Document:

exhibit101.htm

Exhibit 10.1

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”) is made and entered into by and between Patco Electronics, Inc., a Florida corporation (the “Employer”), a wholly-owned subsidiary of Technology Research Corporation,
a Florida corporation (“TRC”), and Roger M. Boatman, an individual resident of the State of Florida (the “Employee”).

 

BACKGROUND INFORMATION

 

Employee has certain skills, experience and abilities that are valuable to the success of Employer’s operations and future profitability.  Employer desires to retain and employ the services of Employee as a full-time employee in the position of President and Employee desires
to work for and be employed by Employer in such position.  In consideration of the foregoing premises and of the mutual covenants and undertakings contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties to this Agreement agree as follows:

 

OPERATIVE PROVISIONS

1. Term.  Unless earlier terminated as herein provided, the Employee’s employment with the Employer
shall commence on the date that this Agreement is entered into (the “Effective Date”) and shall continue for a period of thirty-six (36) months thereafter.  The initial term of this Agreement may be extended for additional one year periods on the anniversary date of the Effective Date thereafter by written agreement executed by Employer and Employee.

 

2. Duties.  During the term of this Agreement, the Employee shall perform such duties as may be designated by the Board of
Directors of Employer or the Board’s authorized designee.  In carrying out his responsibilities under this Agreement, Employee shall be required to report to an executive officer of TRC, as determined by the Board of Directors of Employer.  During such period, the Employee shall devote full attention, time and energies to the business and affairs of the Employer.  Employer agrees to comply with all applicable policies and procedures of Employer and TRC, as well as applicable
laws in performing his duties for the Employer.  Employee agrees that he will perform his duties on behalf of the Employer from TRC’s main office located in Clearwater, Florida.

 

3. Compensation.  Subject to the provisions of  Section 5 of this Agreement, Employee will be paid an annual base
salary of $120,000 (inclusive of any amounts subject to federal or state employment related withholding requirements).  Employer shall withhold from Employee’s salary all applicable federal, state and locate income and other payroll taxes.  Employee’s base salary will be payable in arrears in equal semi-monthly payments on the 15th and 30th day
of each month or otherwise as the parties may agree.  For purposes of this Agreement, Employer shall be considered a “salary exempt employee”.

 

4. Benefits.  During the term of this Agreement, Employee will receive all fringe benefits enjoyed by other employees of Employer
including, but not limited to, family health insurance, term life insurance, disability insurance, vacation, holiday, sick and other leave policies that may be in effect from time to time to the extent the Employee and his dependents are eligible for participation under the terms of such plans.

 

In addition, Employer agrees to be responsible for the co-pay requirements for Employee under Employer’s group health insurance policy, consistent with Employer’s employment and benefits policies for its salaried employees, as amended from time to time.  Employer shall
also be entitled to receive three weeks of annual vacation for each year of employment completed with Employer, to be taken at such times as mutually agreed upon by Employer and Employee.

 

5. Termination of Employment.

 

a. Death of the Employee.  The employment period shall terminate immediately and automatically upon the death of the Employee;
provided, however, that Employer shall pay to the estate of Employee the salary compensation which would otherwise be payable to Employee for up to thirty (30) days after Employee’s date of death.  After the payment described in the immediately preceding sentence, Employer shall have no further financial obligation to Employee or to his estate pursuant to this Agreement.

 

b. Termination by the Employer.  The Employer may terminate the employment period (i) immediately upon the delivery of a Notice
of Termination (as defined in Section 5.d. of this Agreement) by the Employer to the Employee setting forth the facts that indicate that a determination has been made that the Employee has a “disability”, as defined in Section 5.e. of this Agreement; (ii) immediately upon delivery of a Notice of Termination by the Employer to the Employee setting forth the facts that indicate that an event constituting “cause” (as defined in Section 5.f. of this Agreement) has occurred, or on such later
date as may be set forth in such Notice of Termination; or (iii) at any time without “cause” effective as of the 30th day following the delivery of a Notice of Termination by the Employer to the Employee, or on such later date as may be set forth in such Notice of Termination.

 

c. Termination by the Employee.  The Employee may terminate the employment period (i) immediately upon delivery of a Notice
of Termination by the Employee to the Employer setting forth facts that indicate that an event constituting “good reason” (as defined in Section 5.g. of this Agreement) has occurred within the thirty (30) days immediately prior to the date of delivery of such Notice of Termination, or (ii) at any time without “good reason” effective as of the 30th day following the delivery of a Notice of Termination by the Employee to the Employer, or on such later date as may be set forth in such Notice
of Termination.

 

d. Notice of Termination.  For purposes of this Agreement, a “Notice
of Termination” shall mean a written notice (delivered in accordance with Section 9) that indicates the specific termination provision in this Agreement upon which the party intending to terminate the employment period is relying and sets forth in reasonable detail the facts and circumstances that provide a basis for termination of the employment period under such termination provision.

 

e. Definition of “Disability”.  For purposes of this Agreement, the Employee will be deemed to have a “Disability”
under any of the following conditions: (i) the Employee is unable to render and perform substantially and continuously the Employee’s duties and services as required by this Agreement by reason of any medically determinable physical or mental condition that is expected to result in death or can be expected to last for a continuous period of not less than sixty (60) days or for ninety (90) days or more in any twelve-month period; (ii) the Employee is determined to be disabled in accordance with a disability
income insurance program sponsored by the Employer; or (iii) the Employee is determined to be totally disabled by the Social Security Administration.  The determination of Employee’s “Disability” shall be made by an independent physician that is reasonably acceptable to Employer and Employee.  Any decision made by such independent physician shall be binding upon Employer and Employee.

 

f. Definition of “Cause”.  For purposes of this Agreement, “Cause”
shall mean the Employee’s: (i) material and persistent failure to perform his duties and services in accordance with this Agreement, unless such failure is due to his Disability; (ii) breach of this Agreement or any portion or provision of this Agreement, including, but not limited to the restrictive covenants and confidentiality provisions contained in Sections 6 and 7 of this Agreement; (iii) failure to adhere to the TRC Code of Ethics or any employment policies of Employer, provided that Employee
has been given a reasonable opportunity to comply with such policy; (iv) appropriation (or attempted appropriation) of a business opportunity of the Employer or TRC, including attempting to secure or securing any personal profit in connection with any transaction entered into on behalf of the Employer or its Affiliates; (v) misappropriation (or attempted misappropriation) of any of the Employer’s funds or property or funds or property of any Affiliate; (vi)  conviction of, the indictment
for (or its procedural equivalent), or the entering of a guilty plea or plea of no contest with respect to, a felony, the equivalent thereof, or any other crime with respect to which imprisonment is a possible punishment; (vii) commission of any act involving fraud or moral turpitude, or a determination by the Employer, in its sole discretion, that the Employee has demonstrated a dependence upon any addictive substance, including alcohol, controlled substances, narcotics or barbiturates; or (viii) engaging in
any conduct constituting gross negligence or recklessness, that is materially injurious to the Employer or TRC, a customer of the Employer or TRC, or any of the Employer’s Affiliates.

 

g. Definition of “Good Reason”.  For purposes of this Agreement, the phrase “Good
Reason” means the Employer’s material breach of this Agreement, which breach shall not be cured by Employer within ten (10) business days after the Employee furnishes written Notice of Termination for Good Reason to Employer.

 

h. Effect of Termination of Employment Period; Post-Termination Benefits.  Upon the termination of the employment period in
accordance with this Section of the Agreement, the Employee’s obligation to render to the Employer the services described in Section 2 of this Agreement shall cease and the Employer shall pay the Employee or, in the event of his death while amounts remain payable hereunder, his “designated beneficiary”, as follows:

 

(i) Termination by the Employer with Cause or by the Employee without Good Reason.  If the employment period is terminated
in accordance with Section 5.b.(ii) or Section 5.c.(ii) of this Agreement, the Employee will be entitled to receive solely that portion of his base salary and health insurance allowance, payable in accordance with the Employer’s normal payroll practices, accrued by the Employee as of the effective date of the termination of employment.  The Employee shall not be entitled
to receive any salary or benefits thereafter, except as otherwise required in accordance with federal or state law or the terms of the plans governing the benefits provided hereunder.

 

(ii) Termination by the Employer without Cause or by the Employee with Good Reason.  If the Employee is terminated without
Cause or Employee terminates his employment with Good Reason, Employee will be entitled to receive the salary and insurance allowance that would have been payable for the remainder of the term of this Agreement.  Employee’s right to receive the continued salary payments under this Section 5.h. shall be contingent upon Employer’s delivery of a satisfactory release against the Employer and Employee’s continued compliance with the covenants set forth in Sections 6 and 7 of this Agreement.

 

(iii) Termination upon Disability.  If this Agreement is termi­nated
as a result of Employee’s Disability, Employer will pay Employee’s base salary and health insurance allowance for the lesser of (i) the ninety (90) day period following the date that Employee is determined to be disabled, or (ii) the period until disability insurance benefits commence under the disability insurance coverage Employee has obtained, if any.

 

(iv) Termination upon Death. If this Agreement is terminated because of Employee’s
death, the estate of Employee will be entitled to receive the base salary and health insurance allowance to which Employee is entitled to receive for a period of thirty (30) days after the date of death.  Any payments made under this Section shall be paid to the designated beneficiary, or, if no beneficiary has been designated by Employee in a written notice prior to his death, to Employee’s estate.  Thereafter, the Employer shall have no further obligations to Employee’s beneficiary
or estate under this Agreement.

 

(v) Benefits upon Termination. Other than the continued payment of the health
insurance allowance, as specified in Section 5.h.(iv) above, Employee will not receive any payment or other compensation for any vacation, holiday, sick leave, or other leave unused as of the termination of this Agreement.

 

(vi) Release.  No amount shall be payable to the Employee under Section 5.h.(ii), (iii) or (iv) following the termination
of employment unless the Employee (or the Employee’s designated beneficiary in the event of termination of this Agreement due to the Employee’s death) signs and delivers to the Employer, within fifteen (15) days after the termination of employment, a release and waiver of claims in a form prepared by and acceptable to the Employer.

