Document:

TC Letter Agreement

EXHIBIT 10.1

August  19, 2013

Thomas Camp
[Address]

Dear Thomas:
This letter agreement (the “Agreement”) will confirm that we have agreed to the following terms and conditions regarding your separation from employment with LoJack Corporation (“LoJack” or the “Company”) and with LoJack Equipment Ireland Ltd (“LJEI”), for good and valuable consideration more fully described below. 
1.    Employment Status.  The parties have mutually agreed that your employment with LoJack and LJEI will terminate effective as of August 19, 2013 (“Termination Date”).  As of the Termination Date, you will also no longer hold the position of officer or employee of any LoJack subsidiary or director of any LoJack affiliates. 
2.     Severance Payments.  Provided that you execute this Agreement and do not revoke your signature, then LoJack will pay you forty-two (42) weeks of severance (the “Severance Period”).    Your severance pay will be calculated at a rate equal to your current biweekly gross salary of $9,269.38 and will be less withholdings as required by law or as authorized by you, including withholding for the employee portion of COBRA coverage.  Subject to your compliance with the provisions of this Agreement, your severance payments will be made to you in equal biweekly installments in accordance with LoJack’s usual pay schedule starting on the first regular pay date after the expiration of the Revocation Period described in Paragraph 8 below. 
3.    Vacation and Other Pay.  Regardless of whether you sign this Agreement, on the Termination Date, LoJack will pay you the balance of your vacation days accrued but not yet taken as of the Termination Date, less withholdings as required by law.  In addition, you will be paid two (2) weeks of pay in lieu of notice.
4.    Benefits.  Your right to continue coverage under LoJack’s group dental and medical insurance plans under COBRA, 29 U.S.C. §1161 et seq., will commence on August 20, 2013. Benefit Concepts, LoJack’s COBRA administrator, will provide you with separate written information and notification of your right to continue such coverage. If you elect to continue coverage under COBRA, subject to your compliance with the provisions of this Agreement, LoJack will pay the employer portion of the premium for such coverage through the Severance Period and the employee portion will be deducted from your severance payments.  At the end of the Severance Period, your continuation of such coverage will be at your sole expense.  The Company will provide outplacement services in accordance with the Company’s policy, through New Directions.  New Directions and Human Resources will provide specifics outlining the benefits of this executive program.    Your eligibility to participate in all other of LoJack’s benefit plans and programs will end on the Termination Date.  Your Change in Control Agreement with the Company, dated March 7, 2012, shall terminate as of 90 days following the Termination Date and, pursuant to the terms of the Change in Control Agreement, be of no further force and effect as of 90 days following the Termination Date.  LoJack will also support your tax preparation for the 2013 calendar year, so long as your taxes are filed no later than April 15, 2014 or we receive written notification of an extension or request thereof.  An invoice of services may be submitted to LoJack for reimbursement and all reimbursements will be made no later than December 31, 2014.  This will be a taxable benefit to you.    
You may elect to convert your Basic Life Insurance coverage to an individual policy with Reliance Standard Insurance Company.  You also have the option to port any voluntary life insurance you have through LoJack.  If you are interested in exploring either or both of these options, please contact the Benefits Department at LoJack for the appropriate forms as soon as possible.  Please note that you only have 31 days from the Termination Date to submit these forms to Reliance Standard Insurance Company in order to convert/port your current coverage to individual policies.

If you have ever been a participant in the LoJack 401(k) Plan, you will receive an action package from Fidelity Investments within the next few weeks from your Termination Date informing you of your distribution/rollover options.  
5.     2013 Bonus:  Subject to your compliance with the provisions of this Agreement, you shall be eligible to receive the prorated portion (for the period of time actually worked prior to your Termination Date) of your annual bonus for 2013, to be paid no later than March, 15, 2014, if earned, in accordance with the terms of the Company’s Annual Incentive Plan and consistent with the annual bonuses paid to the Company’s executive officers at such time under the Annual Incentive Plan.  Any such bonus payment remains subject to the Company’s clawback policy.
6.     Equity Awards: Except as otherwise provided in this Section 6, your outstanding equity grants shall be governed by the terms of the Company’s 2008 Stock Incentive Plan and the respective grant documents, including the stock option agreements and restricted stock agreements, as the case may be. 
(a)  Subject to your execution, and the effectiveness, of this Agreement, on the effective date of this Agreement (i) your February 2011 time-based restricted stock grant will become fully vested, (ii) you will become vested in another two-thirds of the shares (i.e., 4,000 shares) granted under your May 2012 time-based restricted stock grant and (iii) you will become vested in one-third of the shares (i.e., 3,124 shares) granted under your May 2013 time-based restricted stock grant.  All other non-vested shares underlying the May 2013 time-based restricted stock grant will be forfeited on the Termination Date.      
(b)  Your May 2012 performance share grant shall vest or be forfeited in a manner, and at such time, consistent with the Compensation Committee’s treatment of such performance shares for all other executive officers in early 2014.  Your May 2013 performance share grant shall be forfeited in its entirety on the Termination Date.
(c)  The unvested portion of your stock option grants shall be forfeited in their entirety on the Termination Date.  You shall be entitled to exercise all vested stock options for a period of three (3) months following the Termination Date.
7.    General Release of Claims.  In exchange for the promises set forth herein, you, on behalf of yourself and your heirs, executors, administrators and assigns, hereby release and forever discharge LoJack Corporation and its directors, officers, employees, agents, successors and assigns (the “Releasees”), from any and all suits, claims, demands, debts, sums of money, damages, interest, attorneys’ fees, expenses, actions, causes of action, judgments, accounts, promises, contracts, agreements, and any and all claims of law or in equity, whether now known or unknown, which you now have or ever have had against the Releasees, or any of them, including, but not limited to, any claims under Title VII of the Civil Rights Act of 1964, the Americans With Disabilities Act, the Age Discrimination in Employment Act, The Genetic Information Nondiscrimination Act of 2008, the Older Workers Benefit Protection Act, the Family and Medical Leave Act and any other federal, state or local statute, regulation, ordinance or common law creating employment-related causes of action, and all claims related to or arising out of your employment or the termination of your employment with LoJack.  You also hereby waive any claim for reinstatement, attorney’s fees, or costs.  You represent that you have not previously filed or joined in any complaints, charges or lawsuits against LoJack pending before any governmental agency or court of law relating to your employment and/or the cessation thereof.
For the avoidance of doubt, you hereby agree to waive and release any and all claims you have or may have against LJEI however so arising from your employment or the termination thereof under the laws and regulations of Ireland including claims at common law or under statute including but not limited to:
i.    Carer’s Leave Act 2001;
ii.    Data Protection Acts 1988 & 2003;
iii.    Employment Equality Acts 1998 to 2011;
		
	iv.
	European Communities (Protection of Employees on the Transfer of Undertakings) Regulations 2003;

v.    Freedom of Information Acts 1997 & 2003;
vi.    Industrial Relations Acts 1946 to 2012;
vii.    Maternity Protection Acts 1994 & 2004;
viii.    Minimum Notice and Terms of Employment Acts 1973 to 2005;

ix.    National Minimum Wage Act 2000;
x.    Organisation of Working Time Act 1997;
xi.    Parental Leave Acts 1998 & 2006;
xii.    Payment of Wages Act 1991;
xiii.    Pensions Acts 1990 to 2012;
xiv.    Protection of Employees (Fixed-Term work) Act 2003;
xv.    Protection of Employees (Part Time Work) Act 2001;
xvi.    Protection of Employment Acts 1977 to 2007;
xvii.    Protection of Employees (Temporary Agency Work) Act 2012;
		
	xviii.
	Protection of Employment (Exceptional Collective Redundancies and Related Matters) Act 2007;

xix.    Redundancy Payments Acts 1967 to 2012;
xx.    Safety, Health and Welfare at Work Act 2005;
xxi.    Terms of Employment (Information) Acts 1994 to 2012;
xxii.    Unfair Dismissals Acts 1977 to 2007.
This General Release of Claims shall not apply to (a) any vested interest you may have in any 401(k), pension or employee welfare plan by virtue of your employment with LoJack; (b) any claim that may arise after you sign this Agreement; (c) any claim that may not be waived by law; (d) any claim by you to enforce this Agreement, and (e) any right you may have to file, cooperate or participate in any proceeding before a fair employment practices agency; provided, however that you hereby waive any right to recover any monetary benefits or damages in connection with any proceeding brought against LoJack on your behalf or on behalf of a class of which you may be a member.
8.    Waiver of Rights and Claims Under the Age Discrimination and Employment Act and the Older Workers Benefit Protection Act.
a.    You have been informed that since you are 40 years of age or older, you have or might have specific rights and/or claims under the Age Discrimination and Employment Act and/or the Older Workers Benefit Protection Act.  In consideration for the compensation described in paragraph 2 herein, you specifically waive such rights and/or claims to the extent that such rights and/or claims arose prior to the date this Agreement was executed.
b.    You have the right to and should consult with an attorney of your own choice prior to signing this Agreement.
c.    You have until twenty-one (21) days from your receipt of this Agreement to decide whether to sign it.
d.    You will have seven (7) days after signing this Agreement to revoke your signature (the “Revocation Period”).  If you intend to revoke your signature, you must do so in a writing addressed and delivered to me prior to the end of the 7-day revocation period.  This Agreement shall not be effective, and neither LoJack nor you shall have any rights or obligations hereunder, until the expiration of the 7-day Revocation Period.

9.       Affirmation of Continuing Obligations; Return of LoJack Property.  All documents, records, materials, software, equipment, office entry cards or keys and other physical property, and all copies of the same that have come into your possession or been produced by you in connection with your employment, have been and remain the sole property of LoJack.  You agree that you have returned all such property to LoJack by the Termination Date.

10.    Non-solicitation; Non-hire; Covenant Against Competition. You agree that for a period of one (1) year after the Termination Date (the “Restricted Period”) you will not, directly or indirectly, on your own behalf or on behalf of any third person or entity, and whether through your own efforts or through the efforts or employing the assistance of any other person or entity (including without limitation any consultant or any person employed by or associated with any entity with whom you are employed or associated): 
(a) knowingly hire or employ any employee of LoJack, or solicit or induce any such employee to terminate his/her employment or other relationship with LoJack. 
(b) solicit or accept business, compensation, employment or other position from or own any interest in (i) any former or present partners, affiliates or foreign licensees of LoJack or with Absolute Software Inc. or SC Integrity Inc.; or (ii) any person or entity engaged in any aspect of the business of stolen vehicle tracking and recovery, the tracking, location or recovery of valuable mobile assets including safety and security vehicle telematics applications, or the tracking and rescue of people at risk; provided, however, that this Section 10(b) shall not limit or restrict you or your employer from providing professional accounting, consulting or advisory services to LoJack, its officers or its licensees. You acknowledge that (i) the principal business of the Company (which expressly includes for purposes of this Section 10 and any related enforcement provisions hereof, its successors and assigns) is the offering of products and services relating to stolen vehicle tracking and recovery, the tracking, location or recovery of valuable mobile assets including safety and security vehicle telematics applications and the tracking and rescue of people; (ii) LoJack is one of the limited number of persons who have developed such a business; (iii) LoJack’s business is national and international in scope; (iv) your work for LoJack has given you access to the confidential affairs and proprietary information of the Company; (v) your covenants and agreements contained in Section 9 and this Section 10 are essential to the business and goodwill of LoJack; and (vi) LoJack would not have entered into this Agreement but for the covenants and agreements set forth in Section 9 and this Section 10.  Accordingly, you covenant, agree and acknowledge that (i) you have had an opportunity to seek advice of counsel in connection with this Agreement and (ii) the restrictive covenants are reasonable in geographical and temporal scope and in all other respects. It is the express intent of the parties that (a) in case any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity, or subject, such provision shall be construed by limiting and reducing it as determined by a court of competent jurisdiction, so as to be enforceable to the fullest extent compatible with applicable law; and (b) in case any one or more of the provisions contained in this Agreement cannot be so limited and reduced and for any reason is held to be invalid, illegal, or unenforceable, such invalidity, illegality, or unenforceability shall not affect the other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 
11.    Confidentiality.  You agree to keep strictly confidential, not to make public and not to disclose to anyone in any manner the terms of this Agreement except to your immediate family, state and federal tax authorities, your attorneys, tax preparers, accountants or other professional advisers, and except as may be necessary to enforce the Agreement or upon court order.  You also may disclose this Agreement if required to do so in conjunction with any claim that you may file for unemployment compensation benefits.  
12.    Mutual Non-Disparagement.  You agree not to take any action or make any statement or communication, written or oral, or make any posting on any website, blog or by any other electronic means, that disparages or criticizes LoJack or any of its affiliates, or their respective officers, directors, employees, shareholders, or agents, or that would reasonably be expected to, or that does in fact, impugn,  attack, is otherwise critical of, or damage any of their business or personal reputations or goodwill or that interferes with, impairs or disrupts LoJack's normal business operations.  The Company’s Directors, Executive Officers and Officers will not take any action or make any statement, written or oral, that disparages or criticizes you.

