Document:

Exhibit 4B 1.2

 

 

Dated July 3, 2018

 

Renewal of Lease

 

60-66 Hanover Street, Fitzroy, Victoria

 

Crude Pty Ltd (ACN 124 327 920)

 

Genetic Technologies Limited (ACN 009 212 328)

 

	
© Holding Redlich 2018
    	
18500360
    

 

Melbourne · Sydney · Brisbane

 

www.holdingredlich.com

 

 

This Renewal of Lease is dated 3rd July 2018

 

Parties:

 

Landlord

 

Crude Pty Ltd (ACN 124 327 920)

of c/- Focus Group Investments Pty Ltd, Level 5, 190 Queen Street, Melbourne, Victoria 3000

 

Tenant

 

Genetic Technologies Limited (ACN 009 212 328)

of 60-66 Hanover Street, Fitzroy, Victoria, 3065

 

Introduction:

 

A                             Under the terms of a lease dated October 7, 2015 (Lease) the Landlord leased to the Tenant the premises known as 60-66 Hanover Street, Fitzroy (Premises) for a term of 3 years commencing September 1, 2015. A copy of the Lease is in Attachment 1.

 

B                             The parties have agreed to renew the lease for a term of 3 years commencing September 1, 2018 (Renewal Term) on the terms and conditions contained in this Deed.

 

It is agreed:

 

1.                            Renewal

 

The Landlord grants and the Tenant accepts a new lease of the Premises for the Renewal Term (Renewal Lease) on the terms and conditions contained in the Lease subject to the variations effected by this Deed.

 

2.                            Variations to Lease

 

2.1                     The Lease is varied for the purposes of the New Lease as set out in this clause 2.

 

2.2                     The schedule to the Lease is deleted and replaced with the schedule to this Deed.

 

3.                            Agreement to observe terms of Lease

 

The Landlord and the Tenant agree to comply with the provisions of the Lease as if all the provisions are repeated in this Deed, subject to the variations referred to in this Deed.

 

4.                            Costs

 

Each party will bear their own costs of and incidental to the preparation and completion of this Deed.

 

5.                            Effect of Deed

 

In all other respects the Lease remains unchanged.

 

 

6.                            Goods and Services Tax

 

6.1                     If GST is imposed or levied in respect of any supply by a party under or in accordance with this Deed, then the party making the supply may recover the GST Amount from the party receiving the supply in addition to the Consideration. The party making the supply must provide such invoices to the party receiving the supply as are required pursuant to the GST Legislation.

 

6.2                     In the above sub-clause:

 

Consideration means any amount or consideration payable or to be provided pursuant to any provision of this Deed other than this clause;

 

GST means any form of goods and services tax or similar value added tax;

 

GST Amount means the Consideration (after deducting the GST Exempt Component) multiplied by the Rate;

 

GST Exempt Component means any part of the Consideration which solely relates to a supply that is free or exempt from the imposition of GST;

 

GST Legislation means any legislation or regulation which imposes, levies, implements or varies a GST;

 

Rate means the rate at which GST Legislation from time to time imposes or levies GST on the relevant supply; and

 

Supply includes supply as defined under GST Legislation.

 

 

Executed by the parties as a deed.

 

The Common seal of Crude Pty Ltd (ACN 124

327 920) is affixed in accordance with its

constitution in the presence of:

 

	
 
    	
[ILLEGIBLE]
    
	
 
    	
Signature of sole   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[ILLEGIBLE]
    
	
 
    	
Name of sole Director
    

 

Executed by Genetic Technologies Limited

(ACN 009 212 328) in accordance with

section 127 of the Corporations Act:

 

	
[ILLEGIBLE]
    	
 
    	
[ILLEGIBLE]
    
	
Signature of Director
    	
 
    	
Signature of Secretary
    
	
 
    	
 
    	
 
    
	
/s/ Paul Kasian
    	
 
    	
/s/ Kevin Fischer
    
	
Name of Director
    	
 
    	
Name of Secretary
    

 

 

Schedule

 

	
Item 1
    	
(Tenant)
    	
Genetic   Technologies Limited (ACN 009 212 328) of 60-66 Hanover   Street, Victoria, 3065
    
	
 
    	
 
    	
 
    
	
Item 2
    	
(Guarantor)
    	
Not applicable
    
	
 
    	
 
    	
 
    
	
Item 3
    	
(Premises)
    	
That part of the   Complex being part of the area known as Ground Floor, 60-66 Hanover Street,   Fitzroy, Victoria measuring approximately 645 square metres being the area   shown hatched on the plans in Annexure A
    
	
 
    	
 
    	
 
    
	
Item 4
    	
(Landlord’s   installations)
    	
·   Floor coverings — vinyl and carpet
    
	
 
    	
·   Fire alarm systems
    
	
 
    	
 
    	
·   Security alarm systems
    
	
 
    	
 
