LEASE AGREEMENT made the 2nd day of June, 1997, between
LEONIA ASSOCIATES, L.L.C, a New Jersey Limited Liability Company, having its
principal place of business c/o Sterling Management Co., Inc., 00 Xxxxx Xxxxxx,
Xxxx, Xxx Xxxxxx 00000 (hereinafter referred to as "Landlord");
and
COMPUTER OUTSOURCING SERVICES, INC., a New York Corporation, having an office
located at 000 Xxxx 00xx Xxxxxx, Xxx Xxxx, XX 00000, (hereinafter referred to
as "Tenant").
PREAMBLE
BASIC LEASE PROVISIONS AND DEFINITIONS
In addition to other terms elsewhere defined in this Lease, the following terms
whenever used in this Lease should have only the meanings set forth in this
section, unless such meanings are expressly modified, limited or expanded
elsewhere herein.
(1) Additional Rent shall mean all sums in addition to Fixed Basic
Rent payable by Tenant to Landlord pursuant to the provisions of this
Lease, or sums expended by Landlord on Tenant's behalf or fines
imposed upon Landlord as a result of Tenant's failure to comply with
the terms hereof.
(2) Base Real Estate Taxesshall mean:
Those Real Estate Taxes determined by multiplying the tax rate
in effect for Calendar Year 1997 by the assessment for the Building
Area and Building averaged for the 1997/1998 Calendar Years.
(3) Broker shall mean MRH Real Estate Services, Inc. and Xxxxxxx &
Wakefield, Inc.
(4) Building shall mean the building located at 2 Christie Heights,
in the Borough of Leonia, County of Bergen, State of New Jersey.
(5) Building Holidays shall mean those shown on Exhibit "E".
(6) Commencement Date is October 1, 1997 and shall, for the
purposes hereof, be subject to Paragraph "27" and "43" hereof.
(7) Demised Premises or Premises: 50,000 gross rentable square
feet, 30,000 square feet of which is on the First Floor and 20,000
square feet of which is on the Second Floor as shown on Exhibit "A"
hereto, which includes an allocable share of the Common Facilities
as defined in Paragraph "42(C)". The foregoing square footage is
approximate and is set forth solely for the purpose of computing all
pass-throughs required to be paid by the Tenant to the Landlord under
the terms and conditions of the within Agreement.
(8) Exhibits. The following Exhibits attached to this Lease are
incorporated herein and made a part hereof:
Exhibit A Premises Plan
Exhibit B Rules and Regulations
Exhibit C Landlord's Work
Exhibit D Cleaning Services
Exhibit E Building Holidays
(9) Fixed Basic Rent for the first Five (5) Years and Three (3)
Months of the Term of this Lease shall mean:
THREE MILLION EIGHT HUNDRED SIX THOUSAND TWO HUNDRED FIFTY AND
00/100 ($3,806,250.00) DOLLARS.
(A) Yearly Rate:
SEVEN HUNDRED TWENTY FIVE THOUSAND AND 00/100 ($725,000.00)
DOLLARS.
(B) Monthly Installment:
SIXTY THOUSAND FOUR HUNDRED SIXTEEN AND 67/100 ($60,416.67)
DOLLARS.
Fixed Basic Rent for the next Six (6) years of the Term of this
Lease shall mean:
FOUR MILLION NINE HUNDRED FIFTY THOUSAND AND 00/100
($4,950,000.00) DOLLARS for the Term payable as follows:
(A) Yearly Rate:
EIGHT HUNDRED TWENTY FIVE AND 00/100 ($825,000.00) DOLLARS.
(B) Monthly Installment:
SIXTY EIGHT THOUSAND SEVEN HUNDRED FIFTY AND 00/100 (68,750.00)
DOLLARS.
(10) Tenant's Percentage:
SEVENTY FOUR POINT SIXTY THREE (74.63%) PERCENT which percentage
is stipulated and agreed to by the parties hereto, subject to
adjustment as provided for in Paragraph "42(e)".
(11) Building Area: Xxx 0, Xxxxx 000, on the Tax Map of the Borough
of Leonia, County of State of New Jersey.
(12) Parking Spaces shall mean a total of One Hundred Fifty (150)
spaces; assigned and unassigned as indicated.
(a) Assigned: 23 including 15 covered spaces for
Tenant and 8 uncovered spaces for
Tenant's visitors.
(b) Unassigned: 127
(13) Permitted use shall be general and executive offices .
(14) Security Deposit shall be $181,250.00.
(15) Term shall mean Eleven (11) Years and Three (3) Months from the
Commencement Date, unless extended pursuant to any option contained
herein.
(16) Termination Date shall be December 31, 2008.
(17) Rent shall mean Fixed Basic Rent and Additional Rent.
(18) Standard Industrial Classification Number of Tenant is
.
W I T N E S S E T H:
For and in consideration of the covenants herein contained, and upon
the terms and conditions herein set forth, Landlord and Tenant agree as follows:
1. DESCRIPTION. Landlord hereby leases to Tenant, and Tenant
hereby hires from Landlord, the Demised Premises as defined in the Preamble
(hereinafter called "Demised Premises" or "Premises"), as shown on the plan or
plans initialed by the parties hereto marked Exhibit A annexed hereto and made
part hereof in the Building as defined in the Preamble (hereinafter called the
"Building") which is situated on the Building Area, together with the right to
use, in common with other tenants of the Building and invitees, customers and
employees, those public areas of the Common Facilities as hereinafter defined.
2. TERM. The Premises are leased for the Term to commence on the
Commencement Date and to end at 12:00 midnight on the Termination Date, all as
defined in the Preamble or on such other date as the Term may expire or be
terminated pursuant to the provisions of this Lease or pursuant to law, at which
time Tenant shall deliver up the Premises in accordance with all of the terms
hereof; and Paragraph 25 ("Holdover Tenancy") shall in no way be construed as a
waiver of this requirement to timely remove.
3. BASIC RENT. Tenant shall pay to Landlord during the Term the
Fixed Basic Rent as defined in the Preamble (hereinafter called "Fixed Basic
Rent"), payable in such coin or currency of the United States of America as at
the time of payment shall be legal tender for the payment of public and private
debts. The Fixed Basic Rent shall accrue at the Yearly Rate as defined in the
Preamble and shall be payable in advance on the first day of each calendar month
during the Term at the Monthly Installments as defined in the Preamble, in
accordance with the provisions of this Lease herein set forth, except that if
the Commencement Date is not the first (1st) day of the month, Rent for the
month in which the Commencement Date occurs shall be prorated to the end of the
month, the first (1st) full monthly installment of Rent shall be due on the
first (1st) day of the next month and after the expiration of the number of
years in the Term of this Lease, the Term shall expire on the last day of the
same month in which the Commencement Date of the Term occurred, it being the
intention of the parties that the Term expire on the last day of the month.
Landlord acknowledges receipt from Tenant of the first Monthly Installment by
check, subject to collection, for Fixed Basic Rent for the first month of the
Term.
Tenant shall pay Rent as hereinafter provided, to Landlord at
Landlord's above-stated address, or at such other place as Landlord may
designate in writing, without the necessity of a xxxx therefore or demand of
any nature whatsoever, and without counterclaim, deduction or set-off.
4. USE AND OCCUPANCY.
(a) The Premises shall be used and occupied only for the
Permitted Use described in the Preamble to this Lease and for no other use or
purpose. Tenant shall not use or permit the use of the Premises or any part
thereof in any way which would violate any certificate of occupancy for the
Building or the Premises, or any of the covenants, agreements, terms,
provisions and conditions of this Lease, or for any unlawful purposes or in
any unlawful manner, or, in the reasonable judgment of any insurer of the
Building, cause Landlord's insurance thereon to be canceled; and Tenant shall
not suffer or permit the Premises or any part thereof to be used in any manner
or anything to be done therein or suffer or permit anything to be brought
into or kept in the Premises which, in the reasonable judgment of Landlord,
shall in any way impair the character, reputation or appearance of the
Building, impair or interfere with any of the Building services or the proper
and economic heating, cleaning, air conditioning or other servicing of the
Building or the Premises, or impair or interfere with the use of any of the
other areas of the Building by, or occasion discomfort, inconvenience or
annoyance to, any of the other tenants or occupants of the Building, if any.
Tenant shall have access to the Building and the Demised Premises twenty-four
(24) hours a day, three hundred sixty five (365) days a year.
(b) If any governmental license or permit (other than the
certificate of occupancy required to be obtained by Landlord) shall be required
for the proper and lawful conduct of Tenant's business or other activity carried
on in the Premises by Tenant and if the failure to secure such license or permit
would, in any way, affect Landlord, Tenant, at Tenant's expense, shall duly
procure and thereafter maintain such license or permit and submit the same to
inspection by Landlord. Tenant, at Tenant's expense, shall at all times, comply
with the terms and conditions of each such license or permit.
(c) Tenant shall not store or permit to be used in any way
in, on or about the Demised Premises any "hazardous materials", which, for the
purposes hereof, shall include any chemical substance, material or waste or
component thereof which is now or hereafter listed, defined or regulated as a
hazardous or toxic chemical, substance, material or waste or component thereof
by any Federal, State or local environmental laws and regulations promulgated
pursuant to any of the foregoing including, for example at the federal level
only and without limitation, the Resource Conservation and Recovery Act of
1976, 42 U.S.C. 6901, et seq.; the Occupational Safety and Health Act of 1970,
29 U.S.C. 651, et seq.; the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, 42 U.S.C. 9601, et seq.; the Toxic Substances
Control Act, 15 U.S.C. 2601, et seq.; the Clean Air Act, 42 U.S.C. 7401,
et seq.; the Safe Drinking Xxxxx Xxx, 00 X.X.X. 000x, et seq.; and the Clean
Water Act, 33 U.S.C. 1251, et seq. The foregoing shall not be deemed to
prohibit the use of customary office supplies and equipment in quantities
reasonably necessary for Tenant's Permitted Use.
(d) Landlord agrees to indemnify and hold harmless the Tenant
from any and all claims, damages, fines, judgments, penalties, costs,
liabilities or losses (including, without limitation, any and all sums paid
for settlement of claims, attorneys' fees, consultant and expert fees) arising
during or after the Lease Term from or in connection with the presence or
suspected presence of Hazardous Substances in or on the Premises, unless
the Hazardous Substances are present as a result of negligence, willful
misconduct of other acts of Tenant, Tenant's agents, employees, contractors or
invitees. Without limitation of the foregoing, this indemnification shall
include any and all costs incurred due to any investigation of the site or any
cleanup, removal or restoration mandated by a federal, state or local agency
or political subdivision, unless the Hazardous Substances are present as a
result of negligence, willful misconduct or other acts of Tenant, Tenant's
agents, employees, contractors or invitees. This indemnification shall
spcifically include any and all costs due to Hazardous Substances which flow,
diffuse, migrate or percolate into, onto or under the Premises after the Lease
Term Commences.
5. CARE AND REPAIR OF PREMISES. Tenant covenants to commit no act
of waste and to take good care of the Premises and the fixtures and
appurtenances therein, and shall, in the use and occupancy of the Premises
comply with all laws, orders and regulations of the federal, state and
municipal governments or any of their departments affecting the Premises and
with any and all environmental requirements resulting from the Tenant's use
of the Premises, this covenant to survive the expiration or sooner termination
of the Lease. Landlord shall, at Tenant's expense [except for structural
repairs not necessitated by the misuse or neglect of Tenant or Tenant's
agents, servants, visitors or licensees, which repairs, if any, shall be
amortized over their useful life in accordance with generally accepted
accounting principles, consistently applied, and included as an Operating
Cost expense in accordance with Paragraph 23(a)], make all necessary
repairs to the Premises. Landlord shall make all necessary repairs
to the Common Facilities and to the parking areas, if any, the same to be
included as an Operating Cost, except where the repair has been made
necessary by misuse or neglect primarily caused by Tenant or Tenant's agents,
servants, visitors or licensees, in which event Landlord shall nevertheless
make the repair but Tenant shall pay to Landlord, as Additional Rent,
immediately upon demand, the costs therefor. All improvements made by Tenant
to the Premises, which are so attached to the Premises that they cannot be
removed without material injury to the Premises, shall become the property of
Landlord upon installation. Not later than the last day of the Term, Tenant
shall, at Tenant's expense (a) remove all Tenant's personal property and those
improvements made by Tenant which have not become the property of Landlord,
including trade fixtures, movable paneling, partitions, and the like,
(b) repair all injury done by or in connection with the installation or
removal of said property and improvements, and (c) surrender the Premises in
as good condition as they were at the beginning of the Term, reasonable wear
and tear and damage by fire, the elements, casualty, or other cause not due to
the misuse or neglect by Tenant, Tenant's agents, servants, visitors
or licensees excepted, and in "broom clean" condition. All other property
of Tenant remaining on the Premises after the last day of the Term shall be
conclusively deemed abandoned and may be removed by Landlord, and Tenant shall
reimburse Landlord for the cost of such removal. Landlord may have any such
property stored at Tenant's risk and expense.
Tenant acknowledges the existence of environmental laws, rules,
and regulations, including, but not limited to, the Environmental Clean-up
Responsibility Act of 1983 ("ECRA") and the Industrial Site Recovery Act of 1993
("ISRA").Tenant shall comply with any and all such laws, rules, and regulations.
Tenant represents to Landlord that Tenant's Standard Industrial Classification
(SIC) Number, as same is set forth in the Preamble to this Lease and as used on
Tenant's Federal Tax Return will not subject the Premises to ECRA/ISRA
applicability. Any change by Tenant to an operation with a SIC Number subject
to ECRA/ISRA shall require Landlord's written consent. Any such proposed change
shall be sent in writing to Landlord sixty (60) days prior to the proposed
change. Landlord, at its sole option, may arbitrarily deny such consent.
Within thirty (30) days of the date of the expiration of the
term of this Lease or the date of sooner termination hereof, Tenant shall
provide to Landlord appropriate evidence of compliance with ECRA/ISRA and
the rules, regulations and directives promulgated in connection therewith
and applicable to Tenant's surrendering of the Premises, the Building,
the Building Area and the Common Facilities to Landlord and ceasing its
operations therein and thereon. Evidence of compliance as used in this
paragraph and this Lease shall be deemed to include a letter of non-
applicability regarding ECRA/ISRA or a letter of negative declaration issued
by the New Jersey Department of Environmental Protection and Energy.
Tenant hereby agrees to execute such documents as Landlord
reasonably deems necessary to make such application as Landlord reasonably
requires to assure compliance resulting from Tenant's use of the Demised
Premises, including, but not limited to, payment of state agency fees,
engineering fees, clean-up costs, filing fees, and suretyship expenses.
As used in this Lease, ECRA/ISRA compliance shall include applications for
determinations of non-applicability by the appropriate governmental authority.
The foregoing undertaking shall survive the termination or sooner expiration
of this Lease and surrender of the Demised Premises and shall also survive
sale, lease, or assignment of the Demised Premises by Landlord. Tenant agrees
to indemnify and hold Landlord harmless from any violation of ECRA/ISRA
occasioned by Tenant's use of the Demised Premises. Tenant shall immediately
provide Landlord with copies of all correspondence, reports, notices, orders,
findings, declarations, and other materials pertinent to the Tenant's compliance
and the Department of Environmental Protection and Energy ("DEPE")
requirements under ECRA/ISRA as they are issued or received by the Tenant.
6. ALTERATIONS, ADDITIONS OR IMPROVEMENTS. Tenant shall not,
without first obtaining the written consent of Landlord not to be unreasonably
withheld or unduly delayed in each and every instance, make any alterations,
additions or improvements in, to or about the Premises.