13.    Litigation and Regulatory Cooperation.  You agree you will cooperate with the Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company which relate to events or occurrences that transpired while you were employed by the Company.  Your cooperation in connection with such claims or actions shall include, without limitation, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times.  You further agree you will cooperate fully with the Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while you were employed by the Company.  The Company shall provide you with compensation for such litigation and consulting cooperation at an hourly rate of $200.00, and reimburse you for all costs and expenses incurred in connection with your performance under this Section 13.
14.    Section 409A.  In order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), if you are determined to be a “specified employee” as defined in Section 409A of the Code at the time any payment of 

nonqualified deferred compensation is made, and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of your separation of employment is necessary in order to prevent the imposition of any accelerated or additional tax under Section 409A of the Code, the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments of benefits ultimately paid or provided to you) until the date that is six months following your Termination Date with the Company and its affiliates (or the earliest date as is permitted under Section 409A of the Code).
Further, it is the intention of the parties that no payment or entitlement pursuant to this Agreement will give rise to any adverse tax consequences to any person pursuant to Section 409A of the Code. Notwithstanding any provision in this Agreement to the contrary, this Agreement shall be interpreted, applied and to the minimum extent necessary, amended, so that this Agreement does not fail to meet, and is operated in accordance with, the requirements of Section 409A of the Code. Any reference in this Agreement to Section 409A of the Code shall also include any proposed, temporary or final regulations, or any other guidance, promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service. 
15.    Indemnification.  To the full extent permitted by law and subject to the Company’s Bylaws, the Company shall indemnify you with respect to any actions commenced against you as a former director or officer of the Company and its subsidiaries and affiliates.  The Company hereby confirms that you will remain covered under the Company’s directors’ and officers’ liability insurance with respect to any action or omission you took as an officer or director of the Company and its subsidiaries and affiliates.
16.    General Provisions.
a)    Severability.  The invalidity or unenforceability of any provision of this Agreement shall in no way affect the validity or enforceability of any other provisions, or any part, hereof.
b)    Enforcement; Applicable Law; Jurisdiction.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts.  You agree that all disputes arising under or out of this Agreement shall be brought in courts of competent jurisdiction within the Commonwealth of Massachusetts and you hereby consent to jurisdiction in courts located in the Commonwealth of Massachusetts with respect to all matters arising out of or related to this Agreement.
c)    Entire Agreement.  This Agreement constitutes the entire agreement between you and LoJack concerning the terms and conditions of your separation from employment with LoJack, including all compensation and treatment of prior equity awards in connection therewith and, unless otherwise stated herein, supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, between you and LoJack on such subject matters, except as provided in Paragraph 7.  You agree that LoJack has not made any warranties, representations or promises to you regarding the meaning or implication of any provision of this Agreement other than as stated herein.
d)    Modification and Waiver.  This Agreement may be amended or modified only by a written instrument signed by you and an authorized representative of LoJack.  The failure of you or LoJack at any time to require the performance of any provision of this Agreement shall in no manner affect the right of such party at a later time to enforce the same provision.

Please indicate your understanding and acceptance of this Agreement by signing and returning one copy to me.  The other copy is for your records.
Sincerely,
/s/ JEANNINE GIARDINA
Jeannine Giardina
LoJack Corporation Vice President, Human Resources
Accepted and Agreed:

/s/ THOMAS CAMP                    Dated: August 22, 2013
Thomas Camp
Accepted and Agreed:

/s/ DONALD R. PECK                    Dated: September 3,  2013
Donald R. Peck, Director
LoJack Equipment Ireland Ltd

September 3, 2013

Thomas Camp
[Address]

Dear Tom, 

This letter serves as confirmation that we have agreed to the following additional items with respect to outstanding items associated with your separation from LoJack:

		
	•
	You will receive reimbursement for any outstanding company-paid expenses in accordance with standard policy for travel & expense reimbursement.

		
	•
	You will receive reimbursement for fees associated with the preparation of your 2011 amended tax return and 2012 tax return.

		
	•
	As referenced in 'Section 3' of your 'Agreement' dated August 19, 2013, you will are also due vacation time that will be paid to you via check no later than September 6, 2013 with a detailed summary on days paid.

		
	•
	Subject to 'Section 9' in your 'Agreement' dated August 19, 2013 pertaining to the return of LoJack property; we have agreed that you may retain the company cell phone (including transfer of service provider to your name and number, [phone number]), iPad and company laptop (with all LoJack files and property removed and kept with LoJack).

		
	•
	We have agreed that we will not contest your unemployment. Please direct all inquiries related to employment and reference referrals directly to Jeannine Giardina, VP of Human Resources at LoJack at 781.302.4226.

		
	•
	LoJack will reimburse you for reasonable attorney fees associated with the review of the 'Agreement', not to exceed $2,500, so long as you have signed and not revoked your severance agreement. 

The parties agree that notwithstanding the provisions of 'Section 16 c' of the 'Agreement' dated August 19, 2013, between LoJack Corporation and Thomas Camp, this separate agreement shall be binding on the parties to it. 

Thank you and please contact me if you have any further questions. 

Yours truly, 

/s/ JEANNINE GIARDINA

Jeannine Giardina
LoJack Coporation Vice President, Human Resources

Accepted and Agreed:

/s/ THOMAS CAMP                    Dated: September 3, 2013
Thomas Campex_10-58.htm

EXHIBIT 10.58

 

 

 

LEASE AGREEMENT

 

LIBERTY PROPERTY LIMITED PARTNERSHIP

 

Landlord

 

AND

 

PHOTOMEDEX, INC.

 

Tenant

 

AT

 

Pennsylvania Business Campus

100 Lakeside Drive, Suite 100

Horsham, Pennsylvania  19044

 

PHDATA 4678961_4

  

  

  

LEASE AGREEMENT

 

INDEX

 

 

	
§

	
Section

	
Page

	
1

	
Basic Lease Terms and Definitions 

	
1

	  
	
2

	
Premises

	
2

	  
	
3

	
Use

	
2

	  
	
4

	
Term; Possession

	
2

	  
	
5

	
Rent; Taxes

	
2

	  
	
6

	
Operating Expenses

	
2

	  
	
7

	
Services

	
3

	  
	
8

	
Insurance; Waivers; Indemnification

	
3

	  
	
9

	
Maintenance and Repairs

	
4

	  
	
10

	
Compliance

	
4

	  
	
11

	
Signs.

	
5

	  
	
12

	
Alterations

	
5

	  
	
13

	
Mechanics’ Liens

	
5

	  
	
14

	
Landlord’s Right to Relocate Tenant; Right of Entry

	
5

	  
	
15

	
Damage by Fire or Other Casualty

	
5

	  
	
16

	
Condemnation

	
6

	  
	
17

	
Quiet Enjoyment

	
6

	  
	
18

	
Assignment and Subletting

	
6

	  
	
19

	
Subordination; Mortgagee’s Rights

	
7

	  
	
20

	
Tenant’s Certificate; Financial Information

	
7

	  
	
21

	
Surrender

	
7

	  
	
22

	
Defaults - Remedies

	
7

	  
	
23

	
Tenant’s Authority

	
9

	  
	
24

	
Liability of Landlord

	
9

	  
	
25

	
Miscellaneous

	
10

	  
	
26

	
Notices

	
10

	  
	
27

	
Security Deposit

	
10

	  
	
28

	
Tenant Improvements

	
11

	  
	
29

	
Brokers

	
11

	  
	
30

	
Option to Renew

	
11

	  
	
31

	
Right of First Offer

	
11

	  
	
32

	
Generator.

	
12

	  

 

 

i

PHDATA 4678961_4

  

  

  

THIS LEASE AGREEMENT is made by and between LIBERTY PROPERTY LIMITED PARTNERSHIP, a Pennsylvania limited partnership (“Landlord”), and PHOTOMEDEX, INC., a Nevada corporation (“Tenant”), and is dated as of the date on which this Lease has been fully executed by Landlord and Tenant.

 

1. Basic Lease Terms and Definitions.

 

(a) Premises:  Suite 100, as shown on Exhibit “A”, consisting of 10,672 rentable square feet.

 

(b) Building:  27,465 rentable square feet.

 

Address:  100 Lakeside Drive, Horsham, Pennsylvania 19044.

 

(c) Term:  Twenty-four (24) months (plus any partial month from the Commencement Date until the first day of the next full calendar month during the Term).

 

(d) Commencement Date:  The later of (i) December 1, 2013 (the “Anticipated Completion Date”), or (ii) the date of substantial completion of the Tenant Improvements, but not later than the date Tenant takes possession of the Premises for the conduct of its business, if earlier.

 

(e) Expiration Date:  The last day of the Term.

 

(f) Minimum Annual Rent:  Payable in monthly installments as follows:

 

	
Lease Month

	
Annual

	
Monthly

	
1 – 12

	
$96,048.00

	
$8,004.00

	
13 – 24

	
$96,048.00

	
$8,004.00

(g) Annual Operating Expenses:  $77,158.56 payable in monthly installments of $6,429.88, subject to adjustment as provided in this Lease.

 

(h) Tenant’s Share:  38.86% (also see Definitions).

 

(i) Use:  General office.

 

(j) Security Deposit:  $28,867.76.

 

(k) Addresses For Notices:

 

Landlord:                 Liberty Property Limited Partnership                                                                Tenant:Before the Commencement Date:

5 Walnut Grove Drive, Suite 200                                                                                                                PhotoMedex, Inc.

Horsham, PA  19044                                                                147 Keystone Drive

Attention: Vice President/City ManagerMontgomeryville, PA  18936

On or after the Commencement Date:  Premises

(l) Guarantor:  Not required.

 

(m) Additional Defined Terms:  See Rider 1 for the definitions of other capitalized terms.

 

(n) Contents:  The following are attached to and made a part of this Lease:

Rider 1 – Additional Definitions                                                      Exhibits:                 “A” – Plan showing Premises

“B” – Building Rules

“C” – Estoppel Certificate Form

“D” – Cleaning Schedule

“E” – Direct Payment Rider

“F” – Plan of Improvements

PHDATA 4678961_4

  

  

  

2. Premises.  Landlord leases to Tenant and Tenant leases from Landlord the Premises, together with the right in common with others to use the Common Areas.  Tenant accepts the Premises, Building and Common Areas “AS IS”, without relying on any representation, covenant or warranty by Landlord other than as expressly set forth in this Lease.  Landlord and Tenant (a) acknowledge that all square foot measurements are approximate and (b) stipulate and agree to the rentable square footages set forth in Sections 1(a) and (b) above for all purposes with respect to this Lease.

 

3. Use.  Tenant shall occupy and use the Premises only for the Use specified in Section l above.  Tenant shall not permit any conduct or condition which may endanger, disturb or otherwise interfere with any other Building occupant’s normal operations or with the management of the Building.  Tenant may use all Common Areas only for their intended purposes.  Landlord shall have exclusive control of all Common Areas at all times.

