Exhibit 10.7
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L E A S E
THIS LEASE, entered into by R&R Limited Liability Company, an Indiana
Corporation (hereinafter referred to as "Landlord") and Cornerstone Wireless
Services, Inc., an Indiana Corporation (hereinafter referred to as "Tenant").
WITNESSETH THAT Landlord and Tenant, in consideration of the rent herein
reserved and of their mutual undertakings and covenants to be performed, does
hereby grant, demise, and lease to Tenant the following described premises upon
the terms and conditions hereinafter set out:
1. Premises. Landlord hereby leases to Tenant and Tenant hereby leases from
Landlord, 3,800 sq. ft of Office Space at 0000 Xxxxxxxxx Xxxxx, Xxxxxxxxxxxx,
Xxxxxxx (hereinafter referred to as Leased Premises) and all appurtenances
thereto. Tenant acknowledges that the Landlord leases 1500 sq. ft. of Warehouse
Space within the same building to NetSolutions, Inc. The common areas, including
conference room, bathrooms, break room, copy room, and parking lot will be
accessible to NetSolutions, Inc. In addition, one exterior office with a window
will be provided for NetSolutions, Inc.'s use as well.
2. Term. The term of this Lease shall be for one (1) year (or until sooner
terminated as herein provided) commencing the 1st day of July 2001 and ending on
the 30th day of June 2002. Tenant shall provide 90 days prior notice of
intentions to continue to lease or move out.
3. First Right of Refusal to Purchase. Landlord hereby grants to Tenant
First Right of Refusal to Purchase property commonly known as 0000 Xxxxxxxxx
Xxxxx, Xxxxxxxxxxxx, Xxxxxxx, during the entire term of the Lease referenced
above. Tenant shall have two weeks with which to inform Landlord of its decision
to exercise this Right from the time Landlord enters into a Sales Contract with
any other party.
4. Use, Compliance with Laws and Signs. The Leased Premises shall be used
and occupied by Tenant only for the purpose of a service and for no other use or
purpose. Tenant shall keep the Leased Premises in a clean and orderly condition.
Tenant shall not use the Leased Premises or maintain them in any manner
constituting a violation of any ordinance, statute, regulation, or order of any
governmental authority, including without limitation zoning ordinances, nor
shall Tenant maintain, permit or suffer any nuisance, waste or damage to occur
or exist on the Leased Premises. Tenant shall not affix to or upon the exterior
of the Leased Premises any sign, insignia, or decoration without the prior
written consent of Landlord. Landlord shall provide its written consent to a
sign reasonably consistent with the Abacus signage currently on the premises.
Landlord shall not affix to or upon the exterior of the Leased Premises any
sign, insignia, or decoration without the prior written consent of the Tenant.
5. Rent and Deposit. Tenant shall pay as rent for said Leased Premises,
without relief from valuation and appraisement laws, the sum of $52,800, payable
in equal monthly installments of $4400, paid via automatic check deposit from
Tenant's checking account to Landlord's checking account, on or before the first
day of each month in advance.
In the event that this Lease shall be executed, and possession of the
premises granted to the Lessee, on any date prior to the first day of the term
of this Lease, rent shall be paid for said period in an amount equal to
One-thirtieth (1/30th) of a monthly installment of rent during the Lease term
multiplied by
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the number of days to the first day of the next month. All provisions, terms and
conditions of this Lease shall apply during said period in the same manner, as
though the term of the Lease were extended to include this period.
Tenant as a part of this Lease shall deposit with Landlord one month's rent
or $4400 as a deposit, which shall be held by Landlord until the termination of
this Lease. Upon termination of this Lease and after the vacation by Tenant of
the Leased Premises, Landlord will inspect such Leased Premises and if Leased
Premises are not broom clean or have been damaged beyond normal wear and tear,
Landlord, as partial payment for such damages may complete any repairs that are
deemed necessary by Landlord and deduct the amount from the deposit. Any unpaid
rent balances may be deducted from such deposit after the termination of said
Lease.
6. Taxes. Landlord will pay real property taxes; Tenant will be responsible
for personal property taxes.
