Tenant authorizes its transferees to make payments of rent directly to Landlord upon receipt of notice from Landlord to do so.
11. | INSURANCE; WAIVERS; SUBROGATION; INDEMNITY. |
(4) xxxxxxx' s compensation insurance, containing a waiver of subrogation endorsement reasonably acceptable to Landlord, and (5) business interruption insurance. Tenant's insurance shall provide primary coverage to Landlord when any policy issued to Landlord provides duplicate or similar coverage, and in such circumstance Landlord's policy will be excess over Tenant's policy. Tenant shall furnish ce1tificates of such insurance and such other evidence satisfactory to Landlord of the maintenance of all insurance coverages required hereunder, and Tenant shall obtain a written obligation on the part of each insurance company to notify Landlord at least 30 days before cancellation or a material change of any such insurance. All such insurance policies shall be in form, and issued by companies, reasonably satisfactory
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to Landlord. The term "affiliate" shall mean any person or entity, which, directly or indirectly, controls, is controlled by, or is under common control with the party in question.
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(iv) | Any claim or offset of rent against Landlord. |
13 . RULES AND REGULATIONS. Tenant shall comply with the rules and regulations of the Project or the Building which are attached hereto as Exhibit " B". Landlord may, from time to time, change such rules and regulations for the safety, care, or cleanliness of the Project or the Building and related facilities. Tenant shall be responsible for the compliance with such rules and regulations by its employees, agents, and invitees.
14. | CONDEMNATION. |
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15. | FIRE OR OTHER CASUALTY. |
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of Default":
EVENTS OF DEFAULT. Each of the following occurrences shall constitute an "Event
(d) | Tenant shall desert, abandon, vacate or moves out of all or any portion of the |
Premises; and
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Landlord elects to proceed under this Section 18.(b), it may at any time elect to terminate this Lease under Section 18.(a).
Additionally, without notice, Landlord may alter locks or other security devices at the Premises to deprive Tenant of access thereto, and Landlord shall not be required to provide a new key or right of access to Tenant.
19. | PAYMENT BY TENANT; NON-WAIVER. |
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(c) | to change the name by which the Project or the Building is designated; and |
24. | SUBSTITUTION SPACE. |
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Landlord, including instituting a forcible detainer suit), Tenant shall pay Basic Rental for the Premises as provided in Section 22 and all other Rent due therefore until such occupancy ends; such amounts shall be in addition to the Rent due for the Substitution Space.
In the event any such changes in the size or use of the Building or common areas of the Building or the
Project, Landlord will make an appropriate adjustment in the rentable area of the Building or the Building' s pro rata share of exterior common areas of the Project, as appropriate, and a corresponding adjustment to Tenant's share of the Excess pursuant to Section 4 of this Lease.
26. | MISCELLANEOUS. |
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If to Landlord: | Paradigm Realty Advisors, L.L.C., Agent for Eagle I Investments, L.L.C. |
0000 X. Xxxxxxx, Xxx. 000
Xxxxx, Xxxxxxxx 00000
Xxxxxx@xxxxxxxxxxxxx.xxx
If to Tenant:ClearSign Combustion Corporation 00000 Xxxxxxxxxx Xxxxxx Xxxxx Xxxxxxx, XX 00000 Xxx.xxxxxx@xxxxxxxxx.xxx
From time to time , either party may designate another address for all purposes of this Lease by giving to the other xxxxx not less than five (5) days advance written notice of such change of address in accordance
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with the provisions hereof. The failure or refusal of a xxxxx to accept receipt of a notice hereunder shall in no manner invalidate the notice.
U) Joint and Several Liability. If there is more than one Tenant, then the obligations hereunder imposed upon Tenant shall be joint and several. If there is a guarantor of Tenant's obligations hereunder, then the obligations hereunder imposed upon Tenant shall be the joint and several obligations of Tenant and such guarantor, and Landlord need not first proceed against Tenant before proceeding against such guarantor nor shall any such guarantor be released from its guaranty for any reason whatsoever.
(m) No Offer. The submission of this Lease to Tenant shall not be construed as an offer, nor shall Tenant have any rights under this Lease unless Landlord executes a copy of this Lease and delivers it to Tenant.