 

	
6.  
	
 Confidential Information.

 

a. Confidential Information Defined. For the purposes of this Agreement, the phrase "Confidential
Information" means any and all of the following: trade secrets concerning the business and affairs of the Employer, TRC and its direct or indirect subsidiaries, predecessors and other affiliated entities (the “TRC Group”), product specifications, data, know-how, formulae, compositions, processes, designs, sketches, photographs, graphs, drawings, samples, inventions and ideas, past, current, and planned research
and development, current and planned distribution methods and processes, customer lists, current and anticipated customer requirements, price lists, market studies, business plans, computer software and programs (including object code, machine code, and source code), computer software and database technologies, systems, structures, and architecture (and related formulae, compositions, processes, improvements, devices, know-how, inventions, discoveries, concepts, ideas, designs, and methods); information concerning
the business and affairs of any member of the TRC Group (which includes historical financial statements, financial projections and budgets, historical and projected sales, capital spending budgets and plans, the names and backgrounds of key personnel, personnel training techniques and materials, however documented); and notes, analysis, compilations, studies, summaries, and other material prepared by or for any member of the TRC Group containing or based, in whole or in part, on any information included in the
foregoing.  Notwithstanding the foregoing, Confidential Information shall not include any information that Employee demonstrates was or became generally available to the public other than as a result of a disclosure of such information by the Employee or any other person under a duty to keep such information confidential.

b. Access to the Confidential Information. Immediately upon the Employee’s execution of this Agreement and
continuing throughout the Employee’s employment with Employer, the Employer shall provide the Employee with access to Confidential Information.  Employee acknowledges: (i) that the Employer has devoted substantial time, effort, and resources to develop and compile the Confidential Information; (ii) public disclosure of such Confidential Information would have an adverse effect on the Employer and its business; (iii) the Employer would not disclose such information to Employee, nor employ or continue
to employ Employee without the agreements and covenants set forth in this Agreement; and (iv) the provisions of this Section 6 are reasonable and necessary to prevent the improper use or disclosure of Confidential Information.

c. Nondisclosure Duties Regarding the Confidential Information. Employee agrees to use his best efforts to preserve
and protect the Confidential Information to the greatest degree possible and therefore agree as follows:

(i)           Nondisclosure Commitment. Employee will hold in strictest confidence the Confidential Information and will not disclose it to any person,
except with the specific prior written consent of the Employer or as may be required by court order, law, government agencies with which the Employer deals in the ordinary course of its business, or except to the extent such disclosure is necessary for Employee to perform his duties under this Agreement. Any trade secrets of the Employer will be entitled to all of the protections and benefits afforded under applicable laws. If any information that the Employer deems to be a trade secret is ruled by a court of
competent jurisdiction not to be a trade secret, such information will, nevertheless, be considered Confidential Information for purposes of this Agreement. Employee hereby waives any requirement that the Employer submit proof of the economic value of any trade secret or post a bond or other security. Employee will not remove from the premises of the Employer, copy or record (regardless of the media), any Confidential Information, except to the extent such removal, copying or recording is necessary for Employee
to perform his duties. Employee acknowledges and agrees that all Confidential Information, and physical embodiments thereof, whether or not developed by Employee, are the exclusive property of the Employer.

(ii)           Third Party Information. Employee recognizes that the TRC Group has received and in the future will receive information from third  parties
that is confidential or proprietary in nature and subject to a duty on the part of the TRC Group to maintain the confidentiality of such information and to use it only for certain limited purposes. Employee agrees that he owes the Employer, and such third parties, during his employment and thereafter, a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person (except as necessary in carrying out his duties under this Agreement) or to use it
for the benefit of anyone other than for the Employer or such third party (consistent with the Employer’s agreement with such third party) without the express written authorization of the Employer.

(iii)           Returning Employer Documents. Employee agrees that, upon the termination of his employment, he will deliver to the Employer (and will
not keep in his possession or deliver to any other person) all property, regardless of whether such items are represented in tangible, electronic, digital, magnetic or any other media, that Employee has produced or received during his employment with the Employer, whether or not related to the Confidential Information.

d. Disputes or Controversies. Employee recognizes that should a dispute or controversy arising from or relating to
this Agreement be submitted for adjudication to any court or other third party, the preservation of the secrecy of Confidential Information may be jeopardized. All pleadings, documents, testimony, and records relating to any such adjudication will be maintained in secrecy and will be available for inspection by the Employer, Employee, and Employee’s or Employer’s respective attorneys and experts, who will agree, in advance and in writing, to receive, use, and maintain all such Confidential Information
in secrecy, except as may be agreed by them in writing.

e. Time Period of Restrictions. The terms and conditions of this Section 6 shall apply during the course of Employee’s
employment and for a five year period following the termination of this Agreement (including expiration upon non-renewal), unless sooner terminated in writing and signed by the Employer.

f. Enforcement. Employee acknowledges that (i) the Confidential Information is a valuable asset of the TRC Group
and use of such Confidential Information would allow Employee to unfairly compete against the TRC Group, (ii) the restrictions contained in this Agreement are reasonable in scope and are necessary to protect the TRC Group’s legitimate interests in protecting its business, and (iii) any violation of the restrictions contained in this Agreement will cause significant and irreparable harm to the TRC Group for which the TRC Group has no adequate remedy at law.  The parties agree that damages at law,
including, but not limited to, monetary damages, will or may be an insufficient remedy to the TRC Group and that (in addition to any remedies that are available to the TRC Group, all of which shall be deemed to be cumulative and retained by the TRC Group and not waived by the enforcement of any remedy available hereunder) the TRC Group shall also be entitled to obtain injunctive relief, including but not limited to a temporary restraining order, a temporary or preliminary injunction or a permanent injunction,
to enforce the provisions of this Agreement, as well as an equitable accounting of and constructive trust for all profits or other benefits arising out of or related to any such violation, all of which shall constitute rights and remedies to which the TRC Group may be entitled.

	
7.
	
Restrictions During and After Employment.

 

a. Restrictive Covenants.  Employee agrees that the Employer’s commitment to enter into this Agreement with Employee
is based, in part, upon the Employer’s interest in restraining Employee from competing against the TRC Group.  Employee agrees that the restrictions in this Section are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other business interests of the TRC Group.  For these reasons, Employee agrees to the following:

(i)           Noncompetition.  During the five year period commencing on the Effective Date or, if this Agreement is extended, the period
ending two years after the date this Agreement is terminated (the “Restrictive Period”), Employee will not, and will cause his Affiliates to not, directly or indirectly, alone or in conjunction with any other person or entity, engage or invest in, own, manage, operate, finance, control, or participate in the ownership, management, operation, financing or control of, be employed by, associated with, or in any manner
connected with, lend the Employee’s name or any similar name to, lend the Employee’s credit to, or render services that are similar to the service he rendered to the Employer under this Agreement to any person or entity that is engaged in or intends to engage in business activities that are competitive with the Business of Employer, TRC or the TRC Group. For purposes of this Agreement, the “Business” of
the Employer, TRC, and the TRC Group is (i) designing, manufacturing and marketing electrical safety products for the home and workplace; (ii) designing and supplying power monitoring and control equipment to the United States military and its prime contractors for tactical vehicles, naval vessels and mobile electric generators; (iii) manufacturing, producing, assembling, testing, marketing, promoting, and selling electronic products that utilize technology to enhance the performance of battery products;
and (iv) any business activities and markets that may be added to the products and services offered by Employer, TRC or the TRC Group after the Effective Date.

(ii)           Solicitation of Customers.  During the Restrictive Period, Employee will not, and will cause his Affiliates to not, directly
or indirectly, alone or in conjunction with any other person or entity, do business with or solicit Customer (as defined below) for purposes of selling products or services to such Customer that are in competition with the Employer’s Business. For purposes of this Agreement, the “Customers” of the Employer are those persons who, at any time during the course of Employee’ employment with the Employer are
or were customers or clients of the TRC Group, as well as any prospective customers or clients of the TRC Group that were identifiable and known to Employee during his employment with the Employer.

(iii)           Solicitation of Employees. During the Restrictive Period, Employee will not, directly or indirectly, on behalf of himself or any other
person or entity, solicit for employment or employ any current employee of any member of the TRC Group or any individual who was an employee of any member of the Employer at any time during the twelve month period prior to the solicitation or employment.

(iv)           Solicitation of Vendors.  During the Restrictive Period, Employee will not, either directly or indirectly, on behalf of himself
or any other person or entity, solicit a current vendor or supplier of Employer for purposes of encouraging such vendor or supplier to cease or diminish providing products or services to any member of the TRC Group, or to change adversely the terms under which such vendor or supplier provides such products or services to any member of the TRC Group.

(v)           Non-interference.  During the Restrictive Period, Employee will not, directly or indirectly, interfere with the Employer’s
relationship with any person who at the relevant time is an employee, contractor, supplier, or Customer of any member of the TRC Group. Following the termination of his employment, Employee will not, either directly or indirectly, access the computer systems of any member of the TRC Group, download files or any other information from the computer systems of any member of the TRC Group or in any way interfere, disrupt, modify or change any computer program used by any member of the TRC Group or any data stored
on the computer systems of any member of the TRC Group.

b. Scope.  If any covenant contained in this Agreement is held to be unreasonable, arbitrary or against public policy, such
covenant shall be considered divisible both as to time, Customers, competitive services and geographical area, such that each month within the specified period shall be deemed a separate period of time, each customer a separate customer, each competitive service a separate service and each geographical area a separate geographical area, resulting in an intended requirement that the longest lesser time and largest lesser customer base, service offering and geographical area determined not to be unreasonable, arbitrary
or against public policy shall remain effective and be specifically enforceable.

 

c. Required Notice. Employee agrees that prior to beginning any new employment following the termination of employment with the Employer
for any reason, Employee will provide the Employer with thirty (30) days’ written notice regarding his new employment. The notice will identify the Employee’s new employer, describe the duties Employee will perform for the new employer, and provide verification that Employee has informed the new employer of the confidentiality, noncompetition and other obligations under this Agreement.