    	
·   Fire extinguishers and hose reels
    
	
 
    	
 
    	
·   Remote electronic gate openers
    
	
 
    	
 
    	
·   Light fittings
    
	
 
    	
 
    	
·   7 air conditioning units as marked on the plans in Annexure B of the Lease
    
	
 
    	
 
    	
 
    
	
Item 5
    	
(Landlord’s works)
    	
Not applicable
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Item 6
    	
(Tenant’s works)
    	
Not applicable
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Item 7
    	
(Lease Start Date)
    	
September 1, 2018
    
	
 
    	
 
    	
 
    
	
Item 8
    	
(Duration of Lease)
    	
3 years
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Item 9
    	
(Lease Expiry Date)
    	
August 31, 2021
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Item 10
    	
(Rent)
    	
Year 1: $195,336.96
    
	
 
    	
 
    	
Year 2: $202,173.75
    
	
 
    	
 
    	
Year 3: $209,249.83
    
	
 
    	
 
    	
 
    
	
Item 11
    	
(Security deposit)
    	
Not applicable
    

 

 

	
Item 12
    	
(Use of Premises)
    	
Offices, commercial and   research laboratories and any ancillary uses of the Tenant
    
	
 
    	
 
    	
 
    
	
Item 13
    	
(Public Liability   Insurance)
    	
$10 million
    
	
 
    	
 
    	
 
    
	
Item 14
    	
(Last date to renew   Lease)
    	
Not applicable
    
	
 
    	
 
    	
 
    
	
Item 15
    	
(Option term)
    	
Nil
    
	
 
    	
 
    	
 
    
	
Item 16
    	
(Base rent during   Option term)
    	
Not applicable
    
	
 
    	
 
    	
 
    
	
Item 17
    	
(Car spaces and fee)
    	
13 Car Spaces at an   initial Parking fee of $129.79 per space per month
    
	
 
    	
 
    	
 
    
	
Item 18
    	
(Special conditions)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
1.                        Despite   clause 15.2, Genetic Technologies Limited (ACN 009 212 328) is the Tenant,   the Landlord’s consent is not required to any fixed and floating charge over   all of the Tenant’s assets.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.                        The   parties must meet no later than 30 days before the Expiry Date to attempt to   agree (acting reasonably) the extent of the Tenant’s obligations under clause   20. If the parties fail to reach agreement, the provisions of clause 20 will   prevail.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.                        The   Tenant acknowledges and agrees that the water meter for the premises will not   be split between Levels 1 and 2. The Tenant agrees to cover the cost of all   water consumption within the premises, covering Levels 1 and 2.
    

 

ii

 

Attachment 1 — Lease

 

 

Dated October 7, 2015

 

Lease

 

60-66 Hanover Street, Fitzroy

 

Crude Pty Ltd (ACN 124 327 920)

 

Genetic Technologies Limited (ACN 009 212 328)

 

Melbourne · Sydney · Brisbane

 

www.holdingtedlich.com

 

 

Attachment 1 — Lease

 

 

Table of contents

 

	
1.
    	
Definitions
    	
5
    
	
 
    	
 
    	
 
    
	
2.
    	
Disclosure Statement
    	
6
    
	
 
    	
 
    	
 
    
	
3.
    	
Landlord’s works
    	
6
    
	
 
    	
 
    	
 
    
	
4.
    	
Tenant’s works
    	
6
    
	
 
    	
 
    	
 
    
	
5.
    	
Term
    	
6
    
	
 
    	
 
    	
 
    
	
6.
    	
Renewal
    	
6
    
	
 
    	
 
    	
 
    
	
 
    	
6.1
    	
Option to renew this Lease
    	
6
    
	
 
    	
6.2
    	
Changes to this Lease   on renewal
    	
7
    
	
 
    	
6.3
    	
If Tenant is in breach   of this Lease
    	
7
    
	
 
    	
 
    	
 
    
	
7.
    	
Monthly tenancy
    	
7
    
	
 
    	
 
    	
 
    
	
8.
    	
Payments
    	
7
    
	
 
    	
 
    	
 
    
	
 
    	
8.1
    	
What the Tenant must   pay the Landlord
    	
7
    
	
 
    	
8.2
    	
The Landlord may charge   interest if payments are late
    	
7
    
	
 
    	
8.3
    	
Adjustments
    	
8
    
	
 
    	
8.4
    	
Goods and Services Tax
    	
8
    
	
 
    	
 
    	
 
    
	
9.
    	
The tenant must pay rent
    	
8
    
	
 
    	
 
    	
 
    
	
10.
    	
Market rent review
    	
8
    
	
 
    	
 
    	
 
    
	
 
    	
10.1
    	
Notice of increased   market rent
    	
8
    
	
 
    	
10.2
    	
Disputes
    	
8
    
	
 
    	
10.3
    	
Review procedure
    	
8
    
	
 
    	
10.4
    	
New rent applies from   the Market Review Date
    	
9
    
	
 
    	
10.5
    	
Valuer’s decision
    	
9
    
	
 
    	
10.6
    	
Valuing the current   market rent
    	
9
    
	
 
    	
10.7
    	
The Valuer’s costs
    	
9
    
	
 
    	
 
    	
 
    
	
11.
    	