Before proceeding with any Alteration, Tenant shall submit to
Landlord, for Landlord's approval, plans and specifications for the work to be
done, and Tenant shall not proceed with such work until it obtains Landlord's
written approval of such plans and specifications which approval shall not be
unreasonably withheld.Landlord agrees to approve or disapprove any such
Alteration within fifteen (15) Business Days following Tenant's submission of
the same for review in accordance with this Paragraph (the "First Review
Period"). If Landlord shall disapprove of any of Tenant's plans during
Landlord's First Review Period, Tenant shall be advised in writing by Landlord
of the reasons for such disapproval. After Tenant resubmits its revised plans
and specifications to Landlord, Landlord shall have a Second Review Period (as
defined below) for review of the same subject to the other terms of this
Paragraph. Landlord hereby agrees to give its approval or disapproval to said
plans and specifications submitted by Tenant for Landlord's review within five
(5) Business Days of receipt of the same by Landlord (the "Second Review
Period"). With respect to either the First and/or Second Review Periods
described herein, if Landlord shall fail to approve or disapprove of any such
proposed plans and specifications within the aforementioned periods and the
cause for such failure on the part of Landlord shall not be cause beyond the
reasonable control of Landlord, then, provided Tenant shall, following the
expiration of the aforementioned periods, send Landlord a notice (the "Warning
Notice") setting forth Landlord's failure to so approve or disapprove the
submitted plans and specifications and provided such Warning Notice shall
expressly reference this Paragraph "6" of the Lease and the consequences of
Landlord's failure to respond within the five (5) day period hereinafter set
forth, then if Landlord shall fail to approve or disapprove of the submitted
plans and specifications within a five (5) day period following the date
upon which Landlord shall have received such Warning Notice, the proposed
submitted plans and specifications shall be deemed approved.
Notwithstanding the foregoing, Tenant may make decorative, non-
structural alterations or alterations with a cost less than $50,000 which do not
impact building mechanical systems or structure without the approval of the
Landlord.
7. ACTIVITIES INCREASING INSURANCE RATES. If by reason of failure
of Tenant to comply with the provisions of this Lease, including but not
limited to the manner in which Tenant uses or occupies the Premises, the
insurance rates shall, at the commencement of the Term, or at any time
thereafter, be higher than they otherwise would be for a similar type building
insured under a standard casualty policy, then Tenant shall reimburse Landlord,
as Additional Rent hereunder, for that part of all insurance premiums thereafter
paid or incurred by Landlord, which shall have been charged because of such
failure or use by Tenant, and Tenant shall make such reimbursement upon the
first (1st) day of the month following the billing to Tenant of such additional
cost by Landlord.
8. ASSIGNMENT AND SUBLEASE. Provided that Tenant shall not be in
default hereunder, Tenant may assign the Lease or sublease the Premises to any
party, subject to the following:
(a) In the event that Tenant desires to sublease the whole
or any portion of the Premises or assign the within Lease to any other party,
the terms and conditions of such sublease or assignment, together with the
name and address of the proposed assignee or sublessee, financial statements
prepared by a certified public accountant, certified to the President of the
proposed assignee or sublessee; the nature and character of the business of
the proposed sublessee or assignee; and any other information requested by
Landlord reasonably calculated to enable Landlord to determine the proposed
assignee or sublessee's financial responsibility, shall be communicated to
Landlord in writing no later than sixty (60) days prior to the effective date
of any such sublease or assignment, and, prior to such effective date,
Landlord shall have the option, exercisable in writing to Tenant, to recapture
the within Lease so that such prospective sublessee or assignee shall then
become the sole Tenant of Landlord hereunder, or alternatively, to recapture
said space, provided the aggregate of all subleased space as recaptured exceeds
15,000 square feet and the sublease as recaptured is for the balance of the
term less one (1) day.
Upon receipt by Tenant of said notification of intent to
recapture, Tenant shall then remove itself and all of its personal property from
the Demised Premises pursuant to all the terms, conditions and provisions of
this Lease and in accordance with Paragraph 5 of this Lease pertaining to
Tenant's removal and restoration of the Demised Premises.
In the event Landlord shall recapture the Demised
Premises pursuant to this Paragraph as above stated, the Tenant's obligation to
pay Rent and all other payments due hereunder shall continue until Tenant has
completed its removal and restoration of the Demised Premises pursuant thereto.
Tenant shall be required to pay the full monthly rental for every month or any
portion thereof in which it remains in occupancy hereunder up to and until it
has completed its removal from the Demised Premises in accordance with all of
the terms of this Lease and Landlord has retaken possession thereof. After
Tenant's removal from the Demised Premises and restoration of same, and
Landlord has retaken possession thereof, this Lease shall terminate, cease and
come to an end.
(b) In the event that Landlord elects not to recapture the
Lease as hereinabove provided, Tenant may nevertheless assign this Lease or
sublet the whole or any portion of the Premises, subject to the Landlord's prior
written consent, which consent shall not be unreasonably withheldor unduly
delayed; provided, however, that Landlord shall not be deemed unreasonable if it
refuses to consent to any proposed sublease or assignment of the Lease to any
tenant, subtenant or other occupant of the Building, or, if, in the reasonable
judgment of Landlord, the business of such proposed subtenant or assignee is not
compatible with the type of occupancy of the Building,and subject to the consent
of any mortgagee, trust deed holder, or ground lessor, on the basis of the
following terms and conditions:
(1) The Demised Premises shall not, without Landlord's
prior consent, have been listed or otherwise publicly advertised for
assignment or subletting at a rental rate lower than the higher of (a) the
annual Rent then payable, or (b) the then prevailing rental rate for other
space in the Building.
(2) The terms and conditions of the sublease or
assignment shall not be materially altered from those terms and conditions
previously communicated to Landlord.
(3) The assignee or sublessee shall assume, by written
instrument satisfactory to Landlord, exercising reasonable discretion, all
of the obligations of this Lease, and a copy of such assumption agreement
shall be furnished to Landlord within ten (10) days of its execution.
(4) Tenant and each assignee shall be and remain liable
for the observance of all the covenants and provisions of this Lease,
including, but not limited to, the payment of Rent reserved herein, throughout
the Term, as the same may be renewed, extended or otherwise modified.
(5) Tenant and any assignee shall promptly pay to
Landlord fifty (50%) percent of any consideration received for any assignment
or sublet and/or all of the Rent received by Tenant in excess of the Rent
required to be paid by Tenant for the area assigned or sublet, computed on
the basis of an average square foot rent for the gross square footage Tenant
has leased, except that Tenant shall in such instance be entitled to retain
one hundred (100%) percent of any compensation received for furniture and
equipment without sharing it with Landlord, provided such compensation is
at fair market value.
(6) In any event, the acceptance by Landlord of any
Fixed Basic Rent or Additional Rent from the assignee or from any of the
subtenants, or the failure of Landlord to insist upon a strict performance
of any of the terms, conditions, and covenants contained herein, shall not
release Tenant herein, nor any assignee assuming this Lease or sublessee,
from any and all of the obligations herein during and for the entire Term.
(7) Tenant shall deposit with Landlord a sum equal to
three (3) months rent to be paid by the sublessee or assignee as and for an
additional Security Deposit to be held by Landlord in accordance with the terms
of Paragraph 16 hereof.
(8) Landlord shall require a Seven Hundred Fifty and
00/100 ($750.00) Dollar payment to cover its handling charges for each request
for consent to any sublet or assignment prior to its consideration of the same.
Tenant acknowledges that its sole remedy with respect to any assertion that
Landlord's failure to consent to any sublet or assignment is unreasonable shall
be the remedy of specific performance, and Tenant shall have no other claim or
cause of action against Landlord as a result of Landlord's actions in refusing
to consent thereto.
(c) Any sublet or assignment to a parent, subsidiary,
affiliate (as hereinafter defined) or successor entity of Tenant shall not be
subject to the provisions of Subparagraphs (a) and (b)(5) hereof and shall not
require Landlord's prior written consent, but all other provisions of this
Paragraph shall apply.
Provided Tenant is not in default of this Lease, the
Tenant named herein, shall have the right, without requiring the prior consent
of Landlord, to assign its interest in this Lease, for the use permitted in this
Lease, to sublet the whole or part of the Premises on one or more occasions to
any number of affiliates of the Tenant named herein. For the purposes of this
Paragraph "8(b)(8)(c)", an "affiliate" of the Tenant named herein shall mean any
corporation, partnership or other business entity which controls or is
controlled by, or is under common control with Tenant and the term "control"
as used with respect to any corporation, partnership, or other business entity
shall mean the possession of the power to direct or cause the direction of the
management and policies of such corporation, partnership, or other business
entity whether through the ownership of voting securities or contract. Any
transfer or cessation of control over any affiliate to which the Lease is
assigned shall constitute an assignment of this Lease to which all of the
provisions of this Paragraph "8(b)(8)(c)" shall apply. No such assignment
shall be valid or effective unless, within ten (10) days after the execution
thereof, Tenant shall deliver to Landlord all of the following: (I) a
duplicate original instrument of assignment, in form and substance reasonably
satisfactory to Landlord, duly executed by Tenant, in which Tenant shall (A)
waive all notices of default given to the assignee, and all other notices of
every kind or description now or hereafter provided in this Lease, by statute
or rule of law, and (B) acknowledge that Tenant's obligations with respect to
this Lease shall not be discharged, released or impaired by (i) such assignment,
(ii) any amendment or modification of this Lease, whether or not the
obligations of Tenant are increased thereby, (iii) any further assignment or
transfer of Tenant's interest in this Lease, (iv) any exercise, non-exercise
or waiver by Landlord of any right, remedy, power or privilege under orwith
respect to this Lease, (v) any waiver, consent, extension, indulgence or other
act or omission with respect to any other obligations of Tenant under this
Lease, (vi) any act or thing which, but for the provisions of such assignment,
might be deemed a legal or equitable discharge of a surety or assignor, to all
of which Tenant shall consent in advance, and (C) expressly waive and
surrender any then existing defense to its liability hereunder it being the
purpose and intent of Landlord and Tenant that the obligations of Tenant
hereunder as assignor shall be absolute and unconditional under any and all
circumstances, and (II) an instrument, in form and substance satisfactory to
Landlord, duly executed by the assignee, in which such assignee shall assume
the observance and performance of, and agree to be bound by, all of the terms,
covenants and conditions of this Lease on Tenant's part to be observed and
performed.
Tenant may, upon written notice to Landlord, but without
Landlord's written consent, permit any "affiliates" (as hereinabove defined) to
use the whole or part of the Premises for any of the uses permitted to Tenant.
Such use shall not be deemed to vest in any such affiliates any right or
interest in this Lease or in any such affiliates any right or interest in this
Lease or in the Premises, nor shall such use release, relieve, discharge or
modify any of Tenant's obligations hereunder.
Tenant may upon written notice to Landlord, but without
Landlord's written consent, assign or transfer its entire interest in the Lease
and the leasehold estate hereby created or sublet the whole or part of the
Premises to a "successor corporation" of Tenant, as such term is hereinafter
defined, provided that Tenant shall not be in default in any of the terms,
covenants, conditions and agreements of this Lease, including, but not limited
to, the payment of the Fixed Basic Rent or Additional Rent payable by Tenant
hereunder. A "successor corporation" as used in this Paragraph "8(b)(8)(c)"
shall mean (i) a corporation into which or with which Tenant, its corporate or
other successors or assigns, is merged or consolidated, in accordance with
applicable statutory provisions for the merger or consolidation of corporations
or any other business entities, provided that by operation of law or by
effective provisions contained in the instruments of merger or consolidation,
the liabilities of the corporation are assumed by the corporation surviving
such merger or consolidation, or (ii) a corporation acquiring this Lease and the
term hereby demised, the good will and all or substantially all of the other
property and assets (other than capital stock of such acquiring corporation)
of Tenant, its corporate successors or assigns, and assuming all or
substantially all of the liabilities of Tenant, its corporate successors or
assigns, or (iii) any corporate successor to a successor corporation becoming
such by either of the methods described above in clauses (i) and (ii). The
acquisition by Tenant, its corporate successors or assigns, of all or
substantially all of the assets, together with the assumption of all or
substantially all of the obligations and liabilities of any corporation, shall
be deemed to be a merger of such corporation into Tenant for the purpose of
this Paragraph "8(b)(8)(c)". A successor corporation shall, pursuant to the
subparagraph "(c)", have all of the rights and obligations of Tenant hereunder.
(d) Notwithstanding Subparagraph (c) above, if Tenant is a
corporation, and, if, at any time during the Term, the persons owning a
majority of its "voting stock" at the time of the execution of this Lease
should cease to own a majority of such voting stock (except as the
result of transfers by bequest or inheritance), Tenant covenants to so notify
Landlord. Landlord may terminate this Lease by Notice to Tenant to be effective
ninety (90) days after service. This section shall not apply whenever Tenant
is a corporation, the outstanding stock of which is listed on a recognized
stock exchange. For the purposes of this Subparagraph (d), stock ownership
with the principles set forth in Section 544 of the Internal Revenue Code of
1986, as amended, to and including the date of this Lease, and the term "voting
stock" shall refer to shares of stock regularly entitled to vote for the
election of directors of the corporation.
(e) If, pursuant to the Federal Bankruptcy Code (or any
similar law hereafter enacted having the same general purpose), Tenant is
permitted to assign this Lease, notwithstanding the restrictions contained in
this Lease, adequate assurance of future performance by an assignee expressly
permitted under such code shall be deemed to mean the deposit of cash security
in an amount equal to the sum of one year's Rent, plus an amount equal to the
sum of all other charges due and payable by Tenant hereunder for the calendar
year preceding the year in which such assignment is intended to become
effective, which deposit shall be held by Landlord for the balance of the Term,
without interest, as security for the full performance of all of Tenant's
obligations under this Lease, to be held and applied in the manner specified
for security in Paragraph 16.
(f) If this Lease be assigned, or if the Demised Premises or
any part thereof be underlet or occupied by anyone other than Tenant, Landlord
may, after default by Tenant collect Rent from the assignee, undertenant or
occupant and apply the net amount collected to the Rent herein reserved, but no
such assignment, underletting, occupancy or collection shall be deemed a waiver
of this covenant, or the acceptance of the assignee, undertenant or occupant as
Tenant, or a release of Tenant from the further performance by Tenant of all
covenants on the part of Tenant herein contained. The consent by Landlord to an
assignment or underletting shall not in any wise be construed to relieve Tenant
from obtaining the express consent in writing of Landlord to any further
assignment or underletting, nor shall the same release or discharge Tenant from
any liability, past, present or future, under this Lease, and Tenant shall
continue fully liable in all respects hereunder.
9. COMPLIANCE WITH RULES AND REGULATIONS. Tenant shall, at Tenant's
sole cost and expense, observe and comply with the rules and regulations
hereinafter set forth in Exhibit B, annexed hereto and made a part hereof, and
with such further reasonable rules and regulations as Landlord may prescribe
uniformly applied to all tenants in the Building, on written notice to Tenant,
for the safety, care and cleanliness of the Building and the comfort, quiet and
convenience of other occupants of the Building. Tenant shall not place a load
upon any floor of the Demised Premises exceeding the floor load per square foot
area which it was designed to carry, to wit: 80 lbs per square foot live load on
the Second Floor and 200 lbs per square foot live load on the First Floor, and
which is allowed by law. Landlord reserves the right to prescribe the weight and
position of all safes, business machines and mechanical equipment. Such
installments shall be placed and maintained by Tenant, at Tenant's expense, in
settings sufficient, in Landlord's judgment, reasonably exercised, to absorb and
prevent vibration, noise and annoyance.
10. DAMAGE TO BUILDING/WAIVER OF SUBROGATION. If the Building is
damaged by fire or any other cause to such extent that the cost of restoration,
as reasonably estimated by Landlord, will equal or exceed twenty-five percent
(25%) of the replacement value of the Building (exclusive of foundations) just
prior to the occurrence of the damage, then Landlord may, no later than the
sixtieth (60th) day following the damage, give Tenant a notice of election to
terminate this Lease, or, if the cost of restoration of the Demised Premises
will equal or exceed fifty percent (50%) of such replacement value and if the
Demised Premises shall not be reasonably usable for the purpose for which they
are leased hereunder, then Tenant may, no later than the sixtieth (60th) day
following the damage, give Landlord a notice of election to terminate this
Lease. In either said event of election, this Lease shall be deemed to
terminate on the thirtieth (30th) day after the giving of said notice, and
Tenant shall surrender possession of the Premises within a reasonable time
thereafter; and Rent shall be apportioned as of the date of said surrender,
and any Rent paid for any period beyond said date shall be repaid to Tenant.