 

d. Intent of Parties; Survival.  The covenants of Employee contained
in Section 6 and Section 7 shall be construed as agreements independent of any other provision of Employee’s employment (including employment under this Agreement) and the existence of any claim Employee may have against the Employer shall not constitute a defense to the enforcement by the Employer of any covenants contained in Section 6 and Section 7.  The covenants contained in Section 6 and Section 7 shall survive the termination, expiration, non-renewal or cancellation of this Agreement.

 

8.    Ownership of Intellectual Property.  Employee
acknowledges and agrees that all work performed, and all ideas, concepts, materials, products, software, documentation, designs, architectures, specifications, flow charts, test data, deliverables, improvements, discoveries, methods, processes, or inventions, trade secrets or other subject matter that (a) relate to the Employer, TRC or TRC Group’s competitive business activities or actual or demonstrably anticipated development or contemplated expansion thereof in which the Employee was directly or indirectly
involved, (b) result from any work performed by Employee, alone or with others, for Employer, TRC or the TRC Group, (c) are developed on the Employer’s time or using the Employer’s equipment, supplies, facilities or Confidential Information, or (d) are based upon the Confidential Information of the Employer, TRC or the TRC Group, whether in written, oral, electronic, photographic, optical or any other form (collectively, “Materials”)
are the property of the Employer, and all rights, title and interest therein shall vest in the Employer, and all Materials shall be deemed to be works made for hire and made in the course of his employment relationship with the Employer.  To the extent that title to any Materials has not or may not, by operation of law, vest in the Employer, or such Materials may not be considered works made for hire, Employee hereby irrevocably assigns all rights, title and interest therein to the Employer.  All Materials
belong exclusively to the Employer, with the Employer having the right to obtain and to hold in its or their own name, copyrights, patents, trademarks, applications, registrations or such other protection as may be appropriate to the subject matter, and any extensions and renewals thereof.  Employee hereby grants to the Employer and its successors or assigns an irrevocable power of attorney to perform any and all acts and execute any and all documents and instruments on his behalf as the Employer may deem
appropriate in order to perfect or enforce the rights defined in this Section.  Employer further agrees to give the Employer, or any person designated by the Employer, at the Employer’s expense, any assistance reasonably required to perfect or enforce the rights defined in this Section.  Employee shall communicate and deliver to the Employer promptly and fully all Materials conceived or developed by him (alone or jointly with others) during the period of his employment relationship with the
Employer.

	
9.  
	
Miscellaneous Provisions.

a.           Definitions.

(i) Affiliate:  The term “Affiliate” when used in this Agreement shall mean any other person or entity that directly or indirectly controls, or is under common control with, or is
controlled by the specified person or entity, and if a person, any member of the immediate family of such individual.  As used in this definition, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) shall mean possession, directly
or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract, or otherwise) and “immediate family” shall mean any parent, child, grandchild, spouse, or sibling.

(ii) Customers: The term “Customers” when used in this Agreement shall
mean those persons who, at any time during Employee’s course of employment with the Employer are or were customers, clients, sales agents, or sales representatives of the Employer, predecessors of the Employer, TRC or Affiliates of TRC, as well as any prospective customers, clients, sales agents, or sales representatives of the Employer, TRC or Affiliates of TRC, which were identifiable and known to Employee during his employment with Employer.

 

b.           Notices.  All notices under this Agreement shall be in writing and shall be considered as properly given or made if hand delivered, sent by certified mail, overnight delivery
service, facsimile or e-mail and addressed to the location set forth in the preamble to this Agreement or to such other address as any party may have designated by like notice furnished to all other parties hereto.  All notices shall be deemed effective when deposited in the U.S. mail, received by an overnight carrier or other delivery service or, when sent by facsimile or e-mail, when confirmation of delivery is obtained by the sender.

 

c.           Assignment.  This Agreement, including, but not limited to, the agreements contained in Sections 6 and 7 regarding non-competition, confidentiality, non-disparagement and non-solicitation,
may be assignable by the Employer or TRC without the prior written consent of Employee.  This Agreement shall inure to the benefit of and be enforceable by the successors and assigns of the Employer or TRC, including any successor or assign to all or substantially all of the business and/or assets of the Employer, whether direct or indirect, by purchase, merger, consolidation, acquisition of stock or otherwise.  This is a personal service contract which shall not be assignable by Employee.

 

d.           Application of Florida Law; Jurisdiction.  This Agreement, and the application or interpretation thereof, shall be governed exclusively by its terms and by the laws of the State
of Florida.  Venue for all purposes shall be deemed to lie within Pinellas County, Florida.  The parties agree that this Agreement is one for performance in Florida.  The parties to this Agreement agree that they waive any objection, constitutional, statutory or otherwise, to a Florida court’s exercise of jurisdiction over any dispute between them and specifically consent to the jurisdiction of the Florida courts.  By entering into this Agreement, the parties, and
each of them understand that they may be called upon to answer a claim asserted in a Florida court.

 

e.           Legal Fees and Costs.  If a legal action is initiated by any party to this Agreement against the other party arising out of or relating to the alleged performance or non-performance
of any right or obligation established hereunder, any and all fees, costs and expenses reasonably incurred by each successful party or its legal counsel in investigating, preparing for, prosecuting, defending against, or providing evidence, producing documents or taking any other action in respect of, such action shall be the obligation of and shall be paid or reimbursed by the unsuccessful party.

 

f.           Waiver of Jury Trial. The parties hereby acknowledge that any dispute arising out of this Agreement will necessarily include various complicated legal and factual issues and therefore
knowingly, voluntarily and intentionally waive trial by jury in any litigation in any court with respect to, in connection with or arising out of this Agreement, or the validity, interpretation, or enforcement hereof.

 

g.           Waiver. The waiver by the Employer of a breach of this Agreement shall not be construed as a waiver of any subsequent breach by Employee.  The refusal or failure of the Employer
to enforce the restrictive covenants contained herein or contained in any other similar agreement against any other employee, agent, or independent contractor of the Employer, TRC or its Affiliates, for any reason, shall not constitute a defense to the enforcement of this Agreement by the Employer or TRC against Employee, nor shall it give rise to any claim or cause of action by such Employee against the Employer, TRC or its Affiliates.

 

h.           Acknowledgments.  Employee acknowledges that he has been provided with a copy of this Agreement for review prior to signing it, that the Employer has encouraged Employee to
have this Agreement reviewed by his attorney prior to signing it and that Employee understands the purposes and effects of this Agreement.  Employee further acknowledges that no statements made by Employer or TRC personnel or contained in the Employer or TRC employment materials of any kind (such as the Employer’s policy and procedures manuals) shall be construed to alter the at-will nature of Employee’s employment relationship with the Employer or imply that discharge will occur only for
cause.

 

i.           Third Party Beneficiary.  TRC is an intended third party beneficiary and shall be entitled to pursue any action arising out of or relating to the alleged performance or non-performance
of any right or obligation established under this Agreement.

 

 

  

  

  

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the 31st day of March, 2010.

 

 

“EMPLOYER”

 

PATCO ELECTRONICS, INC.

 

                /s/ Owen Farren

                       
Owen Farren

Chief Executive Officer

    

                                                                                                        
TECHNOLOGY RESEARCH CORPORATION

                                                                                                       
/s/ Thomas G. Archbold 

Thomas G. Archbold

Chief Financial Officer

 “EMPLOYEE”

/s/ Roger M. Boatman                                                                

Roger M. Boatmanexhibit102.htm

Exhibit 10.2

LEASE AGREEMENT

1. PARTIES.

This Lease is made this 31st day of March, 2010, by and between HOSEA PARTNERS, LTD., a Florida limited partnership (the “Landlord”), and PATCO ELECTRONICS, INC., a Florida corporation (the “Tenant”).  This
agreement shall hereinafter be referred to as the “Lease”.

2. PREMISES.

Landlord hereby leases to Tenant and Tenant leases from Landlord, upon all of the conditions set forth herein, that certain building and real property, situated in Brevard County, Florida, the address of which is 1855 Shepard Drive, Titusville, FL  32780, more particularly described
on Exhibit “A” attached hereto (the “Premises”).  The Premises include, but are not limited to, the heating, ventilating, air conditioning systems and the mechanical, electrical and plumbing systems serving the Premises.

3. TERM AND POSSESSION.

The term hereof shall be for a three year period commencing on March 31, 2010 (the “Commencement Date”) and ending on March 30, 2013, including two (2) three-year lease renewal options, unless sooner terminated by either
party pursuant to the provisions of the Lease (the “Term”).

4. RENT.

4.1           Rent Payment, Proration and Sales Taxes. All rental and other payments due hereunder, and any sales tax due therein, shall be paid without
notice or demand and without abatement, deduction or setoff for any reason unless specifically provided herein. Rent for any period during the Term hereof which is for less than one month shall be a pro rata portion of the monthly rent installment based on the number of days in such period and the number of days in the month in question. Rent shall be payable in lawful money of the United States to Landlord at the address stated herein or to such other persons or at such other places as Landlord may designate
in writing. In addition, Tenant shall pay to Landlord all sales and use taxes imposed by the State of Florida or any other governmental authority from time to time.

4.2           Monthly Rent. Tenant hereby agrees to pay Landlord during the Term monthly rent to use the Premises in the amount of $7,000, plus sales
tax, on the first day of each month for 36 months (the “Monthly Rent”). Upon execution of the Lease, Tenant shall pay to Landlord the Monthly Rent due for the first month of the Lease.

4.3           Additional Rent.  The Landlord will have the right on behalf of the Tenant
to make any payment which the Tenant is required to but has failed to make when due.  The amount of any such payment, together with any interest, cost or penalty, may, at the Landlord’s election, be added to and become part of the rent payment next coming due under this Lease, in which event it will constitute additional rent with the same effect as though it had originally been reserved as such.