 

4. Term; Possession. The Term of this Lease shall commence on the Commencement Date and shall end on the Expiration Date, unless sooner terminated in accordance with this Lease.  If Landlord is delayed in delivering possession of all or any portion of the Premises to Tenant as of the Commencement Date, Tenant will take possession on the date Landlord delivers possession, which date will then become the Commencement Date (and the Expiration Date will be extended so that the length of the Term remains unaffected by such delay).  Landlord shall not be liable for any loss or damage to Tenant resulting from any delay in delivering possession due to the holdover of any existing tenant or other circumstances outside of Landlord’s reasonable control.

 

5. Rent; Taxes. Tenant agrees to pay to Landlord, without demand, deduction or offset, Minimum Annual Rent and Annual Operating Expenses for the Term.  Tenant shall pay the Monthly Rent, in advance, on the first day of each calendar month during the Term, to an account designated by Landlord via the “Direct Payment Rider” attached hereto as Exhibit “E” (unless Landlord designates otherwise) and which Direct Payment Rider shall be executed by Tenant simultaneously with the execution of this Lease; provided that Monthly Rent for the first full month shall be paid at the signing of this Lease.  If the Commencement Date is not the first day of the month, the Monthly Rent for that partial month shall be apportioned on a per diem basis at the rate of $474.54 per day and shall be paid on or before the Commencement Date.  Tenant shall pay Landlord a service and handling charge equal to 5% of any Rent not paid within five (5) business days after the date due.  In addition, any Rent, including such charge, not paid within five (5) business days after the due date will bear interest at the Interest Rate from the date due to the date paid.  Tenant shall, after receiving notice thereof, pay before delinquent all taxes of any governmental authority having jurisdiction levied or assessed upon, measured by, or arising from: (a) the conduct of Tenant’s business; (b) Tenant’s leasehold estate; or (c) Tenant’s personal property; unless Tenant is contesting the imposition of any such tax in good faith and in compliance with all Laws (provided, however, that Tenant expressly agrees that Tenant may not contest the imposition of any such tax if such contest could (i) subject Landlord to any fines, penalties and/or liability, or (ii) result in the imposition of a lien against the Premises or the Property).  Additionally, Tenant shall pay to Landlord all sales, use, transaction privilege, or other excise tax that may at any time be levied or imposed upon, or measured by, any amount payable by Tenant under this Lease by any governmental authority having jurisdiction, excluding any inheritance, estate, succession, transfer, gift, income, franchise, corporate and/or excise taxes imposed upon Landlord.

 

6. Operating Expenses. The amount of the Annual Operating Expenses set forth in Section 1(g) above represents Tenant’s Share of the estimated Operating Expenses for the calendar year in which the Term commences, excluding the cost of electricity that will be separately metered to the Premises as set forth in Section 7 below, and which shall be paid by Tenant directly to the utility provider as set forth in Section 7 below.  Landlord may adjust such amount from time to time if the estimated Annual Operating Expenses increase or decrease, so long as such adjustment is reasonably determined by Landlord and Tenant is notified in writing by Landlord with supporting evidence of such increase or decrease; Landlord may also invoice Tenant separately from time to time for Tenant’s Share of any extraordinary or unanticipated Operating Expenses, such as removal of snow and ice from an unusually heavy snowfall, so long as such is reasonably determined by Landlord and Tenant is notified in writing by Landlord with supporting evidence of such expenses.  By April 30th of each year (and as soon as practical after the expiration or termination of this Lease or, at Landlord’s option, after a sale of the Property), Landlord shall provide Tenant with a statement of Operating Expenses for the preceding calendar year or part thereof.  Within thirty (30) days after delivery of the statement to Tenant, Landlord or Tenant shall pay to the other the amount of any overpayment or deficiency then due from one to the other or, at Landlord’s option (except after the Term has expired or terminated other than for Tenant’s default), Landlord may credit Tenant’s account for any overpayment.  If Tenant does not give Landlord notice within thirty (30) days after receiving Landlord’s statement that Tenant disagrees with the statement and specifying the items and amounts in dispute, Tenant shall be deemed to have waived the right to contest the statement.  Landlord’s and Tenant’s obligation to pay any overpayment or deficiency due the other pursuant to this Section shall survive the expiration or termination of this Lease.  Notwithstanding any other provision of this Lease to the contrary, Landlord may, in its reasonable discretion, determine from time to time the method of computing and allocating Operating Expenses, including the method of allocating Operating Expenses to various types of space within the Building to reflect any disparate levels of services provided to different types of space.  If the Building is not fully occupied during any period, Landlord shall make a reasonable adjustment based on occupancy in computing the Operating Expenses for

 

 

PHDATA 4678961_4

  

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7. such period so that those Operating Expenses that vary based on level of occupancy are computed as though the Building had been fully occupied.

 

8. Services. Landlord will furnish the following services for the normal use and occupancy of the Premises for general office purposes:  (i) heating and air conditioning in season during Normal Business Hours, (ii) water, (iii) trash removal and janitorial services pursuant to the cleaning schedule attached as Exhibit “D”, and (iv) such other services Landlord reasonably determines are appropriate or necessary.  Electric service is separately metered to the Premises and Tenant shall timely pay all charges therefor directly to the utility company providing such electrical service.  If Tenant requests, and if Landlord is able to furnish, services in addition to those identified above, including heating or air conditioning outside of Normal Business Hours, Tenant shall pay Landlord’s reasonable charge for such supplemental services.  If because of Tenant’s density, equipment or other Tenant circumstances, Tenant puts demands on the Building Systems in excess of those of the typical office user in the Building, Landlord may install supplemental equipment and meters at Tenant’s expense.  Except for the abatement expressly set forth in this Section below, Landlord shall not be responsible or liable for any interruption in such services, nor shall such interruption affect the continuation or validity of this Lease.  Landlord shall have the exclusive right to select, and to change, the companies providing such services to the Building or Premises.  Any wiring, cabling or other equipment necessary to connect Tenant’s telecommunications equipment shall be Tenant’s responsibility, and shall be installed in a manner approved by Landlord.   In the event Landlord reasonably determines that Tenant’s consumption of any utility or other service included in Operating Expenses is excessive when compared with other occupants of the Property using the Building for general office purposes, Landlord may invoice Tenant separately for, and Tenant shall pay, within thirty (30) days after being billed therefor, the cost of Tenant’s excessive consumption, as reasonably determined by Landlord.  Notwithstanding the foregoing, in the event that any utility service is not delivered for a period in excess of five (5) consecutive business days solely as a result of the negligence or willful misconduct of Landlord, and if Tenant is unable to reasonably use the Premises for the conduct of its business by reason thereof, Rent shall thereafter abate until the interrupted service is restored or Tenant conducts or is able to reasonably conduct business in the Premises.

 

9. Insurance; Waivers; Indemnification.

 

(a) Landlord shall maintain insurance against loss or damage to the Building or the Property with coverage for perils as set forth under the “Causes of Loss-Special Form” or equivalent property insurance policy in an amount equal to the full insurable replacement cost of the Building (excluding coverage of Tenant’s personal property and any Alterations by Tenant), and such other insurance, including rent loss coverage, as Landlord may reasonably deem appropriate or as any Mortgagee may require.

 

(b) Tenant, at its expense, shall keep in effect commercial general liability insurance, including blanket contractual liability insurance, covering Tenant’s use of the Property, with such coverages and limits of liability as Landlord may reasonably require, but not less than a $1,000,000.00 combined single limit with a $3,000,000.00 general aggregate limit (which general aggregate limit may be satisfied by an umbrella liability policy) for bodily injury or property damage; however, such limits shall not limit Tenant’s liability hereunder.  The policy shall name Landlord, Liberty Property Trust and any other associated or affiliated entity as their interests may appear and at Landlord’s request, any Mortgagee(s), as additional insureds, shall be written on an “occurrence” basis and not on a “claims made” basis and shall be endorsed to provide that it is primary to and not contributory to any policies carried by Landlord.  Tenant expressly agrees to (i) provide Landlord with at least 30 days prior written notice of any cancellation by Tenant of such policy or of any reduction by Tenant in the limits of liability of such policy below the required limits required to be maintained by Tenant hereunder, or (ii) notify Landlord in writing within 2 business days after Tenant’s receipt of notice of any cancellation by Tenant’s insurer of such policy or of any reduction by Tenant’s insurer in the limits of liability of such policy below the required limits required to be maintained by Tenant hereunder, all of which shall include a copy of the insurer’s notice to Tenant.  The insurer shall be authorized to issue such insurance, licensed to do business and admitted in the state in which the Property is located and rated at least A VII in the most current edition of Best’s Insurance Reports.  Tenant shall deliver to Landlord on or before the Commencement Date or any earlier date on which Tenant accesses the Premises, and at least 30 days prior to the date of each policy renewal, a certificate of insurance evidencing such coverage.

 

(c) Landlord and Tenant each waive, and release each other from and against, all claims for recovery against the other for any loss or damage to the property of such party arising out of fire or other casualty coverable by a standard “Causes of Loss-Special Form” property insurance policy with, in the case of Tenant, such endorsements and additional coverages as are considered good business practice in Tenant’s business, even if such loss or damage shall be brought about by the fault or negligence of the other party or its Agents; provided, however, such waiver by Landlord shall not be effective with respect to Tenant’s liability described in Sections 9(b) and 10(d) below.  This waiver and release is effective regardless of whether the releasing party actually maintains the insurance described above in this subsection and is not limited to the amount of insurance actually carried, or to the actual proceeds received after a loss.  Each party shall have its insurance company that issues its property coverage waive any rights of subrogation, and shall have the insurance company include an endorsement acknowledging

 

 

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(d) this waiver, if necessary.  Tenant assumes all risk of damage of Tenant’s property within the Property, including any loss or damage caused by water leakage, fire, windstorm, explosion, theft, act of any other tenant, or other cause.

 

(e) Tenant shall not be permitted to satisfy any of its insurance obligations set forth in this Lease through any self-insurance or self-insured retention in excess of $25,000.00.

 

(f) Subject to subsection (c) above, and except to the extent caused by the negligence or willful misconduct of Landlord or its Agents, Tenant will indemnify, defend, and hold harmless Landlord and its Agents from and against any and all claims, actions, damages, liability and expense (including fees of attorneys, investigators and experts) which may be asserted against, imposed upon, or incurred by Landlord or its Agents and arising out of or in connection with loss of life, personal injury or damage to property in or about the Premises or arising out of the occupancy or use of the Property by Tenant or its Agents or occasioned wholly or in part by any act or omission of Tenant or its Agents, from the date that Tenant or its Agents first access the Premises until the expiration or termination of this Lease, plus any time period that Tenant remains in possession or occupancy of the Premises after the expiration or termination of this Lease.  Tenant’s obligations pursuant to this subsection shall survive the expiration or termination of this Lease.

 

10. Maintenance and Repairs.

 

(a) Landlord shall Maintain the Building, including the Premises, the Common Areas, the Building Systems and any other improvements owned by Landlord located on the Property.  If Tenant becomes aware of any condition that is Landlord’s responsibility to repair, Tenant shall promptly notify Landlord of the condition and then Landlord shall use commercially reasonable efforts to repair such condition within a commercially reasonable time under the circumstances.  Moreover, regardless of who bears responsibility for repair, Tenant shall immediately notify Landlord if Tenant becomes aware of any areas of water intrusion or mold growth in or about the Premises.

 

(b) Tenant at its sole expense shall keep the Premises in a neat and orderly condition.  Alterations, repairs and replacements to the Property, including the Premises, made necessary because of Tenant’s Alterations or installations, any use or circumstances special or particular to Tenant, or any act or omission of Tenant or its Agents shall be made at the sole expense of Tenant to the extent not covered by any applicable insurance proceeds paid to Landlord (but not in excess of Landlord’s commercially reasonable deductible), ordinary wear and tear excepted.

 

11. Compliance.

 

(a) Tenant will, at its expense, promptly comply with all Laws now or subsequently pertaining to Tenant’s specific use or manner of use or occupancy of the Premises or to Alterations made by Tenant or to the acts or omissions of Tenant or its Agents.  Tenant will pay any taxes or other charges by any authority on Tenant’s property or trade fixtures or relating to Tenant’s use of the Premises.  Neither Tenant nor its Agents shall use the Premises in any manner that under any Law would require Landlord to make any Alteration to or in the Building or Common Areas (without limiting the foregoing, Tenant shall not use the Premises in any manner that would cause the Premises or the Property to be deemed a “place of public accommodation” under the ADA and companion state laws, if any, if such use would require any such Alteration).  Tenant shall be responsible for compliance with the ADA, and any other Laws regarding accessibility, with respect to the Premises.