If the cost of restoration as estimated by Landlord shall amount to less
than twenty-five percent (25%) of said replacement value of the Building, or
if, despite the cost, Landlord does not elect to terminate this Lease,
Landlord shall restore the Building and the Premises with reasonable
promptness, subject to Force Majeure, as hereinafter defined, and Tenant
shall have no right to terminate this Lease. Tenant understands that Landlord
will not carry insurance of any kind on Tenant's furniture, fixtures,
equipment or improvements and Landlord shall not be obligated to restore
fixtures and improvements owned by Tenant.
In any case in which use of the Premises is affected by any
damage to the Building, there shall be either an abatement or an equitable
reduction in Fixed Basic Rent depending on the period for which and the extent
to which the Premises are not reasonably usable for the purpose for which they
are leased hereunder. The words "restoration" and "restore" as used in this
Paragraph shall include repairs. If the damage results primarily from the fault
of Tenant, or Tenant's agents, servants, visitors or licensees, Tenant shall not
be entitled to any abatement or reduction in Rent, except to the extent of any
rent insurance maintained by Tenant and received by Landlord. Landlord shall
maintain rent insurance, same to be charged to Tenant as an Operating Cost.
Notwithstanding the provisions of this Paragraph of the Lease, in the event of
any loss or damage to the Building, the Premises and/or any contents (herein
"property damage"), each party waives all claims against the other for any such
loss or damage and each party shall look only to any insurance which it has
obtained to protect against such loss (or in the case of Tenant, against any
tenant of the Building that has not waived subrogation against Tenant) and each
party shall obtain, for each policy of such insurance, provisions waiving any
claims against the other party (and against any other tenant[s] in the Building
that has waived subrogation against Tenant) for loss or damage within the scope
of such insurance.
11. EMINENT DOMAIN. If Tenant's use of the Premises is materially
affected due to the taking by eminent domain of (a) the Premises or any part
thereof or any estate therein; or (b) any other part of the Building; then, in
either event, this Lease shall terminate on the earlier of (i) the date of
delivery of the Deed by the owner of the fee to the Condemnor or (ii) the date
of lawful physical possession by Condemnor provided said possession materially
affects Tenant's use of the Demised Premises. The Rent shall be apportioned as
of said termination date and any Rent paid for any period beyond said date shall
be repaid to Tenant. Tenant shall not be entitled to any part of the award for
such taking or any payment in lieu thereof, but Tenant may file a separate claim
for any taking of fixtures and improvements owned by Tenant which have not
become Landlord's property, and for moving expenses, provided the same shall
in no way affect or diminish Landlord's award. In the event of a partial
taking, which does not affect a termination of this Lease, but does
deprive Tenant of the use of a portion of the Demised Premises, there
shall either be an abatement or an equitable reduction of the Fixed
Basic Rent, depending on the period for which and the extent to which the
portion of the Premises so taken are not reasonably usable for the
purpose for which they are leased hereunder, and Tenant's Percentage shall
be proportionately adjusted, except that Tenant may terminate this Lease if
any partial taking results in Tenant being unable to substantially conduct its
business at the Premises.
12. INSOLVENCY OF TENANT. Either (a) the appointment of a receiver
to take possession of all or substantially all of the assets of Tenant, or (b)
a general assignment by Tenant for the benefit of creditors, or (c) any action
taken or suffered by Tenant, voluntarily or involuntarily, under any insolvency,
reorganization or bankruptcy law or act, shall constitute a default under this
Lease by Tenant, and Landlord may terminate this Lease forthwith and upon notice
of such termination Tenant's right to possession of the Demised Premises shall
cease, and Tenant shall then quit and surrender the Premises to Landlord but
Tenant shall remain liable as hereinafter provided in Paragraph 14 hereof.
13. LANDLORD'S REMEDIES ON DEFAULT. If Tenant defaults in the
payment of Rent, or defaults in the performance of any of the other terms,
covenants and conditions hereof, or permits the Premises to become deserted,
abandoned or vacated in excess of six (6) months, Landlord may give Tenant
notice of such default, and, if Tenant does not cure any Rent default
(hereinafter "Monetary Default") within five (5) days, or other default
(hereinafter "Non-Monetary Default") within fifteen (15) days, after giving of
such notice, or if such other default is of such nature that it cannot be
completely cured within such period, if Tenant does not commence such curing
within such fifteen (15) days and thereafter proceed with reasonable diligence
and in good faith to cure such default, or, if Tenant shall be deemed an
Habitual Late Payer, to be construed as a Non-Monetary Default for the purposes
of a dispossess proceeding but not requiring any notice as provided for all
other Non-Monetary Defaults, then, in any such event, Landlord may terminate
this Lease on not less than ten (10) days' notice to Tenant, and on the date
specified in said notice, Tenant's right to possession of the Demised Premises
shall cease, and Tenant shall then quit and surrender the Premises to Landlord,
but Tenant shall remain liable as hereinafter provided. If this Lease shall have
been so terminated by Landlord pursuant to Paragraphs 12 and 13 hereof,
Landlord may at any time thereafter resume possession of the Premises by any
lawful means and remove Tenant or other occupants and their effects. Tenant
shall be liable for, and pay to Landlord, within ten (10) days after demand,
as Additional Rent hereunder, reasonable attorneys' fees, disbursements and
costs incurred by Landlord in enforcing the provisions of this Lease.
14. DEFICIENCY. In any case where Landlord has recovered possession
of the Premises by reason of Tenant's default, Landlord may, at Landlord's
option, occupy the Premises or cause the Premises to be redecorated, altered,
divided, consolidated with other adjoining premises (if any), or otherwise
changed or prepared for re-letting, and may re-let the Premises, or any part
thereof, as agent of Tenant or otherwise, for a term or terms to expire prior
to, at the same time as, or subsequent to, the original expiration date of this
Lease, at Landlord's option, and receive the Rent therefor. Rent so received
shall be applied first to payment of such expenses as Landlord may have incurred
in connection with recovery of possession, redecorating, altering, dividing,
consolidating with other adjoining premises (if any), or otherwise changing or
preparing for re-letting, and the re-letting, including brokerage and reasonable
attorney's fees, and then to payment of damages in amounts equal to the Rent
hereunder and to the costs and expenses of performance of the other covenants of
Tenant as herein provided. Tenant agrees, in any such case, whether or not
Landlord has re-let, to pay to Landlord damages equal to the Rent and other sums
herein agreed to be paid by Tenant, less the net proceeds of the reletting, if
any, as ascertained from time to time, and the same shall be payable by Tenant
on the several rent days above specified. Tenant shall not be entitled to any
surplus accruing as a result of any such re-letting. In re-letting the Premises
as aforesaid, Landlord may grant rent concessions, and Tenant shall not be
credited therewith. No such re-letting shall constitute a surrender and
acceptance or be deemed evidence thereof. If Landlord elects, pursuant hereto,
actually to occupy and use the Premises, or any part thereof, during any part of
the balance of the Term as originally fixed or since extended, there shall be
allowed against Tenant's obligation for Rent or damages as herein defined,
during the period of Landlord's occupancy, the reasonable value of such
occupancy, not to exceed in any event the Rent herein reserved and such
occupancy shall not be construed as a release of Tenant's liability hereunder.
Alternatively, in any case where Landlord has recovered
possession of the Premises by reason of Tenant's default, Landlord may, at
Landlord's option, and at any time thereafter, and without notice or other
action by Landlord, and without prejudice to any other rights or remedies it
might have hereunder or at law or equity, become entitled to recover from Tenant
as damages for such breach, in addition to such other sums herein agreed to be
paid by Tenant, to the date of re-entry, expiration and/or dispossess, an amount
equal to the difference between the Rent reserved in this Lease from the date
of such default to the date of expiration of the Term, as the same may have
been extended or renewed, and the then fair and reasonable rental value
(inclusive of Rent) of the Premises for the same period. Said damages shall
become due and payable to Landlord immediately upon such breach of this Lease
and without regard to whether this Lease be terminated or not, and, if this
Lease be terminated, without regard to the manner in which it is terminated.
In the computation of such damages, the difference between any installments of
Rent thereafter becoming due and the fair and reasonable rental value of the
Premises for the period for which such installment was payable shall be
discounted to the date of such default at the rate of not more than four
percent (4%) per annum.
Tenant hereby waives all right of redemption to which Tenant
or any person under Tenant might be entitled by any law now or hereafter in
force.
In the event of any breach or threatened breach by Tenant of
any of the agreements, terms, covenants or conditions contained in this Lease,
Landlord shall be entitled to enjoin such breach or threatened breach and shall
have the right to invoke any right or remedy allowed at law or in equity or by
statute or otherwise as though re-entry, summary dispossess proceedings, and
other remedies were not provided for in this Lease. During the pendency of any
proceedings brought by Landlord to recover possession by reason of default,
Tenant shall continue all money payments required to be made to Landlord, and
Landlord may accept such payments for use and occupancy of the Demised Premises.
In such event, Tenant waives its right in such proceedings to claim as a defense
that the receipt of such money payments by Landlord constitutes a waiver by
Landlord of such default.
Landlord's remedies hereunder are in addition to any remedy
allowed by law.
15. SUBORDINATION OF LEASE. This Lease shall, at Landlord's
option, or at the option of the holder of any underlying lease (the "Ground
Lease") or holder of any first mortgage or deed of trust (the "Mortgage"), be
subject and subordinate to any such Ground Lease(s) and to any such Mortgage
which may now or hereafter affect the real property of which the Premises form
a part, and also to all renewals, modifications, consolidations and replacements
of said Ground Lease(s) and said Mortgage. Although no instrument or act on the
part of Tenant shall be necessary to effectuate such subordination, Tenant will,
nevertheless, within five (5) days of receipt of same, execute and deliver such
further instruments confirming such subordination of this Lease as may be
desired by the holder of said Mortgage or by any of the Landlords under such
Ground Lease(s). Tenant hereby appoints Landlord attorney-in-fact,
irrevocably, to execute and deliver any such instrument for Tenant. If any
Ground Lease to which this Lease is subject terminates or any Mortgage
superior to this Lease is foreclosed upon or otherwise sold, Tenant shall,
on timely request, attorn to the owner of the reversion.
(a) Landlord represents that as of the date hereof, there is
only one superior mortgage with respect to the Real Property which is held by
Interchange State Bank (hereinafter "Mortgagee"). With respect to Mortgagee, the
provisions of Article 15 hereof shall be effective upon the delivery to Tenant
of a subordination, non-disturbance and attornment agreement in favor of Tenant.
Such subordination, non-disturbance and attornment agreement shall be
substantially in the form attached hereto as Schedule F, and Landlord shall
deliver the same to Tenant within thirty (30) days after the execution and
delivery of this Lease by and to both Landlord and Tenant. Tenant agrees that
it shall, at the request of Landlord, enter into a subordination, non-
disturbance and attornment agreement in the form as annexed hereto as Schedule
F. If Landlord shall fail to obtain such subordination, non-disturbance and
attornment agreement within thirty (30) days after the execution and delivery
of this Lease, then except as expressly set forth below, Landlord shall have no
liability therefor, but Tenant may terminate this Lease upon three (3) Business
Days' prior written notice to Landlord furnished at any time during the five
(5) day period following the expiration of the foregoing thirty (30) day period
or following such earlier date upon which Landlord has notified Tenant that
Landlord will not be able to obtain such subordination, non-disturbance and
attornment agreement, and following the expiration of said three (3) Business
Days, this Lease shall forthwith terminate. If this Lease shall be so
terminated, Landlord shall reimburse Tenant for any reasonable out-of-pocket
expenses incurred by Tenant for actual and reasonable construction,
architectural or engineering fees in connection with this Lease,
which such expenses were incurred and are allocable to a period following the
date of the execution and delivery of this Lease by both parties, except to the
extent previously paid by virtue of and subject to the provisions of Paragraph
27(b) of this Lease. If at any time prior to the expiration of the thirty (30)
day period hereinabove provided, Landlord shall notify Tenant that Landlord will
not be able to obtain for Tenant from Mortgagee such subordination,
non-disturbance and attornment agreement substantially in the form annexed
hereto as Schedule F in regard to this Lease, then Landlord may give notice
thereof to Tenant and Tenant shall have a period of ten (10) days after the date
of such notice to terminate this Lease; provided, however that Landlord's
obligation to reimburse Tenant in the event of a lease termination for certain
expenses as set forth in the previous sentence shall not include any expenses
incurred by Tenant following the date Landlord gives Tenant the notice as
described in this sentence. If Tenant shall not exercise any of its rights of
termination as herein provided, Landlord shall have no further obligation to
seek to obtain a subordination, non-disturbance and attornment agreement from
Mortgagee and this Lease shall not be affected by Landlord's inability to
obtain the same.
(b) With respect to future superior mortgages and future
superior leases, the provisions of Article 15 hereof shall be conditioned upon
the execution and delivery by and between Tenant and any such superior
mortgagees or superior lessor of a subordination, non-disturbance or attornment
agreement on the customary form of such superior mortgagee or superior lessor
which shall provide in substance that so long as no default exists hereunder
beyond any applicable grace period (if any), Tenant shall not be disturbed in
its possession of the Premises pursuant to the provisions of this Lease.
Tenant agrees to execute such non-disturbance agreements and return same to
Landlord within ten (10) days after Landlord's written request therefor. If
Tenant shall fail to so execute, acknowledge and return any of the foregoing
non-disturbance agreements, then this Lease shall be subordinate to such
existing or future superior mortgages or such existing or future superior
leases, as the case may be, notwithstanding the fact that Tenant has not
executed and delivered such non-disturbance agreement.
(c) Any lease to which this Lease is, at the time referred
to, subject and subordinate is herein called "superior lease" and the lessor of
a superior lease or its successor in interest, at the time referred to, is
herein called "superior lessor"; and any mortgage to which this Lease is, at
the time referred to, subject and subordinate is herein called "superior
mortgage" and the holder of a superior mortgage is herein called "superior
mortgagee". As of the date hereof, there are no superior leases affecting
the Real Property.
16. SECURITY DEPOSIT.
(a) Tenant shall deposit with Landlord on the signing of this
Lease the Security Deposit as defined in the Preamble for the full and faithful
performance of Tenant's obligations under this Lease, including, without
limitation, the surrender of possession of the Premises to Landlord as herein
provided. If Landlord applies any part of said Security Deposit to cure any
default of Tenant, Tenant shall, on demand, deposit with Landlord the amount so
applied so that Landlord shall have the full Security Deposit on hand at all
times during the Term. Landlord,in the event that the Demised Premises are sold,
shall transfer and deliver the Security Deposit, as such,to the purchaser of the
Demised Premises and shall notify Tenant thereof, and thereupon Landlord shall
be discharged from any further liability in reference thereto. The Security
Deposit (less any portions thereof used, applied or retained by Landlord in
accordance with the provisions of this Paragraph 16), which need not be placed
in any separate account of Landlord, shall be returned to Tenant, without
interest, within thirty (30) days after the expiration or sooner termination of
this Lease without the fault of Tenant and after delivery of the entire Premises
to Landlord in accordance with the provisions of this Lease. Tenant covenants
that it will not assign or encumber or attempt to assign or encumber the
Security Deposit and Landlord shall not be bound by any such assignment,
encumbrance or attempt thereof.
(b) Three (3) months prior to the Termination Date, the Landlord
will obtain an irrevocable letter of credit in favor of Tenant to secure its
obligation to return the Security Deposit as required under this Lease. In the
event the Landlord fails to do so, the Tenant shall have the right of setoff
equal to an amount not to exceed the Security Deposit against the payment of
Fixed Basic Rent and Additional Rent for the last three (3) months of the term
of this Lease.
In the event of the insolvency of Tenant, or in the event of
the entry of a bankruptcy judgment in any court against Tenant which is not
discharged within thirty (30) days after entry, or in the event a petition is
filed by or against Tenant under any chapter of the bankruptcy laws of the State
of New Jersey or the United States of America, then in such event, Landlord may
require Tenant to deposit additional security, to be held by Landlord pursuant
to the terms of this Lease, in an amount which in Landlord's sole judgment
reasonably exercised would be sufficient to adequately assure Tenant's
performance of all of its obligations under this Lease including all payments
subsequently accruing. Failure of Tenant to deposit the security required
by this Paragraph, within ten (10) days after Landlord's written demand, shall
constitute a material breach of this Lease by Tenant.