4.4           General.  Monthly Rent shall be paid to Landlord without demand, setoff, or deduction whatsoever, except as specifically provided
in this Lease, at Landlord’s address, or at such other place as Landlord shall designate in writing to Tenant.  Tenant’s obligations to pay rent is a covenant independent of the Landlord’s obligations under this Lease.  The Monthly Rent to be paid by Tenant is not based on any specific measurement of square footage in the Premises.

5.           OPERATING COSTS.

5.1           General.  Except as otherwise provided for below, Tenant acknowledges and agrees that it is intended that the Lease is a triple
net lease.  Accordingly, Landlord shall not be responsible during the Term for any costs, charges, expenses and outlays with respect to the Premises, or the use and occupancy thereof, or the contents thereof, or the business carried on therein, and Tenant shall pay all charges, expenses, costs and outlays of every nature and kind relating to the Premises.  Landlord agrees that it will be responsible for any repairs or maintenance required for the roof and structural components of the building
located on the Premises.

5.2           Real Estate Taxes.   Tenant will pay all taxes, including without limitation Real Estate Taxes (as defined below), personal
property taxes and assessments assessed, levied, confirmed, or imposed during the Term of this Lease, on the Premises and all property and improvements located on the Premises, whether or not now customary or within the contemplation of Landlord and Tenant:

(a)           upon, measured by, or reasonably attributable to the cost or value of Tenant’s equipment, furniture, fixtures, and other personal property located in the Premises, or by the cost or value of any leasehold improvements
made in or to the Premises by or for Tenant, regardless of whether title to the improvements is in Tenant or Landlord;

(b)           upon or measured by the Monthly Rent, including without limitation any gross receipts tax or excise tax levied by the federal government or any other governmental body with respect to the receipt of Monthly Rent;

(c)           upon or with respect to the possession, leasing, operation, management, maintenance, alteration, repair, use, or occupancy by Tenant of the Premises or any portion of the Premises;

(d)           upon this transaction or any document to which Tenant is a party creating or transferring an interest or an estate in the Premises;

(e)           upon the Premises and all personal property, furniture, fixtures, and equipment, and all replacements, improvements, or additions to them, whether owned by Landlord or Tenant; and

(f)           based in whole or in part on a Monthly Rent, whether made in addition to or in substitution for any other tax.

The term “Real Estate Taxes” shall mean the total of all of the taxes, assessments, excises, levies, and other charges by any public authority, which are general or special, ordinary or extraordinary, foreseen or unforeseen, or of any kind and nature whatsoever, and which shall
during or in respect to the Term, be assessed, levied, charged, confirmed, or imposed on, or become due and payable out of, or become a lien on the Premises or appurtenances or facilities used in connection with the Premises.  Real Estate Taxes shall specifically include all ad valorem taxes, personal property taxes, transit taxes, special or extraordinary assessments, government levies, and all other taxes or other similar charges, if any, which are levied, assessed, or imposed on, or become due and
payable in connection with the Premises or appurtenances or facilities used in connection with the Premises.  If, because of a future change in the method of taxation or in the taxing authority, or for any other reason, a franchise, income, transit, gross receipts, profits, or other tax or governmental imposition, however designated shall be levied against Landlord in substitution in whole or in part for the Real Estate Taxes, or instead of additions to or increases of Real Estate Taxes, or otherwise
as a result of or based on or arising out of the ownership, use, or operation of the Premises, then the franchise, income, transit, gross receipts, profits, or other tax or governmental imposition shall be deemed to be included within the definition or “Real Estate Taxes.”

5.3           Other Impositions.  Tenant will not be obligated to pay local, state, or federal net income taxes assessed against Landlord; local,
state, or federal capital gains taxes of Landlord; or sales, excise, franchise, gift, estate, succession, inheritance, or transfer taxes of Landlord.

5.4           Right to Contest Taxes. Tenant will have the right to contest the amount or validity, in whole or in part, of any tax by appropriate proceedings
diligently conducted in good faith, only after paying the tax or posting such security as Landlord may reasonably require in order to protect the Premises against loss or forfeiture. Upon the termination of those proceedings, Tenant will pay the amount of the tax or part of the tax as finally determined, the payment of which may have been deferred during the prosecution of the proceedings, together with any costs, fees, interest, penalties, or other related liabilities. Landlord will not be required to join in
any contest or proceedings unless the provisions of any law or regulations then in effect require that the proceedings be brought by or in the name of Landlord. In that event, Landlord will join in the proceedings or permit them to be brought in its name; however, Landlord will not be subjected to any liability for the payment of any costs or expenses in connection with any contest or proceedings, and Tenant will indemnify Landlord against and save Landlord harmless from any of those costs and expenses.

5.5           Direct Payments by Tenant. Tenant, at Landlord’s election, shall pay directly to the taxing authority when due any and all taxes required
to be paid hereunder and Tenant shall provide proof of payment thereof within ten (10) days following the due date of the payment.

6.           RENEWAL OPTIONS.

Provided Tenant has not defaulted under any terms and conditions of this Lease, and Tenant provides written notice to Landlord at least ninety (90) days prior to expiration of the Term, Tenant shall be granted two options to renew the Lease for an additional  three-year term, upon
terms and conditions to be agreed upon by the parties.  If the Landlord and Tenant cannot agree upon the terms and conditions of the renewal term during such 90 day period, this Lease shall terminate and be of no further force and effect.

7.           USE.

7.1           Use. The Premises shall be used and occupied by Tenant to operate and conduct the Business (as such term is defined in the Purchase Agreement
entered into by and among Technology Research Corporation and Hosea Partners, Ltd., Roger M. Boatman, as Trustee of the Roger M. Boatman Trust, and Melvin R. Hall and Elsa G. Hall, as Joint Tenants with Right of Survivorship) and for no other purpose.  The Premises will be used only as an industrial, manufacturing, assembly and office facility and Tenant will not allow the Premises to be used for any improper, immoral or unlawful purpose.

7.2           Compliance with Laws and Restrictions. Tenant shall, at Tenant’s expense, execute and comply with all statutes, ordinances, rules,
orders, regulations and requirements of the federal, state, county and city government, and of any and all of their departments and bureaus, applicable to the Premises, as well as all covenants and restrictions of record, and other requirements in effect during the Term or any part thereof, which regulate the use by Tenant of the Premises.

7.3           Condition of Premises. By taking possession of the Premises, Tenant shall be deemed to have accepted the Premises, subject to all applicable
zoning, municipal, county and state laws, ordinances and regulations governing and regulating the use of the Premises, and any covenants or restrictions of record, as suitable for Tenant’s intended purposes, and in compliance with all terms and provisions hereof.

8.           MAINTENANCE, REPAIRS AND ALTERATIONS.

8.1           Maintenance.  Tenant shall, at Tenant’s sole cost and expense, maintain the Premises and all components thereof throughout
the Term, in good, safe and clean order, condition and repair, including without limitation all plumbing, heating, air conditioning, ventilation, and electrical facilities and all components thereof, serving the Premises.  Landlord shall be responsible to maintain the roof and structural components of the buildings located on the Premises.  All repairs, restorations, and replacements will be in quality and class equal to the original work or installations.

8.2           Plate Glass.  Tenant shall maintain, repair, or replace, as necessary, all plate glass, if any, within or on the perimeter of
the Premises.

8.3           Grounds; Parking Areas.  Tenant at Tenant’s expense, shall maintain, repair, or replace, as necessary, all landscaping,
external lighting, parking areas and sidewalks serving the Premises.

8.4           Utility Services.  Tenant will also procure, or cause to be procured, without cost to Landlord, any and all necessary permits,
licenses, or other authorizations required for the lawful and proper maintenance upon the Premises of wires, pipes, conduits, tubes, and other equipment and appliances for use in supplying any of the services to and upon the Premises. Landlord, upon request of Tenant, and at the sole expense and liability of Tenant, will join with Tenant in any application required for obtaining or continuing any of the services.  The installation of all utilities shall be subject to Landlord’s prior written approval,
which approval shall not be unreasonably withheld.

8.5           Alterations and Additions.

(a)           Tenant shall not, without Landlord’s prior written consent, make any alterations, improvements, additions, or Utility Installations (as defined below) in, on, or to the Premises, which consent shall not be unreasonably
withheld. Landlord may require that Tenant remove any or all of said alterations, improvements, additions or Utility Installations at the expiration of the Term, and restore the Premises to its prior condition. Should Tenant make any alterations, improvements, additions or Utility Installations without the prior approval of Landlord, in addition to all other remedies of Landlord for Tenant’s breach, Landlord may require that Tenant remove any or all of the same. As used in this Section, the term “Utility
Installation” shall mean carpeting, window coverings, air lines, power panels, electrical distribution systems, lighting fixtures, space heaters, air conditioning and plumbing, if any.

(b)           Any alteration, improvement, addition or Utility Installation in or to the Premises that Tenant shall desire to make shall be presented to Landlord for approval in written form, with proposed detailed plans. If Landlord
shall give its consent, the consent shall be deemed conditioned upon Tenant acquiring all necessary permits to do the work from appropriate governmental agencies, the furnishing of a copy thereof to Landlord prior to the commencement of the work, the compliance by Tenant with all conditions of said permits in a prompt and expeditious manner, and, if applicable, Tenant’s conducting its work so as not to interfere with any other tenants of the building in which the Premises is located.

(c)           Tenant shall pay, when due, and hereby agrees to indemnify and hold harmless Landlord for and from, all claims for labor or materials furnished or alleged to have been furnished to or for Tenant, at or for use in the Premises,
which claims are or may be secured by any construction lien against the Premises or any interest therein. Tenant shall give Landlord not less than ten (10) days’ notice prior to the commencement of any work on the Premises which might give rise to any such lien or claim of lien, and Landlord shall have the right to post notices of non-responsibility in or on the Premises as provided by law.  If Tenant shall, in good faith, contest the validity of any such lien, claim or demand, then Tenant shall,
at its sole expense, defend itself and Landlord against the same and shall pay and satisfy any adverse judgment that may be rendered thereon before the enforcement thereof against Landlord or the Premises.