 

(b) Tenant will comply, and will cause its Agents to comply, with the Building Rules.  Landlord may adopt, and Tenant shall comply with, reasonable rules and regulations to promote energy efficiency, sustainability and environmental standards for the Property, as the same may be changed from time to time upon reasonable notice to Tenant.

 

(c) Tenant agrees not to do anything or fail to do anything which will increase the cost of Landlord’s insurance or which will prevent Landlord from procuring policies (including public liability) from companies and in a form satisfactory to Landlord.  If any breach of the preceding sentence by Tenant causes the rate of fire or other insurance to be increased, Tenant shall pay the amount of such increase as additional Rent within thirty (30) days after being billed.

 

(d) Tenant agrees that (i) no activity will be conducted on the Premises that will use or produce any Hazardous Materials, except for activities which are part of the ordinary course of Tenant’s business and are conducted in accordance with all Environmental Laws (“Permitted Activities”); (ii) the Premises will not be used for storage of any Hazardous Materials, except for materials used in the Permitted Activities which are properly stored in a manner and location complying with all Environmental Laws; (iii) no portion of the Premises or Property will be used by Tenant or Tenant’s Agents for disposal of Hazardous Materials; (iv) Tenant will keep on site and make available to Landlord, upon Landlord’s request, copies of all Material Safety Data Sheets and other written information prepared by manufacturers, importers or suppliers of any chemical (except for normal household cleaning supplies); and (v) Tenant will immediately notify Landlord of any violation by Tenant or

 

 

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(e) Tenant’s Agents of any applicable Environmental Laws or the release or suspected release of Hazardous Materials in, under or about the Premises, and Tenant shall immediately deliver to Landlord a copy of any notice, filing or permit sent or received by Tenant with respect to the foregoing.  If at any time during or after the Term, any portion of the Property is found to be contaminated by Tenant or Tenant’s Agents or subject to conditions prohibited in this Lease caused by Tenant or Tenant’s Agents, Tenant will indemnify, defend and hold Landlord harmless from all claims, demands, actions, liabilities, costs, expenses, attorneys’ fees, damages and obligations of any nature arising from or as a result thereof, and Landlord shall have the right to direct remediation activities, all of which shall be performed at Tenant’s cost.  Tenant’s obligations pursuant to this subsection shall survive the expiration or termination of this Lease.

 

12. Signs. Landlord will furnish Tenant Building standard identification signage on the interior Building directory, if applicable, and on or beside the main entrance door to the Premises and Building standard, shared signage on the existing Building monument sign located on the Property, in common with other tenants of the Building.  Tenant shall not place any signs on the Property without the prior consent of Landlord, other than signs that are located wholly within the interior of the Premises and not visible from the exterior of the Premises.  Tenant shall maintain all signs installed by Tenant in good condition. Tenant shall remove its signs at the termination of this Lease, shall repair any resulting damage, and shall restore the Property to its condition existing prior to the installation of Tenant’s signs.

 

13. Alterations.  Except for non-structural Alterations that (i) do not exceed $5,000.00 in the aggregate, (ii) are not visible from the exterior of the Premises, (iii) do not affect any Building System or the structural strength of the Building, (iv) do not require penetrations into the floor, ceiling or walls, and (v) do not require work within the walls, below the floor or above the ceiling, Tenant shall not make or permit any Alterations in or to the Premises without first obtaining Landlord’s consent, which consent shall not be unreasonably withheld.  With respect to any Alterations made by or on behalf of Tenant (whether or not the Alteration requires Landlord’s consent): (i) not less than ten (10) days prior to commencing any Alteration, Tenant shall deliver to Landlord the plans, specifications and necessary permits for the Alteration, together with certificates evidencing that Tenant’s contractors and subcontractors have adequate insurance coverage naming Landlord, Liberty Property Trust and any other associated or affiliated entity as their interests may appear as additional insureds; (ii) Tenant shall obtain Landlord’s prior written approval of any contractor or subcontractor; (iii) the Alteration shall be constructed with new materials, in a good and workmanlike manner, and in compliance with all Laws and the plans and specifications delivered to, and, if required above, approved by Landlord; (iv) the Alteration shall be performed in accordance with Landlord’s reasonable requirements relating to sustainability and energy efficiency; (v) Tenant shall pay Landlord all reasonable costs and expenses in connection with Landlord’s review of Tenant’s plans and specifications, and of any supervision or inspection of the construction Landlord deems necessary; and (vi) upon Landlord’s request Tenant shall, prior to commencing any Alteration, provide Landlord reasonable security against liens arising out of such construction.  Any Alteration by Tenant shall be the property of Tenant until the expiration or termination of this Lease; at that time without payment by Landlord the Alteration shall remain on the Property and become the property of Landlord unless Landlord gives notice to Tenant to remove it, in which event Tenant will remove it, will repair any resulting damage and will restore the Premises to the condition existing prior to Tenant’s Alteration.  At Tenant’s request prior to Tenant making any Alterations, Landlord will notify Tenant whether Tenant is required to remove the Alterations at the expiration or termination of this Lease.  Tenant may install its trade fixtures, furniture and equipment in the Premises, provided that the installation and removal of them will not affect any structural portion of the Property, any Building System or any other equipment or facilities serving the Building or any occupant.

 

14. Mechanics’ Liens.  Tenant promptly shall pay for any labor, services, materials, supplies or equipment furnished to Tenant in or about the Premises.  Tenant shall keep the Premises and the Property free from any liens arising out of any labor, services, materials, supplies or equipment furnished or alleged to have been furnished to Tenant.  Tenant shall take all steps permitted by law in order to avoid the imposition of any such lien.   Should any such lien or notice of such lien be filed against the Premises or the Property, Tenant shall discharge the same by bonding or otherwise within fifteen (15) days after Tenant has notice that the lien or claim is filed regardless of the validity of such lien or claim.

 

15. Landlord’s Right of Entry.  Tenant shall permit Landlord and its Agents to enter the Premises at all reasonable times following reasonable notice (except in an emergency) to inspect, Maintain, or make Alterations to the Premises or Property, to exhibit the Premises for the purpose of sale or financing, and, during the last 12 months of the Term, to exhibit the Premises to any prospective tenant.  Landlord will make reasonable efforts not to inconvenience Tenant in exercising such rights, but Landlord shall not be liable for any interference with Tenant’s occupancy resulting from Landlord’s entry.

 

16. Damage by Fire or Other Casualty.  If the Premises or Common Areas shall be damaged or destroyed by fire or other casualty, Tenant shall promptly notify Landlord, and Landlord, subject to the conditions set forth in this Section, shall repair such damage and restore the Premises or Common Areas to substantially the same condition in which they were immediately prior to such damage or destruction, but not including the repair, restoration or replacement of the fixtures, equipment, or Alterations installed by or on behalf of Tenant.  Landlord shall notify Tenant, within thirty (30) days after the date of the casualty, if Landlord

 

 

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17. anticipates that the restoration will take more than one hundred eighty (180) days from the date of the casualty to complete; in such event, either Landlord or Tenant (unless the damage was caused by Tenant) may terminate this Lease effective as of the date of casualty by giving notice to the other within ten (10) days after Landlord’s notice.  If a casualty occurs during the last 12 months of the Term, Landlord may terminate this Lease unless Tenant has the right to extend the Term for at least 3 more years and does so within thirty (30) days after the date of the casualty.  Moreover, Landlord may terminate this Lease if the loss is not covered by the insurance required to be maintained by Landlord under this Lease.  Tenant will receive an abatement of Minimum Annual Rent and Annual Operating Expenses to the extent the Premises are rendered untenantable as a result of the casualty.

 

18. Condemnation.  If (a) all of the Premises are Taken, (b) any part of the Premises is Taken and the remainder is insufficient in Landlord’s opinion for the reasonable operation of Tenant’s business, or (c) any of the Property is Taken, and, in Landlord’s opinion, it would be impractical or the condemnation proceeds are insufficient to restore the remainder, then this Lease shall terminate as of the date the condemning authority takes possession.  If this Lease is not terminated, Landlord shall restore the Building to a condition as near as reasonably possible to the condition prior to the Taking, the Minimum Annual Rent shall be abated for the period of time all or a part of the Premises is untenantable in proportion to the square foot area untenantable, and this Lease shall be amended appropriately.  The compensation awarded for a Taking shall belong to Landlord.  Except for any relocation benefits to which Tenant may be entitled, Tenant hereby assigns all claims against the condemning authority to Landlord, including, but not limited to, any claim relating to Tenant’s leasehold estate.

 

19. Quiet Enjoyment.  Landlord covenants that Tenant, upon performing all of its covenants, agreements and conditions of this Lease, shall have quiet and peaceful possession of the Premises as against anyone claiming by or through Landlord (including anyone claiming against Landlord through a mechanics’ lien), subject, however, to the terms of this Lease.

 

20. Assignment and Subletting.

 

(a) Except as provided in Section (b) below, Tenant shall not enter into nor permit any Transfer voluntarily or by operation of law, without the prior consent of Landlord, which consent shall not be unreasonably withheld.  Without limitation, Tenant agrees that Landlord’s consent shall not be considered unreasonably withheld if (i) the proposed transferee is an existing tenant of Landlord or an affiliate of Landlord, (ii) the business, business reputation, or creditworthiness of the proposed transferee is unacceptable to Landlord, (iii) Landlord or an affiliate of Landlord has comparable space available for lease by the proposed transferee, or (iv) Tenant is in default under this Lease or any act or omission has occurred which would constitute a default with the giving of notice and/or the passage of time.  A consent to one Transfer shall not be deemed to be a consent to any subsequent Transfer.  In no event shall any Transfer relieve Tenant from any obligation under this Lease.  Landlord’s acceptance of Rent from any person shall not be deemed to be a waiver by Landlord of any provision of this Lease or to be a consent to any Transfer.  Any Transfer not in conformity with this Section 18 shall be void at the option of Landlord.

 

(b) Landlord’s consent shall not be required in the event of any Transfer by Tenant to an Affiliate provided that (i) the Affiliate has a tangible net worth at least equal to that of Tenant as of the date of this Lease, (ii) Tenant provides Landlord notice of the Transfer at least fifteen (15) days prior to the effective date, together with current financial statements of the Affiliate certified by an executive officer of the Affiliate, and (iii) in the case of an assignment or sublease, Tenant delivers to Landlord an assumption agreement reasonably acceptable to Landlord executed by Tenant and the Affiliate, together with a certificate of insurance evidencing the Affiliate’s compliance with the insurance requirements of Tenant under this Lease.

 

(c) The provisions of subsection (a) above notwithstanding, if Tenant proposes to Transfer all of the Premises (other than to an Affiliate), Landlord may terminate this Lease, either conditioned on execution of a new lease between Landlord and the proposed transferee or without that condition.  If Tenant proposes to enter into a Transfer of less than all of the Premises (other than to an Affiliate), Landlord may amend this Lease to remove the portion of the Premises to be transferred, either conditioned on execution of a new lease between Landlord and the proposed transferee or without that condition.  If this Lease is not so terminated or amended, Tenant shall pay to Landlord, immediately upon receipt, the excess of (i) all compensation received by Tenant for the Transfer over (ii) the Rent allocable to the Premises transferred.

 

(d) If Tenant requests Landlord’s consent to a Transfer, Tenant shall provide Landlord, at least fifteen (15) days prior to the proposed Transfer, current financial statements of the transferee certified by an executive officer of the transferee, a complete copy of the proposed Transfer documents, and any other information Landlord reasonably requests.  Immediately following any approved assignment or sublease, Tenant shall deliver to Landlord an assumption agreement reasonably acceptable to Landlord executed by Tenant and the transferee, together with a certificate of insurance evidencing the transferee’s compliance with the insurance requirements of Tenant under this Lease.  Tenant agrees to reimburse Landlord for reasonable administrative and attorneys’ fees in connection with the processing and documentation of any Transfer for which Landlord’s consent is requested.