17. RIGHT TO CURE THE BREACHING PARTY'S BREACH. If any party
hereto breaches any covenant or condition of this Lease, the other party hereto
may (but shall not be obligated to), on reasonable notice to the breaching party
(except that no notice need be given in case of emergency), cure such breach at
the expense of the breaching party and the reasonable amount of all costs and
expenses (including, without limitation, reasonable attorneys' fees, disburse-
ments and costs), incurred by the curing party in so doing (whether paid by the
curing party or not) shall be deemed Additional Rent payable on demand.
18. MECHANIC'S LIENS. Tenant covenants not to suffer or permit any
mechanic's or materialmen's or other liens to be filed against Landlord's fee or
leasehold interest in the Building, Building Area or Demised Premises by reason
of work, labor, services or materials supplied or claimed to have been supplied
to Tenant or any contractor, subcontractor or any other party or person acting
at the request of Tenant or anyone holding the Demised Premises or any part
thereof or under the Tenant, and Tenant shall, within thirty (30) days after
receiving notice of the filing thereof, cause the same to be discharged of
record by payment, deposit, bond or Order of a Court of competent jurisdiction
or otherwise. Nothing in this Lease contained shall be deemed or construed in
any way as constituting consent by Landlord to the making of any alterations or
additions by Tenant for the purposes of N.J.S.A. 2A:44-68, et seq., or any
amendment thereof, or constituting a request by Landlord, express or implied, to
any contract, subcontract, labor or materialmen for the performance of any labor
or the furnishing of any materials for the use or benefit of the Landlord.
19. RIGHT TO INSPECT AND REPAIR. Landlord may enter the Demised
Premises but shall not be obligated to do so (except as required by any specific
provision of this Lease) at any reasonable time on reasonable notice to Tenant
(except that no notice need be given in case of emergency) for the purpose of
inspection or the making of such repairs, replacement or additions, in, to, on
and about the Premises or the Building, as well as for servicing, inspecting and
reading the check meter(s) installed therein, as Landlord deems necessary or
desirable. Tenant shall have no claims or cause of action against Landlord by
reason thereof. In no event shall Tenant have any claim against Landlord for
interruption to Tenant's business, however occurring, except for Landlord's
gross negligence, willful act or omission.
20. SERVICES PROVIDED BY LANDLORD. Subject to intervening laws,
ordinances, regulations and executive orders, while Tenant is not in default
under any of the provisions of this Lease, Landlord agrees to furnish, at
Tenant's sole cost and expense as more particularly set forth herein:
(a) The cleaning services as set forth on Exhibit D
annexed hereto and made a part hereof, subject to the
conditions therein stated. Tenant shall pay the cost
of all cleaning services required by Tenant as an Operating
Cost. If Tenant [using a standard of reasonableness] is
dissatisfied with Landlord's cleaning service, Tenant shall
notify Landlord in writing about such dissatisfaction setting
forth the reasons thereof. Landlord shall have a period of three
(3) months upon
receipt of said notice to satisfy Tenant's reasonable complaints.
In the event the cleaning service is still unsatisfactory, Tenant
shall have the option of designating a different cleaning
service, provided the cost to Landlord of such substituted
service is equal to or less than the prior service.
(b) Heating, ventilating and air conditioning (herein
"HVAC"), as appropriate for the season, together with Common
Facilities lighting and electric energy all during "Building
Hours," as hereinafter defined.
c) Cold and hot water for drinking and lavatory pur-
poses.
(d) Elevator service during Building Hours.
(e) Restroom supplies and exterior window cleaning when
reasonably required.
(f) Notwithstanding any requirements of this Lease,
Landlord shall not be liable for failure to furnish any of the
aforesaid services when such failure is due to Force Majeure,
as hereinafter defined. Landlord's liability for its failure
to furnish any service required to be furnished by it pursuant
to this Lease shall be as set forth in Paragraph 21. Landlord
shall not be liable, under any circumstances, except for
Landlord's gross negligence, willful act or omission, including,
but not limited to, that arising from the negligence of
Landlord, its agents, servants or invitees, or from defects,
errors or omissions in the construction or design of the
Demised Premises and/or the Building including the structural
and non-structural portions thereof, for loss of or injury to
Tenant or to property, however occurring, through or in
connection with or incidental to the furnishing of, or failure
to furnish, any of the aforesaid services or for any interrup-
tion to Tenant's business however occurring.
(g) Tenant acknowledges that it is currently the only
Tenant of the Building and that it will operate its business
on a twenty-four (24) hour basis, including Building Holidays.
Accordingly, and until such time as this ceases to be the case,
Tenant shall pay to Landlord as Additional Rent one hundred
(100%) percent of Landlord's cost of providing the following
services:
(i) cleaning services as set forth on Exhibit D;
(ii) all HVAC, lighting, electric, water, sewer,
and all other utilities;
(iii) all HVAC, lighting, electric, water, sewer,
and all other utilities during Building Holidays after
it ceases to be the only tenant;
(iv) all HVAC, lighting, electric, water, sewer and
all other utilities during all periods other than Building
Hours after it ceases to be the only tenant.
(h) Anything contained elsewhere in this Lease to the
contrary notwithstanding, until such time as the Building is
fully leased, Tenant's Percentage for the services set forth
in subparagraph (g) of this Paragraph, and for which it must
pay Additional Rent, shall be calculated and determined based
on its pro rata share of the square footage of the occupied
space in the Building.
21. INTERRUPTION OF SERVICES OR USE. Interruption or curtailment
of any service maintained in the Building or at the Building Area, if caused by
Force Majeure, as hereinafter defined, shall not entitle Tenant to any claim
against Landlord or to any abatement in Rent, and shall not constitute a
constructive or partial eviction, unless Landlord fails to take measures as may
be reasonable under the circumstances to restore the service without undue
delay. If the Premises are rendered untenantable in whole or in part, for a
period of ten (10) consecutive business days, by making of repairs,
replacements or additions, other than those made with Tenant's consent or
caused by misuse or neglect by Tenant, or Tenant's agents, servants, visitors
or licensees, there shall be a proportionate abatement of Rent from and after
said tenth (10th) consecutive business day and continuing for the period of
such untenantability. In no event shall Tenant be entitled to claim a
constructive eviction from the Premises unless Tenant shall first have
notified Landlord in writing of the condition or conditions giving rise
thereto, and, if the complaints be justified, unless Landlord shall have
failed, within a reasonable time after receipt of such notice, to remedy, or
commence and proceed with due diligence to remedy, such condition or
conditions, all subject to Force Majeure, as hereinafter defined.
22. BUILDING STANDARD ELECTRIC SERVICE.
(a) Landlord agrees to redistribute Building Standard Office
Electrical Service (as hereinafter defined) to the Premises consistent with the
requirements as set forth in this Lease (not exceeding the present electrical
capacity at the Premises" upon the following terms and conditions:
(i) Landlord shall, at Landlord's sole cost and
expense, install a check meter to measure all of the electric power being
consumed by Tenant on the First (1st) Floor of the Demised Premises inclusive of
HVAC service, and Tenant shall pay to Landlord the amount so consumed as
determined by said meter calculated at the rate structure then existing of the
utility company supplying electrical energy to the Building for Tenant's
consumption, as so measured. As to Tenant's consumption of electrical power and
HVAC on the Second (2nd) Floor of the Demised Premises, Tenant shall pay its pro
rata share, to wit: 54.05% of the cost thereof determined by a meter or meters
installed by the Landlord for the Second (2nd) Floor of the Building in the
manner heretofore set forth. The Landlord shall also install a check meter to
measure electric power inclusive of HVAC service for the common areas for which
Tenant shall pay its pro rata share and which shall be included in the amount of
Operating Costs to be paid to landlord by Tenant pursuant to the terms of
Paragraph 23(b). All of the foregoing shall be adjusted to reflect the Tenant's
24 hours access to the Building, as well as its use thereof during Building
Holidays as set forth in Paragraph 20(g). Said payments shall be due as
Additional Rent with the next installment of Fixed Basic Rent thereafter
becoming due. Notwithstanding the foregoing, Tenant shall have the option, at
its sole cost and expense, of installing its own direct electric meters, and if
necessary, reducting the HVAC system to measure its consumption of electric
power, inclusive of HVAC and contracting directly with the utility providing
same, in which event it shall not pay its pro rata cost of any such consumption
separately metered.
(ii) Landlord shall not be liable in any way to Tenant
for any loss, damage or expense which Lessee may sustain or incur as a result of
any failure, defect or change in the quantity or character of electrical energy
available for redistribution to the Premises pursuant to this paragraph, nor for
any interruption in the supply, and Tenant agrees that such supply may be
interrupted for inspection, repairs and replacement on reasonable notice and in
emergencies. In any event, the full measure of Landlord's liability for any
interruption in the supply due to Landlord's acts or omission shall be an
abatement of Fixed Basic Rent. In no event shall Landlord be liable for any
business interruption suffered by Tenant.
(iii) Landlord shall at a reasonable and competitive cost
to Tenant furnish and install all replacement lighting tubes, lamps ballasts and
bulbs required in the Premises.
(iv) Tenant shall make no alteration to the existing
electrical risers, wiring and other conductors or outlets without Landlord's
consent. Should Landlord consent, all such alterations shall be provided by
Landlord and the cost therefor paid for by Tenant upon demand as Additional
Rent.
(b) The "Building Standard Electric Service" shall, unless
otherwise provided by agreement in writing between the parties, be defined as
the provision by Landlord of electrical current for usual office requirements,
equipment and heating, ventilating and air-conditioning systems, all consistent
with the requirements of Exhibit C annexed hereto, from 8:00 a.m. to 6:00 p.m.
on every day, Monday through Friday, and on those Saturdays from 8:00 a.m. to
1:00 p.m. provided, with respect to Saturday service, Tenant shall notify and
request the same 48 hours in advance, but excluding those holidays set forth on
Exhibit E annexed hereto. In no event shall Building Standard Electric Service
include electrical current for any computer room installation, data processing
center, or for any requirements needing greater than a 15-amp line. All
installments of electrical fixtures, appliances and equipment within the Demised
Premises shall be subject to Landlord's prior written approval which approval
shall not be unreasonably withheld or unduly delayed. Nothing herein shall be
construed as conferring on Landlord the right or option to cut off electric
service to the Building outside of Building Hours, except in instances requiring
emergency or necessary repairs, it being intended that electrical service to the
elevators and Demised Premises shall be available on a twenty-four (24) hour
basis. Accordingly, the Standard defined herein is provided as a measure for the
allocation of costs of the electrical service only.
Tenant shall pay to Landlord in equal monthly installments,
as Additional Rent, in advance, the reasonable cost of electrical services
and energy in excess of the Standard referred to above, whether resulting from
the installation of additional fixtures, appliances or equipment with or without
Landlord's consent, or from use at times other than those set forth above.
Landlord shall have the right, but not the obligation, at any time, to conduct
an electrical survey of the Demised Premises to assist in the determination of
such electrical services and energy utilized by Tenant in excess of the Standard
referred to above for the purpose of calculating the Additional Rent due to
Landlord from Tenant for Tenant's use of electrical services and energy in
excess of the Standard referred to above. The provisions of this subparagraph
(b) shall only apply to the electric usage of Tenant in the Second (2nd) Floor
of the Demised Premises.
(c) In the event that the utility company that furnishes
electric energy to the Landlord, for supply to the Tenant, declines to continue
furnishing electric energy to Landlord for Building Standard Electric Service
not due to Landlord's nonpayment of electricity bills, Landlord reserves the
right to discontinue furnishing electric energy to Tenant at any time, upon
reasonable notice to Tenant, and from and after the effective date of such
termination, Landlord shall no longer be obligated to furnish Tenant with
electric energy, provided however, that such termination date may be extended
for a time reasonably necessary for Tenant to make arrangement to obtain
electric service directly from the public utility company servicing
the Building. If Landlord exercises such right of termination, this Lease
shall remain unaffected thereby and shall continue in full force and effect;
and thereafter Tenant shall diligently arrange to obtain electric service
directly from the utility company servicing the Building, and may utilize the
then existing electric feeders, risers and wiring serving the Demised Premises
to the extent available and safely capable to being used for such purpose and
only to the extent of Tenant's then authorized connected load. Landlord
shall not be obligated to pay any part of any cost required for Tenant's direct
electric service.
23. ADDITIONAL RENT.
A. 1. Tax Escalation. If the Real Estate Taxes for the
Building and Building Area at which the Demised Premises are located for any
Calendar Year or proportionate part thereof, during the Term, shall be greater
than the Base Real Estate Taxes (adjusted proportionately for periods less than
a Calendar Year), then Tenant shall pay to Landlord as Additional Rent, Tenant's
percentage of all such excess Real Estate Taxes. As used in this Paragraph
23(A), the words and terms which follow mean and include the following:
(i) "Base Real Estate Taxes" shall be as defined in the
Preamble.
(ii) "Real Estate Taxes" shall mean the property taxes
and assessments imposed upon the Building and Building Area, or upon
the Rent, as such, payable to Landlord, including, but not limited
to, real estate, city, county, village, school and transit taxes, or
taxes, assessments or charges levied, imposed or assessed against the
Building and Building Area by any other taxing authority, whether
general or specific, ordinary or extraordinary,foreseen or unforeseen.
Income, franchise, transfer, inheritance, corporate, mortgage
recording, capital stock taxes of Landlord, or penalties or interest
thereon, shall be deemed excluded from the term "real estate taxes"
for the purposes hereof. If, due to a future change in the method
of taxation, any franchise, income or profit tax shall be levied
against Landlord in substitution for, or in lieu of, or in addition
to, any tax which would otherwise constitute a Real Estate Tax, such
franchise, income or profit tax shall be deemed to be a Real Estate
Tax for the purposes hereof; conversely, any additional real estate
tax hereafter imposed in substitution for,or in lieu of any franchise,
income or profit tax (which is not in substitution for, or in
lieu of, or in addition to, a Real Estate Tax as hereinbefore
provided) shall not be deemed a Real Estate Tax for the purposes
hereof.
(2) Payment. At any time, and from time to time, after the
establishment of the Base Real Estate Taxes, Landlord shall advise Tenant in
writing of Tenant's pro rata share with respect to same as estimated for the
next twelve (12) month period (and for each succeeding twelve (12) month period
or proportionate part thereof if the last period prior to the Lease's
termination is less than twelve (12) months) as then known to Landlord, and
thereafter, Tenant shall pay as Additional Rent, Tenant's Percentage of these
costs for the then current period affected by such advice (as the same may be
periodically revised by Landlord as additional costs are incurred) in equal
Monthly Installments, such new rates being applied to any months for which the
Fixed Basic Rent shall have already been paid which are affected by the Tax
Escalation Costs above referred to, as well as the unexpired months of the
current period, the adjustment for the then expired months to be made at
the payment of the next succeeding monthly rental, all subject to final
adjustment at the expiration of each Calendar Year as defined in Subparagraph
(c) hereof (or proportionate part thereof, if the last period prior to the
Lease's termination is less than twelve (12) months).
(i) Tenant, shall have the right at its own cost and
expense, in good faith, to contest the levy of any such taxes, assessments or
liens or the validity or amount thereof, by appropriate legal proceedings which
shall not operate to prevent the collection of said taxes and assessments, and
the sale of the Premises or any part thereof to satisfy the same,and pending any
such legal proceedings, the Landlord shall have the right to pay, discharge or
remove the taxes, assessments or liens so contested. Any such proceeding for
contesting the validity of or to recover overpayment of any such real estate
taxes, assessments or liens may be brought by Tenant in the name of the Landlord
or in the name of the Tenant, or both,as may be necessary or proper or as Tenant
may deem advisable, provided that if any such proceeding be brought by Tenant,
it shall save the Landlord harmless against any and all loss, cost or expense of
any kind including legal fees that may be imposed upon Landlord or the Premises
in connection therewith. Any such proceedings for the contesting of the validity
of or to recover overpayment of any such real estate taxes, assessments, or
liens shall not relieve the Tenant of its obligation to pay the Escalation
Costs when due, as required under the terms of this Lease. Landlord shall give
notice to the Tenant within sixty (60) days from the date that Landlord
receives notice of any increase in the assessed value of or the taxes
imposed on the Premises or on the property of which the Premises forms a part.