(d)           Unless Landlord requires their removal, all alterations, improvements, additions and Utility Installations made on the Premises shall become the property of Landlord and remain upon and be surrendered with the Premises at
the expiration of the Term without compensation to Tenant.

8.6           Landlord’s Interest Not Subject to Liens. As provided in § 713.10, Florida Statutes, the interest of Landlord shall not be subject
to liens for improvements made by Tenant, and Tenant shall notify any contractor making such improvements of this provision. An appropriate notice of this provision may be recorded by Landlord in the Public Records of Brevard County, Florida, in accordance with said statute, without Tenant’s joinder or consent.

9.           INSURANCE-LANDLORD.

Landlord shall at all times during the Term carry fire, casualty and extended coverage insurance on the Premises.

10.           INSURANCE -TENANT.

During the Term of this lease, and prior to Tenant being given possession of the Premises, Tenant will obtain and maintain in good standing, at Tenant’s expense on an occurrence basis, the following insurance, in the amounts set forth below with insurance companies reasonable satisfactory
to Landlord:

10.1           Property Insurance.  Tenant shall obtain and keep in force during the Term hereof a policy or policies of insurance covering
loss or damage to the  Tenant’s fixtures, equipment or Tenant improvements therein, providing protection against fire and other perils (“all risk,” as such term is used in the insurance industry).

10.2.           Commercial Liability Insurance.  Tenant shall, at Tenant’s sole expense, obtain and keep in force during the Term hereof
a commercial liability insurance policy of bodily injury and property damage insurance, insuring Tenant and Landlord against any liability arising out of the use, occupancy or maintenance of the Premises. Such insurance shall be on a combined single limits basis in an amount not less than one million dollars ($1,000,000.00) per occurrence and in an amount of not less than two million dollars ($2,000,000.00) annual aggregate limits.  All such insurance will be written on the most current occurrence ISO
Commercial General Liability Form including without limitation, personal injury and contractual liability coverage for the performance by Tenant of the indemnity agreements set forth in this Lease, which insurance shall include a waiver of subrogation rights in favor of Landlord.

10.3           Liability Insurance. Tenant shall obtain and keep in force during the Term hereof a policy of combined single limit bodily injury and property
damage insurance, insuring Landlord and Tenant, against any liability arising out of the ownership, use, occupancy or maintenance of areas exterior to the Premises and appurtenant thereto such as landscaped areas, walkways, driveways and parking areas, owned by Landlord, in an amount not less than One Million and No/100 Dollars ($1,000,000.00) per occurrence.

10.4           Employees’ Compensation. Tenant shall maintain and keep in force all employees’ compensation insurance (workers’ compensation)
required under the laws of the State of Florida, and such other insurance as may be necessary to protect Landlord against any other liability to person or property arising hereunder by operation of law, whether such law is now in force or is adopted subsequent to the execution hereof.

10.5           Employer’s Liability Insurance.  Tenant shall obtain and keep in force during the Term of this Lease a policy for Employer’s
Liability Insurance in an amount not less than One Million and No/100 Dollars ($1,000,000.00).

10.6           Tenant’s Default.  Should Tenant fail to keep in effect and pay for such insurance as it is in this section required to
maintain, Landlord may do so, in which event, the insurance premiums paid by Landlord shall become due and payable forthwith and failure of Tenant to pay same on demand shall constitute a material breach of this lease.

10.7           Tenant’s Compliance.  Tenant shall properly and promptly comply with all rules, orders and regulations established under
this Lease.  Tenant shall not do or permit to be done anything, which shall invalidate the insurance policies, referred to in this Section. Tenant agrees to pay any increase in the amount of insurance premiums over and above the rate now in force that may be caused by Tenant’s use or occupancy of the Premises.  All required insurance policies maintained by Tenant must be written as primary policies, not contributing with and not supplemental to the coverage that Landlord carriers or
may carry.

10.8           Waiver of Subrogation. Landlord and Tenant each waive any and all rights to recover against the other or against any other tenant or occupant
of the Premises, or against the officers, directors, shareholders, partners, joint venturers, employees, agents, customers, invitees, or business visitors of such other party, for any loss or damage to such waiving party arising from any cause covered by any property insurance required to be carried by such party pursuant to this Article 10 or any other property insurance actually carried by such party.  Landlord and Tenant from time to time will cause their respective insurers to issue appropriate
waiver of subrogation rights endorsements to all property insurance policies carried in connection with the Premises or the contents of the Premises. Tenant agrees to cause all other occupants of the Premises claiming by, under, or through Tenant to execute and deliver to Landlord such a waiver of claims and to obtain such waiver of subrogation rights endorsements.

10.9           Adequacy of Coverage. Landlord, its agents, and employees make no representation that the limits of liability specified to be carried by
Tenant pursuant to this Article 10 are adequate to protect Tenant.  If Tenant believes that any of such insurance coverage is inadequate, Tenant will obtain at Tenant’s sole expense such additional insurance coverage as Tenant deems adequate.

10.10           Insurance Policies.  Insurance required hereunder shall be with good and solvent insurance companies satisfactory to Landlord.  Tenant
shall deliver to Landlord copies of policies of insurance required to be provided by Tenant under this Section or certificates evidencing the existence and amounts of such insurance and its compliance with the conditions set forth in this Section, including without limitation, Landlord as a named insured or additional insured thereunder. Such policies shall state that the insurance is primary over any insurance carried by Landlord. No such policy shall be cancelable or subject to reduction of coverage or other
modification except after thirty (30) days’ prior written notice to Landlord, and the interest of Landlord under such policies shall not be affected by any default by Tenant under the provisions of such policies. Tenant shall, at least thirty (30) days prior to the expiration of such policies, furnish Landlord with renewals or “binders” thereof, or Landlord may order such insurance and charge the cost thereof to Tenant, which amount shall be payable by Tenant upon demand.  If required
by any mortgage encumbering the Premises, the mortgagee shall also be a named or additional insured and the terms of all insurance policies shall comply with all other requirements of such mortgage.

10.11           Waiver of Claims.  Tenant hereby releases and waives its entire right of recovery against Landlord, for loss or damage arising
out of, or incident to the perils actually insured against under this Section, which perils occur in, on, or about the Premises, whether due to the negligence of Landlord or Tenant or their agents, employees, contractors and/or invitees. Tenant shall, upon obtaining the policies of insurance required hereunder, give notice to the insurance carrier or carriers that the foregoing waiver of subrogation is contained in this Lease.

11.           DAMAGE OR DESTRUCTION.

11.1           Definitions.

(a)           “Premises Partial Damage” shall herein mean damage or destruction to the Premises to the extent that the cost of repair is less than fifty percent (50%) of the fair market value of the Premises immediately prior
to such damage or destruction, or if applicable, damage or destruction to the building of which the Premises is a part to the extent that the cost of repair is less than fifty percent (50%) of the fair market value of such building as a whole immediately prior to such damage or destruction.

(b)           “Premises Total Destruction” shall herein mean damage or destruction to the Premises to the extent that the cost of repair is fifty percent (50%) or more of the fair market value of the Premises immediately prior
to such damage or destruction, or if applicable, damage or destruction to the building of which the Premises is a part to the extent that the cost of repair is fifty percent (50%) or more of the fair market value of such building as a whole immediately prior to such damage or destruction.

(c)           “Insured Loss” shall herein mean damage or destruction which was caused by an event required to be covered by the insurance described herein.

11.2           Partial Damage - Insured Loss.  Subject to the provisions of section, if at any time during the Term hereof there is damage which
is an Insured Loss and which falls into the classification of Premises Partial Damage, then Landlord shall, at Landlord’s sole cost, repair such damage as soon as reasonably possible and this Lease shall continue in full force and effect. In no event shall Landlord be obligated to make any repairs or replacements of any items other than those installed by or at the expense of Landlord, or to repair any damage except to the extent proceeds of insurance are available for such purpose.

11.3           Partial Damage - Uninsured Loss.  Subject to the provisions of Section, if at any time during the Term hereof there is damage
which is not an Insured Loss and which falls within the classification of Premises Partial Damage, unless caused by a negligent or willful act of Tenant (in which event Tenant shall make the repairs at Tenant’s expense), Landlord may at Landlord’s option either (i) repair such damage as soon as reasonably possible at Landlord’s expense, in which event this Lease shall continue in full force and effect, or (ii) give written notice to Tenant within thirty (30) days after the date of the occurrence
of such damage of Landlord’s intention to cancel and terminate this Lease, as of the date of the occurrence of such damage. In the event Landlord elects to give such notice of Landlord’s intention to cancel and terminate this Lease, Tenant shall have the right within ten (10) days after the receipt of such notice to give written notice to Landlord of Tenant’s intention to repair such damage at Tenant’s expense, without reimbursement from Landlord, in which event this Lease shall continue
in full force and effect, and Tenant shall proceed to make such repairs as soon as reasonably possible. If Tenant does not give such notice within such 10-day period, this Lease shall be canceled and terminated as of the date of the occurrence of such damage. In no event shall Landlord be obligated to make any repairs or replacements of any items other than those installed by or at the expense of Landlord.

11.4           Total Destruction. If at any time during the Term hereof there is damage, whether or not an Insured Loss (including destruction required
by any authorized public authority), which falls into the classification of Premises Total Destruction, this Lease shall automatically terminate as of the date of such damage, unless within ten (10) days after such damage occurs Landlord shall notify Tenant that Landlord shall repair such damage and shall thereafter repair the damage within a reasonable time.

11.5           Damage Near End of Term.  In the event that Tenant has an option to extend or renew this Lease, and the time within which said
option may be exercised has not yet expired, Tenant shall exercise such option, if it is to be exercised at all, no later than twenty (20) days after the occurrence of an Insured Loss falling within the classification of Premises Partial Damage during the last six (6) months of the Term hereof. If Tenant duly exercises such option during said 20-day period, Landlord shall, at Landlord’s expense, repair such damage as soon as reasonably possible to the extent required under Section above, and this Lease
shall continue in full force and effect. If Tenant fails to exercise such option during said 20-day period, then Landlord may, at Landlord’s option, terminate and cancel this Lease as of the expiration of said 20-day period by giving written notice to Tenant of Landlord’s election to do so within ten (10) days after the expiration of said 20-day period, notwithstanding any term or provision to the contrary in the grant of option to extend or renew.