 

 

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21. Subordination; Mortgagee’s Rights.

 

(a) Tenant accepts this Lease subject and subordinate to any Mortgage now or in the future affecting the Premises, provided that Tenant’s right of possession of the Premises shall not be disturbed by the Mortgagee so long as Tenant is not in default under this Lease.  This clause shall be self-operative, but within 10 days after request, Tenant shall execute and deliver any further instruments confirming the subordination of this Lease and any further instruments of attornment that the Mortgagee may reasonably request.  However, any Mortgagee may at any time subordinate its Mortgage to this Lease, without Tenant’s consent, by giving notice to Tenant, and this Lease shall then be deemed prior to such Mortgage without regard to their respective dates of execution and delivery; provided that such subordination shall not affect any Mortgagee’s rights with respect to condemnation awards, casualty insurance proceeds, intervening liens or any right which shall arise between the recording of such Mortgage and the execution of this Lease.

 

(b) No Mortgagee shall be (i) liable for any act or omission of a prior landlord, (ii) subject to any rental offsets or defenses against a prior landlord, (iii) bound by any amendment of this Lease made without its written consent, or (iv) bound by payment of Monthly Rent more than one month in advance or liable for any other funds paid by Tenant to Landlord unless such funds actually have been transferred to the Mortgagee by Landlord.

 

(c) The provisions of Sections 15 and 16 above notwithstanding, Landlord’s obligation to restore the Premises after a casualty or condemnation shall be subject to the consent and prior rights of any Mortgagee.

 

22. Tenant’s Certificate; Financial Information.  Within ten (10) days after Landlord’s request from time to time, (a) Tenant shall execute, acknowledge and deliver to Landlord, for the benefit of Landlord, Mortgagee, any prospective Mortgagee, and any prospective purchaser of Landlord’s interest in the Property, an estoppel certificate in the form of attached Exhibit “C” (or other form requested by Landlord), modified as necessary to accurately state the facts represented, and (b) Tenant shall furnish to Landlord, Landlord’s Mortgagee, prospective Mortgagee and/or prospective purchaser reasonably requested financial information.  Landlord agrees to keep any private financial information provided to it by Tenant confidential (except for disclosure to the parties listed in this subsection (b)), and any Mortgagee, prospective Mortgagee and/or prospective purchaser with which Landlord shares such information shall be informed by Landlord of the obligation to keep such information confidential.

 

23. Surrender.

 

(a) On the date on which this Lease expires or terminates, Tenant shall return possession of the Premises to Landlord in the condition that the Premises was in as of the Commencement Date, except for ordinary wear and tear, and except for casualty damage or other conditions that Tenant is not required to remedy under this Lease.  Prior to the expiration or termination of this Lease, Tenant shall remove from the Property all furniture, trade fixtures, equipment, wiring and cabling (unless Landlord directs Tenant otherwise), and all other personal property installed by Tenant or its assignees or subtenants.  Tenant shall repair any damage resulting from such removal and shall restore the Property to the condition required in the first sentence of this subsection 21(a).  Any of Tenant’s personal property not removed as required shall be deemed abandoned, and Landlord, at Tenant’s expense, may remove, store, sell or otherwise dispose of such property in such manner as Landlord may see fit and/or Landlord may retain such property or sale proceeds as its property.  If Tenant does not return possession of the Premises to Landlord in the condition required under this Lease, Tenant shall pay Landlord all resulting damages Landlord may suffer.

 

(b) If Tenant remains in possession of the Premises after the expiration or termination of this Lease, Tenant’s occupancy of the Premises shall be that of a tenancy at will.  Tenant’s occupancy during any holdover period shall otherwise be subject to the provisions of this Lease (unless clearly inapplicable), except that the Monthly Rent shall be double the Monthly Rent payable for the last full month immediately preceding the holdover.  No holdover or payment by Tenant after the expiration or termination of this Lease shall operate to extend the Term or prevent Landlord from immediate recovery of possession of the Premises by summary proceedings or otherwise.  Any provision in this Lease to the contrary notwithstanding, any holdover by Tenant shall constitute a default on the part of Tenant under this Lease entitling Landlord to exercise, without obligation to provide Tenant any notice or cure period, all of the remedies available to Landlord in the event of a Tenant default, and Tenant shall be liable for all damages, including consequential damages, that Landlord suffers as a result of the holdover.

 

24. Defaults - Remedies.

 

(a) It shall be an Event of Default:

 

(i) If Tenant does not pay in full when due any and all Rent and, except as provided in Section 22(d) below, Tenant fails to cure such default on or before the date that is five (5) business days after Landlord gives Tenant notice of default;

 

 

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(ii) If Tenant enters into or permits any Transfer in violation of Section 18 above;

 

(iii) If Tenant fails to observe and perform or otherwise breaches any other provision of this Lease, and, except as provided in Section 22(d) below, Tenant fails to cure the default on or before the date that is ten (10) days after Landlord gives Tenant notice of default; provided, however, if the default cannot reasonably be cured within ten (10) days following Landlord’s giving of notice, Tenant shall be afforded additional reasonable time (not to exceed thirty (30)  days following Landlord’s notice) to cure the default if Tenant begins to cure the default within ten (10) days following Landlord’s notice and continues diligently in good faith to completely cure the default; or

 

(iv) If Tenant becomes insolvent or makes a general assignment for the benefit of creditors or offers a settlement to creditors, or if a petition in bankruptcy or for reorganization or for an arrangement with creditors under any federal or state law is filed by or against Tenant, or a bill in equity or other proceeding for the appointment of a receiver for any of Tenant’s assets is commenced, or if any of the real or personal property of Tenant shall be levied upon; provided that any proceeding brought by anyone other than Landlord or Tenant under any bankruptcy, insolvency, receivership or similar law shall not constitute an Event of Default until such proceeding has continued unstayed for more than sixty (60) consecutive days.

 

(b) If an Event of Default occurs, Landlord shall have the following rights and remedies:

 

(i) Landlord, without any obligation to do so, may elect to cure the default on behalf of Tenant, in which event Tenant shall reimburse Landlord upon demand for any sums paid or costs incurred by Landlord (together with an administrative fee of 15% thereof) in curing the default, plus interest at the Interest Rate from the respective dates of Landlord’s incurring such costs, which sums and costs together with interest at the Interest Rate shall be deemed additional Rent;

 

(ii) To enter and repossess the Premises, by breaking open locked doors if necessary, and remove all persons and all or any property, by action at law or otherwise, without being liable for prosecution or damages.  Landlord may, at Landlord’s option, make Alterations and repairs in order to relet the Premises and relet all or any part(s) of the Premises for Tenant’s account.  Tenant agrees to pay to Landlord on demand any deficiency (taking into account all costs incurred by Landlord) that may arise by reason of such reletting.  In the event of reletting without termination of this Lease, Landlord may at any time thereafter elect to terminate this Lease for such previous breach;

 

(iii) To accelerate the whole or any part of the Rent for the balance of the Term, and declare the same to be immediately due and payable; and

 

(iv) To terminate this Lease and the Term without any right on the part of Tenant to save the forfeiture by payment of any sum due or by other performance of any condition, term or covenant broken.

 

(c) In addition to the rights and remedies provided in subsection (a) above, if an Event of Default occurs relating to Tenant's non-payment of the Rent due hereunder, Tenant hereby authorizes any attorney of any court of record of the Commonwealth of Pennsylvania to appear for Tenant and to confess judgment against Tenant, and in favor of Landlord, for all Rent due hereunder plus costs and an attorney's collection commission equal to the greater of 10% of all Rent or $1,000.00, for which this Lease or a true and correct copy hereof shall be good and sufficient warrant.  TENANT UNDERSTANDS THAT THE FOREGOING PERMITS LANDLORD TO ENTER A JUDGMENT AGAINST TENANT WITHOUT PRIOR NOTICE OR HEARING.  ONCE SUCH A JUDGMENT HAS BEEN ENTERED AGAINST TENANT, ONE OR MORE WRITS OF EXECUTION OR WRITS OF GARNISHMENT MAY BE ISSUED THEREON WITHOUT FURTHER NOTICE TO TENANT AND WITHOUT A HEARING, AND, PURSUANT TO SUCH WRITS, LANDLORD MAY CAUSE THE SHERIFF OF THE COUNTY IN WHICH ANY PROPERTY OF TENANT IS LOCATED TO SEIZE TENANT'S PROPERTY BY LEVY OR ATTACHMENT.  IF THE JUDGMENT AGAINST TENANT REMAINS UNPAID AFTER SUCH LEVY OR ATTACHMENT, LANDLORD CAN CAUSE SUCH PROPERTY TO BE SOLD BY THE SHERIFF EXECUTING THE WRITS, OR, IF SUCH PROPERTY CONSISTS OF A DEBT OWED TO TENANT BY ANOTHER ENTITY, LANDLORD CAN CAUSE SUCH DEBT TO BE PAID DIRECTLY TO LANDLORD IN AN AMOUNT UP TO BUT NOT TO EXCEED THE AMOUNT OF THE JUDGMENT OBTAINED BY LANDLORD AGAINST TENANT, PLUS THE COSTS OF THE EXECUTION.  Such authority shall not be exhausted by one exercise thereof, but judgment may be confessed as aforesaid from time to time as often as any of the Rent and other sums shall fall due or be in arrears, and such powers may be exercised as well after the expiration of the initial term of this Lease and during any extended or renewal term of this Lease and after the expiration of any extended or renewal term of this Lease.

 

Initials on behalf of Tenant:

 

 

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(d) Any provision to the contrary in this Section 22 notwithstanding, (i) Landlord shall not be required to give Tenant the notice and opportunity to cure provided in Section 22(a) above more than twice in any consecutive 12-month period, and thereafter Landlord may declare an Event of Default without affording Tenant any of the notice and cure rights provided under this Lease, and (ii) Landlord shall not be required to give such notice prior to exercising its rights if Tenant fails to comply with the provisions of Sections 13, 20 or 27 or in an emergency.

 

(e) No waiver by Landlord of any breach by Tenant shall be a waiver of any subsequent breach, nor shall any forbearance by Landlord to seek a remedy for any breach by Tenant be a waiver by Landlord of any rights and remedies with respect to such or any subsequent breach.  Efforts by Landlord to mitigate the damages caused by Tenant’s default shall not constitute a waiver of Landlord’s right to recover damages hereunder.  No right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy provided herein or by law, but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing at law or in equity.  No payment by Tenant or receipt or acceptance by Landlord of a lesser amount than the total amount due Landlord under this Lease shall be deemed to be other than on account, nor shall any endorsement or statement on any check or payment be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of Rent due, or Landlord’s right to pursue any other available remedy.

 

(f) If either party commences an action against the other party arising out of or in connection with this Lease, the prevailing party shall be entitled to have and recover from the other party attorneys’ fees, costs of suit, investigation expenses and discovery costs, including costs of appeal.

 

(g) Landlord and Tenant waive the right to a trial by jury in any action or proceeding based upon or related to, the subject matter of this Lease.

 

(h) When this Lease and the Term or any extension thereof shall have been terminated on account of any default by Tenant, or when the Term or any extension thereof shall have expired, Tenant hereby authorizes any attorney of any court of record of the Commonwealth of Pennsylvania to appear for Tenant and for anyone claiming by, through or under Tenant and to confess judgment against all such parties, and in favor of Landlord, in ejectment and for the recovery of possession of the Premises, for which this Lease or a true and correct copy hereof shall be good and sufficient warrant.  AFTER THE ENTRY OF ANY SUCH JUDGMENT A WRIT OF POSSESSION MAY BE ISSUED THEREON WITHOUT FURTHER NOTICE TO TENANT AND WITHOUT A HEARING.  If for any reason after such action shall have been commenced it shall be determined and possession of the Premises remain in or be restored to Tenant, Landlord shall have the right for the same default and upon any subsequent default(s) or upon the termination of this Lease or Tenant's right of possession as herein set forth, to again confess judgment as herein provided, for which this Lease or a true and correct copy hereof shall be good and sufficient warrant.