(ii) If Landlord shall receive a refund for any Tax Year
in which a Tax Payment shall have been made by Tenant, Landlord shall repay to
Tenant, Tenant's Proportionate Share of such refund after deducting therefrom
the costs and expenses incurred by Landlord and which have not been borne by
Tenant for its cost of obtaining such refund. If Landlord shall effect a
reduction in assessed valuation thus reducing the amount of taxes which would
otherwise be payable by Tenant hereunder, Tenant shall pay, within twenty
(20) days after demand, to Lessor, Tenant's share of the costs and expenses
of obtaining such reduction of assessed value (less any amounts paid or applied
upon receipt of refund), which demand shall set forth a breakdown of such
costs and expenses.
Notwithstanding anything herein contained to the
contrary, in the event the last period prior to the Lease's termination is less
than twelve (12) months, the Base Real Estate Taxes during said period shall be
proportionately reduced to correspond to the duration of said final period.
B. OPERATING COSTS.
(a) It is expressly agreed that Tenant will pay in addition
to Fixed Basic Rent provided in Paragraph 3 above, Additional Rent for all of
Landlord's costs of operating and maintaining the Building so that the Fixed
Basic Rent shall be absolutely net to Landlord, except as otherwise specifically
set forth in this Lease. Tenant shall pay to Landlord, as Additional Rent,
Tenant's Percentage, as defined in the Preamble of all operating and maintenance
costs incurred by Landlord for the Building and Office Building area for any
Calendar Year (or proportionate part thereof if the Lease was not in effect
during the entire Calendar Year ("Operating Costs Payment") Operating costs
shall include, by way of illustration and not of limitation: personal property
taxes; management fees at an initial rate of $40,000.00 with reasonable yearly
increases thereafter of five (5%) percent; labor, including all wages and
salaries; fringe benefits; social security taxes, and other taxes which may be
levied against Landlord upon such wages and salaries; supplies; repairs and
cleaning services, maintenance for structural and non-structural repairs whether
ordinary or extraordinary; maintenance and service contracts; the cost of all
HVAC, electric, water, sewer, gas and other utilities for the Building, common
facilities and common areas not otherwise billed to Tenant, but not including
utility and energy costs for which any other tenant is to pay separately
pursuant to a check meter or other measuring device; painting; wall and window
washing; laundry and towel service; tools and equipment; fire and other
insurance, trash removal, repair, maintenance and replacement of roofs, parking
area, curbs and walkways; snow removal; public amenities; and all other items
properly constituting direct operating costs according to standard accounting
practices, provided that the contract price charged to Landlord for all of the
above shall be at commercially reasonable prices usually charged for similar
buildings in similar locations (hereinafter collectively referred to as the
"Operating Costs"), but not including, brokerage commissions, leasing
commissions, finder's fees, space planner fees and other similar type fees,
salaries and fringe benefits for Landlord's executives above the rank of
building manager; costs of repairs or replacements incurred by reason of
fire or other casualty or condemnation; costs for constructing a tenant
installation for any individual tenant at the Building, or amounts contributed
to any such tenant in lieu thereof, or any other tenant allowances granted
as an inducement to enter into a lease; amounts received by Landlord through
proceeds of insurance or by any manufacturer's warranty to the extent the
proceeds are compensation for expenses which were previously included
in Operating Costs hereunder; advertising and promotional expenditures; costs
incurred or any specific compensation Landlord receives in performing work or
funishing services for any new or existing tenant in the Building;rent and other
charges payable in connection with any ground or underlying lease; amounts paid
to affiliates of Landlord in excess of the amounts that would have been paid
absent such relationship; costs of any special services rendered to a tenant of
the Building which is not rendered generally to tenants therein; interest or
penalties for late payments by Landlord; refinancing costs; legal, appraisal and
auditing fees and court costs in connection with leasing space in the Building
or in connection with proceedings or applications to reduce real estate tax
assessments; all expenses for which Landlord has received reimbursement and any
fines or penalties imposed by legal authorities having jurisdiction thereof by
reason of such existing violations; rent payable with respect to any leasing
office; management fees in excess of those referred to herein; costs incurred in
operating the parking facilities for the Building except to the extent the cost
of operating the parking facilities exceeds the revenues generated from
operating the parking facilities; and costs incurred to test, survey, cleanup,
contain, xxxxx, remove, or otherwise remedy hazardous waste or
asbestos-containing materials from the Property unless the waste or
asbestos-containing materials were in or on the Property because of Tenant's
negligence or willful acts or omissions; depreciation of Building; interest,
points and fees on debt or amortization on any mortgage or mortgages
encumbering the Building and/or the land on which the Building is situated;
income or excess profits taxes; costs of maintaining Landlord's corporate
existence; franchise taxes; and expenditures required to be capitalized for
federal income tax purposes, inclusive of renovations to and replacement of
the Building and equipment, (which expenditures shall be amortized over their
useful life in accordance with generally accepted accounting principles,
consistently applied, and such amortization shall be included as an
Operating Cost expense), unless said expenditures are for the purpose of
reducing Operating Costs within the Building and Building Area or are required
under any governmental law, ordinance or regulation, in which event the costs
thereof shall be included.
(b) Commencing as of the Commencement Date, Tenant shall pay
its Tenant's Percentage of the Operating Costs. Tenant shall make estimated
payments on account of Tenant's Percentage of these Operating Costs in monthly
installments in advance on the first (1st) day of each month, equal to
One-Twelfty (1/12th) of Tenant's Percentage of the Landlord's expenditures for
Operating Costs for the Calendar Year or part thereof immediately preceding the
year in which to be made. Monthly payments in the first full or partial Calendar
Year commencing with the Commencement Date shall be TEN THOUSAND AND 00/100
($10,000.00) DOLLARS. If Tenant's estimated payments on account of a full or
partial year exceeds the actual amount of Tenant's Percentage of Operating Costs
for such period, Tenant shall be entitled to offset the excess against the
estimated payments on account of Tenant's Percentage of Operating Costs next to
become due Landlord. If Tenant's actual amount of Tenant's Percentage of
Operating Costs exceed Tenant's estimated payments on account for a full or
partial year, Tenant shall pay Landlord the deficiency for such period within
thirty (30) days after receipt of the annual statement described below.
C. Calendar Year. As used in this Paragraph 23, and throughout
this Lease, Calendar Year shall mean the twelve (12) month period commencing
January 1 and ending December 31. Once the Base Real Estate Taxes are
established, in the event any lease period is less than a Calendar Year, then
the Base Real Estate Taxes shall be adjusted to equal the proportion that said
Lease period bears to the Calendar Year, and Tenant shall pay to Landlord as
Additional Rent for such period, an amount equal to Tenant's Percentage of the
Excess for said period over the adjusted base with respect to same.
D. Books and Records. For the protection of Tenant, Landlord
shall maintain books of account which shall be open to Tenant and its
representatives at all reasonable times so that Tenant can determine that
such Operating and Tax Costs have, in fact, been paid or incurred. Any
disagreement with respect to any one or more of said charges if not
satisfactorily settled between Landlord and Tenant shall be referred by either
party to an independent Certified Public Accountant to be mutually agreed upon,
and if such an accountant cannot be agreed upon, the American Arbitration
Association in Newark, New Jersey shall be asked by either party to select
an arbitrator, whose decision on the dispute will be final and binding upon
both parties, who shall jointly share any cost of such arbitration. Pending
resolution of said dispute, Tenant shall pay to Landlord the sum so billed by
Landlord subject to its ultimate resolution as aforesaid.
E. Right of Review. Once Landlord shall have finally determined
said Operating or Tax Costs at the expiration of a Calendar Year, then as to
the item so established, Tenant shall only be entitled to dispute said charge
as finally established, or review the records therefor, for a period of
nine (9) months after such charge is finally established, and Tenant
specifically waives any right to dispute any such charge, or review the
records therefor, at the expiration of said nine (9) month period.
24. TENANT'S ESTOPPEL. Tenant shall from time to time, within ten
(10) days of receipt of a request from Landlord, execute, acknowledge and
deliver to Landlord, or to anyone Landlord shall designate, without charge to
Landlord, a written statement of Tenant certifying that (i) the Lease is
unmodified and in full force and effect, or that the Lease is in full force
and effect as modified and listing the instruments of modification; (ii) the
dates to which the rents and charges have been paid; (iii) that Tenant has
not discharged or used and does not discharge or use any hazardous or toxic
substance or waste at the Premises or Building Area; and (iv) whether or not,
to the best of Tenant's knowledge, Landlord is in default hereunder, and if
so, specifying the nature of the default, and as to any other matters as may
reasonably be so requested. It is intended that any such statement delivered
pursuant to this Paragraph 24 may be relied upon by a prospective purchaser
of Landlord's interest or mortgagee of Landlord's interest or assignee of any
mortgage of Landlord's interest.
25. HOLDOVER TENANCY. If Tenant holds possession of the Premises
after the Term, Tenant shall become a tenant from month to month under the
provisions herein provided, at a monthly basic rental of double the rate charged
herein for Fixed Basic Rent as provided for pursuant to N.J.S.A. 2A:42-6 it
being agreed that "yearly rate", as used in that Statute, shall be equal to
the Fixed Basic Rent of the last Lease Year of the Term, and without the
requirement for demand or notice by Landlord to Tenant demanding delivery of
said Premises for which this Lease and all relevant provisions shall be
deemed sufficient written demand (but Additional Rent shall continue as
provided in this Lease), which sum shall be payable in advance on the first
day of each month, and such tenancy shall continue until terminated by
Landlord, or until Tenant shall have given to Landlord, at least sixty (60)
days prior to the intended date of termination, a written notice of intent to
terminate such tenancy, which termination date must be as of the end of a
calendar month. The provisions of this Paragraph do not exclude the Landlord's
rights of re-entry and shall not be deemed or construed as a waiver by
Landlord of any other rights or remedies granted to Landlord under the terms
of this Lease or as available at law.
26. RIGHT TO SHOW PREMISES. Landlord may show the Premises to
prospective purchasers and mortgagees at any time, upon reasonable prior notice
to Tenant, and Landlord shall have the right to place upon the Premises a
suitable "For Sale" sign. During the twelve (12) months prior to Termination
Date, of this Lease, Landlord may show the Premises to prospective tenants,
during business hours on reasonable notice to Tenant and may place the usual "to
let" signs thereon, provided same do not obstruct any window.
27. LANDLORD'S WORK - TENANT'S WORK.
CREDIT FOR TENANT'S BUILDOUT
(a) Landlord agrees that, at Landlord's expense, prior to the
commencement of the Term, it will do substantially all of the work in the
Demised Premises in accordance with Exhibit C annexed hereto and made a part
hereof ("Landlord's Work"), otherwise Landlord shall have no obligation to
perform any other "Landlord's Work" in the Demised Premises, and Tenant
specifically agrees that it will accept the Demised Premises in its "as
is" condition.
(b) Tenant shall be responsible for all other work in the
Demised Premises including Tenant's buildout. Provided Tenant is not in default
of this Lease, Landlord shall pay Tenant, up to two (2) years after the
Commencement Date, the sum of EIGHT HUNDRED THOUSAND and 00/100 ($800,000.00)
DOLLARS towards said buildout on the following additional terms and conditions:
(i) upon receiving paid invoices for Tenant's completed
buildout in the minimum amount of $200,000, Landlord shall pay Tenant
the sum of $200,000 on June 30, 1997;
(ii) upon receiving paid invoices for Tenant's completed
buildout in the minimum amount of an additional $100,000, Landlord
shall pay Tenant the sum of $100,000 on July 31, 1997;
(iii) upon receiving paid invoices for Tenant's completed
buildout in the minimum amount of an additional $100,000, Landlord
shall pay Tenant the sum of $100,000 on August 30, 1997;
(iv) upon receiving paid invoices for Tenant's completed
buildout in the minimum amount of an additional $200,000, Landlord
shall pay Tenant the sum of $200,000 on September 30, 1997;
(v) upon receiving paid invoices for Tenant's completed
buildout in the mimimun amount of an additional $200,000, Landlord
shall pay Tenant the sum of $200,000 on December 31, 1997.
(vi) For the purposes of this paragraph, Tenant's completed
buildout shall include all work to complete the Demised Premises to
Tenant's specifications, inclusive of alarm systems, computer cabling
and data line, and the upgrading of UPS and the generator and the
installation of additional UPS, generator and supplemental HVAC plus
a ten (10%) percent add-on factor for architectural and soft costs,
but excluding Tenant's telephone and furniture, which have been
actually installed in the Demised Premises. In the event Tenant does
not expend the sum of $800,000 for Tenant's buildout within two (2)
years of the Commencement Date, Tenant shall receive a rent credit
from Landlord for the sum not expended or $50,000, whichever is less.
Tenant shall have the right to receive said rent credit prior to the
aforesaid two (2) year period upon written notification by Tenant to
the Landlord that Tenant's Buildout is completed. Upon payment by
the Landlord of the aforesaid rent credit, Landlord shall have no
further obligation under this Paragraph to make any additional
payment towards Tenant's Buildout.
(vii) Anything contained herein to the contrary notwithstanding,
Landlord, at its sole and exclusive option, may make the above
payments directly to Tenant's contractors subject to verification by
Tenant as to the amount due such contractor. In the event Landlord
fails to make any of the aforesaid payments, Tenant shall have the
right of setoff against rent payable hereunder. In the event paid
invoices equal less than any installment Landlord is required to pay
hereunder, Landlord shall pay Tenant only the amount of the invoice
required to be paid pursuant to the terms of this Paragraph, but any
unpaid amount shall be paid with the next installment subject to the
Landlord's receiving corresponding invoices for Tenant's completed
Buildout for same.
(c) Lease Commencement shall occur when Landlord has
substantially completed all the work to be done by Landlord in accordance with
Exhibit C (except for so-called "punch list" items of unfinished work, if any,
which shall be completed by Landlord not more than sixty (60) days after Lease
Commencement), unless Landlord has been precluded from completing said work as
a result of Tenant's acts or omissions. In no event shall Tenant's obligation
to pay Fixed Basic Rent and Additional Rent, other than utilities, commence
prior to October 1, 1997
(d) Landlord and Tenant agree and acknowledge that but for
Tenant's Work and Tenant's Buildout, the Landlord and the Building would be
exempt from ADA requirements. Anything contained herein to the contrary
notwithstanding, and except as specifically set forth in Exhibit "C", the Tenant
shall be liable for any additions, alterations or revisions of the Demised
Premises,and Building bathrooms,in order to make same ADA compliant, and the
Tenant hereby holds the Landlord harmless and indemnifies it from any and all
liabilities, lawsuits, judgments, fines or penalties emanating from any ADA
requirement imposed upon the Landlord.
28. WAIVER OF TRIAL BY JURY. It is mutually agreed by and between
Landlord and Tenant that the respective parties hereto shall and they hereby do
waive trial by jury in any action or proceeding brought by either of the parties
hereto against the other on any matter whatsoever arising out of or in any way
connected with this Lease, the relationship of Landlord and Tenant, Tenant's use
or occupancy of the Demised Premises, and/or any claim of injury or damage, and
any emergency statute or any other statutory remedy. Should Landlord seek
recourse to equity to enforce any of its rights under this Lease, Tenant agrees
to waive any defense which it might otherwise have that Landlord has an adequate
remedy at law. Tenant agrees that it shall not interpose any counterclaim or
set-off in a summary proceeding or in any action based, in whole or in part, on
nonpayment of Rent, without, however, waiving any such claim or set-off or
precluding its right to assert such claim or set-off in any separate action.
29. LATE CHARGE/HABITUAL LATE PAYER.
(a) Anything in this Lease to the contrary notwithstanding,
at Landlord's option, Tenant shall pay a "Late Charge" of eight percent (8%) of
any installment of Rent paid more than five (5) days after the due date thereof,
to cover the extra expense involved in handling delinquent payments. The amount
of the Late Charge to be paid by Tenant shall be reassessed and added to
Tenant's obligations for each successive monthly period until paid.
(b) Should Tenant pay Rent later than five (5) days after the
due date more than once within a four (4) month period or more than twice within
a Lease Year, Tenant shall be deemed an Habitual Late Payer.