Rent review
    	
9
    
	
 
    	
 
    	
 
    
	
 
    	
11.1
    	
Formula for CPI rent   increases
    	
9
    
	
 
    	
11.2
    	
Changes made by the ABS
    	
10
    
	
 
    	
11.3
    	
New rent applies from   CPI Review Date
    	
10
    
	
 
    	
 
    	
 
    
	
12.
    	
Outgoings
    	
10
    
	
 
    	
 
    	
 
    
	
 
    	
12.1
    	
The Tenant must pay the   Tenant’s share of outgoings
    	
10
    
	
 
    	
12.2
    	
Meaning of Outgoings
    	
10
    
	
 
    	
12.3
    	
Items excluded from   Outgoings
    	
11
    
	
 
    	
12.4
    	
Meaning of costs
    	
11
    
	
 
    	
12.5
    	
Landlord to estimate   Tenant’s share of Outgoings
    	
11
    
	
 
    	
12.6
    	
Landlord’s statement of   Outgoings
    	
11
    
	
 
    	
12.7
    	
Adjustment
    	
11
    
	
 
    	
 
    	
 
    
	
13.
    	
Other amounts payable by the   tenant
    	
12
    
	
 
    	
 
    	
 
    
	
 
    	
13.1
    	
Statutory Charges
    	
12
    

 

 

	
 
    	
13.2
    	
Services to the   Premises
    	
12
    
	
 
    	
13.3
    	
Landlord’s legal and   other costs
    	
12
    
	
 
    	
 
    	
 
    
	
14.
    	
Security deposit
    	
12
    
	
 
    	
 
    	
 
    
	
15.
    	
The Tenant’s obligations   generally
    	
12
    
	
 
    	
 
    	
 
    
	
 
    	
15.1
    	
The Tenant must obey   the law
    	
12
    
	
 
    	
15.2
    	
Using this Lease as   security
    	
12
    
	
 
    	
15.3
    	
Caveats
    	
12
    
	
 
    	
15.4
    	
The Tenant’s behaviour
    	
13
    
	
 
    	
15.5
    	
Danger or risk
    	
13
    
	
 
    	
15.6
    	
The Tenant must obey   fire regulations
    	
13
    
	
 
    	
15.7
    	
The Tenant must pay for   damage
    	
13
    
	
 
    	
15.8
    	
Workplace health and   safety
    	
13
    
	
 
    	
 
    	
 
    
	
16.
    	
Using the premises
    	
13
    
	
 
    	
 
    	
 
    
	
17.
    	
Assigning or dealing with the   premises
    	
14
    
	
 
    	
 
    	
 
    
	
 
    	
17.1
    	
Tenant must not assign   without consent
    	
14
    
	
 
    	
17.2
    	
When the Landlord will   consent to an assignment
    	
14
    
	
 
    	
17.3
    	
Change in control of   the Tenant
    	
14
    
	
 
    	
 
    	
 
    
	
18.
    	
Maintaining the premises and   the Tenant’s property
    	
15
    
	
 
    	
 
    	
 
    
	
 
    	
18.1
    	
Tenant’s maintenance   responsibilities
    	
15
    
	
 
    	
18.2
    	
Structural repairs
    	
15
    
	
 
    	
 
    	
 
    
	
19.
    	
Altering the premises
    	
15
    
	
 
    	
 
    	
 
    
	
20.
    	
When this lease ends
    	
15
    
	
 
    	
 
    	
 
    
	
21.
    	
The Landlord’s rights and   obligations
    	
16
    
	
 
    	
 
    	
 
    
	
 
    	
21.1
    	
The Tenant’s quiet   enjoyment
    	
16
    
	
 
    	
21.2
    	
Roof and external walls
    	
16
    
	
 
    	
21.3
    	
Landlord’s maintenance
    	
16
    
	
 
    	
21.4
    	
The Landlord may enter   the Premises
    	
16
    
	
 
    	
21.5
    	
The Landlord may give   the Tenant notice to do work
    	
16
    
	
 
    	
21.6
    	
The Landlord may do   things on the Tenant’s behalf
    	
16
    
	
 
    	
21.7
    	
The Landlord may erect   signs
    	
16
    
	
 
    	
21.8
    	
Subdivision
    	
17
    
	
 
    	
 
    	
 
    
	
22.
    	
Landlord’s repairs or building   work
    	
17
    
	
 
    	
 
    	
 
    
	
 
    	
22.1
    	
The Landlord may do   repairs
    	
17
    
	
 
    	
22.2
    	
The Landlord may do   building work
    	
17
    
	
 
    	
 
    	
 
    
	
23.
    	