 

Initials on behalf of Tenant:

 

(i) The warrants to confess judgment set forth above shall continue in full force and effect and be unaffected by amendments to this Lease or other agreements between Landlord and Tenant even if any such amendments or other agreements increase Tenant's obligations or expand the size of the Premises.

 

(j) TENANT EXPRESSLY AND ABSOLUTELY KNOWINGLY AND EXPRESSLY WAIVES AND RELEASES (i) ANY RIGHT, INCLUDING, WITHOUT LIMITATION, UNDER ANY APPLICABLE STATUTE, WHICH TENANT MAY HAVE TO RECEIVE A NOTICE TO QUIT PRIOR TO LANDLORD COMMENCING AN ACTION FOR REPOSSESSION OF THE PREMISES AND (ii) ANY RIGHT WHICH TENANT MAY HAVE TO NOTICE AND TO HEARING PRIOR TO A LEVY UPON OR ATTACHMENT OF TENANT'S PROPERTY OR THEREAFTER AND (iii) ANY PROCEDURAL ERRORS IN CONNECTION WITH THE ENTRY OF ANY SUCH JUDGMENT OR IN THE ISSUANCE OF ANY ONE OR MORE WRITS OF POSSESSION OR EXECUTION OR GARNISHMENT THEREON.

 

Initials on behalf of Tenant:

 

25. Tenant’s Authority.  Tenant represents and warrants to Landlord that:  (a) Tenant is duly formed, validly existing and in good standing under the laws of the state under which Tenant is organized, and qualified to do business in the state in which the Property is located, and (b) the person(s) signing this Lease are duly authorized to execute and deliver this Lease on behalf of Tenant.

 

26. Liability of Landlord.  The word “Landlord” in this Lease includes the Landlord executing this Lease as well as its successors and assigns, each of which shall have the same rights, remedies, powers, authorities and privileges as it would have

 

 

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27. had it originally signed this Lease as Landlord.  Any such person or entity, whether or not named in this Lease, shall have no liability under this Lease after it ceases to hold title to the Premises except for obligations already accrued (and, as to any unapplied portion of Tenant’s Security Deposit, Landlord shall be relieved of all liability upon transfer of such portion to its successor in interest).  Tenant shall look solely to Landlord’s successor in interest for the performance of the covenants and obligations of the Landlord hereunder which subsequently accrue.  Landlord shall not be deemed to be in default under this Lease unless Tenant gives Landlord notice specifying the default and Landlord fails to cure the default within a reasonable period following Tenant’s notice.  In no event shall Landlord be liable to Tenant for any loss of business or profits of Tenant or for consequential, punitive or special damages of any kind.  Neither Landlord nor any principal of Landlord nor any owner of the Property, whether disclosed or undisclosed, shall have any personal liability with respect to any of the provisions of this Lease or the Premises; Tenant shall look solely to the equity of Landlord in the Property for the satisfaction of any claim by Tenant against Landlord.

 

28. Miscellaneous.

 

(a) The captions in this Lease are for convenience only, are not a part of this Lease and do not in any way define, limit, describe or amplify the terms of this Lease.

 

(b) This Lease represents the entire agreement between the parties hereto and there are no collateral or oral agreements or understandings between Landlord and Tenant with respect to the Premises or the Property.  No rights, easements or licenses are acquired in the Property or any land adjacent to the Property by Tenant by implication or otherwise except as expressly set forth in this Lease.  This Lease shall not be modified in any manner except by an instrument in writing executed by the parties.  The masculine (or neuter) pronoun and the singular number shall include the masculine, feminine and neuter genders and the singular and plural number.  The word “including” followed by any specific item(s) is deemed to refer to examples rather than to be words of limitation.  The word “person” includes a natural person, a partnership, a corporation, a limited liability company, an association and any other form of business association or entity.  Both parties having participated fully and equally in the negotiation and preparation of this Lease, this Lease shall not be more strictly construed, nor any ambiguities in this Lease resolved, against either Landlord or Tenant.

 

(c) Each covenant, agreement, obligation, term, condition or other provision contained in this Lease shall be deemed and construed as a separate and independent covenant of the party bound by, undertaking or making the same, not dependent on any other provision of this Lease unless otherwise expressly provided.  All of the terms and conditions set forth in this Lease shall apply throughout the Term unless otherwise expressly set forth herein.

 

(d) If any provisions of this Lease shall be declared unenforceable in any respect, such unenforceability shall not affect any other provision of this Lease, and each such provision shall be deemed to be modified, if possible, in such a manner as to render it enforceable and to preserve to the extent possible the intent of the parties as set forth herein.  This Lease shall be construed and enforced in accordance with the laws of the state in which the Property is located.

 

(e) This Lease shall be binding upon and inure to the benefit of Landlord and Tenant and their respective heirs, personal representatives and permitted successors and assigns.  All persons liable for the obligations of Tenant under this Lease shall be jointly and severally liable for such obligations.

 

(f) Tenant shall not record this Lease or any memorandum without Landlord’s prior consent.

 

29. Notices.  Any notice, consent or other communication under this Lease shall be in writing and addressed to Landlord or Tenant at their respective addresses specified in Section 1 above (or to such other address as either may designate by notice to the other) with a copy to any Mortgagee or other party designated by Landlord.  Each notice or other communication shall be deemed given if sent by prepaid overnight delivery service or by certified mail, return receipt requested, postage prepaid or in any other manner, with delivery in any case evidenced by a receipt, and shall be deemed to have been given on the day of actual delivery to the intended recipient or on the business day delivery is refused.  The giving of notice by Landlord’s attorneys, representatives and agents under this Section shall be deemed to be the acts of Landlord.

 

30. Security Deposit.  At the time of signing this Lease, Tenant shall deposit with Landlord the Security Deposit to be retained by Landlord as cash security for the faithful performance and observance by Tenant of the provisions of this Lease.  Tenant shall not be entitled to any interest on the Security Deposit.  Landlord shall have the right to commingle the Security Deposit with its other funds.  Landlord may use the whole or any part of the Security Deposit for the payment of any amount as to which Tenant is in an Event of Default or to compensate Landlord for any loss or damage it may suffer by reason of an Event of Default under this Lease.  If Landlord uses all or any portion of the Security Deposit as herein provided, within 10 days after demand, Tenant shall pay Landlord cash in an amount equal to that portion of the Security Deposit used by Landlord.  If Tenant complies fully and

 

 

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31. faithfully with all of the provisions of this Lease, the Security Deposit shall be returned to Tenant after the Expiration Date and surrender of the Premises to Landlord.

 

32. Tenant Improvements.

 

(a)           Landlord shall complete the Tenant Improvements in accordance with the plans or the description of improvements attached hereto as Exhibit “F”.  All necessary construction shall be substantially completed ready for use and occupancy by Tenant on the Anticipated Completion Date, subject to extension for delays due to any cause beyond the reasonable control of Landlord or Landlord’s contractors or suppliers.  All construction shall be done in a good and workmanlike manner and shall comply at the time of completion with all applicable Laws (including the ADA) of the governmental authorities having jurisdiction.

 

(b)           Tenant’s occupancy of the Premises shall constitute Tenant’s acceptance of the Tenant Improvements, subject to completion by Landlord of items set forth on a mutually agreed-upon punchlist of incomplete items prepared at the time of substantial completion of the Tenant Improvements.

 

(c)           Tenant and its Agents shall have the right, at Tenant’s own risk, expense and responsibility, at all reasonable times prior to the Commencement Date, to enter the Premises for the purpose of taking measurements and installing its furnishings and equipment, provided that Tenant does not interfere with or delay the Tenant Improvements, Tenant uses contractors and workers compatible with the contractors and workers engaged by Landlord, and Tenant obtains Landlord’s prior written consent.

 

(d)           If the date of substantial completion of the Tenant Improvements is delayed by Tenant or its Agents, then the Tenant Improvements shall be deemed to be substantially complete on the Anticipated Completion Date, as extended for reasons other than those caused by Tenant or its Agents.”

 

33. Brokers. Tenant agrees that it has dealt with no brokers in connection with this Lease, except for The Flynn Company, whose commission shall be paid by Landlord pursuant to separate agreement.  Tenant agrees to indemnify and hold Landlord harmless from any and all claims for commissions or fees in connection with the Premises and this Lease from any other real estate brokers or agents with whom it may have dealt.

 

34. Option to Renew.

 

(a)           Provided that Landlord has not given Tenant notice of default more than two (2) times, that there then exists no Event of Default by Tenant under this Lease, nor any event that with the giving of notice and/or the passage of time would constitute an Event of Default, and that Tenant is the sole occupant of the Premises, Tenant shall have the right and option to extend the Term of this Lease for one (1) additional period of twelve (12) months, exercisable by giving Landlord prior written notice, on or before that date that is six (6) months prior to the Expiration Date, of Tenant’s election to extend the Term of this Lease; it being agreed that time is of the essence and that this option is personal to Tenant and is non-transferable to any assignee or sublessee (regardless of whether any such assignment or sublease was made with or without Landlord’s consent) or other party.

 

(b)           Such extension shall be under the same terms and conditions as provided in this Lease except as follows:

 

(i)           the additional period shall begin on the day after the initial Expiration Date and thereafter the Expiration Date shall be deemed to be the date that is twelve (12) months after the initial Expiration Date;

 

(ii)           there shall be no further options to extend; and

 

(iii)           the Minimum Annual Rent for the additional period shall be as follows:

 

	
Lease Month

	
Annual

	
Monthly

	
25 – 36

	
$101,384.00

	
$8,448.67

 

35.  Right of First Offer.  In the event Tenant requires additional space in the Building for the conduct of its business, Tenant shall notify Landlord in writing of Tenant’s space needs within the Building (“Tenant’s Space Notice”).  Subject to the

 

 

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36. tenant in occupancy of any ROFO Space (as hereinafter defined) renewing or extending such tenant’s term (regardless of whether any such tenant has an option to renew or extend the term under its lease) and to the prior rights of any other tenants in the Building, for a period of six (6) months after the date of Landlord’s receipt of Tenant’s Space Notice, Landlord shall notify Tenant (“Offer Notice”) each time during any such six (6) month period of the Term or any extension or renewal thereof that Landlord becomes aware of the availability or impending availability for lease of space in the Building that is contiguous to the Premises (the “ROFO Space”) by any party other than the tenant then in occupancy of any such ROFO Space, provided that Landlord has not given Tenant notice of default more than two (2) times, that there then exists no Event of Default by Tenant under this Lease, nor any event that with the giving of notice and/or the passage of time would constitute an Event of Default, and that Tenant is the sole occupant of the Premises, subject to the following:

 

(a)           Each Offer Notice shall describe the ROFO Space and the date as of which such ROFO Space shall be available for lease.  Tenant shall have five (5) days following the date of an Offer Notice within which to notify Landlord in writing (“Tenant’s Notice”) that Tenant is interested in leasing the ROFO Space.  If Tenant timely sends Tenant’s Notice, Landlord and Tenant shall have ten (10) days following Landlord’s receipt of Tenant’s Notice within which to negotiate mutually satisfactory terms for the leasing of the ROFO Space and to enter into an amendment to this Lease.  If Tenant does not timely deliver the Tenant Notice or enter into such an amendment with Landlord, then this right of first offer to lease the ROFO Space will lapse and be of no further force or effect and Landlord shall have the right to lease the ROFO Space to any third party on any terms and conditions.

 

(b)           This right of first offer to lease such ROFO Space is personal to Tenant and is non-transferable to any assignee or sublessee (regardless of whether any such assignment or sublease was made with or without Landlord’s consent) or other party.

Landlord’s approval:

Regional Director                                                                City Manager

 

37. Generator. Provided Tenant is not then in default under this Lease, Tenant shall have the right and option, at its sole risk, responsibility, cost and expense, to install, maintain and repair a back-up generator (“Generator”) on the Property, under and subject to the following conditions:

 

(a)           Tenant shall comply with all applicable Laws and shall obtain, and deliver to Landlord written evidence of, any approval(s) required under any applicable Laws or recorded covenants or restrictions applicable to the Property and copies of all permits and approvals therefor.