30. TENANT'S INSURANCE.
(a) Tenant covenants to provide, on or before the Commencement
Date, a comprehensive policy of general liability insurance naming Landlord
as an additional named insured, insuring Tenant and Landlord against any
liability commonly insured against and occasioned by accident resulting from any
act or omission on or about the Premises and any appurtenances thereto. Such
policy is to be written by an insurance company qualified to do business in the
State of New Jersey reasonably satisfactory to Landlord. The policy shall be
with limits not less than Three Million ($3,000,000.00) Dollars in respect of
any one person, in respect of any one accident, and in respect of property
damage. Said limits shall be subject to periodic review, and Landlord reserves
the right to increase said coverage limits if, in the reasonable opinion of
Landlord, said coverage becomes inadequate and is less than that commonly
maintained by tenants in similar buildings in the area by tenants making
similar uses. Said policy shall contain a provision for ten (10) days written
notice by certified or
registered mail, return receipt requested, to Landlord of any change or
modification of said policy. At least ten (10) days prior to the expiration
or termination date of any policy, Tenant shall deliver a renewal or
replacement policy with proof of the payment of the premium therefor.
(b) Tenant covenants and represents, said representation
being specifically designed to induce Landlord to execute this Lease, that
Tenant's personal property and fixtures and any other items which Tenant may
bring to the Premises which may be subject to any claim for damages or
destruction due to Landlord's negligence shall be fully insured by a policy of
insurance covering all risks with no deductible which policy shall specifically
provide for a waiver of subrogation for Landlord and all Building tenants
without regard to whether or not same shall cost an additional premium and
notwithstanding anything to the contrary contained in this Lease. Should
Tenant fail to maintain said all risk insurance with the required waiver of
subrogation, or fail to maintain the liability insurance, naming Landlord as
an additional named insured, then Tenant shall be in default hereunder and
shall be deemed to have breached its covenants as set forth herein.
31. COMPLETE AGREEMENT. This Lease constitutes the complete
agreement and understanding between the parties hereto with respect to the
matters set forth herein, and supersedes and terminates any and all prior
negotiations or understandings between the parties hereto. No alteration,
amendment or modification of any of the terms and provisions of this Lease shall
be valid unless made pursuant to an instrument in writing signed by each of the
parties hereto. No representations or promises shall be binding on the parties
hereto except those representations and promises contained herein or in some
future writing signed by the party making such representation(s) or promise(s).
The parties do not intend to confer any benefit hereunder on any person, firm,
corporation or other entity, other than the parties hereto.
32. QUIET ENJOYMENT. Landlord covenants that if, and so long as,
Tenant pays the Rent as herein provided, and performs the covenants hereof,
Landlord shall do nothing to affect Tenant's right to peaceably and quietly
have, hold and enjoy the Premises for the Term, subject to the provisions of
this Lease.
33. INDEMNITY. Tenant shall indemnify and save harmless Landlord
and its agents from (a) any and all claims (i) arising from (x) the conduct or
management by Tenant, its subtenants, licensees, its or their employees, agents,
contractors or invitees on the Demised Premises or of any business therein, or
(y) any work or thing whatsoever done, or any condition created (other than by
Landlord for Landlord's account) in or about the Demised Premises during the
Term, or during the period of time, if any, prior to the Commencement Date that
Tenant may have been given access to the Demised Premises, or (ii) arising from
any negligent or otherwise wrongful act or omission of Tenant or any of its
subtenants or licensees or its or their employees, agents, contractors or in-
vitees, and (b) all costs, expenses and liabilities incurred in or in connection
with each such claim or action or proceeding brought thereon. In case any action
or proceeding be brought against Landlord by reason of any such claim, Tenant,
upon notice from Landlord, shall resist and defend such action or proceeding.
(a) For the purposes of this Lease, "Hazardous Material" means and
includes any hazardous, toxic or dangerous waste, substance or material
(including without limitation all dental, medical and pharmaceutical waste or
so-called red-bag waste) defined as such in (or for the purposes of) the
Comprehensive Environmental Response, Compensation, and Liability Act, any
so-called "Superfund" or "Superlien" law, or other Federal, State or Local
Statute, law, ordinance, code, rule, regulation, order, decree or other
requirement or any Governmental Authority relating to, or imposing liability
or standards of conduct concerning, any hazardous, toxic or dangerous waste,
substance or material, as now or at any time hereinafter may be in effect as
same may be amended.
(b) Tenant shall comply with any and all laws, regulations, or
orders with respect to the discharge and removal of Hazardous Material, shall
pay immediately when due the costs of removal of any such Hazardous Material,
and shall keep the Demised Premises, the Building, and the Building Area free
of any lien imposed pursuant to such laws, regulations or orders. If Tenant
fails to do so, then, after notice to Tenant and the expiration of the earlier
of (i) applicable cure periods hereunder, or (ii) the cure period permitted
under applicable law, regulation, or order, Landlord may either declare this
Lease to be in default or cause the Demised Premises, the Building and the
Building Area to be freed from the Hazardous Material with the cost of the
removal to be paid by Tenant as Additional Rent. Upon Tenant's failure
to do so, Tenant shall give Landlord and its agents and employees access
to the Demised Premises, and Landlord shall have the right, but not the
obligation, to remove such Hazardous Material. Tenant further agrees not
to release or dispose of any Hazardous Material at the Demised Premises, the
Building, or the Building Area except as permitted under all applicable laws,
regulations and conditions. Landlord shall have the right at any time to
conduct an environmental audit of the Demised Premises, the Building and the
Building Area and Tenant shall cooperate in the conduct of any such
environmental audit. Tenant shall defend, indemnify and save Landlord
harmless from and against any and all loss, cost, damage and expenses
(including all attorney's fees and costs) asserted or proven against
Landlord as a result of any claim in connection with such Hazardous Material.
The foregoing indemnification is in addition to any other indemnification
contained herein and shall survive any termination or expiration of the Lease.
Notwithstanding the foregoing, Tenant shall not be responsible for compliance
with any laws as the relate to pre-existing conditions.
(c) Tenant shall not install or permit to be installed in the
Demised Premises, the Building or the Building Area friable asbestos or any
substance containing asbestos or any other material deemed to be hazardous by
Federal, State or Local regulations respecting such material (hereinafter
collectively referred to as "Asbestos"), and shall promptly,at Tenant's expense,
either (i) remove any material which such regulations deem hazardous and require
to be removed or (ii) otherwise comply with such Federal, State or Local
regulations. If Tenant shall fail to so remove or otherwise comply,Landlord may
declare this Lease to be in default and/or do whatever is necessary to eliminate
said substance from the Demised Premises, the Building, or the Building Area or
otherwise comply with the applicable law, regulation, or order and the costs
thereof shall be paid by Tenant as Additional Rent. Upon Tenant's failure to do
so, Tenant shall give Landlord and its agents and employees access to the
Demised Premises and Landlord shall have the right, but not the obligation,
to remove such Asbestos. Tenant shall defend, indemnify and save Landlord
harmless from and against any and all loss, cost, damage and expenses
(including all attorney's fees and costs) asserted or proven against Landlord
as a result of any claim in connection with such Asbestos. The foregoing
indemnification is in addition to any other indemnification contained herein
and shall survive any termination or expiration of the Lease.
(d) In addition to any other indemnification contained herein,
Tenant hereby agrees to indemnify Landlord (and its successors and assigns) and
hold Landlord (and its successors and assigns) harmless from and against any and
all claims, demands, losses, costs, damages, liabilities, fines, penalties,
charges, administrative and judicial proceedings and orders, judgments, remedial
action requirements, enforcement actions of any kind, and all costs and expenses
of any and every kind and nature whatsoever (including, but not limited to,
reasonable attorney's fees and expenses, whether at trial level or on appeal)
which Landlord shall or may, at any time, sustain or incur by reason of, in
connection with, arising from it otherwise relating to any one of the following
(collectively, the "Conditions"):
(i) any breach of the representations and warranties or
covenants set forth, respectively, in subparagraphs (b) and (c) of
this Paragraph 33, or
(ii) The presence on or under the Demised Premises, Building
Area of any asbestos or Hazardous Material which is caused by Tenant,
its employees, agents, contractors or subcontractors;
(iii) any activity carried on or undertaken on or off the
Demised Premises, prior to or during the term of the Lease, by Tenant
or any employees, agents, contractors or subcontractors of Tenant or
any third persons occupying or present on the Demised Premises, the
Building, or the Building Area in connection with the handling,
treatment, removal, storage, decontamination, cleanup, transport or
disposal of any Hazardous Materials at any time located or present
on or under the Demised Premises, the Building, or the Building Area,
or
(iv) the presence of Asbestos in the Demised Premises or any
activity carried on or undertaken in the Demised Premises in
connection with the elimination and removal of Asbestos from the
Demised Premises or to otherwise comply with applicable laws,
regulations or orders concerning Asbestos in the Demised Premises
caused by Tenant, its employees, agents, contractors or
subcontractors;, or
(v) the filing of any lien by or on behalf of any New Jersey
regulatory authority relating to the existence or removal of any
Hazardous Material related to the Demised Premises, the Building, or
the Building Area caused by Tenant, its employees, agents, contractors
or subcontractors;, or
(vi) the failure of Tenant to comply in all respects with all
of the provisions of any and all Federal, State and Local statute,
law, ordinance, code, rule, regulations, order, decree or other
Governmental Authority regulating, relating to or imposing liability
or standards of conduct concerning any Hazardous Material. The
foregoing indemnity shall further apply to any residual contamination
on or under the Demised Premises, the Building, or the Building Area,
or affecting any natural resources, and to any contamination of any
property or natural resources arising in connection with the
generation, use handling, storage, transport or disposal of such
Hazardous Materials and Asbestos, and irrespective of whether any
such activities were or will be undertaken in accordance with
applicable laws, regulations, codes or ordinances.
(e) The Tenant agrees to pay, reimburse or make whole any loss that
Landlord may suffer as a result of the occurrence of any of the Conditions as
and when such amounts are incurred by Landlord.
(f) The liability of Tenant under this Paragraph 33 shall in no way
be limited, impaired or otherwise affected by any amendment or modification of
the provisions of this Lease.
(g) Tenant further covenants and agrees to pay all fees and
expenses, including reasonable attorney's fees and expenses and court costs,
which may be incurred by Landlord, its successors or assigns, in enforcing any
of the terms of provisions of this Paragraph 33, in addition to all other
amounts due hereunder.
(h) The indemnification and other covenants and terms contained in
this Paragraph 33 shall survive in perpetuity, notwithstanding any termination
or expiration of the Lease.
34. PARAGRAPH HEADINGS. The paragraph headings in this Lease and
position of its provisions are intended for convenience only and shall not be
taken into consideration in any construction or interpretation of this Lease or
any of its provisions.
35. APPLICABILITY TO HEIRS AND ASSIGNS. The provisions of this
Lease shall apply to, bind and inure to the benefit of Landlord and Tenant and
their respective heirs, successors, legal representatives and assigns. It is
understood that the term "Landlord" as used in this Lease means only the owner,
a mortgagee in possession or a term lessee of the Building, so that in the event
of any sale of the Building or of any lease thereof or if a mortgagee shall take
possession of the Premises, Landlord named herein shall be and hereby is
entirely freed and relieved of all covenants and obligations of Landlord
hereunder accruing thereafter, and it shall be deemed without further agreement
that the purchaser, the term lessee of the Building, or the mortgagee in
possession has assumed and agreed to carry out any and all covenants and
obligations of Landlord hereunder and Tenant shall upon receipt of notice from
the owner of the reversion attorn thereto.
36. PARKING SPACES. Tenant's occupancy of the Demised Premises
shall include the use of those Assigned and Unassigned parking spaces as
enumerated in the Preamble. Tenant shall, upon request, promptly furnish to
Landlord the license numbers of the cars operated by Tenant and its subtenants,
licensees, invitees, concessionaires, officers and employees. If any vehicle of
Tenant, or of any subtenant, licensee, concessionaire, or of their respective
officers, agents or employees, is parked in any part of the Common Facilities
other than the employee parking area(s) designated therefor by Landlord, Tenant
shall pay to Landlord such penalty as may be fixed by Landlord from time to
time. All amounts due under the provisions of this Paragraph shall be deemed
to be Additional Rent. Landlord reserves the right to substitute assigned
parking spaces reasonably similar to the ones initially occupied by Tenant at
any time and from time to time during the Term as may be reasonably required by
Landlord.
37. LANDLORD'S LIABILITY FOR LOSS OF PROPERTY. Landlord shall not
be liable for any loss of property from any cause whatsoever, including, but not
limited to, theft or burglary, fire and other casualty, from the Demised
Premises, and any such loss arising from the negligence of Landlord, its agents,
servants or invitees, or from defects, errors or omissions in the construction
or design of the Demised Premises and/or the Building including the structural
and non-structural portions thereof, and Tenant covenants and agrees to make no
claim for any such loss at any time, except Landlord shall be liable for its
gross negligence, willful acts or omission..
38. PARTIAL INVALIDITY/GOVERNING LAW. If any provisions of this
Lease, or the application thereof to any person or circumstances, shall to any
extent be invalid or unenforceable, the remainder of this Lease, or the
application of such provision or provisions to persons or circumstances other
than those as to whom or which it is held invalid or unenforceable, shall not
be affected thereby, and every provision of this Lease shall be valid and
enforceable to the fullest extent permitted by law. This Lease agreement shall
be governed by and construed in accordance with the laws of the State of
New Jersey.
39. BROKER. Each party represents and warrants to the other
that the Broker, as defined in the Preamble, is the sole broker with whom they
have negotiated in bringing about this Lease, and each party agrees to indemnify
and hold the other and Landlord's mortgagee(s) harmless from any and all claims
of other brokers and expenses in connection therewith arising out of or in
connection with the negotiation of or the entering into this Lease by Landlord
and Tenant claiming a relationship with the non-disclosing party. In no event
shall Landlord's mortgagee(s) have any obligation to any broker involved in
this transaction. Landlord shall pay the Broker's commission pursuant to a
separate agreement; the Broker shall not be deemed a third-party beneficiary of
this provision. In the event that no broker was involved as aforesaid, then
each party represents and warrants to the other that no broker brought about
this transaction, and each party agrees to indemnify and hold the other
harmless from any and all claims of any broker arising out of or in connection
with the negotiations of or the entering into of this Lease by Tenant and
Landlord and to that end shall indemnify each other for all loss, costs or
damage including reasonable attorney's fees arising therefrom.
40. PERSONAL LIABILITY.
(a) Notwithstanding anything to the contrary provided in this
Lease, it is specifically understood and agreed, such agreement being a primary
consideration for the execution of this Lease by Landlord, its constituent
members (to include, but not be limited to, officers, directors, partners and
trustees), their respective successors, assigns or any mortgagee in possession
(for purposes of this Paragraph, collectively referred to as "Landlord"), with
respect to any of the terms, covenants and conditions of this Lease, Tenant
shall look solely to the equity of Landlord in the Building for the
satisfaction of each and every remedy of Tenant in the event of any breach by
Landlord of any of the terms, covenants and conditions of this Lease to be
performed by Landlord, such exculpation of liability to be absolute and
without exceptions whatsoever.
(b) With respect to any provision of this Lease which
provides that Tenant shall obtain Landlord's prior consent or approval,
Landlord may withhold such consent or approval for any reason at its sole
discretion, unless the provision specifically states that the consent or
approval will not be unreasonably withheld. Should Landlord unreasonably
withhold its consent, Tenant's sole remedy shall be Tenant's right to seek
specific performance and no money damages shall be sought or allowed.
41. NO OPTION. The submission of this Lease for examination does
not constitute a reservation of, or option for, the Premises, and this Lease
becomes effective only upon execution and delivery thereof by Landlord and
Tenant.
42. DEFINITIONS.
(a) "Affiliate". Affiliate shall mean any corporation
related to Tenant as a parent, subsidiary or brother-sister corporation so that
such corporation and such party or such corporation and such party and other
corporations constitute a controlled group as determined under Section 1563 of
the Internal Revenue Code of 1986, as amended and as elaborated by the Treasury
Regulations promulgated thereunder or any business entity in which Tenant has
more than a fifty percent (50%) interest.