If the premises are damaged or   destroyed
    	
17
    
	
 
    	
 
    	
 
    
	
 
    	
23.1
    	
Tenant may ask Landlord   to rebuild
    	
17
    
	
 
    	
23.2
    	
When Tenant or Landlord   may end this Lease
    	
17
    
	
 
    	
23.3
    	
Landlord is not liable   to pay compensation
    	
17
    
	
 
    	
23.4
    	
If insurer is not   obliged to pay for reinstatement
    	
18
    
	
 
    	
 
    	
 
    
	
24.
    	
If premises are resumed
    	
18
    
	
 
    	
 
    	
 
    
	
25.
    	
risks and insurance
    	
18
    
	
 
    	
 
    	
 
    
	
 
    	
25.1
    	
The Tenant must have   insurance
    	
18
    

 

ii

 

	
26.
    	
The Tenant releases and   Indemnifies the Landlord
    	
18
    
	
 
    	
 
    	
 
    
	
 
    	
26.1
    	
Tenant occupies the   Premises at its own risk
    	
18
    
	
 
    	
26.2
    	
Release
    	
18
    
	
 
    	
26.3
    	
The Tenant Indemnifies   the Landlord
    	
18
    
	
 
    	
 
    	
 
    
	
27.
    	
How the Tenant breaches this   lease
    	
19
    
	
 
    	
 
    	
 
    
	
28.
    	
If the Tenant breaches this   lease
    	
20
    
	
 
    	
 
    	
 
    
	
 
    	
28.1
    	
What the Landlord may   do if the Tenant is in breach
    	
20
    
	
 
    	
28.2
    	
Breach of an essential   term
    	
20
    
	
 
    	
28.3
    	
If the Tenant vacates   the Premises before the Expiry Date
    	
20
    
	
 
    	
 
    	
 
    
	
29.
    	
Guarantee and Indemnity by the   guarantor
    	
20
    
	
 
    	
 
    	
 
    
	
30.
    	
Notices
    	
20
    
	
 
    	
 
    	
 
    
	
 
    	
30.1
    	
Notices to be writing
    	
20
    
	
 
    	
30.2
    	
Serving Notices
    	
20
    
	
 
    	
 
    	
 
    
	
31.
    	
Landlord’s consent and approval
    	
21
    
	
 
    	
 
    	
 
    
	
32.
    	
Special Conditions
    	
21
    
	
 
    	
 
    	
 
    
	
33.
    	
General
    	
21
    
	
 
    	
 
    	
 
    
	
 
    	
33.1
    	
Individual and joint   liability
    	
21
    
	
 
    	
33.2
    	
Waiver
    	
21
    
	
 
    	
33.3
    	
Warranties by the   parties
    	
21
    
	
 
    	
33.4
    	
Victorian law applies
    	
22
    
	
 
    	
33.5
    	
Severability
    	
22
    
	
 
    	
 
    	
 
    
	
34.
    	
Interpretation
    	
22
    
	
 
    	
 
    	
 
    
	
35.
    	
Time for doing acts
    	
22
    
	
 
    	
 
    	
 
    
	
36.
    	
Car Parking Licence
    	
22
    
	
 
    	
 
    	
 
    
	
 
    	
36.1
    	
Definitions
    	
22
    
	
 
    	
36.2
    	
Licence
    	
23
    
	
 
    	
36.3
    	
Holding Over
    	
23
    
	
 
    	
36.4
    	
Use of the Car Spaces
    	
23
    
	
 
    	
36.5
    	
Assignment and   Sub-Licensing
    	
23
    
	
 
    	
36.6
    	
Landlord’s right of   entry
    	
23
    
	
 
    	
36.7
    	
Risk
    	
24
    
	
 
    	
36.8
    	
Release
    	
24
    
	
 
    	
36.9
    	
Indemnity
    	
24
    
	
 
    	
36.10
    	
Security cards
    	
24
    
	
 
    	
36.11
    	
End of licence
    	
24
    
	
 
    	
36.12
    	
Parking Fee
    	
24
    
	
 
    	
36.13
    	
Parking levy
    	
25
    
	
 
    	
 
    	
 
    
	
37.
    	
Demolition
    	
25
    
	
 
    	
 
    	
 
    
	
 
    	
37.1
    	
Landlord may terminate   for demolition
    	
25
    
	
 
    	
37.2
    	
Notice of termination
    	
25
    
	
 
    	
 
    	
 
    
	
Execution Page
    	
26
    

 

iii

 

	
Reference Schedule
    	
27
    

 

iv

 

This Lease is dated  October 7, 2015

 

Parties:

 

Crude Pty Ltd (ACN 006 042 995) of Suite 1 Mezzanine Level, 550 Lonsdale Street, Melbourne in its capacity as trustee of the Trust (Landlord which, where relevant, includes the Landlord’s servants and agents and any person authorised by the Landlord)

 

The person described in Item 1 (Tenant which, where relevant includes the Tenant’s employees, agents or any person the Tenant allows on the Premises)

 

Introduction:

 

A                            The Landlord leasts the Premises to the Tenant on the terms and conditions set out in this Lease.