11.6           Abatement of Rent; Tenant’s Remedies.

(a)           In the event of damage described above which Landlord or Tenant repairs or restores, the rent payable hereunder for the period during which such damage, repair or restoration continues shall be abated in proportion to the
degree to which Tenant’s use of the Premises is impaired. Except for abatement of rent, if any, Tenant shall have no claim against Landlord for any damage suffered by reason of such damage, destruction, repair or restoration.

(b)           If Landlord shall be obligated to repair or restore the Premises and shall not commence such repair or restoration within ninety (90) days after such obligation shall accrue, Tenant may at Tenant’s option cancel and
terminate this Lease by giving Landlord written notice of Tenant’s election to do so at any time prior to the commencement of such repair or restoration.  In such event, this Lease shall terminate as of the date of such notice and Tenant shall have no other rights against Landlord.

11.7           Termination; Advance Payments. Upon termination hereof pursuant to this Section, an equitable adjustment shall be made concerning advance
rent and any advance payments made by Tenant to Landlord.

12.           PERSONAL PROPERTY TAXES.

Tenant shall pay prior to delinquency all taxes assessed against and levied upon trade fixtures, furnishings, equipment and all other personal property of Tenant contained on the Premises or elsewhere or on any leasehold improvements made to the Premises by Tenant, regardless of the validity
thereof or whether title to such improvements shall be in the name of Tenant or Landlord. When possible, Tenant shall cause said trade fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Landlord.  If any of Tenant’s personal property shall be assessed with Landlord’s real property, Tenant shall pay Landlord the taxes attributable to Tenant’s personal property within ten (10) days after receipt of a written
statement from Landlord setting forth the taxes applicable to Tenant’s property.

13.           UTILITIES.

13.1           Responsibility for Payment.  Tenant shall punctually pay for all water and sewer charges, and for all gas, heat, electricity,
telephone, garbage collection and all other utilities and services consumed in connection with the Premises, together with any taxes thereon. If any such services are not separately metered as to the Premises, Tenant shall pay a reasonable proportion to be determined by Landlord of all charges jointly metered with other premises.

13.2           Additional Rent.  If charges to be paid by Tenant hereunder are not paid when due and Landlord elects to pay same, such charges
shall be added to the subsequent month’s rent and shall be collectible from Tenant in the same manner as rent. Landlord shall not be liable for damage to Tenant’s business and/or inventory or for any other claim by Tenant resulting from an interruption in utility services.

14.           ASSIGNMENT AND SUBLETTING.

14.1           Landlord’s Consent Required. Tenant shall not voluntarily or by operation of law assign, mortgage, sublet, or otherwise transfer
or encumber all or any part of Tenant’s interest in this Lease or in the Premises or Tenant’s possession thereof without Landlord’s prior written consent, which consent shall not be unreasonably withheld. Any attempted assignment, transfer, mortgage, encumbrance or subletting without Landlord’s consent shall be void, and shall constitute a breach hereof.  If Tenant desires to assign this Lease or to sublet the Premises or any portion thereof, it shall first notify Landlord of
its desire to do so and shall submit in writing to Landlord: (i) the name of the proposed assignee or subtenant; (ii) the nature of the proposed assignee’s or subtenant’s business to be conducted on the Premises; (iii) the terms of the proposed assignment or sublease; and (iv) such financial information as Landlord may reasonably request concerning the proposed assignee or subtenant.

14.2           No Release or Waiver. Regardless of Landlord’s consent, no subletting or assignment shall release Tenant from Tenant’s obligation
or alter the primary liability of Tenant to pay the rent and to perform all other obligations to be performed by Tenant hereunder. The acceptance of rent by Landlord from any other person shall not be deemed to be a waiver by Landlord of any provision hereof. Consent to one assignment or subletting shall not be deemed consent to any subsequent assignment or subletting. In the event of default by any assignee of Tenant or any successor of Tenant in the performance of any of the terms hereof, Landlord may proceed
directly against Tenant without the necessity of exhausting remedies against said assignee. Landlord may consent to subsequent assignments or subletting hereof or amendments or modifications to this Lease with assignees of Tenant, without notifying Tenant, or any successor of Tenant, and without obtaining its or their consent thereto and such action shall not relieve Tenant of liability hereunder.

15.           DEFAULTS; REMEDIES.

15.1           Defaults.  The occurrence of any one or more of the following events shall constitute a material default and breach hereof by
Tenant:

(a)           the vacating or abandonment of the Premises by Tenant;

(b)           the failure by Tenant to make any payment of rent or any other payment required to be made by Tenant hereunder, as and when due, where such failure shall continue for a period of ten (10) days from the due date;

(c)           the failure by Tenant to observe or perform any of the covenants, conditions or provisions hereof to be observed or performed by Tenant, other than described in Subsection (b) above, where such failure shall continue for
a period of ten (10) days after written notice thereof from Landlord to Tenant; provided, however, that if the nature of Tenant’s default is such that more than 10 days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said 10-day period and thereafter diligently prosecutes such cure to completion but in no event later than thirty (30) days after such written notice from Landlord; or

(d)           (i) the making by Tenant of any general arrangement or assignment for the benefit of creditors; (ii) Tenant becomes a “debtor” as defined under the Federal Bankruptcy Code or any successor statute thereto or
any other statute affording debtor relief, whether state or federal (unless, in the case of a petition filed against Tenant, the same is dismissed within thirty (30) days), or admits in writing its present or prospective insolvency or inability to pay its debts as they mature, or is unable to or does not pay a material portion (in numbers or dollar amount) of its debts as they mature, (iii) the appointment of a trustee or receiver to take possession of all or a substantial portion of Tenant’s assets located
at the Premises or of Tenant’s interest in this Lease; (iv) the attachment, execution or other judicial seizure of all or a substantial portion of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease; or (v) the entry of a judgment against Tenant which affects Tenant’s ability to conduct its business in the ordinary course; provided, however, to the extent that any provision is contrary to any applicable law, such provision shall be of no force or effect to such
extent only.

15.2           Remedies.  In the event of any default or breach hereof by Tenant, Landlord may (but shall not be obligated) at any time thereafter,
with or without notice or demand and without limiting Landlord in the exercise of any right or remedy which Landlord may have by reason of such default or breach:

(a)           terminate Tenant’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In such event, Landlord
shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant’s default, including accrued rent, the cost of recovering possession of the Premises;

(b)           re-enter and take possession of the Premises and relet or attempt to relet same for Tenant’s account, holding Tenant liable in damages for all expenses incurred by Landlord in any such reletting and for any difference
between the amount of rents received from such reletting and those due and payable under the terms hereof;

(c)           declare all rents and charges due hereunder immediately due and payable, and thereupon all such rents and fixed charges to the end of the Term shall thereupon be accelerated, and Landlord may, at once, take action to collect
the same by distress or otherwise; and/or

(d)           pursue any other remedy now or hereafter available to Landlord under state or federal laws or judicial decisions.

15.3           Default by Landlord.  Landlord shall not be in default unless Landlord fails to perform obligations required of Landlord within
a reasonable time, but in no event later than thirty (30) days after written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have theretofore been furnished to Tenant in writing, specifying the obligation that Landlord has failed to perform; provided, however, that if the nature of Landlord’s obligation is such that more than thirty (30) days are required for performance, then Landlord shall not be in default if Landlord
commences performance within such 30-day period and thereafter diligently prosecutes the same to completion. Notwithstanding any other provisions hereof, Landlord shall not be in default hereunder for failure to perform any act required of Landlord where such failure is due to inability to perform on account of strike, laws, regulations or requirements of any governmental authority, or any other cause whatsoever beyond Landlord’s control, nor shall Tenant’s rent be abated by reason of such inability
to perform.

16.           CONDEMNATION.

If the whole or any part of the Premises is taken for any public or quasi-public use or under any statute or by right of eminent domain, or by governmental purchase in lieu thereof, the Term of this Lease shall cease with respect to the portion of the Premises so taken as of the date of such
taking.  If the portion of the Premises so taken is such as to destroy its usefulness for the purpose for which it has been leased, the Tenant will have the right to terminate this Lease upon written notice to the Landlord of its election to do so furnished within sixty (60) days after it is ultimately determined what portion of the Premises will be so taken.  Upon the furnishing of such notice this Lease will immediately terminate and the rent will be paid proportionately up to the date of
termination.  All damages awarded for any such taking will belong to and be the sole property of the Landlord, but Tenant shall have the right to seek and collect damages from the condemning authority arising out of its taking of any Tenant improvements, as to which amounts Landlord shall have no right of ownership.

17.           STATUS AND ESTOPPEL CERTIFICATES.

Each party shall, within ten days after request by the other party, furnish to the other party (or to any person designated by the other party) a certificate in recordable form: (a) that this Lease is in good standing and in full force and effect (or if not, specifying why it is not, including
any existing and unwaived failure of the other party in the performance of its obligations); (b) that the certifying party has and claims no setoff or defense with respect to this Lease (or if any setoff or defense exists, specifying the same); (c) that this Lease is unmodified (or, if modified, specifying the modification); and (d) as to the time for which rent has been paid and the date on which the next rent is due.

18.           RELAY OF OFFICIAL NOTICES AND COMMUNICATIONS.

If either party receives any notice from a governmental body or governmental officer that pertains to the Premises (including those relating to taxes or rezoning), or receives any notice of litigation or threatened litigation affecting the Premises, the receiving party shall promptly send
it (or a copy) to the other party.

