Exhibit 10.16
COMMERCIAL LEASE
THIS LEASE is made on the 15 day of July, 1998.
The landlord hereby agrees to the Tenant, and the Tenant hereby agrees to hire
and take from the Landlord, the Leased Premises described below pursuant to the
terms and conditions specified herein:
LANDLORD: Xxxxxx X. Xxxxx TENANT(S): OSS, LLC
(Wholly Owned Subsidiary of
Coaxicom)
Address: 00 Xxxxxxx Xxxxxx Address: 00 Xxxx Xxxxxx
Xxxxxxxx, XX 00000 Stamford, CT
1. Leased Premises. The Leased Premises are those premises described as 00
Xxxxxxx Xxxxxx, Xxxx Xxxx-0xx Xxxxx, Xxxxxxxx, XX 00000, including 4 covered
parking spaces, the use of up to 15 available space(s) at rear of the Xxxxxxxx
Ave RR Parking Lot and access to gym facilities.
2. Term. The term of the Lease shall be for a period of 2 years commencing on
the 15th day of August, 1998, ending on the 14th day of August, 2000 unless
sooner terminated as hereinafter provided. If Tenant remains in possession of
the Leased Premises with written consent of the Landlord after the lease
expiration date stated above, this Lease will be converted to a month-to-month
Lease and each party shall have the right to terminate the Lease by giving at
least one months' prior written notice to the other party except as noted in
Section 21.
3. Rent. The Tenant agrees to pay the ANNUAL RENT of Sixty-Three Thousand and
00/l00 dollars ($63,000.00) payable in equal installments of $5,250.00 in
advance on the first day of each and every calendar month during the full term
of this Lease.
4. Security Deposit. The sum of $5,250.00 is deposited by the Tenant with the
Landlord as security for faithful performance of all the covenants and
conditions of the lease by the said Tenant. If the Tenant faithfully performs
all the covenants and conditions on his part to be performed, then the sum
deposited shall be returned to the Tenant.
5. Delivery of Possession. If for any reason the Landlord cannot deliver
possession of the leased property to the Tenant when the lease term commences,
this Lease shall not be void or voidable, nor shall the Landlord be liable to
the Tenant for any loss or damage resulting therefrom. However, there shall be
an abatement of rent for the period between the commencement of the lease term
and the time when the Landlord delivers possession.
6. Use of Leased Premises. The Leased Premises may be used only for the
following purpose:
Computer Software Development
7. Utilities. Except as specified below, the Tenant shall be responsible for all
utilities and services that are furnished to the Leased Premises. The
application for and connecting of utilities, as well as all services, shall be
made by and only in the name of the Tenant: (List exceptions if any)
Air Conditioning, Heat, Water, Electricity.
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8. Condition of Leased Premise; Maintenance and Repair. The Tenant acknowledges
that the Leased Premises are in good order and repair. The Tenant agrees to take
good care of and maintain the Leased Premises in good condition throughout the
term of the Lease.
9. Compliance with Laws and Regulations. Tenant, at its expenses, shall promptly
comply with all federal, state, and municipal laws, orders, and regulations, and
with all lawful directives of public officers, which impose any duty upon it or
Landlord with respect to the Leased Premises. The Tenant at its expense, shall
obtain all required licenses or permits for the conduct of its business within
the terms of this lease, or for the making of repairs, alterations,
improvements, or additions. Landlord, when necessary, will join the Tenant in
applying for all such permits or licenses.
10. Alterations and Improvements. Tenant shall not make any alterations, or
improvements to, or install any fixtures on, the Leased Premises without the
Landlord's prior written consent. If such consent is given, all alterations,
additions, and improvements made, and fixtures installed, by the Tenant shall
become Landlord's property upon the expiration or sooner termination of this
Lease. Landlord may, however, require Tenant to remove such fixtures, at
Tenant's cost, upon the termination hereof.
11. Assignment/Subletting Restriction. Tenant may not assign or sublet the
Leased Premises without prior written consent of the Landlord. Any assignment,
sublease or other purported license to use the Leased Premises by Tenant without
the Landlord's consent shall be void and shall (at Landlord's option) terminate
the lease.
12. Insurance.
(i) By Landlord. Landlord shall at all times during the term of this Lease,
at its expense, insure and keep in effect on the building in which the Leased
Premises is located fire insurance with extended coverage whereby the insurer
waives the right of subrogation. The Tenant shall not permit any use of the
Leased Premises which will make voidable any insurance on the property of which
the Leased Premises are a part, or on the contents of said property or which
shall be contrary to any law or regulation from time to time established by the
applicable fire insurance rating association. Tenant shall on demand reimburse
the Landlord, and all other tenants, all extra insurance premiums caused by the
Tenant's use of the premises.
(ii) By Tenant. Tenant shall, at its expense, during the term hereof,
maintain and deliver to Landlord public liability, and property damage and plate
glass insurance policies with respect to the Leased Premises. The certificate
should be prepared and signed by a reputable insurer rated by BEST'S or
equivalent with a rating of "A" or better. The certificate should state that
Xxxxxx X. Xxxxx is an additional name insured, that Xx. Xxxxx will receive ten
(10) days advance notice of any change in or cancellation of the policy, that
the insurer waives the right of subrogation, and that the policy carries the
following all-risk extended liability limits:
Personal Property: $1,000,000 per occurrence
Property Damage: $l,000,000 per occurrence
A copy of an up-to-date certificate must be submitted to the Landlord annually.