(n)
by this reference.
Exbibits. All exhibits and attachments attached hereto are incorporated herein
Exhibit "A" - Outline of Premises
Exhibit "B" - Building Rules and Regulations Exh ibit "C" - Workletter
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(p) | Time of the Essence. Time is of the essence of each and every provision of this |
Lease.
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(x) | Financial Reports. This section intentionally omitted. |
30. | .SPECIAL PROVISIONS. |
A. | When premises are ready, Tenant shall be permitted to move-in early, at no additional cost. |
B. | Right of First Refusal: Provided that this Lease is then in full force and effect, and provided further that Tenant is not then in default, if Landlord receives a bona fide offer to lease all or a po1tion of the adjacent 2'"1 floor space which is approximately 2,911 rentable square feet (the "Refusal Space") to a 3rd party, Landlord shall give written notice (the "Refusal Space notice") of such intention. During the 5 business day period commencing on the date Tenant receives the Refusal Space Notice from Landlord, Tenant shall have the option (the "Refusal Space Option") to lease the Refusal Space from Landlord at Tenant's then current rental rate and terms and conditions of the Lease except for the Tenant Improvement Allowance which will be prorated to reflect the remaining balance of the initial Term, by giving to Landlord written notice (the "Exercise Notice") of Tenant's exercise of the Refusal Space Option. If Tenant fails to give the Exercise Notice to Landlord within said 5 business day period, time being of the essence, or if Tenant fails for any reason to duly execute and deliver to Landlord a lease amendment with respect to the Refusal Space, within 10 days after Landlord provides same to Tenant for execution, the Refusal Space Option shall be deemed revoked and of no further force and effect and Landlord may thereafter proceed with the leasing of the Refusal Space to such 3"1 party tenant. This Right of First Refusal shall be an ongoing right. |
C. | Renewal Option: Provided that this Lease is then in full force and effect, and provided further that Tenant is not then in default, Tenant is hereby granted one (1) three (3) year option to extend the Term of the Lease (without any further right to renew.) The option shall be exercised by Tenant delivering to Land lord, not later than 6 months prior to the date which the term hereof would otherwise expire, written notice of its election to extend the Term of the Lease. |
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The Basic Rent shall be the prevailing market rental rate for comparable office space in suburban Tulsa. In the event Tenant fails to timely exercise its renewal options or is in default under the Lease then such option shall be deemed void and of no further force and effect.
LAND I.ORD:Paradigm Realty Advisors, L.L.C., Agent for Eagle I
Investments, L.L.C.
TENANT:ClearSign Combustion Corporation
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EXHIBIT "B"
BUILDING RULES AND REGULATIONS
I. | No tenant shall sell or permit the sale, of newspapers, magazines, periodicals, theater tickets, or the like, in or from any portion of the Building; nor shall any tenant carry on or permit or allow any employee or other person to cany on the business of stenography, word processing or any similar business in or from any portion of the Building for the service or accommodation of the occupants of any other portion of the Building, or any business other than that specifically provided for in Tenant's lease. |
3. | The sashes, windows and any lights that reflect or admit light into the Building, shall not be covered or obstructed, nor shall window covering or window reflective film be removed, nor shall anything be placed upon or hung from the windowsills by tenants. The water and wash closets and urinals shall not be used for any other purpose than the purpose for which they were respectively constructed, and the expense of any breakage, stoppage, or damage resulting from a violation of this rule shall be borne by the tenant or tenants who, or whose clerks, agents, guests, contractors, servants or licensees shall have caused it. No tenant shall xxxx, paint, drill into or in any way deface the walls, ceilings, partitions, floors, wood, stone or iron work, or make or permit any improper noises in the Building. |
4. | No sign, advertisement or notice shall be inscribed, painted or affixed on any part of the outside or ins ide of the Building, except on the directories and signage of such size, color and style as the Landlord shall determine. Landlord shall provide one building standard suite plaque and one building directory listing free of charge to the Tenant. All changes to the initial suite plaque or building directory shall be expensed to the Tenant. |