 

(b)           Tenant shall obtain Landlord’s prior approval of the location of the Generator on the Property and of the specifications for the Generator.  Tenant shall enclose and screen the Generator and concrete pad on which it will be located with pre-cast concrete panels matching the exterior of the Building or other screening satisfactory to Landlord and otherwise in a manner satisfactory to Landlord.  Tenant shall pay all costs associated with the installation, screening, maintenance and repair of the Generator on the Property, including without limitation, reasonable costs and fees Landlord may incur for professional or contractor review and approval and commercially reasonable landscaping costs.

 

(c)           Tenant shall comply with the provisions of Sections 12 and 13 of this Lease.

 

(d)           At least three (3) business days prior to installation or removal of the Generator, Tenant shall notify Landlord of the date and time of such removal or installation.  Tenant shall remove or install the Generator only if Landlord has had such opportunity to be present with Tenant at the removal or installation.

 

(e)           Tenant shall maintain the Generator in a safe, good and orderly condition.  The installation, maintenance, repair and removal of the Generator shall be performed at Tenant’s sole expense in a manner which will not impair the integrity of, damage or adversely affect the warranty applicable to, any portion of the Property.

 

(f)           No later than the expiration or sooner termination of the Term, at Tenant’ s sole expense, Tenant shall remove the Generator and all wiring therefrom to and through the Building and repair any resulting damage, including without limitation, damage to landscaping or paving.  Tenant shall also be responsible for restoring all affected areas to the condition existing prior to the installation of the Generator.  Tenant shall comply with all Laws in connection with the removal of the Generator and shall deliver to Landlord copies of all required permits and approvals in connection with such removal.

 

 

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(g)           Tenant’s indemnification of Landlord pursuant to Section 8(e) of this Lease also applies to the Generator and Tenant’s use of any portion of the Property therefor.  Without limiting the foregoing, Tenant solely shall be responsible for any damages or injury caused by or in any way relating to the Generator, including, but not limited to, damage or injury to persons or property, including the Property, caused by reason of any leaking of fuel therefrom.

 

(h)           In the event the cost of Landlord’s insurance on the Building is increased as a result of the installation of the Generator, Tenant shall pay for the increase in such insurance as set forth in subsection Section 10(c) of this Lease.

 

Landlord and Tenant have executed this Lease on the respective date(s) set forth below.

 

 

 

 

	 	Landlord:	 
	 	LIBERTY PROPERTY LIMITED PARTNERSHIP	 
	 	 	 	 
	 	By:	 Liberty Property Trust, Sole General Partner	 
	 	 	 	 
	
Date signed:

	
By: 

	/s/ Robert E. Fenza	 
	          09/27/13      	 	Name:  Robert E. Fenza 	 
	 	 	Title: Executive Vice President & COO 	 
	 	 	 	 

 

 

	
Date signed:

	Tenant:	 
	         09/25/13       	PHOTOMEDEX, INC.	 
	 	 	 	 
	 	 	 	 
	
  /s/ Judy Danial   

	
By: 

	/s/ Michael R. Stewart	 
	Name: Judy Danial	 	Name: Michael R. Stewart	 
	Title:  Corporate Paralegal	 	Title: Executive Vice President	 
	 	 	 

 

 

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Rider 1 to Lease Agreement

 

(Multi-Tenant Office)

 

 

ADDITIONAL DEFINITIONS

 

 

“ADA” means the Americans With Disabilities Act of 1990 (42 U.S.C. § 1201 et seq.), as amended and supplemented from time to time.

 

“Affiliate” means (i) any entity controlling, controlled by, or under common control of, Tenant, (ii) any successor to Tenant by merger, consolidation or reorganization, and (iii) any purchaser of all or substantially all of the assets of Tenant as a going concern.

 

“Agents” of a party means such party’s employees, agents, representatives, contractors, licensees or invitees.

 

“Alteration” means any addition, alteration or improvement to the Premises or Property, as the case may be.

 

“Building Rules” means the rules and regulations attached to this Lease as Exhibit “B” as they may be amended from time to time.

 

“Building Systems” means any electrical, mechanical, structural, plumbing, heating, ventilating, air conditioning, sprinkler, life safety or security systems serving the Building.

 

“Common Areas” means all areas and facilities as provided by Landlord from time to time for the use or enjoyment of all tenants in the Building or Property, including, if applicable, lobbies, hallways, restrooms, elevators, driveways, sidewalks, parking, loading and landscaped areas.

 

“Environmental Laws” means all present or future federal, state or local laws, ordinances, rules or regulations (including the rules and regulations of the federal Environmental Protection Agency and comparable state agency) relating to the protection of human health or the environment.

 

“Event of Default” means a default described in Section 22(a) of this Lease.

 

“Hazardous Materials” means pollutants, contaminants, toxic or hazardous wastes or other materials the removal of which is required or the use of which is regulated, restricted, or prohibited by any Environmental Law.

 

“Interest Rate” means interest at the rate of 11⁄2% per month.

 

“Land” means the lot or plot of land on which the Building is situated or the portion thereof allocated by Landlord to the Building.

 

“Laws” means all applicable laws, ordinances, rules, orders, regulations, guidelines and other requirements of federal, state or local governmental authorities or of any private association or contained in any restrictive covenants or other declarations or agreements, now or subsequently pertaining to the Property or the use and occupation of the Property.

 

“Lease Year” means the period from the Commencement Date through the succeeding 12 full calendar months (including for the first Lease Year any partial month from the Commencement Date until the first day of the first full calendar month) and each successive 12-month period thereafter during the Term.

 

“Maintain” means to provide such maintenance, repair and, to the extent necessary and appropriate, replacement, as may be needed to keep the subject property in good condition and repair.  Maintenance also includes utilizing such building-performance assessment tools and energy-optimizing practices that Landlord in its discretion reasonably deems necessary and appropriate for planning, designing, installing, testing, operating and maintaining the Building Systems and Common Areas in an energy efficient manner and providing a safe and comfortable work environment, with a view toward achieving improved overall Building performance and minimizing the Building’s impact on the environment.

 

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“Monthly Rent” means the monthly installment of Minimum Annual Rent plus the monthly installment of estimated Annual Operating Expenses payable by Tenant under this Lease.

 

“Mortgage” means any mortgage, deed of trust or other lien or encumbrance on Landlord’s interest in the Property or any portion thereof, including without limitation any ground or master lease if Landlord’s interest is or becomes a leasehold estate.

 

“Mortgagee” means the holder of any Mortgage, including any ground or master lessor if Landlord’s interest is or becomes a leasehold estate.

 

“Normal Business Hours” means 8:00 a.m. to 6:00 p.m., Monday through Friday, legal holidays excepted.

 

“Operating Expenses” means all costs, fees, charges and expenses incurred or charged by Landlord in connection with the ownership, operation, maintenance and repair of, and services provided to, the Property, including, but not limited to, (i) the charges at standard retail rates for any services provided by Landlord pursuant to Section 7 of this Lease, (ii) the cost of insurance carried by Landlord pursuant to Section 8 of this Lease together with the cost of any deductible paid by Landlord in connection with an insured loss, (iii) Landlord’s cost to Maintain the Property pursuant to Section 9 of this Lease, (iv) the cost of trash collection, (v) to the extent not otherwise payable by Tenant pursuant to Section 5 of this Lease, all levies, taxes (including real estate taxes, sales taxes and gross receipt taxes), assessments, liens, license and permit fees, together with the reasonable cost of contesting any of the foregoing, which are applicable to the Term, and which are imposed by any authority or under any Law, or pursuant to any recorded covenants or agreements, upon or with respect to the Property, or any improvements thereto, or directly upon this Lease or the Rent or upon amounts payable by any subtenants or other occupants of the Premises, or against Landlord because of Landlord’s estate or interest in the Property, (vi) the annual amortization (over their estimated economic useful life or payback period, whichever is shorter) of the costs (including reasonable financing charges) of capital improvements or replacements (a) required by any Laws, (b) made for the purpose of reducing Operating Expenses, or (c) made for the purpose of directly enhancing the safety of tenants in the Building, (vii) a management and administrative fee, and (viii) costs to process the certification or re-certification of the Building pursuant to any applicable environmental rating system (such as Energy Star or LEED), including, applying, reporting, tracking and related reasonable consultant’s fees associated therewith.  The foregoing notwithstanding, Operating Expenses will not include:  (i) depreciation on the Building, (ii) financing and refinancing costs (except as provided above), interest on debt or amortization payments on any mortgage, or rental under any ground or underlying lease, (iii) leasing commissions, advertising expenses, tenant improvements or other costs directly related to the leasing of the Property, (iv) income, excess profits or corporate capital stock tax imposed or assessed upon Landlord, unless such tax or any similar tax is levied or assessed in lieu of all or any part of any taxes includable in Operating Expenses above, or (v) costs of alterations, repairs, capital improvements, equipment replacement and other items which under generally accepted accounting principles are properly classified as capital expenditures, except that the annual amortization of these costs shall be included to the extent otherwise expressly permitted in this Lease.  If Landlord elects to prepay real estate taxes during any discount period, Landlord shall be entitled to the benefit of any such prepayment.  Landlord shall have the right to directly perform (by itself or through an affiliate) any services provided under this Lease provided that the Landlord’s charges included in Operating Expenses for any such services shall not exceed competitive market rates for comparable services.

“Property” means the Land, the Building, the Common Areas, and all appurtenances to them.

 

“Rent” means the Minimum Annual Rent, Annual Operating Expenses and any other amounts payable by Tenant to Landlord under this Lease.

 

“Taken” or “Taking” means acquisition by a public authority having the power of eminent domain by condemnation or conveyance in lieu of condemnation.

 

“Tenant Improvements” means the improvements to be performed by Landlord pursuant to Section 28 of this Lease.

 

“Tenant’s Share” means the percentage obtained by dividing the rentable square feet of the Premises by the rentable square feet of the Building, as set forth in Section 1 of this Lease.

 

“Transfer” means (i) any assignment, transfer, pledge or other encumbrance of all or a portion of Tenant’s interest in this Lease, (ii) any sublease, license or concession of all or a portion of Tenant’s interest in the Premises, or (iii) any transfer of a controlling interest in Tenant.

 

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EXHIBIT “A”

 

PLAN SHOWING PREMISES

 

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EXHIBIT “B”

 

BUILDING RULES

 

1. Any sidewalks, lobbies, passages, elevators and stairways shall not be obstructed or used by Tenant for any purpose other than ingress and egress from and to the Premises.  Landlord shall in all cases retain the right to control or prevent access by all persons whose presence, in the judgment of Landlord, shall be prejudicial to the safety, peace or character of the Property.

 

2. The toilet rooms, toilets, urinals, sinks, faucets, plumbing or other service apparatus of any kind shall not be used for any purposes other than those for which they were installed, and no sweepings, rubbish, rags, ashes, chemicals or other refuse or injurious substances shall be placed therein or used in connection therewith or left in any lobbies, passages, elevators or stairways.

 

3. Tenant shall not impair in any way the fire safety system and shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord, any governmental agency or any insurance company insuring the Building, including without limitation the insurer’s Red Tag Permit System, Hot Work Permit System and all other fire protection impairment procedures.  No person shall go on the roof without Landlord’s prior written permission.

 

4. Skylights, windows, doors and transoms shall not be covered or obstructed by Tenant, and Tenant shall not install any window covering which would affect the exterior appearance of the Building, except as approved in writing by Landlord.  Tenant shall not remove, without Landlord’s prior written consent, any shades, blinds or curtains in the Premises.

 

5. Without Landlord’s prior written consent, Tenant shall not hang, install, mount, suspend or attach anything from or to any sprinkler, plumbing, utility or other lines.  If Tenant hangs, installs, mounts, suspends or attaches anything from or to any doors, windows, walls, floors or ceilings, Tenant shall spackle and sand all holes and repair any damage caused thereby or by the removal thereof at or prior to the expiration or termination of the Lease.