(b) "Building Hours". As used in this Lease, Building Hours
shall be Monday through Friday, 8:00 a.m. to 6:00 p.m., and Saturdays from 8:00
a.m. to 1:00 p.m., excluding those holidays as set forth on Exhibit E annexed
hereto and made a part hereof, except that Common Facilities lighting in the
Building and Building Area shall be maintained for such additional hours as, in
Landlord's sole judgment, is necessary or desirable to insure proper operation
of the Building and Building Area. Notwithstanding the foregoing, Tenant has the
right to operate its business subject to all federal, state and local law in the
Building 24 hours a day, 365 days a year, provided it reimburses the Landlord as
Additional Rent for all costs incurred by Landlord for providing such access,
including, but not limited to, HVAC, water, sewer, gas, electric and other
utilities by providing said access.
(c) "Common Facilities". Common Facilities shall mean the
parking areas; lobby; elevator(s); fire stairs; public hallways; public
lavatories; all other general Building facilities that service all Building
tenants, including, without limitation intended, air conditioning rooms; fan
rooms;janitors' closets; electrical closets; boiler rooms; telephone closets;
elevator shafts and machine rooms; flues; stacks; pipe shafts; and vertical
ducts with their enclosing walls. Landlord may at any time close temporarily
any of the Common Facilities to make repairs or changes therein or to effect
construction, repairs or changes within the Building, or to discourage
non-tenant parking, and may do such other acts in and to the Common Facilities
as in its judgment, reasonably exercised, may be desirable to improve the
convenience thereof, but Landlord will use its best efforts so not to cause
any interruption that will materially harm Tenant's business.
(d) "Force Majeure". Force Majeure shall mean and include
those situations beyond Landlord's control, including by way of example and not
by way of limitation, acts of God; accidents; repairs; strikes; shortages of
labor, supplies or materials; inclement weather; or, where applicable, the
passage of time while waiting for an adjustment of insurance proceeds.
(e) "Tenant's Percentage". The parties agree that Tenant's
Percentage, as defined and stipulated in the Preamble, reflects the ratio of the
gross square feet of the area rented to Tenant (including an allocable share of
all Common Facilities) as compared with the total number of gross square feet of
the entire Building measured outside wall to outside wall but excluding
therefrom any storage areas. Landlord shall have the right to make changes or
revisions in the Common Facilities of the Building so as to provide additional
leasing area so long as same does not deprive the Tenant of the use of the
Premises. Landlord shall also have the right to construct additional buildings
in the Building Area for such purposes as Landlord may deem appropriate and
subdivide the lands for that purpose if necessary. Tenant's Percentage shall
be adjusted accordingly, it being understood that Tenant's Percentage is
currently based upon the Building having 67,000 square feet.
(f) "Lease Year". Lease Year shall mean the twelve (12)
month period commencing on the Commencement Date, and each twelve (12) month
period thereafter.
43. LEASE COMMENCEMENT.
(a) Notwithstanding anything contained herein to the
contrary, if Landlord, for any reason whatsoever not in Landlord's control and
excluding an inability to deliver possession of the Premises to the Tenant
because they might be otherwise occupied, except as provided for in Paragraph
27(b), cannot deliver possession of the Premises as provided for in Paragraph
27(a) to Tenant at the commencement of the Term as set forth in Paragraph 2,this
Lease shall not be void or voidable, nor shall Landlord be liable to Tenant for
any loss or damage resulting therefrom, but in that event, the Term shall be for
the full term as specified above to commence from and after the date Landlord
shall have delivered possession of the Premises to Tenant or from the date
Landlord would have delivered possession of the Premises to Tenant but for
Tenant's acts or omissions(herein the "Commencement Date") and to terminate on
the Termination Date, and if requested by Landlord, Landlord and Tenant shall,
by a writing signed by the parties, ratify and confirm said commencement and
termination dates.
(b) Immediately following execution of this Lease, the Tenant
shall have access to the Premises for the sole purpose of completing its work.
Such access shall be subject to all of the terms and conditions of this Lease,
excluding the Tenants obligation to pay Fixed Basic Rent and Additional Rent
other than the payment of all utilities for which the Tenant shall be 100%
liable.
44. NOTICES. Any notice, demand, consent, approval, request and
any instrument or document ("Notice") by this Lease required to be given or
served upon or by either party to the other shall be in writing and shall be
deemed to have been duly given only if delivered personally or sent by
registered or certified mail, return receipt requested, in a postpaid envelope
addressed, if to Tenant, at the Building (except, prior to the Commencement
Date, at Tenant's address set forth above); if to Landlord, at Landlord's
address as set forth above; or, to either at such other address as Tenant or
Landlord, respectively, may designate in writing. Notice shall be deemed to
have been duly given, if delivered personally, on delivery thereof, and if
mailed, upon the second (2nd) business day after the mailing thereof.
45. ACCORD AND SATISFACTION. No payment by Tenant or receipt by
Landlord of a lesser amount than the Rent payable hereunder shall be deemed to
be other than a payment on account of the earliest stipulated Rent, nor shall
any endorsement or statement on any check or any letter accompanying any check
or payment for Rent be deemed an accord and satisfaction, and Landlord may
accept such check or payment without prejudice to Landlord's right to recover
the balance of such Rent or pursue any other remedy provided herein or by law.
46. EFFECT OF WAIVERS. No failure by Landlord to insist upon the
strict performance of any covenant, agreement, term or condition of this Lease,
or to exercise any right or remedy consequent upon a breach thereof, and no
acceptance of full or partial rent during the continuance of any such breach,
shall constitute a waiver of any such breach or of such covenant, agreement,
term or condition. No consent or waiver, express or implied, by Landlord to
or of any breach of any covenant, condition or duty of Tenant shall be
construed as a consent or waiver to or of any other breach of the same or
any other covenant, condition or duty, unless in writing signed by Landlord.
47. LEASE CONDITION.
(a) This Lease is expressly conditioned upon Landlord
receiving the consent and approval of Landlord's mortgagee to its terms and
provisions and executing the subordination, non-disturbance and attornment
agreements in favor of Tenant as set forth in Paragraph 15 of this Lease, not
later than thirty (30) days after its execution and delivery by both parties.
(b) This lease is further conditioned upon the Tenant
receiving approval from the New Jersey Economic Development Authority on its
pending application for financial assistance on or before July 15, 1997. In the
event said approval is not forthcoming, this lease shall be rendered null and
void and shall have no further effect, except that the Landlord shall be
entitled to retain the full amount of the Security Deposit heretofore tendered
by the Tenant.
48. MORTGAGEE'S NOTICE AND OPPORTUNITY TO CURE. Tenant agrees to
give any mortgagees and/or trust deed holders, by registered or certified mail,
a copy of any notice of default served upon Landlord, provided that, prior to
such notice, Tenant has been notified in writing (by way of notice of assignment
of rents and leases or otherwise) of the address of such mortgagees and/or trust
deed holders. Tenant further agrees that, if Landlord shall have failed to cure
such default within the time provided for in this Lease, then the mortgagees
and/or trust deed holders shall have an additional thirty (30) days within which
to cure such default, or if such default cannot be cured within that time, then
such additional time as may be necessary, if within such thirty (30) days, any
mortgagee and/or trust deed holder has commenced and is diligently pursuing the
remedies necessary to cure such default (including, but not limited to,
commencement of foreclosure proceedings if necessary to effect such cure), in
which event this Lease shall not be terminated while such remedies are being
so diligently pursued.
49. LANDLORD'S RESERVED RIGHT. Landlord and Tenant acknowledge
that the Premises are in a Building which is not open to the general public.
Access to the Building is restricted to Landlord, Tenant, their agents,
employees, and contractors and to their invited visitors. In the event of
a labor dispute, including a strike, picketing, informational or associational
activities directed at Tenant or any other tenant, Landlord reserves the
right unilaterally to alter Tenant's ingress and egress to the Building or
make any other change in operating conditions to restrict pedestrian,
vehicular or delivery ingress and egress to a particular location.
50. CORPORATE/PARTNERSHIP AUTHORITY.
(a) If Tenant is a corporation, Tenant represents and
warrants that this Lease, and the undersigned's execution of this Lease, has
been duly authorized and approved by the board of directors. The undersigned
officers and representatives of the corporation executing this Lease on behalf
of the corporation represent and warrant that they are officers of the
corporation with authority to execute this Lease on behalf of the corporation,
and, within ten (10) days of execution hereof, Tenant will provide Landlord
with a corporate resolution confirming the aforesaid.
(b) If Tenant is a partnership, Tenant shall deliver to
Landlord, at the time of execution of this Lease, a duly executed Consent of
Partners confirming the authority of the General Partner(s) to execute this
Lease, together with a certified copy of the filed Certificate of Partnership.
51. RECORDING. Tenant covenants that it will not place this Lease
on record without the prior written consent of Landlord.
52. NUMBER AND GENDER. The terms "Landlord" and "Tenant" wherever
used herein shall be applicable to one or more persons, as the case may be, and
the singular shall include the plural and neuter shall include the masculine
and/or feminine, and if there be more than one, the obligations hereof shall be
joint and several.
53. MISCELLANEOUS.
(a) If, in connection with obtaining financing for the
Building, a bank, insurance company or other recognized institutional Lender
shall request reasonable modifications in this Lease as a condition to such
financing, Tenant hereby consents to said modifications provided that such
modifications do not materially increase the obligations of Tenant hereunder, or
materially decrease the obligations of Landlord hereunder. Furthermore, Tenant
agrees to furnish to Landlord, upon request, or to any mortgagee or proposed
mortgagee of the Building, copies of Tenant's latest financial statement duly
certified by an independent Certified Public Accountant, or if no such certified
statement is available, then such statement shall be certified by the Managing
Partner or Chief Financial Officer of Tenant.
(b) No sign, advertisement or notice shall be affixed to or
placed upon any part of the Demised Premises by Tenant, except in such manner,
and of such size, design and color as shall be approved in writing in advance by
Landlord which approval Landlord shall not unreasonably withhold. Subject to the
foregoing and notwithstanding anything set forth in Exhibit B to the contrary,
Landlord hereby grants the Tenant the right, at its sole cost and expense, to
place its name on the Building on an exclusive basis. As to all other signs,
both interior and exterior, Landlord shall have the right to place the names of
other tenants of the Building along with Tenant's name. .
(c) This Lease shall be construed without regard to any
presumption or other rule requiring construction against the party causing this
Lease to be drafted, since the respective parties have been afforded an
opportunity to submit revisions to the text hereof.
54. ADDITIONAL SERVICES. Notwithstanding anything to the contrary
contained in Paragraph 20 of this Lease Agreement or elsewhere herein, Tenant
hereby covenants and agrees to compensate Landlord for any additional services
provided to Tenant by Landlord which services are in addition to those services
to which Tenant is entitled pursuant to Paragraph 20 of this Lease Agreement.
Tenant shall compensate Landlord pursuant to a rate schedule to be provided for
by Landlord's managing agent, which rate schedule may be amended from time to
time in the sole discretion of Landlord or Landlord's managing agent. Said
monthly charges shall be due and payable when rendered, said charges to be
treated for all purposes under the Lease as Additional Rent.
55. ATTORNEY'S FEES. Tenant agrees that it shall be liable for
reasonable attorneys' fees and, if necessary, costs of suit incurred by the
Landlord in enforcing the provisions of this Lease, and agrees to pay the
Landlord for same within ten (10) days of written demand therefor, and same
shall be deemed Additional Rent.
56. OPTION.
(a) Providing Tenant is not in default of its obligations
during the term of this Lease, Tenant shall be entitled to extend the term of
this Lease for one (1) successive extension period of five (5) years to
commence upon the day following the Termination Date and the Annual Fixed
Basic Rent shall be the greater of ninety-five (95%) percent of Fair Market
Value as defined below, or $948,750.00 per annum.
(b) Fair Market Value shall be determined by mutual agreement
between Landlord and Tenant. However, if Landlord and Tenant cannot agree on
the Fair Market Value for the extension period at least ninety (90) days prior
to the beginning of the applicable extension period, then Fair Market Value
shall be determined by an MAI appraiser selected by mutual agreement of
Landlord and Tenant (and the cost of which shall be shared equally). If
Landlord and Tenant cannot agree on an appraiser, Fair Market Value shall be
determined by two (2) MAI appraisers, one selected by Landlord and one selected
by Tenant. The appraisers shall determine Fair Market Value based upon the
then Fair Market Value for comparable buildings in Leonia, New Jersey. If the
two (2) MAI appraisers cannot agree on the Fair Market Value, the two (2)
MAI appraisers shall select a third MAI appraiser, or if they are unable to
agree upon the third MAI appraiser, then application shall be made to the
Assignment Judge of Bergen County, New Jersey, for the selection of the third
MAI appraiser, who shall make the determination of Fair Market Value. Landlord
shall pay for its appraiser, and Tenant shall pay for its appraiser, and the
third appraiser shall be paid by Landlord and Tenant jointly and equally.
(c) If Tenant elects to exercise its Option to extend the
term of this Lease, it shall do so by notifying Landlord, in writing, certified
mail, return receipt requested, not more than fifteen (15) months and not less
than twelve (12) months before the Termination Date. If the Tenant fails to so
notify Landlord, its rights to the Option shall terminate and be null and void
and of no further effect.
57. CHANGE OF USE APPROVAL AND
CERTIFICATE OF OCCUPANCY.
(a) It shall be the obligation of the Tenant to obtain a
certificate of occupancy which may be required pursuant to local law.
(b) As soon as possible after execution of this Lease by both
parties, Tenant, at its sole cost and expense, agrees to make immediate bona
fide efforts to obtain the requisite change of use or occupancy approval from
the Planning Board of the Borough of Leonia so as to allow Tenant's use and/or
occupancy of the Demised Premises. In the event Tenant is unable to obtain said
approval despite having made good faith efforts to do so on or before September
1, 1997,, either Landlord or Tenant, upon notice to the other, has the right to
terminate this Lease. In that event all monies paid by Tenant to Landlord for
Rent or Additional Rent shall be returned forthwith. Subject to the foregoing,
in the event Tenant has not obtained such approval by July 15, 1997, the
Commencement Date and the Termination Date shall be extended for the number of
days after July 15, 1997 it takes for the Tenant to receive such approval.
58. USE OF EXISTING COMPUTER EQUIPMENT AND SYSTEMS.
Provided Tenant is not in default of this Lease, Tenant shall
have the right to use all existing computer equipment and systems located within
the Demised Premises. Landlord makes no representation to Tenant in respect to
such equipment and systems and Tenant agrees to accept them in their "as is"
condition. Tenant shall be responsible for all maintenance, repairs and
replacement of such equipment and systems at its sole cost and expense.
59. RIGHT OF FIRST REFUSAL.
(A) As of the Commencement Date and for the Term hereof,
Tenant shall have the right of first refusal to lease additional space in the
Building which is or hereafter shall become vacant (the "Vacant Space"). In the
event Landlord receives a bona fide offer to lease any Vacant Space, Landlord
shall forward to Tenant a written letter setting forth the proposed tenant for
the Vacant Space, all economic terms offered, the term of the proposed lease and
the propsed commencement date of the term of the proposed lease (the "Notice").
Within seven (7) business days of Tenant's receipt of the Notice, Tenant shall
advise Landlord in writing if Tenant wishes to lease the Vacant Space.
(B) In the event Tenant exercises its option to lease any
Vacant Space, this Lease shall be modified in writing to reflect that the Vacant
Space shall be added to and become part of the Demised Premises. Such written
modification shall contain, among other things, the following terms and
conditions:
(i) The Vacant Space shall be leased to tenant in its
"as is" condition and Landlord shall not be obligated to make
any repairs or modifications to the Vacant Space prior to
Tenant's taking occupancy except if the Notice contains
provisions for Landlord's Work in the Vacant Space or a work
allowance or any other obligation Landlord agreed to do in such
bona fide offer.
(ii) The Fixed Basic Rent for the Vacant Space shall be
the same as set forth in the Notice.
(iii) The Commencement Date for the Vacant Space shall
be the Commencement Date of the term set forth in the Notice.
(iv) The Termination Date for Tenant's occupancy of the
Vacant Space shall be the same as the Termination Date of this
Lease.
(C) In the event Tenant either fails to advise Landlord in
writing if Tenant wishes to lease the Vacant Space within seven (7) business
days of Tenant's receipt of the Notice or fails to enter into a Lease
Modification Agreement within fourteen (14) days of advising Landlord that
Tenant wishes to lease the Vacant Space, the right of first refusal contained
herein shall become null and void and of no further effect.