19.           SUBORDINATION TO MORTGAGES.

The Tenant’s rights are and will be subject and subordinate to the lien of any mortgage or mortgages now or hereafter in force with respect to the Premises, and upon Landlord’s written request the Tenant shall execute and deliver a certificate or agreement reflecting the subordination.  As
to any mortgage created during the lease Term, the Tenant will be entitled to a nondisturbance agreement recognizing the right of the Tenant to use and occupy the Premises as authorized by this Lease upon the payment of rent and other amounts that Tenant is obligated to pay and upon the performance by the Tenant of Tenant’s other obligations under this Lease.

20.           LANDLORD’S LIEN.

In addition to the statutory landlord’s lien, Landlord shall have, at all times, a valid security interest to secure payments of all rent, additional rent and other sums of money becoming due hereunder from Tenant, and to secure payment of any damages or loss which Landlord may suffer
by reason of the breach by Tenant of any covenant, agreement or condition contained herein, upon all goods, wares, equipment, fixtures, furniture, improvements and other personal property of Tenant presently or which may hereafter be situated in the Premises, and all proceeds therefrom.  Tenant’s personal property shall not be removed from the Premises without the consent of Landlord until all arrearages in rent as well as any and all other sums of money then due to Landlord hereunder shall first
have been paid and discharged and all the covenants, agreements and conditions hereof have been fully complied with and performed by Tenant. Upon the occurrence of an event of default by Tenant, Landlord may, in addition to any other remedies provided herein, enter upon the Premises and take possession of any and all goods, wares, equipment, fixtures, furniture, improvements and other personal property of Tenant situated in the Premises, without liability for trespass or conversion, and sell the same at public
or private sale, with or without having such property at the sale, after giving Tenant reasonable notice of the time and place of any public sale or of the time after which any private sale is to be made, at which sale Landlord or its assigns may purchase unless otherwise prohibited by law. Unless otherwise provided by law, and without intending to exclude any other manner of giving Tenant reasonable notice, the requirement of reasonable notice shall be met if such notice is given in the manner prescribed in
this Lease at least five (5) days before the time of sale. The proceeds from any such disposition, less any and all expenses connected with the taking of possession, holding and selling of the Premises (including reasonable attorneys’ fees and other expenses), shall be applied as a credit against the indebtedness secured by the security interest granted in this Section. Any surplus shall be paid to Tenant or as otherwise required by law; and Tenant shall pay any deficiencies forthwith. Upon request of Landlord,
Tenant agrees to execute and deliver to Tenant a financing statement in form sufficient to perfect the security interest of Landlord in the aforementioned property and proceeds thereof under the provisions of the Uniform Commercial Code in force in the State of Florida. The statutory lien for rent is not hereby waived, the security interest herein granted being in addition and supplementary thereto.

21.           SIGNS.

Tenant shall not place any sign on or about the Premises without Landlord’s prior written consent.  Any signs erected on the premises shall become the property of the Landlord upon termination of the Lease.

22.           EASEMENTS.

Landlord reserves to itself the right, from time to time, to grant such easements, rights and dedications as Landlord deems necessary or desirable, and to cause the recordation of plats and restrictions, so long as such easements, rights, dedications, plats and restrictions do not unreasonably
interfere with the use of the Premises by Tenant. Tenant shall promptly sign any of the aforementioned documents upon request of Landlord and failure to do so shall constitute a material breach hereof.

23.           HOLDING OVER.

 

(a)           The Tenant shall, at termination of this Lease by lapse of time or otherwise, deliver to Landlord immediate possession of the Premises.  If the Tenant fails to do so, the Tenant shall pay Landlord, for the time possession is withheld, an amount equal to 150%
of the rent applicable immediately preceding the termination, prorated on a daily basis.  During the holdover period, Tenant’s obligations under this Lease (other than those relating to duration of the Lease) will continue in force and effect.  The provisions of this subparagraph do not impair any right of Landlord to repossess the Premises or to exercise any other remedy set forth in this Lease or allowed by law.

 

(b)           If the Tenant pays and Landlord accepts rent after the expiration of the Lease Term, the parties will not thereby be deemed to have extended or renewed this Lease but will be deemed to have established a month-to-month tenancy, during which tenancy the obligations of
both parties under this Lease (other than those relating to duration of the Lease) will continue in force and effect.

 

24.           LANDLORD’S ACCESS.

Landlord and Landlord’s agents shall have the right to enter the Premises at reasonable times for the purpose of inspecting the same, posting notices of non-responsibility, showing the same to prospective purchasers, lenders, or tenants, performing any obligation of Tenant hereunder
of which Tenant is in default, and making such alterations, repairs, improvements or additions to the Premises or to the building of which it is a part as Landlord may deem necessary or desirable, all without being deemed guilty of an eviction of Tenant and without abatement of rent, and Landlord may erect scaffolding and other necessary structures where reasonably required by the character of any work performed, provided that the business of Tenant shall be interfered with as little as reasonably practicable.
Tenant hereby waives any claims for damages for any injury to or interference with. Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby. For each of the aforesaid purposes, Landlord shall at all times have and retain a key with which to unlock all of the doors in, upon and about the Premises, excluding Tenant’s vaults and safes, if any, and Landlord shall have the right to use any and all means which Landlord may deem proper to open said
doors in an emergency in order to obtain entry to the Premise, and any entry to the Premises obtained by Landlord by any of said means shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an eviction of Tenant from the Premises or any portion thereof.  No provision hereof shall be construed as obligating Landlord to perform any repairs, alterations or to take any action not otherwise expressly agreed to be performed or taken
by Landlord. Landlord may at any time place on or about the Premises any ordinary “For Sale” signs and Landlord may at any time during the last one hundred twenty (120) days of the Term hereof place on or about the Premises any ordinary “For Lease” signs, all without rebate of rent or liability to Tenant.

25.           INDEMNIFICATION, WAIVER AND RELEASE.

25.1           In General.  Tenant hereby indemnifies and shall protect and hold Landlord harmless from and against all liabilities,
losses, claims, demands, costs, expenses and judgments of any nature arising, or alleged to arise, during the Term of this Lease, from or in connection with (a) any injury to, or the death of, any person, or any loss of or damage to property occurring on or about the Premises, in any case arising from or connected with the use of the Premises by Tenant after the Commencement Date; or (b) performance of any labor or services or the furnishing of any materials or other property in respect of the Premises
or any part thereof by or at the request of Tenant after the Commencement Date (each being hereinafter identified as an “Indemnifiable Matter”).

 

25.2           Conditions of Indemnification.  With respect to any actual or potential claim, any written demand, the commencement of
any action or occurrence of any other event which involves any Indemnifiable Matter (each a “Claim”):

 

(a)           Within 30 days (or such longer period as shall not materially prejudice the rights of the Tenant) after the Landlord first receives a written document presenting a Claim, or, if such Claim does not involve a third party Claim, after the Landlord first has actual knowledge
of such Claim, Landlord shall furnish notice to the Tenant of such Claim, stating in reasonable detail the amount involved, if known, together with a copy of any written documentation furnished to the Landlord.

 

(b)           The Tenant shall have no obligation to indemnify the Landlord with respect to any Claim if the Landlord fails to give notice with respect thereto in accordance with Subsection (a) above.

 

(c)           If the Claim involves a third party claim, then the Tenant shall have the right, at its expense and ultimate liability, regardless of the outcome, to engage counsel of its choice (subject to the right of Landlord to review each such choice and, if dissatisfied for substantive
reasons, to require Tenant to seek alternative counsel), to litigate, defend, settle or otherwise attempt to resolve such Claim, except that the Landlord may fully participate, at the Landlord’s own cost, in such defense, settlement or other resolution, or, if Tenant fails to effect a defense, then at Tenant’s expense.  Landlord and Tenant will fully cooperate with each other and their respective counsel, as applicable, in connection with any such litigation, defense, settlement or other
resolution, and neither party shall effect a settlement or other resolution of a Claim, without the consent of the other, that obligates the other to make any monetary payment.

 

25.3           Waiver and Release.  To the fullest extent permitted by law, Tenant, as a material part of the consideration to Landlord for
this Lease, by this Section 25.3 waives and releases all claims against Landlord, its employees, and agents with respect to Tenant’s, its employee’s, agent’s and invitee’s property and all other matters for which Landlord has disclaimed liability pursuant to the provisions of this Lease. In addition, Tenant agrees that Landlord, its agents, and employees will not be liable for any loss, injury, death, or damage (including consequential damages) to property or Tenant’s business occasioned
by theft; act of God; public enemy; injunction; riot; strike; insurrection; war; court order; requisition; order of governmental body or authority; fire; explosion; falling objects; steam, water, rain or snow; leak or flow of water (including water from the sprinkler system), rain or snow from the Premises or into the Premises or from the roof, street, subsurface, or from any other place, or by dampness, or from the breakage, leakage, obstruction, or other defects of the pipes, sprinklers, wires, appliances,
plumbing, air conditioning, or lighting fixtures of the Premises; or from construction, repair, or alteration of the Premises or from any acts or omissions of any visitor of the Premises; or from any other cause whatsoever. Tenant acknowledges its obligation to obtain insurance to insure and indemnify itself from any and all losses to Tenant’s business and personal property and otherwise, and acknowledges it has and shall have no claim against Landlord for any such losses.  Tenant further acknowledges
that Tenant’s insuror and all other persons and parties shall have no right of subrogation against Landlord nor against Landlord’s insuror for any losses encompassed by any portion of this Article 25; Tenant disclaims any such rights and acknowledges that Tenant cannot and will not make any such subrogation assignment.

26.           LANDLORD’S LIABILITY.

The term “Landlord” as used herein shall mean only the owner or owners at the time in question of the fee title or a tenant’s interest in a ground lease of the Premises, and in the event of any transfer of such title or interest, Landlord herein named (and in case of any
subsequent transfers then the grantor) shall be relieved from and after the date of such transfer of all liability as respects Landlord’s obligations thereafter to be performed, provided that any funds in the hands of Landlord or the then grantor at the time of such transfer, in which Tenant has an interest, shall be delivered to the grantee. The obligations contained in this Lease to be performed by Landlord shall, subject to transfer of funds as aforesaid, be binding on Landlord’s successors and
assigns only during their respective periods of ownership. Tenant shall look solely to the equity of the then owner of the Premises for the satisfaction of any remedies of Tenant in the event of a breach by Landlord of any of its obligations. Such exculpation of liability shall be absolute and without any exception whatsoever.