 

6. Tenant shall not change any locks nor place additional locks upon any doors.

 

7. Tenant shall not use nor keep in the Building any matter having an offensive odor, nor explosive or highly flammable material, nor shall any animals other than handicap assistance dogs in the company of their masters be brought into or kept in or about the Property.

 

8. If Tenant desires to introduce electrical, signaling, telegraphic, telephonic, protective alarm or other wires, apparatus or devices, Landlord shall direct where and how the same are to be placed, and except as so directed, no installation boring or cutting shall be permitted.  Landlord shall have the right to prevent and to cut off the transmission of excessive or dangerous current of electricity or annoyances into or through the Building or the Premises and to require the changing of wiring connections or layout at Tenant’s expense, to the extent that Landlord may deem necessary, and further to require compliance with such reasonable rules as Landlord may establish relating thereto, and in the event of non-compliance with the requirements or rules, Landlord shall have the right immediately to cut wiring or to do what it considers necessary to remove the danger, annoyance or electrical interference with apparatus in any part of the Building.  All wires installed by Tenant must be clearly tagged at the distributing boards and junction boxes and elsewhere where required by Landlord, with the number of the office to which said wires lead, and the purpose for which the wires respectively are used, together with the name of the concern, if any, operating same.  No machinery of any kind other than customary small business machines shall be allowed in the Premises.  Tenant shall not use any method of heating, air conditioning or air cooling other than that provided by Landlord.

 

9. Tenant shall not place weights anywhere beyond the safe carrying capacity of the Building which is designed to normal office building standards for floor loading capacity.  Landlord shall have the right to exclude from the Building heavy furniture, safes and other articles which may be hazardous or to require them to be located at designated places in the Premises.

 

10. The use of rooms as sleeping quarters is strictly prohibited at all times.

 

11. Tenant shall have the right, at Tenant’s sole risk and responsibility, to use only Tenant’s Share of the parking spaces at the Property as reasonably determined by Landlord.  Tenant shall comply with all parking regulations promulgated by Landlord from time to time for the orderly use of the vehicle parking areas, including without limitation the

 

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12. following: Parking shall be limited to automobiles, passenger or equivalent vans, motorcycles, light four wheel pickup trucks and (in designated areas) bicycles.  No vehicles shall be left in the parking lot overnight without Landlord’s prior written approval.  Parked vehicles shall not be used for vending or any other business or other activity while parked in the parking areas.  Vehicles shall be parked only in striped parking spaces, except for loading and unloading, which shall occur solely in zones marked for such purpose, and be so conducted as to not unreasonably interfere with traffic flow within the Property or with loading and unloading areas of other tenants.  Employee and tenant vehicles shall not be parked in spaces marked for visitor parking or other specific use.  All vehicles entering or parking in the parking areas shall do so at owner’s sole risk and Landlord assumes no responsibility for any damage, destruction, vandalism or theft.  Tenant shall cooperate with Landlord in any measures implemented by Landlord to control abuse of the parking areas, including without limitation access control programs, tenant and guest vehicle identification programs, and validated parking programs, provided that no such validated parking program shall result in Tenant being charged for spaces to which it has a right to free use under its Lease.  Each vehicle owner shall promptly respond to any sounding vehicle alarm or horn, and failure to do so may result in temporary or permanent exclusion of such vehicle from the parking areas.  Any vehicle which violates the parking regulations may be cited, towed at the expense of the owner, temporarily or permanently excluded from the parking areas, or subject to other lawful consequence.  Bicycles are not permitted in the Building.

 

13. Tenant and its Agents shall not smoke in the Building or at the Building entrances and exits.

 

14. Tenant shall provide Landlord with a written identification of any vendors engaged by Tenant to perform services for Tenant at the Premises (examples: security guards/monitors, telecommunications installers/maintenance), and all vendors shall be subject to Landlord’s reasonable approval.  No mechanics shall be allowed to work on the Building or Building Systems other than those engaged by Landlord.  Tenant shall permit Landlord’s employees and contractors and no one else to clean the Premises unless Landlord consents in writing.  Tenant assumes all responsibility for protecting its Premises from theft and vandalism and Tenant shall see each day before leaving the Premises that all lights are turned out and that the windows and the doors are closed and securely locked.

 

15. Tenant shall comply with any move-in/move-out rules provided by Landlord and with any rules provided by Landlord governing access to the Building outside of Normal Business Hours.  Throughout the Term, no furniture, packages, equipment, supplies or merchandise of Tenant will be received in the Building, or carried up or down in the elevators or stairways, except during such hours as shall be designated by Landlord, and Landlord in all cases shall also have the exclusive right to prescribe the method and manner in which the same shall be brought in or taken out of the Building.

 

16. Tenant shall not place oversized cartons, crates or boxes in any area for trash pickup without Landlord’s prior approval.  Landlord shall be responsible for trash pickup of normal office refuse placed in ordinary office trash receptacles only.  Excessive amounts of trash or other out-of-the-ordinary refuse loads will be removed by Landlord upon request at Tenant’s expense.

 

17. Tenant shall comply with the following sustainability requirements:

 

a.           Tenant shall provide within ten (10) days after Landlord’s request from time to time, reasonably requested energy and water consumption data and related information in connection with Tenant’s use of the Premises and all construction, maintenance, repairs, cleaning, trash disposal and recycling relating to the Premises performed by or on behalf of Tenant -- all to be used for purposes of monitoring and improving building efficiencies.

b.           Low/No VOC Paint.  Tenant shall use only interior paints and coatings (including primers) meeting the environmental requirements of the current Green SealTM Environmental Standard For Paints And Coatings - GS-11.

c.           Green Cleaning Products.   All cleaning products used in the Premises must be certified under the current Green SealTM Environmental Standard for Industrial and Institutional Cleaners - GS-37.

d.           Recycling.  The following items must be recycled according to local capabilities, guidelines and regulations: (i) Paper; (ii) Cardboard; (iii) Plastics; (iv) Aluminum Cans/Metals; and (v) Glass.

 

18. Tenant shall cause all of Tenant’s Agents to comply with these Building Rules.

 

19. Landlord reserves the right to rescind, suspend or modify any rules or regulations and to make such other rules and regulations as, in Landlord’s reasonable judgment, may from time to time be needed for the safety, care, maintenance, operation and cleanliness of the Property.  Notice of any action by Landlord referred to in this section, given to Tenant, shall have the same force and effect as if originally made a part of the foregoing Lease.  New rules or regulations will not, however, be unreasonably inconsistent with the proper and rightful enjoyment of the Premises by Tenant under the Lease.

 

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20. These Building Rules are not intended to give Tenant any rights or claims in the event that Landlord does not enforce any of them against any other tenants or if Landlord does not have the right to enforce them against any other tenants and such nonenforcement will not constitute a waiver as to Tenant.

 

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EXHIBIT “C”

 

TENANT ESTOPPEL CERTIFICATE

 

Please refer to the documents described in Schedule 1 hereto, (the “Lease Documents”) including the “Lease” therein described; all defined terms in this Certificate shall have the same meanings as set forth in the Lease unless otherwise expressly set forth herein.  The undersigned Tenant hereby certifies that it is the tenant under the Lease.  Tenant hereby further acknowledges that it has been advised that the Lease may be collaterally assigned in connection with a proposed financing secured by the Property and/or may be assigned in connection with a sale of the Property and certifies both to Landlord and to any and all prospective mortgagees and purchasers of the Property, including any trustee on behalf of any holders of notes or other similar instruments, any holders from time to time of such notes or other instruments, and their respective successors and assigns (the “Beneficiaries”) that as of the date hereof:

 

1. The information set forth in attached Schedule 1 is true and correct.

 

2. Tenant is in occupancy of the Premises and the Lease is in full force and effect, and, except by such writings as are identified on Schedule l, has not been modified, assigned, supplemented or amended since its original execution, nor are there any other agreements between Landlord and Tenant concerning the Premises, whether oral or written.

 

3. All conditions and agreements under the Lease to be satisfied or performed by Landlord have been satisfied and performed.

 

4. Tenant is not in default under the Lease Documents, Tenant has not received any notice of default under the Lease Documents, and, to Tenant’s knowledge, there are no events which have occurred that, with the giving of notice and/or the passage of time, would result in a default by Tenant under the Lease Documents.

 

5. Tenant has not paid any Rent due under the Lease more than 30 days in advance of the date due under the Lease and Tenant has no rights of setoff, counterclaim, concession or other rights of diminution of any Rent due and payable under the Lease except as set forth in Schedule 1.

 

6. To Tenant’s knowledge, there are no uncured defaults on the part of Landlord under the Lease Documents, Tenant has not sent any notice of default under the Lease Documents to Landlord, and there are no events which have occurred that, with the giving of notice and/or the passage of time, would result in a default by Landlord thereunder, and that at the present time Tenant has no claim against Landlord under the Lease Documents.

 

7. Except as expressly set forth in Part G of Schedule 1, there are no provisions for any, and Tenant has no, options with respect to the Premises or all or any portion of the Property.

 

8. No action, voluntary or involuntary, is pending against Tenant under federal or state bankruptcy or insolvency law.

 

9. The undersigned has the authority to execute and deliver this Certificate on behalf of Tenant and acknowledges that all Beneficiaries will rely upon this Certificate in purchasing the Property or extending credit to Landlord or its successors in interest.

 

10. This Certificate shall be binding upon the successors, assigns and representatives of Tenant and any party claiming through or under Tenant and shall inure to the benefit of all Beneficiaries.

 

IN WITNESS WHEREOF, Tenant has executed this Certificate this ____ day of __________, 2____.

 

Name of Tenant

By:                                                                           

Title:                                                                           

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SCHEDULE 1 TO TENANT ESTOPPEL CERTIFICATE

 

Lease Documents, Lease Terms and Current Status

 

A.           Date of Lease:

 

B.           Parties:

 

1.           Landlord:

 

2.           Tenant:

 

C.           Premises:

 

D.           Modifications, Assignments, Supplements or Amendments to Lease:

 

 

 

E.           Commencement Date:

 

F.           Expiration of Current Term:

 

G.           Option Rights:

 

H.           Security Deposit Paid to Landlord: $

 

I.           Current Minimum Annual Rent: $

 

J.           Current Annual Operating Expenses: $

 

K.           Current Total Rent: $

 

L.           Square Feet Demised:

 

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EXHIBIT “D”

 

CLEANING SCHEDULE

 

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EXHIBIT “E”

 

DIRECT PAYMENT RIDER

 

Liberty Property Limited Partnership

Authorization Agreement for Direct Payments (ACH DEBITS)

_____________________________________________________________________________

Company Name  <Insert Tenant Name>

Account Number <Insert Account Number>

I (we) hereby authorize Liberty Property Limited Partnership to initiate debit entries to my (our) 0 Checking Account 0 Saving Account (select one) indicated below at the depository financial institution named below, hereinafter called DEPOSITORY, and to debit the same to such account.  I (we) acknowledge that the origination of ACH transactions to my (our) account must comply with the provisions of U.S. law.

Depository Name________________________ Branch________________________________

City ____________________________________State_________________________________

Routing Number __________________________Account Number_______________________

Your monthly rent and operating expenses will be debited from your account on the 1st day of each month in accordance with the previously executed Lease as amended.

Liberty Property Limited Partnership’s liability to the Company shall be limited to its exercise of ordinary care in initiating debit entries.   In no event shall Liberty Property Limited Partnership be liable for any indirect, consequential or incidental damages which the Company may incur.

This authorization is to remain in full force and effect until Liberty Property Limited Partnership has received written notification from me (or either of us) of its termination in such time and in such manner as to afford Liberty Property Limited Partnership and Depository a reasonable opportunity to act on it.

Name(s) _________________________________ Title ________________________________

(Please Print)

Signature ____________________________________ Date ____________________________

Phone Number _______________________________ Fax Number _______________________

Email address for Payment Notification ________________________

Either Mail or Fax the completed form to:

Accounts Receivable ACH Department

 

Liberty Property Limited Partnership

 

500 Chesterfield Parkway

 

Malvern, PA  19355

 

Fax # 610-644-4129

 

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EXHIBIT “F”

 

PLAN OF IMPROVEMENTS

 

 

 

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