7. Surrender and Holdover. Upon the expiration or sooner termination of
this Lease, Tenant shall surrender to Landlord the Leased Premises, together
with all other property affixed to the Leased Premises, broom clean and in the
same order and condition in which Tenant received them, the effects of ordinary
wear, acts of God, casualty, insurrection, riot, or public disorder excepted.
Unless an event of default as hereinafter defined has occurred and remains
uncured, Tenant shall, prior to the expiration of the term, remove all of
Tenant's personal property from the Leased Premises. Any damage to the Leased
Premises caused by such removal shall be repaired by Tenant prior to the
expiration of the term. At Landlord's option, if Tenant fails to remove such
personal property, then the same shall be deemed the property of the Landlord.
If Tenant shall remain in possession of all or any part of the Leased Premises
after the expiration of the term of this Lease, with the consent of the
Landlord, then the Tenant shall be a lessee from month to month at the same
rental and subject to all of the other applicable covenants, terms and
conditions hereof.
8. Assignment and Subletting. Tenant shall not assign, mortgage, encumber,
or transfer this Lease, in whole or in part, or sublet the Leased Premises or
any part thereof, nor grant a license or concession in connection therewith
without the prior written consent of Landlord. This prohibition shall include
any act which has the effect of an assignment or transfer and which occurs by
operation of law, except any transfer or assignment resulting from the death of
Tenant, if a natural person.
9. Services, Alterations and Repairs of Leased Premises. Provided that
Tenant shall not be in default hereunder and subject to the provisions elsewhere
herein contained, Landlord shall furnish the Leased Premises with an operable
heating, ventilation and air-conditioning system. The heating, ventilation and
air-conditioning system is currently in good condition and repair. Landlord will
provide the existing telephone system and office furnishings for the Tenant as
well as NetSolutions use, while leasing the premises. Landlord shall not provide
and Tenant shall provide and pay when due all utility services used on the
Leased Premises, including all heat, water, sewer service, electricity, gas,
telephone, internet, or other such services. In addition, Tenant shall provide
and pay when due all cleaning, janitorial services, and exterior lawn care and
parking lot snow removal. If any of these services cannot be separated
accurately in their billing process, then the invoices for shared services by
all Tenants will be pro-rated and the Tenant shall be reimbursed 25% of this
amount by NetSolutions.
Tenant shall not cause or permit any alterations, additions or changes of
any or upon any part of the Leased Premises without first obtaining the written
consent of Landlord. All alterations, additions or changes to the Leased
Premises shall be made in accordance with all applicable laws and shall become
the property of Landlord. Tenant accepts the Leased Premises in their present
condition.
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Landlord shall maintain the exterior structure of the Leased Premises in a
manner compatible with good quality office space as deemed necessary by Landlord
and pay for all major repairs (equal to or greater than $200.00 per occurrence)
to keep the interior and exterior of the Leased Premises and every part thereof
in good condition and repair, ordinary wear and tear and casualty excepted, as
provided in this Lease. Tenant at its expense shall pay for all minor repairs
(less than $200.00 per occurrence) to keep the interior and exterior of the
Leased Premises and every part thereof in good condition and repair, ordinary
wear and tear and casualty excepted, as provided in this Lease.
10. Destruction. If the Leased Premises should be damaged or destroyed by
fire or other cause to such extent that the cost of repair and restoration would
exceed 30 percent of the amount it would cost to replace the Leased Premises in
the entirety at the time such damage or destruction took place, then Landlord
and Tenant shall each have the right to cancel this Lease by giving the other
party notice of such election within thirty (30) days after the occurrence of
such damage or destruction, and this Lease shall terminate as of fifteen (15)
days after the date such notice is given. If either party fails to exercise this
option to terminate, then Landlord shall, at its expense, promptly repair and
restore the Leased Premises to substantially the same condition they were in
prior to the damage or destruction.
If the Leased Premises should be damaged or destroyed by fire or other
cause to such an extent that the costs of repair and restoration would be less
than 30 percent of the amount it would cost to replace the Leased Premises in
their entirety at the time such damage or destruction took place, then this
Lease shall not terminate and the Landlord shall, at its expense, promptly
repair and restore the Leased Premises to substantially the same condition they
were in prior to the damage or destruction. Notwithstanding anything herein to
the contrary, if the Leased Premises is unusable by Tenant for longer than 30
days, Tenant may terminate this Lease.