 

It is agreed:

 

1.                           Definitions

 

In this Lease unless the context clearly indicates otherwise:

 

Authority means any government or governmental, semi-governmental, local, administrative or statutory body, department, commission, authority, tribunal or other similar entity;

 

Car Park means the car park on the land;

 

Common Areas means the areas of the Complex the Landlord provides for common use and includes the accessways, entrances, stairs, elevators, toilets and the Car Park;

 

Complex means the property known as 60-66 Hanover Street, Fitzroy in which the Premises are located, and includes the land and all improvements on the Land;

 

Expiry Date means the date specified in Item 9;

 

financial year means 1 July to 30 June;

 

Item means an Item in the schedule;

 

Land means the land described in certificates of title volume 4169 folio 613, volume 4330 folio 930, volume 9235 folio 918, volume 9829 folio 140, volume 8077 folio 965 and volume 5346 folio 043;

 

Landlord means the Landlord and any other person who will be entitled to possession of the Premises when this Lease ends;

 

Landlord’s Installations means the equipment, fixtures and fittings set out in item 4 and any other property installed by the Landlord in the Premises;

 

law means any act, regulation, by-law, ordinance or rules made by any Parliament;

 

Lease means this Lease and the schedule;

 

 

Mechanical Services means all air conditioning, heating or ventilation equipment and fire protection equipment or systems in the Premises;

 

Outgoings is defined in clauses 12.2 and 12.3;

 

Premises means that part of the Complex described In item 3 and includes the Landlord’s installations;

 

schedule means the schedule forming part of this Lease;

 

Start Date means the date specified in item 7;

 

Statutory Charges means all rates, taxes and other duties of every description which are separately assessed, metered or levied by any Authority in respect of the Premises including land tax calculated on the basis that the Complex is the only property owned by the Landlord;

 

Tenant’s Property means all property owned or leased by the Tenant which is inside the Premises Including all fixtures, fittings, signs, equipment and goods;

 

Tenant’s share, unless otherwise stated, means the proportion that the floor area of the Premises bears to the lettable area of the Complex;

 

Trust means the Victoria Street Unit Trust; and

 

Valuer means a valuer having not less than 5 years experience in valuing premises similar to the Premises.

 

2.                            Disclosure Statement

 

Intentionally deleted.

 

3.                            Landlord’s works

 

Intentionally deleted.

 

4.                          Tenant’s works

 

Intentionally deleted.

 

5.                          Term

 

(a)                       This Lease starts on the date stated in Item 7. It runs for the term set out in Item 8 ending at midnight on the Expiry Date stated in Item 9.

 

6.                            Renewal

 

6.1                     Option to renew this Lease

 

If the Tenant tells the Landlord by notice before the date set out In Item 14 that the Tenant wishes to renew this Lease the Landlord must grant the Tenant a new lease for the option period set out in Item 15 (but see clause 6.3). The new lease must;

 

6

 

(a)                       commence on the day after the Expiry Date;

 

(b)                       be at the rent set out in item 16; and

 

(c)                        otherwise be on the same terms and conditions as this Lease except for those changes that can be made by virtue of clause 6.2.

 

6.2                     Changes to this Lease on renewal

 

The Landlord:

 

(a)                       will delete this clause from the new lease if the new lease is for the final option period set out in item 15; or

 

(b)                       will delete the first option period specified in item 15 from the new lease if there is more than one option period specified in that item; and

 

(c)                        may vary the new lease to accommodate any change that needs to be made because of any law dealing with or affecting retail tenancies or the rights and interests of landlords and tenants under retail tenancy leases.

 

6.3                     If Tenant is in breach of this Lease

 

The Landlord does not have to grant the Tenant the new lease if:

 

(a)                       at the time the Tenant gives the Landlord the notice the Tenant has not remedied any breach under this Lease (see clause 27) about which the Landlord has given the Tenant notice; or

 

(b)                       the Tenant has persistently breached this Lease and the Landlord has given the Tenant notice of the breaches.

 

7.                            Monthly tenancy

 

If the Tenant occupies the Premises after the Expiry Date with the Landlord’s consent it will do so as a monthly tenant at a rent increased by CPI using the formula set out in clause 11 and otherwise on the same terms as at the Expiry Date of this Lease. The Landlord or the Tenant may end the monthly tenancy on any day by giving at least one month’s notice to the other party.

 

8.                            Payments

 

8.1                     What the Tenant must pay the Landlord

 

The Tenant must pay the Landlord the rent, its share of the Outgoings, Statutory Charges and any other money the Tenant must pay the Landlord under this Lease on time and in full without deduction or set-off.