5. | Only those workmen approved by the Landlord shall be employed by tenants for carpentry, repairs, painting, lettering, interior moving and other similar work that may be done on the Premises. Any work by any tenant in the Building shall be first approved by Landlord, who may grant or withhold approval, in its sole discretion. |
6. | No tenant shall do or permit anything to be done on the Building, or bring in anything which shall in any way increase the rate of fire insurance on the Building, or on the property kept in the Building; or obstruct, or interfere with the rights of other Tenants, or in any way injure or annoy them or those having business with them; or conflict with the regulation s of the City of Tulsa Fire Department or the fire laws, or with any insurance policy upon the Building or any part of it or with any rules or ordinances established by the Tulsa City/County Board of Health or other governmental authority. No tenant shall use any other method of heating than that supplied by the Landlord. This specifically prohibits the use of space heaters. |
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8. | Movement in or out of the Building of furniture or equipment, or dispatch or receipt by tenants of any bulky material, merchandise or equipment which requires use of elevators or stairways, or movement through the Building entrances, lobby or loading areas shall be restricted to such hours as Landlord shall designate and shall not be undertaken without Landlord's prior consent. Each tenant assumes all risks as to the damage to articles moved and injury to persons and property resulting from such movements. Landlord shall have the right to prescribe the weight and position of safes, concentrations of file cabinets, and other heavy equipment, property or installations, in order to distribute weight in the Building. All damage done to the Building by taking in or putting out any prope1ty of a tenant, or done by tenants property shall be paid for by tenant and no person shall be employed by any tenant to move any property in or out of Building except those persons approved by the Landlord. Normally elevators can be used for moving purposes outside of the high use times of 7:30 a.m.-8:30 a.m., ll:00 a.m.- 1:00 p.m. and 4:30 p.m. -5:00 p.m. |
9. | No tenant shall cause unnecessary labor by reason of carelessness and indifference to the preservation of good order and cleanliness in its premises and in the Building. |
10. | Nothing shall be thrown by any tenant, its guests, invitees, contractors, agents, employees, or licensees out of the windows or doors, or down the passages of the Building. |
11. | No animals shall be brought or kept in or about the Building except trained service dogs. |
14. | No additional locks or bolts of any kind shall be placed upon any of the doors of the Building and no lock on any door shall be changed or altered in any respect without Landlord's approval. Security access cards for the Premises shall be procured only from the Landlord, which may make a reasonable charge for the service. Upon termination of the Lease, all keys and access cards of the Premises shall be delivered to the Landlord as soon as practical. |
15. | All entrance doors in the Premises shall be left locked when the Premises are not in use; that is, outside normal building hours. Enhance doors shall not be left open at any time. |
17. | No weapons shall be brought or kept in or about the building . |
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19. | Unless otherwise addressed in a lease, all improvements within a suite at initial occupancy belong to the Landlord. This includes appliances. The Landlord will repair or replace appliances for the first twelve months of the term. Thereafter, appliances must be serviced, repaired or replaced, if desired, by the Tenant. If appliances are replaced by the Tenant, they become property of the Tenant. In general, if the· improvement was funded by the Landlord it belongs to the building. Conversely, any improvement made by the tenant belongs to the tenant. All improvements made by tenant must be removed upon termination of the lease. |
20. | During the winter months, the Landlord cleans and treats sidewalks as needed. Parking lots will generally be plowed when 3" or more of snow falls in the Tulsa metro area. |
22. | The building is consistently maintained to the standards of the Tulsa Fire Code for office buildings. A recertification occurs annually and more frequently when circumstances such as code changes and remodeling dictate. Tenant is responsible for any training it considers necessary for the safety and benefit of its employees. Landlord will participate in Tenant's reasonable endeavors to educate and train its employees in emergency procedures. |
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EXHIBIT "C"
WORKLETTER
Landlord, at its sole cost and expense and at least two (2) weeks prior to Tenant occupancy, will recarpet and repaint using building standard finishes that Tenant will choose. In order to meet occupancy date of September 1si, Landlord must receive color selections (paint, carpet)
no later than July 8th.
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