In the event the Leased Premises are damaged or destroyed, the rents herein
or a fair and equitable portion thereof, shall be abated until such time as the
Leased Premises are repaired and restored. The term of this Lease shall be
extended for a period equal to the period during which there has been a complete
abatement of rent. The opinion of an architect or registered engineer appointed
by Landlord as to the costs of repair, restoration or replacement shall be
controlling upon the parties. Landlord's obligation to restore or repair does
not include fixtures or improvements installed or owned by Tenant. The
provisions of this Section are not intended to limit, modify or release Tenant
from any liability it may have for damage or destruction.
11. Condemnation. If the entire Leased Premises, or such portion thereof as
will make the remainder unsuitable for the use permitted by this Lease, is
condemned by any legally constituted authority, or if a conveyance or other
acquisition in lieu of such condemnation is made, then this Lease shall
terminate as of the date possession is required by the condemner. If a portion
of the Leased Premises is condemned but the remainder is still suitable for the
use permitted by this Lease, this Lease shall not terminate, but a portion of
the rent for the rest of the term shall be abated in proportion to the amount of
the Leased Premises taken. All compensation paid in connection with the
condemnation shall belong to and be the sole property of Landlord, except Tenant
shall be entitled to any compensation awarded for Tenant's trade fixtures and
for moving expenses.
12. Mechanic's Liens. Tenant shall not permit any Sworn Statement and
Notice of Intention to hold a Mechanic's Lien to be filed against the Leased
Premises or any part thereof nor against any interest or estate therein by
reason of labor, services or materials claimed to have been performed or
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furnished to or for Tenant. If such Sworn Statement and Notice of Intention to
hold a Mechanic's Lien shall be filed, Landlord, at its option, may compel the
prosecution of an action for the foreclosure of such Mechanic's Lien by the lien
holder. If any such Sworn Statement and Notice of Intention to hold a Mechanic's
Lien shall be filed and an action commenced to foreclose the lien, Tenant, upon
demand by Landlord, shall cause the lien to be released by the filing of a
written undertaking with a surety approved by the Court and obtaining an order
from the Court releasing the property from such lien. Nothing in this Lease
shall be deemed or construed to constitute consent to or request to any party
for the performance of any labor or services or the furnishing of any materials
for the improvement, alteration or repairing of the Leased Premises nor as
giving the Tenant the right or authority to contract for, authorize or permit
the performance of any labor or services or the furnishing of any material that
would permit the attaching of a valid Mechanic's Lien.
13. Indemnification and Release. Regardless of whether or not separate,
several, joint, or concurrent liability may be imposed upon Landlord, Tenant
shall indemnify and hold harmless Landlord from and against all damages, claims
and liability arising from or connected with Tenant's control or use of the
Leased Premises, including, without limitation, any damage or injury to person
or property except as a result of Landlord negligence or intentional acts or
omissions. This indemnification shall not include any matter for which the
Landlord is effectively protected against by insurance. If Landlord shall,
without fault, become a party to litigation commenced by or against Tenant, then
Tenant shall indemnify and hold Landlord harmless. The indemnification provided
by this Section shall include Landlord's legal costs and fees in connection with
any such claim, action or proceeding. Tenant does hereby release Landlord from
all liability for any accident, damage or injury caused to person or property on
or about the Leased Premises, except when due to the negligence or intentional
acts or omissions on the part of Landlord and notwithstanding whether such acts
or omissions are active or passive. Landlord and Tenant do each hereby release
the other from all liability for any accident, damage or injury caused to person
or property, provided this release shall be effected only to the extent that the
injured or damaged party is insured against such injury or damage and only if
this release shall not adversely affect the right of the injured or damaged
party to recover under such insurance policy.