 

8.2                     The Landlord may charge interest if payments are late

 

(a)                       If the Tenant is late in paying rent or any other money to the Landlord, the Landlord may charge interest on that money at a rate equal to 2% above the rate that applies under section 2 of the Penalty Interest Rates Act 1983.

 

(b)                       The Landlord will calculate the interest on any unpaid money from the day the unpaid money was due until the day it and all interest accrued on it is paid in full.

 

7

 

8.3                     Adjustments

 

If money payable by the Tenant is calculated using a time period and this Lease starts or ends during that time period, the amount payable must be calculated proportionately and the Landlord must make any necessary proportional adjustment.

 

8.4                     Goods and Services Tax

 

If a goods and services tax or similar value added tax (GST) is at any time levied or imposed on or in respect of any supply by the Landlord to the Tenant made under or in accordance with this Lease (including but not only the leasing of the Premises), the amount payable for that supply under this Lease will be increased by the amount of the GST so levied or imposed and the Tenant must pay that amount upon provision of a valid tax invoice.

 

9.                            The tenant must pay rent

 

The Tenant must pay the rent set out in item 10 to the Landlord in equal monthly instalments in advance and on or before the first day of each month.

 

10.                     Market rent review

 

10.1              Notice of increased market rent

 

(a)                       If item 10 or item 16 says that the rent for any year is to be the market rent for the Premises, the Landlord must give the Tenant notice of what the Landlord says is the current market rent for the Premises as at the first day of that year (Market Review Date). The Landlord must give the Tenant this notice not later than 12 months after the Market Review Date.

 

(b)                       Until the Landlord gives the Landlord’s notice under clause 10.1, the Tenant must pay the old rent and any adjustment will be calculated from the Market Review Date.

 

10.2              Disputes

 

If the Tenant disputes the rent notified by the Landlord under clause 10.1, the procedure in clause 10.3 must be followed. Each time limit is consecutive. Each time limit in clause 10.3 is of the essence. This means that if a time limit is not kept, the right attached is lost.

 

10.3              Review procedure

 

(a)                       If the Tenant disputes the rent notified by the Landlord under clause 10.1, the Tenant must give the Landlord notice of that dispute by not later than 28 days after the Landlord gives the Landlord’s notice.

 

(b)                       The Tenant and the Landlord must negotiate in good faith to try to agree on a new rent within 14 days or if a new base rent is not agreed, on the appointment of a Valuer to decide the new rent.

 

(c)                        If the Tenant and the Landlord do not agree on the new rent or on the appointment of a Valuer within the time set out in clause10.3(b), either the Tenant or the Landlord may ask the President of the Australian Property Institute Inc — Victorian Division (or the president nominee) to appoint a Valuer to decide the new rent. The Valuer must decide the new rent based on the current market rent.

 

8

 

10.4              New rent applies from the Market Review Date

 

The Tenant must pay the new rent from the Market Review Date. Until any dispute is resolved or a right is lost, the Tenant must pay the old rent. Any adjustment will be calculated from the Market Review Date and made when the Tenant’s next monthly payment is due.

 

10.5              Valuer’s decision

 

The Valuer will act as an independent expert and not as an arbitrator. He or she must:

 

(a)                        give his or her decision in writing;

 

(b)                        give detailed reasons for his or her decision; and

 

(c)                         specify the matters to which he or she had regard in making the decision.

 

10.6              Valuing the current market rent

 

In the valuation the current market rent is to be taken as the rent obtainable at the time of the review in a free and open market, between a willing landlord and a willing tenant in an arm’s length transaction, having regard to these matters:

 

(a)                       the provisions of this Lease;

 

(b)                       the rent that would reasonably be expected to be paid for the Premises if they were unoccupied and offered for lease for the same, or a substantially similar, use to that set out in item 12;

 

(c)                        the Landlord’s outgoings to the extent to which the Tenant is liable to contribute to those outgoings.

 

(d)                       rent concessions and other benefits offered to prospective tenants of unoccupied premises,

 

but the current market rent is not to take account of the value of goodwill created by the Tenant’s occupation or the value of the Tenant’s fixtures and fittings.

 

10.7              The Valuer’s costs

 

The Tenant and the Landlord must share the Valuer’s costs equally.

 

11.                     Rent review

 

11.1              Formula for CPI rent increases

 

If item 10 or item 16 says the rent for any year is to be increased by CPI the rent will be increased on and as at the first day of that year (CPI Review Date) to a new rent calculated using the formula:

 

	
 
    	
 
    	
 
    
	
 
    	
NMR = CMR x
    	
 
    	
A
    	
 
    
	
 
    	
B
    	
 
    

 

where:

 

NMR                                               is the new rent

 

CMR                                               is the rent payable immediately before the CPS Review Date;

 

9

 

A                                                          is the level of the CPI at the end of the calendar quarter immediately preceding the CPI Review Date;

 

B                                                          is the level of the CPI at the end of the calendar quarter-immediately preceding the date which is 12 months before the CPI Review Date; and

 

CPI                          is the Consumer Price Index Melbourne, All Groups as published quarterly by the Australian Bureau of Statistics (ABS).