60. SATELLITE DISHES, MICROWAVE TRANSMITTERS.
(A) Landlord consents to the installation and maintenance by
Tenant, at Tenant's sole cost and expense, of one (1) satellite dish, microwave
mast (with antenna) or electronic sending device (hereinafter the
"Installations" on the roof of the Building, and to the repair, upgrading
and/or replacement (including, without limitation, substitution of equipment)
of the Installations provided that Tenant shall comply with the provisions
of subparagraph (B) hereof. No additional Installations shall be installed by
Tenant in, on or about the Building without the prior written consent of
Landlord in each and every instance. All Installations shall conform, at
Tenant's sole cost and expense, to all applicable governmental laws, rules,
codes and regulations either now existing or hereafter amended, enacted or
codified.
(B) Tenant shall, at Tenant's sole cost and expense, erect and
maintain a raised walkway from the roof entrance to and around the Installations
(so as to permit access to the dishes, masts and antennas), so as to preserve
and protect the roof membrane and shall extend such walkway in the future to
similarly accommodate any additional Installations as may be reasonably required
because of anticipated substantial pedestrian traffic in connection with the
additional Installations (the parties acknowledge that if any post installation
pedestrian traffic is likely to be only sporadic or occasional, rather than
frequent, and not likely to damage the roof of the Building, that the cost of
extending the walkway may not be justified and, therefore,would not be required;
but further acknowledge that, to the extent Landlord in its sole discretion so
requires, if one (1) or more additional Installations installed are not
reachable by the then existing walkway, an extension of the walkway to each
such additional Installations will be made by Tenant).
(C) Tenant shall give reasonable prior notice to Landlord, which
may be by telephone to Landlord or Landlord's management office at the Building
or to the Building maintenance personnel, except in cases of emergency (in which
case such notice will be given as soon as reasonably practicable following
commencement of the activity), for any access to the roof which may be required
or desirable by Tenant for installations, replacements, repairs of other actions
concerning any of Tenant's Installations that involve a substantial amount of
activity. Notice of routine inspection, maintenance and repair is not required.
(D) Any additional Installations installed by Tenant on the roof
of the Building:
(i) shall not exceed a load factor of 30 pounds per square
foot or shall be placed on load bearing beams and columns only (with
a load factor that would not overburden those beams or columns); and
(ii) if, and to the extent necessary to maintain the integrity
of the roof, shall be mounted on a superstructure with appropriate
pitch pockets installed at all points necessary to maintain the
integrity of the roof of the Building.
(E) Tenant hereby agrees to indemnify and save Landlord harmless
from and against any and all loss, costs, damage, claims, or other liability
whatsoever arising out of damage to (i) any person or persons, (ii) the property
of Landlord or Landlord's other tenants at the Building as a result of Tenant's
(or its agents', servants' or employees') use of the roof of the Building or
Tenant's maintenance of Installations thereon of additional Installations
thereon, whether or not such use of the roof of the building was consented to by
landlord. The preceding obligation extends to the payment of any insurance
premiums for any insurance that may be maintained by or for the benefit of
Landlord.
(F) Tenant hereby covenants and agrees that it will, at its sole
cost and expense, remove all of its walkways and Installations and other devices
or installations of any nature whatsoever, if any, from the roof of the Building
and return the roof of the Building to its original, sound condition prior to
the original installation by Tenant or Landlord of any of Tenant's
Installations and other devices or installations of any nature whatsoever, if
any, at such time, it at all, as Tenant should vacate the Building pursuant to
the terms of this Lease Agreement or otherwise, reasonable wear and tear
excepted.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands
and seals as of the day and year first above written.
ATTEST LEONIA ASSOCIATES, L.L.C
By: Jeffco Holding, Ltd.
a NJ Corporation, Manager
By /s/ XXXXXXX X. XXXX
Xxxxxxx X. Xxxx, President
COMPUTER OUTSOURCING SERVICES, INC.
a New York Corporation
By /s/ XXXXXX XXXXXXX
Xxxxxx Xxxxxxx, President
EXHIBIT A
FLOOR PLAN
FIRST FLOOR
EXHIBIT A
FLOOR PLAN
SECOND FLOOR
EXHIBIT B
1. OBSTRUCTION OF PASSAGEWAYS
The sidewalks entrances, passages, courts, elevators,
vestibules, stairways, corridors and public parts of the Building shall not be
obstructed or encumbered by Tenant or used by Tenant for any purpose other than
ingress and egress.
2. PROJECTIONS FROM THE BUILDING
No equipment or other fixtures shall be attached to the outside
walls or the window xxxxx of the Building or otherwise affixed so as to project
from the Building, without the prior written consent of the Landlord not to be
unreasonably withheld or delayed.
3. SIGNS
No signs or lettering shall be affixed by Tenant to any part of the
outside of the Premises or any part of the inside of the Premises so as to be
clearly visible from the outside of the Premises without the prior written
consent of Landlord not to be unreasonably withheld or delayed. Landlord shall
place Tenant's name on the primary entry door to the Premises and on the
directory in the lobby of the Building, in conformance with Building standards.
Tenant shall not have the right to have additional names placed on the lobby
directory without Landlord's prior written consent not to be unreasonably
withheld or delayed.
4. WINDOWS
Windows in the Premises shall not be covered or obstructed by
Tenant. No bottles, parcels or other articles shall be placed on the window
xxxxx, in the halls, or in any other part of the Building other than the
Premises.
5. FLOOR COVERINGS
Tenant shall not lay linoleum or other similar floor covering
so that the same shall come in direct contact with the floor of the Premises.
If linoleum or other similar floor covering is desired to be used, an
interlining of builder's deadening felt first shall be fixed to the floor by
a paste or other material that may be easily removed with water, the use of
cement or other similar material being expressly prohibited.
6. INTERFERENCE WITH OCCUPANTS OF THE BUILDING
Tenant shall not make or permit to be made, any unseemly or
disturbing noises and shall not interfere with other tenants or those having
business with them. Canvassing, soliciting and peddling in the Building is
prohibited and Tenant shall cooperate to prevent the same.
7. LOCKS AND KEYS
No additional locks or bolts of any kind shall be placed on any
of the doors by Tenant. Tenant shall, in the termination of Tenant's tenancy,
deliver to Landlord all keys to any space within the Building, either furnished
to or otherwise procured by Tenant.
8. MOVEMENT OF FREIGHT, FURNITURE OR BULKY MATTER
The carrying in or out of freight, furniture or bulky matter
of any description must take place during such hours as Landlord may from time
to time reasonably determine and only after advance notice to Landlord. The
persons employed by Tenant for such work must be reasonably acceptable to
Landlord. Tenant may, subject to such provisions, move freight, furniture,
bulky matter, and other material into or out of the Premises on Saturdays
between the hours of 9:00 a.m. and 1:00 p.m., provided Tenant pays
additional costs, if any, incurred by Landlord for elevator operators or
security guards and for other expenses occasioned by such activity of Tenant
[but during the initial move-in of Tenant, there shall be no such additional
costs]. If, Landlord so requests, Tenant shall deposit with Landlord, as
security for Tenant's obligations to pay such additional costs, a sum which
Landlord reasonably estimates to be the amount of such costs. All damage
done to the Building by taking in or out such freight or furniture or any
damage done to the Building while any of said property shall be therein, shall
be made good and paid for by Tenant on demand. There shall not be used in
any space, nor in the public halls of the Building, either by Tenant, or by
jobbers or by others in the delivery or receipt of merchandise, any hand
trucks, except those with rubber tire and side guards.
9. SAFES AND OTHER HEAVY EQUIPMENT
Landlord reserves the right to prescribe the weight and
position of all safes and other heavy equipment so as to distribute properly
the weight thereof and to prevent any unsafe condition from arising. Business
machines and other equipment shall be placed and maintained by Tenant at
Tenant's expense in settings sufficient in Landlord's reasonable judgment to
absorb and prevent unreasonable vibration, noises and annoyance.
10. NON-OBSERVANCE OR VIOLATION OF RULES BY OTHER TENANTS
Landlord reserves the right to rescind, alter or waive any rule
or regulation at any time prescribed for the Building, and no alteration or
waiver of any rule or regulation in favor of one tenant shall operate as an
alteration or waiver in favor of any other tenant. Landlord shall not be
responsible to Tenant for the non-observance or violation of any of these rules
and regulations by any other tenant.
11. AFTER HOURS USE
Landlord reserves the right to exclude from the Building
between the hours of 6:00 p.m. and 8:00 a.m., and at all hours on Saturdays,
Sundays and Building Holidays, all persona who do not present a pass to the
Building signed by Tenant. Tenant shall be responsible for all persons for whom
such a pass is issued and shall be liable to Landlord for the acts of such
person(s).
12. PLUMBING FACILITIES USE
Tenant shall not use the Building's plumbing facilities for any
purpose other than that for which they were constructed and will not permit any
foreign substance of any kind to be thrown therein; the expense of repairing any
breakage, seepage or damage, no matter where occurring, resulting from a
violation of this provision by Tenant or Tenant's servants, employees, agents,
invitees or licensees shall be borne by Tenant. Wasteful and excessive or
unusual use or misuse of Building standard electrical service, water, sewer or
other utilities is prohibited.
13. VEHICLES
No bicycles, mopeds, motorcycles or other vehicles of any kind
shall be brought into or kept in, on or about the Premises, Building or Building
area, except in those locations specifically designated by Landlord for same.
14. ANIMALS
No animal of any kind shall be brought into or kept in, on or
about the Premises, Building or Building area.
15. LANDLORD'S RIGHTS
Landlord hereby reserves it itself any and all rights not
granted to Tenant hereunder, including, but not limited to, the following rights
which are reserved to Landlord for its purposes in operating the Building and
Building area.
(a) the right to change the name of the Building at any time and
from time to time without incurring any liability to Tenant for
so doing;
(b) the right to install and maintain a sign or signs on the
exterior of the Building and/or anywhere in the Building area;
(c) the exclusive right to use or dispose of the use of all or part
of the roof of the Building and Building area, except as
otherwise specifically set forth in this Lease; and
(d) the right to grant anyone the right to conduct any particular
business or undertaking in the Building or Building area.
16. MOVING
Moving in or out of the building must be coordinated with
Landlord. In the discretion of Landlord, reasonably exercised, moving may be
required to be done under supervision of management's personnel. No furniture
will be moved in the Building's elevators without the permission of Landlord and
until necessary pads have been installed.
17. SERVICES
No Tenant shall obtain or accept for use in its premises ice,
drinking water, food, beverages, towels, barbering, boot blacking, floor
polishing, lighting maintenance, cleaning or other similar services from any
person not authorized by Landlord in writing to furnish such services. Such
services shall be furnished only at such hours, in such places within the
Tenant's premises and under such regulations as may be fixed by Landlord.
18. DELIVERIES
Landlord shall have the right to require that all messengers
and other persons delivering packages, papers and other materials to Tenant (i)
be directed to deliver such packages, papers and other materials to a person
designated by landlord who will distribute the same to Tenant, or (ii) be
escorted by a person designated by landlord to deliver the same to Tenant.
EXHIBIT C
1. Renovate Lobby with new paint and wall covering;
2. Stripe and seal parking lot including visitors' spaces and
reserved parking;
3. Plant ten (10) trees along the south side of the parking lot,
subject to municipal approvals.
4. Employ best efforts with the appropriate municipal, county or
administrative agency to cause the roadway leading to the
Building to be paved with asphalt or blacktop. The foregoing
shall not be a condition precedent to the completion of
Landlord's Work and shall not delay the Commencement Date in
any manner.
5. Replace existing sinks and vanities in the downstairs men's
room and lower the urinal in the upstairs and downstairs men's
room. The Tenant specifically agrees and acknowledges that the
Landlord shall not have any further liability in respect to
making the Building ADA compliant.
Notwithstanding anything contained herein or in the Lease Agreement to the
contrary, Landlord shall have no obligation to perform any work for Tenant in
connection with the preparation of the space for the Tenant's occupancy other
than as is specifically set forth above.
INITIALS
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EXHIBIT D
CLEANING SERVICES
NIGHTLY CLEANING SERVICES: (Daily)
Common Areas
- Vacuum, dust and sweep flooring as appropriate;
- Sweep all stairways;
- Wipe drinking fountains;
- Clean cigarette and garbage urns and replace sand or water as
necessary; and
- Remove wastepaper and waste materials to garbage dumpster as
necessary
Demised Premises
- Empty and clean ashtrays as necessary; and
- Empty wastebaskets and garbage receptacles as necessary.
The Nightly Cleaning Services will apply to the entire
premises, including all office space, entrance lobbies, public corridors,
elevator cabs, stairways and public lavatories.
WEEKLY CLEANING SERVICES: (Weekly)
Common Areas
- Spot clean carpeting as necessary;
- Clean scuff marks from wall coverings as necessary;
- Clean elevator openings and door tracks as necessary;
- Clean and polish directories as necessary; and
- Dust common area doors and clean fingerprints and smudges as
necessary.
Demised Premises
- Dust furniture, fixtures, desk equipment, telephones and window
xxxxx, baseboards, chair rails, trim and doors within reach as
necessary;
- Vacuum carpeted areas and rugs as necessary; and
- Clean public corridor entrance as necessary.
OCCASIONAL SERVICE: (Quarterly)
Common Areas
- Damp mop tile flooring as necessary;
- Dust exterior of lighting fixtures and vents as necessary;
- Shampoo public corridors and lobby carpeting as necessary;
- Clean interior walls of elevator cabs as necessary;
- Damp mop all stairways and landings as necessary;
- Sweep outside all building entry ways as necessary; and
- Remove debris outside all entrances.
Demised Premises
- Dust picture frames, pictures and similar wall hangings not
reached in Nightly Cleaning Service;
- Dust exterior of lighting fixtures and venetian blinds; and
- Dust surfaces not reached in Weekly Cleaning Services such as
ventilating louvers, glass partition frames, etc.
COMMON RESTROOM AREAS
Daily
- Sweep and sanitize floors as necessary;
- Wash and polish mirrors and powder shelves, bright work as
necessary;
- Clean and sanitize commodes, toilet seats, sinks and urinals
as necessary;
- Clean and polish all dispensers, doors and trash receptacles
as necessary;
- Dust partitions;
- Clean all countertops as necessary;
- Empty and clean sanitary disposal receptacles as necessary;
- Remove wastepaper and refuse as necessary;
- Fill toilet tissue, soap, towel and feminine napkin dispenser,
if any, with supplies as necessary.
Monthly
- Wash partitions, tile walls and enamel surfaces as necessary;
- "High" dust wall and ceilings as necessary;
- Dust exterior of lighting fixtures as necessary; and
- Polish all stainless steel and chrome fixtures as necessary.
ENTRANCE LOBBIES AND PUBLIC AREAS, AS REQUIRED
- Sweep and wash flooring and vacuum carpeting as necessary;
- Clean cigarette and garbage receptacles as necessary;
- Clean elevator cabs, both entry and exterior as necessary;
- Clean and polish all metal and wood surfaces as necessary;
- Clean stairways, office and utility room doors as necessary;
- Clean loading dock and receiving areas as necessary;
- Remove paper and debris around exterior of building as necessary;
- Clean interior side of exterior windows, glass and partition
surfaces as necessary, but at least two (2) times yearly;
- Clean and polish all directories as necessary;
- Clean scuff marks from corridor walls and doors as necessary;
- Clean all corridor, stairway, vestibule, mechanical room and
lobby light fixture covers and reflectors as necessary; and
- Clean and remove paper and debris from all mechanical rooms as
necessary.
OUTSIDE SERVICE, AS REQUIRED
- Sweep driveways, curbs and parking areas as necessary
- Sweep and clean sidewalks, steps and ramps as necessary;
- Remove snow from driveways, sidewalks, steps, ramps and parking
areas as necessary; and
- Clean all parking areas and exterior windows as necessary, but
at least two (2) time yearly.
Initials
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EXHIBIT E
BUILDING HOLIDAYS
Building Holidays shall be as follows:
1. Memorial Day
2. Independence Day
3. Labor Day
4. Thanksgiving Day and the day after
5. Christmas Day
6. New Year's Day
7. Monday before or Friday after, if July 4th falls on a Tuesday or
Thursday
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Initials
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