14. Events of Default. Any of the following shall be deemed an Event of
Default:
A. The failure to pay any installment of rent when the same becomes
due and the failure continues for ten (10) days;
B. Tenant's failure to perform or observe any other covenant, term or
condition of this Lease to be performed or observed by Tenant and, if
curable, the failure continues for thirty (30) days after notice thereof is
given to Tenant;
C. Abandonment of the Leased Premises; or
D. The filing or execution or occurrence of:
(1) An involuntary petition in bankruptcy against Tenant and the
failure of Tenant, in good faith, to promptly commence and diligently
pursue action to dismiss the petition;
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(2) A petition against Tenant seeking a reorganization,
arrangement, composition, readjustment, liquidation, dissolution, or
other relief of the same or difference kind under any provision of the
Bankruptcy Act, and the failure of Tenant in good faith to promptly
commence and diligently pursue action to dismiss the petition;
(3) A general assignment for the benefit of creditors by Tenant;
or
(4) The taking by any party of the leasehold created hereby, or
any part thereof, upon foreclosure, levy, execution, attachment, or
other process of law or equity.
For purposes of this Section the term "Tenant" shall include any assignee,
sub lessee, or guarantor of Tenant. This provision, however, shall not be
construed to permit neither the assignment of this Lease nor the subletting of
the Leased Premises, except as may be permitted hereby.
15. Landlord's Remedies.
A. Upon the occurrence of any event of Default, Landlord may, at its
option, in addition to any other remedy or right it has hereunder or by
law:
(1) Re-enter the Leased Premises, without demand or notice, and
resume possession by an action in law or equity, and without being
liable in trespass or for any damages, and without terminating this
Lease. Landlord may remove all persons and property from the Leased
Premises, and such property may be removed and stored at the cost of
Tenant.
(2) Terminate this Lease at any time upon the date specified in a
notice to Tenant. Tenant's liability for damages shall survive such
termination. Upon termination, such damages recoverable by Landlord
from Tenant shall, at Landlord's option, be either an amount equal to
"Liquidated Damages" or an amount equal to "Indemnity Payments."
"Liquidated Damages" means an amount equal to the excess of the
rentals provided for in this Lease which would have been payable
hereunder by Tenant had this Lease not so terminated, for the period
commencing with such termination and ending with the date set for the
expiration of the original term granted (hereinafter referred to as
"Unexpired Term"), over the reasonable rental value of the Leased
Premises for such Unexpired Term.
"Indemnity Payments" means an amount equal to the rent and other
payments provided for in this Lease which would have become due and
owing thereunder from time to time during the Unexpired Term, plus the
cost and expenses paid or incurred by Landlord from time to time in
connection with:
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(a) Obtaining possession of the Leased Premises;
(b) Removal and storage of Tenant's or other occupant's
property;
(c) Care, maintenance and repair of the Leased Premises
while vacant;
(d) Re-letting the whole or any part of the Leased Premises;
(e) Repairing the Leased Premises, either separately or as
part of the larger premises, into condition acceptable to and
reasonable necessary to obtain new lessees; or
(f) Making all repairs, alterations and improvements
required to be made by Tenant hereunder and of performing all
covenants of the Tenant relating to the condition of the Leased
Premises, less the rent and other payments, if any, actually
collected and allocable to the Leased Premises or to the portions
thereof re-let by Landlord. Tenant shall on demand make Indemnity
Payments monthly, and Landlord can xxx for all Indemnity Payments
as they accrue.
(3) Without terminating this Lease, re-let the Leased Premises
without the same being deemed an acceptance of a surrender of this
Lease nor a waiver of Landlord's rights or remedies and Landlord shall
be entitled to Indemnity payments, as heretofore defined, from Tenant.
Any re-letting by Landlord may be for a period equal to or less than
or extending beyond the remainder of the original term, or for the
whole or any part of the Leased Premises, separately or with other
premises or for any sum, or to any lessee or for any use Landlord
deems appropriate.
B. Upon the occurrence of any of the following:
(1) The filing of a voluntary petition in bankruptcy by Tenant;
(2) The filing of a petition or answer by Tenant seeking a
reorganization, arrangement, composition, readjustment, liquidation,
dissolution, or other relief of the same or different kind under any
provision of the Bankruptcy Act;
(3) An adjudication of Tenant as a bankrupt or insolvent; or
(4) The appointment of a trustee, receiver, guardian,
conservator, or liquidator of Tenant with respect to all or
substantially all of its property.
This Lease shall terminate ipso facto as of such occurrence, and
the Leased Premises shall be surrendered as required by Section 5.