 

11.2              Changes made by the ABS

 

(a)                       If the ABS updates the base year of the CPI a conversion will be made to preserve the intended continuity of calculation by using the appropriate arithmetical factor determined by the ABS.

 

(b)                       If the ABS stops publishing the CPI the Landlord and the Tenant will agree to replace the CPI with any other index which is published to replace the CPI.

 

(c)                        If the Landlord and the Tenant cannot agree on a replacement index, the Landlord may ask the person who is then president of the Australian Property Institute inc — Victorian Division (or the president’s nominee) (President) to select an index which appropriately reflects increases in the cost of living in Melbourne. The President will make the selection as an expert and not as an arbitrator and the selection will be final and binding on the Landlord and the Tenant who must share the President’s costs equally.

 

11.3              New rent applies from CPI Review Date

 

The Tenant must pay the new rent from the CPI Review Date. If the new rent is not calculated until after the CPI Review Date the Tenant must pay the old rent until the new rent is calculated. Any adjustment will be calculated from the CPI Review Date and made when the Tenant’s next monthly payment is due.

 

12.                     Outgoings

 

12.1              The Tenant must pay the Tenant’s share of outgoings

 

(a)                       The Tenant must pay the Tenant’s share of the Outgoings for the Complex. If an Outgoing is only referable to some of the premises in the Complex, including the Premises, then the Tenant’s share of that outgoing will be the proportion that the lettable area of the Premises bears to the total of lettable areas of the premises in the Complex which receive the benefit of the outgoing.

 

12.2              Meaning of Outgoings

 

(a)                       Outgoings means all costs the Landlord incurs in relation to the ownership, occupation, use conduct, management and maintenance of the Complex, including;

 

(b)                       rates or assessments or other fees payable to an Authority (for example council rates, water rates, electricity, gas, sewerage);

 

(c)                        taxes including the Landlord’s land tax and excluding income tax and capital gains tax;

 

(d)                       premiums for insurance against all risks concerning the Complex or the Landlord’s employees and contractors including insurance against loss of rent and consequential loss;

 

10

 

(e)                         costs the Landlord incurs in the maintenance of and repairs to the Complex;

 

(f)                          costs of operating, repairing and servicing the Mechanical Services;

 

(g)                         costs relating to cleaning, pest control, liquid removal, waste removal and fire prevention for the Complex;

 

(h)                        costs the Landlord incurs in maintaining the security and control of the Complex;

 

(i)                            costs relating to the provision of water, gas, electricity, telephone, power and other services to the Complex; and

 

(j)                          costs of gardening, landscaping and installing, maintaining and cleaning signage and decorative features at the Complex.

 

12.3              Items excluded from outgoings

 

Outgoings does not include:

 

(a)                        any costs due solely to any other tenant’s use of its premises;

 

(b)                        expenditure on capital account or of a capital nature;

 

(c)                         any costs the Landlord recovers from the Tenant under clause 13.1 or 13.2; or

 

(d)                        any costs which the Landlord is not permitted by law to recover from the Tenant.

 

12.4              Meaning of costs

 

The term costs when used in clauses 12.2 and 12.3 means all costs, expenses, fees, payments, wages, rates, taxes and other charges whether incurred directly or indirectly or through the engagement of independent contractors.

 

12.5              Landlord to estimate Tenant’s share of Outgoings

 

(a)                       On or before each 30 June the Landlord may give the Tenant the Landlord’s estimate of the Tenant’s share of the Outgoings for the next financial year.

 

(b)                       The Tenant must if requested by the Landlord, pay the Landlord the estimated share of the Outgoings in equal monthly instalments, in advance and on or before the first day of each month.

 

12.6              Landlord’s statement of Outgoings

 

(a)                        On or before each 30 September the Landlord must give the Tenant a written statement that details:

 

(i)                          all the Landlord’s expenditure on account of the Outgoings to which the Tenant is liable to contribute for the previous financial year; and

 

(ii)                       the Tenant’s share of these,

 

accompanied by a report prepared by a registered company auditor.

 

12.7              Adjustment

 

If the Tenant pays its estimated share of the Outgoings in equal monthly instalments under clause 12.5(b) and the Outgoings are greater than the estimated Outgoings paid, the Tenant must pay

 

11

 

the Landlord any difference with the Tenant’s next monthly payment. It if is less, the Landlord must refund the Tenant the difference.

 

13.                     Other amounts payable by the tenant

 

13.1              Statutory Charges

 

The Tenant must pay the Landlord all Statutory Charges for the Premises not later than 7 days after the Landlord gives the Tenant a notice asking for any of them. If any Statutory Charge is not separately assessed on or in respect of the Premises, the Tenant must pay the Tenant’s share of that Statutory Charge.