27.           RADON GAS DISCLOSURE.

The following language is required by law in any contract involving the sale or lease of any building within the State of Florida:

“RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings
in Florida. Additional information regarding radon and radon testing may be obtained from your county health department.”

28.           ENVIRONMENTAL COMPLIANCE.

28.1           General.  Tenant shall not use, generate, manufacture, produce, store, release, discharge or dispose of, on, under or about the
Premises, or transport to or from the Premises, any Hazardous Substance (as defined below), or allow any other person or entity to do so. Tenant shall keep and maintain the Premises in compliance with, and shall not cause or permit the Premises to begin violation of, any Environmental Laws (as defined below).

28.2           Notice of Proceedings.  Tenant shall give prompt notice to Landlord of (i) any proceeding or inquiry by any governmental authority
(including without limitation the Florida Environmental Protection Agency or Florida Department of Health and Rehabilitative Services) with respect to the presence of any Hazardous Substance on the Premises or the migration thereof from or to other property; (ii) all claims made or threatened by any third party against Tenant, Landlord or the Premises relating to any loss or injury resulting from any Hazardous Substance; and (iii) Tenant’s discovery of any occurrence or condition on any real property adjoining
or in the vicinity of the Premises that could cause the Premises or any part thereof to be subject to any restrictions on the ownership, occupancy, transferability or use of the Premises under any Environmental Law or any regulation adopted in accordance therewith.

28.3           Liabilities for Costs.  Tenant shall protect, indemnify and hold harmless Landlord, its directors, officers, employees, agents,
successors and assigns from and against any and all loss, damage, cost, expense or liability (including attorneys’ fees and costs) directly or indirectly arising out of or attributable to the use, generation, manufacture, production, storage, release, threatened release, discharge, disposal, transport or presence of a Hazardous Substance on, under, about, to or from the Premises for any acts or use of the Premises after the Commencement Date, including the costs of any necessary repair, cleanup or detoxification
of the Premises, in any way arising from the acts of Tenant. The indemnification provided in this paragraph shall specifically apply to and include claims or actions brought by or on behalf of employees of Tenant, and Tenant hereby expressly waives any immunity to which Tenant may otherwise be entitled under any industrial or worker’s compensation laws. In the event Landlord shall suffer or incur any such costs, Tenant shall pay to Landlord the total of all such costs suffered or incurred by Landlord upon
demand therefore by Landlord.

28.4           Definitions for Environmental Compliance.  “Environmental Laws” shall mean any federal, state or local law, statute,
ordinance or regulation pertaining to health, industrial hygiene, or the environmental conditions on, under or about the Premises, including without limitation the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended from time to time (“CERCLA”), 42 U.S.C. §§ 9601 et seq., and the Resource Conservation and Recovery Act of 1976, as amended from time to time (“RCRA”),
42 U.S.C. §§ 6901 et seq. The term “Hazardous Substance” means any hazardous or toxic substances, materials or wastes, including, but not limited to, solid, semi-solid, liquid or gaseous substances which are toxic, ignitable, corrosive carcinogenic or otherwise dangerous to human, plant or animal health or well-being and those substances, materials, and wastes listed in the United States Department of Transportation Table (49 CFR 972.101) or by the Environmental Protection Agency as hazardous
substances (40 CFR Part 302) and amendments thereto or such substances, materials and wastes which are or become regulated under any applicable local, state or federal law including, without limitation, any material, waste or substance which is (i) petroleum, (ii) oil, (iii) asbestos, (iv) polychlorinated biphenyls, (v) waste oils, (vi) designated as a “hazardous substance” pursuant to Section 311 of the Clean Water Act, 33 U.S.C. Section 1251 et seq. (33 U.S.C. Section 1321) or listed pursuant to
Section 307 of the Clean Water Act (33 U.S.C. Section 1317, (vii) defined as a “hazardous waste” pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq. (42 U.S.C. 6903) or (vii) defined as a “hazardous substance” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq. (42 U.S.C. Section 9601).

28.5           Inspection Rights.  Landlord shall have the right to inspect the Premises and audit Tenant’s operations thereon to ascertain
Tenant’s compliance with the provisions of this Lease at any reasonable time, and Tenant shall provide periodic certifications to Landlord, upon request, that Tenant is in compliance with the environmental restrictions contained herein. Landlord shall have the right, but not the obligation, to enter upon the Premises and perform any obligation of Tenant hereunder of which Tenant is in default, including without limitation, any remediation necessary due to environmental impact of Tenant’s operations
on the Premises, without waiving or reducing Tenant’s liability for Tenant’s default hereunder.

29.           MISCELLANEOUS PROVISIONS.

(a) Notices. All notices, consents, approvals, joinders, waivers  and
other communications required or permitted under this Agreement (each a “Communication”) shall be in writing and shall be considered properly given to the recipient party if furnished by hand delivery; deposited with (i) the United States Postal Service for delivery by registered or certified mail, return receipt requested and postage prepaid, or (ii) a commercial courier service (with charges prepaid); or sent by facsimile machine or by e-mail
message.  Each communication shall be deemed delivered to the recipient, if : (A) delivered by hand, when so delivered; (B) deposited with the United States Postal Service, on the third day upon which mail service is provided following the date appearing on the receipt obtained from the Postal Service at the time of such deposit; (C) deposited with a commercial courier service, on the next courier delivery date following the date of such deposit (other than a Saturday, Sunday or legal holiday in the
jurisdiction to which such Communication is directed); (D) sent by facsimile machine, on the date (other than a Saturday, Sunday or legal holiday in the jurisdiction to which such Communication is directed) as of which the sending party is in receipt of documentary evidence that the transmission has been successfully completed; and (E) sent by e-mail message, as of the date and time as of which the sending party is in receipt of an e-mail response from the recipient party acknowledging such receipt.  Whenever
the furnishing of notice is required, the same may be waived in writing by the recipient party.

(b) Attorneys’ Fees. If either party brings an
action to enforce the terms hereof or declare rights hereunder, the prevailing party in any such action shall be entitled to recover reasonable attorneys’ and legal assistants’ fees and costs incurred in connection therewith, on appeal or otherwise, including those incurred in litigation, arbitration, mediation, administrative or bankruptcy proceedings and in enforcing any right to indemnity herein.

 

(c) Force Majeure. Whenever a period of time is herein
prescribed for action to be taken by Landlord, Landlord shall not be liable or responsible for, and there shall be excluded from the computation for any such period of time, any delays due to strikes, riots, acts of God, shortages of labor or materials, war, governmental laws, regulations or restrictions or any other causes of any kind whatsoever which are beyond the control of Landlord.

 

(d) Quiet Enjoyment. Upon Tenant paying the Monthly
Rent for the Premises and observing and performing all of the covenants, conditions and provisions on Tenant’s part to be observed and performed hereunder, Tenant shall have quiet possession of the Premises for the entire Term hereof, subject to all of the provisions hereof.

 

(e) Binding Effect. Subject to any provisions hereof restricting assignment
or subletting by Tenant, this Lease shall bind the parties, their personal representatives, successors and assigns.

 

(f) Severability.  The invalidity of any provision hereof under applicable law shall in no way affect the validity of any
other provision hereof.

 

(g) Time of Essence.   Time is of the essence hereof.

 

(h) Additional Rent; Survival.  Any and all monetary obligations of Tenant under the terms hereof shall be deemed to be rent,
shall be secured by any available lien for rent, and to the extent accrued, shall survive expiration or termination of the Term hereof.

 

(i) Security Measures.  Tenant hereby acknowledges that the rental payable to Landlord hereunder does not include the cost
of guard service or other security measures, and that Landlord shall have no obligation whatsoever to provide same. Tenant assumes all responsibility for the protection of Tenant, its agents and invitees from acts of third parties.

 

(j) Construction.  Any conflict between the printed provisions hereof and the typewritten or handwritten provisions shall
be controlled by the typewritten or handwritten provisions. Headings used herein shall not affect the interpretation hereof, being merely for convenience. The terms “Landlord” and “Tenant” shall include the plural and the singular and all grammar shall be deemed to conform thereto. If more than one person executes this Lease, their obligations shall be joint and several. The use of the words “include,” “includes” and “including” shall be without limitation
to the items which may follow.

 

(k) Captions.  The parties mutually agree that the headings and captions contained in this Lease are inserted for convenience
or reference only, and are not to be deemed part of or used in construing this Lease.

 

(l) Choice of Law and Jurisdiction.  Landlord and Tenant agree that Florida law (statutory, case law, and common law) shall
apply exclusively to all disputes arising under this lease. Landlord and Tenant further agree that all such disputes must be filed and resolved exclusively within the jurisdiction of the Pinellas County Court system in Clearwater, Florida.

 

(m) Non-Waiver.  The failure of either party to insist upon compliance by the other party with any obligation, or to exercise
any remedy, does not waive the right to do so in the event of a continuing or subsequent delinquency or default.  A party’s waiver of one or more defaults does not constitute a waiver of any other delinquency or default.  Landlord’s acceptance of rent does not waive any uncured delinquency or default by Tenant.

 

[SIGNATURES ON FOLLOWING PAGE]

  

  

  

“LANDLORD”

/s/ R. P. Checket                                           HOSEA
PARTNERS, LTD., a Florida

Witness                                                                                                      
 limited partnership

/s/   Randy K. Sterns                                                                                  
s/  Roger M. Boatman 

Witness                                                                                                       
Roger M. Boatman

      General Partner

“TENANT”

       PATCO ELECTRONICS, INC., a Florida

       corporation

/s/   R. P. Checket                                                                                         
s/   Thomas G. Archbold                                                      

Witness                                                                                                         
Thomas G. Archbold

         Chief Financial Officer

/s/   Randy K. Sterns                                                      

Witness

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