13. Indemnification of Landlord. Tenant shall defend, indemnify, and hold
Landlord harmless from and against any claim, loss, expense or damage to any
person or property in or upon the Leased Premises, arising out of Tenants use or
occupancy of the Leased Premises, or arising out of any act or neglect of Tenant
or its servants, employees, agents, or invitees.
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14. Condemnation. If all or any part of the Leased Premises is taken by eminent
domain, this lease shall expire on the date of such taking, and the rent shall
be apportioned as of that date. No part of any award shall belong to Tenant.
15. Destruction of premises. If the building in which the Leased Premises is
located is damaged by fire or other casualty, without Tenant's fault, and the
damage is so extensive as to effectively constitute a total destruction of the
property or building, this Lease shall terminate and the rent shall be
apportioned to the time of the damage. In all other cases of damage without
Tenant's fault, Landlord shall repair the damage with reasonable dispatch, and
if the damage has rendered the Leased Premises wholly or partially untenable,
the rent shall be apportioned until the damage is repaired. In determining what
constitutes reasonable dispatch, consideration shall be given to delays caused
by strikes, adjustment of insurance, and other causes beyond Landlord's control.
16. Landlord's Rights upon Default. In event of any breach of this lease by the
Tenant, which shall not have been cured within TEN (10) DAYS, then the Landlord,
Besides other rights or remedies it may have, shall have the immediate right of
reentry and may remove all persons and property from the Leased Premises; such
property may be removed and stored in a public warehouse or elsewhere at the
cost of, and for the account of, the Tenant. If the Landlord elects to reenter
as herein provided, or should it take possession pursuant to any notice provided
by law, it may either terminate this Lease or may, from time to time, without
terminating this lease, relet the Leased Premises or any part thereof, for such
term or terms and at such rental or rentals and upon such other terms and
conditions as the Landlord in Landlord's own discretion may deem advisable.
Should rental received from such relating during any month be less than that
agreed to be paid during the month by the Tenant thereunder, the Tenant shall
pay such deficiency to the Landlord monthly. The Tenant shall also pay to the
Landlord, as soon as ascertained, the cost and expenses incurred by the Landlord
in such reletting.
17. Quiet Enjoyment. The Landlord agrees that if the Tenant shall pay the rent
as aforesaid and perform the covenants and agreements herein contained on its
part to be performed, the Tenant shall peaceably hold and enjoy the said rented
premises without hindrance or interruption by the Landlord or by any other
person or persons acting under or through the Landlord.
18. Landlord's Right to Enter. Landlord may, at reasonable times, enter the
leased Premises to inspect it, to make repairs or alterations, and to show it to
potential buyers, lenders or tenants.
19. Surrender upon Termination. At the expiration of the lease term the Tenant
shall surrender the leased property in as good condition as it was at the
beginning of the term, reasonable use and wear excepted.
20. Subordination. This lease, and the Tenant's leasehold interest, is and shall
be subordinate, subject and inferior to any and all liens and encumbrances now
and thereafter placed on the Leased Premises by Landlord, any and all extensions
of such liens and encumbrances and all advances paid under such liens and
encumbrances.
21. Additional Provisions:
Tenant will have one (1) option to renew Lease, the renewal to be for a term of
two (2) years, exercisable by Tenant giving Landlord written notice of Tenant's
intention to exercise no later than sixty days prior to the end of the then
current term. A renewal option may be exercised only if the Tenant is not then
in default under the Lease. The terms of the Lease during the renewal term will
be the same as during the original term, except that the rent will be increased
pursuant to the following schedule.
First year of renewal: $66,150.00 per year
Second year of renewal: $69,457.50 per year
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Tenant may design and construct renovations to the Leased Premises, at its own
expense, subject to Landlord's prior approval of Tenant's plans for the same.
Tenant will be responsible for complying with all building codes, procuring all
permits and satisfying all other legal requirements associated with the
construction, all at Tenant's expense.
22. Miscellaneous Terms.
(I) Notices. Any notice, statement, demand or other communication by one
party to the other, shall be given by personal delivery or by mailing same,
postage prepaid, addressed to the Tenant at the premises, or to the Landlord at
the address set forth above.
(ii) Severability. If any clause or provision herein shall be adjudged
invalid or unenforceable by a court of competent jurisdiction or by operation of
any applicable law, it shall not affect the validity of any other clause or
provision, which shall remain in full force and effect.
(iii) Waiver. The failure of either party to enforce any of the provisions
of this lease shall not be considered a waiver of that provision or the right of
the party to thereafter enforce the provision.
(iv) Complete Agreement. This lease constitutes the entire understanding
of the parties with respect to the subject matter hereof and may not be modified
except by an instrument in writing and signed by the parties.
(v) Successors. This lease is binding on all parties who lawfully
succeed to the rights or take the place of the Landlord or Tenant.
IN WITNESS WHEREOF the parties have set their hands and seals this ____ day of
___________1998________
/s/ Xxxxxx X. Xxxxx /s/ Xxxx Xxxxxxx
_______________________________________ ___________________
Landlord or Landlord's Authorized Agent Tenant
___________________________________
Tenant
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