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Tenant's liability for damages shall survive such termination, and
Landlord shall be entitled to recover an amount equal to Liquidated
Damages as defined above or an amount equal to the maximum allowed by
any statute or rule of law in effect at the time when and governing
the proceedings in which such amount is sought, whichever is less.
16. Advances and Interest. Upon the occurrence of any Event of Default,
Landlord may, if such default has not been cured, cure that default for the
account and at the expense of Tenant. If Landlord in curing such default is
compelled to pay or elects to pay any sum of money or do any acts, which will
require the payment of any sum of money, the sum so paid or incurred shall be
reimbursed by Tenant upon demand by Landlord. All sums as to which Tenant is in
default of payment shall bear interest at the rate of twelve percent (12%) per
annum until paid.
17. Attorney's Fees. Each party shall pay the other party's reasonable
legal costs and attorney's fees incurred in successfully enforcing against the
other party any covenant, term or condition of this Lease.
18. Access by Landlord to Leased Premises. Landlord, Landlord's agents, and
Landlord's prospective lessees, purchasers or mortgagees shall be permitted to
inspect and examine the Leased Premises at all reasonable times, and Landlord
shall have the right to make any repairs to the Leased Premises which Landlord
may deem necessary, but this provision shall not be construed to require
Landlord to make repairs except as is otherwise required hereby. For a period
commencing ninety (90) days prior to the expiration of the term of this Lease,
Landlord may maintain "For Rent" signs on the front or on any part of the Leased
Premises.
19. Quiet Enjoyment. If Tenant shall perform all of the covenants and
agreements herein provided to be performed on Tenant's part, Tenant shall, at
all times during the term, have the peaceable and quiet enjoyment of possession
of the Leased Premises, without any manner of hindrance from Landlord or any
parties lawfully claiming under Landlord.
20. General Agreement of Parties. This Lease shall extend to and be binding
upon the heirs, personal representatives, successors, and assigns of the
parties. This provision, however, shall not be construed to permit the
assignment of this Lease except as may be permitted hereby. When applicable, use
of the singular form of any word shall mean or apply to the plural, and neuter
form shall mean or apply to the feminine or masculine.
21. Maintenance of Public Liability Insurance. The Tenant shall, commencing
on the date of occupancy as herein provided for, and thereafter continually
during the Leased Term, keep in full force and effect a policy of public
liability insurance with respect to the Leased Premises and the business
operated by the Tenant and/or any subtenants of the Tenant in the Leased
Premises, in which both the Landlord and the Tenant shall be named as parties
covered thereby, and in which public liability insurance limits of liability
shall not be less than $500,000.00 for bodily injury, including death, to one
person and $1,000,000.00 for bodily injury, including death, to two or more
persons, and $1,000,000.00 for damage to property. The Tenant shall furnish the
Landlord with a certificate of insurance or other acceptable evidence that such
insurance is in force.
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The captions and article numbers appearing in this Lease are inserted only
as a matter of convenience and are not intended to define, limit, construe, or
describe the scope or intent of such provisions. No waiver of by Landlord of any
default by Tenant shall be effective unless in writing, nor operate as a waiver
of any other default or of the same default on a future occasion. Any notices to
be given hereunder shall be deemed sufficiently given when in writing and (a)
actually served on the party to be notified or (b) placed in an envelope
directly to the party to be notified at the following addresses and deposited in
the United States mail be certified or registered mail, postage prepaid:
(1) If to Landlord at 0000 Xxxxx 0000 Xxxx
Xxxxxxxxxx, Xxxxxxx, 00000,
(2) If to Tenant at XX Xxx 000000,
Xxxxxxxxxxxx, Xxxxxxx, 00000
Such addresses may be changed by either party by written advice as to the new
address given as above provided. If there is more than one Tenant, their
obligation shall be joint and several.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease on this
20th day of June 2001, and if this Lease is executed in counterparts, each shall
be deemed an original.
R&R LIMITED LIABILITY COMPANY Cornerstone Wireless Services, Inc
LANDLORD Tenant
/s/ Xxxx X. Xxxxxxx /s/ Xxxxxxx X. Xxxxxxxx
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