 

13.2              Services to the Premises

 

The Tenant must pay on time for all services (including electricity, gas, oil, water and telephone services) supplied separately to the Premises.

 

13.3              Landlord’s legal and other costs

 

The Tenant must pay:

 

(a)                       the Landlord’s reasonable legal and other costs incurred in any dealing under clause 17 (for example: assignment or subletting);

 

(b)                        any stamp duty on this Lease or any other document arising under this Lease;

 

(c)                        the Landlord’s reasonable costs of considering any request made by the Tenant for the Landlord’s approval or consent; and

 

(d)                        the Landlord’s costs incurred if the Tenant is in breach of this Lease.

 

14.                     Security deposit

 

Intentionally omitted.

 

15.                     The Tenant’s obligations generally

 

15.1              The Tenant must obey the law

 

(a)                       The Tenant must obey all laws relating to, and the directions of any Authority that requires the Tenant to do, anything concerning the Premises, the Tenant’s use of the Premises or this Lease.

 

(b)                       The Tenant must give the Landlord copies of any notices or written directions given by any Authority concerning the Premises, the Tenant’s use of the Premises or this Lease.

 

15.2              Using this Lease as security

 

The Tenant must not use this Lease as security. The Tenant must get the Landlord’s consent before the Tenant uses the Tenant’s Property as security.

 

15.3              Caveats

 

The Tenant must not lodge a caveat against the title to the Land.

 

12

 

15.4              The Tenant’s behaviour

 

The Tenant must not do any thing that is or may be dangerous, annoying or offensive to, or that does or may interfere with, adjacent occupiers.

 

15.5              Danger or risk

 

The Tenant must promptly tell the Landlord about any accident to or problem with any of the Mechanical Services or other services, facilities or equipment in the Premises that needs repair, especially if the Tenant is aware, or ought reasonably to be aware, that this may be a danger or risk to the Complex or any person in the Complex.

 

15.6              The Tenant must obey fire regulations

 

The Tenant must not store or use inflammable or explosive substances on the Premises, except as required in the normal course of the Tenant’s business.

 

15.7              The Tenant must pay for damage

 

The Tenant must pay for the cost of repairing any damage the Tenant causes to the Complex.

 

15.8              Workplace health and safety

 

Without limiting any other provision of this lease, the Tenant must comply at all times with all laws applicable to workplace health and safety. The Tenant must ensure that its employees, agents and contractors (and the contractor’s employees agents and contractors) and persons under its control also comply with those laws.

 

16.                     Using the premises

 

(a)                       The Tenant may only use the Premises for the purposes set out in item 12.

 

(b)                       The Tenant must operate its business at the Premises in accordance with best practice for a business of that nature.

 

(c)                        The Tenant must obtain and keep current all licences, consents or permits required for operating its business.

 

(d)                       The security of the Premises is the Tenant’s responsibility. The Tenant must keep the Premises safe and secure and protect them against theft.

 

(e)                        The Tenant must get the Landlord’s consent before the Tenant erects any signs or advertisements on or about the Premises.

 

(f)                         If the Tenant plays music or uses any audio or audio-visual equipment (including television and computer equipment) in the Premises, the Tenant must make sure that the music or noise from that equipment cannot be heard outside the Premises.

 

(g)                        The Tenant must not have any electronic games, vending machines or similar equipment in the Premises.

 

(h)                       The Tenant must get the Landlord’s consent before the Tenant uses any services or equipment for cooling, heating, lighting or circulating air in the Premises other than those the Landlord supplies. However this clause does not apply to heating equipment, fans and fume cupboards which are reasonably necessary for the Tenant’s business.

 

13

 

(i)                          The Tenant must store and keep all waste and rubbish in proper receptacles and make sure the rubbish is removed regularly.

 

(j)                          The Tenant must, at the Tenant’s expense, keep the Premises free from animals, rodents and pests.

 

(k)                       The Tenant must only use electrical, plumbing or other facilities (for example toilets, sinks, basins or drains) in the Premises for their proper purpose. The Tenant must not deposit any rubbish or foreign material in any of the facilities.

 

(l)                           The Tenant must not burn any rubbish or any other material on the Complex.

 

(m)                   The Tenant must not conduct any auction, liquidation or fire sale on the Premises.

 

17.                     Assigning or dealing with the premises

 

17.1              Tenant must not assign without consent

 

The Tenant must not assign, sub-lease, share, mortgage or otherwise deal with this Lease or the Premises without the Landlord’s prior consent (which will not be unreasonably withheld).

 

17.2              When the Landlord will consent to an assignment

 

The Landlord will consent to an assignment of this Lease if the Tenant is not in breach of this Lease and if the Tenant does all of the following:

 

(a)                       asks in writing for the Landlord’s consent;

 

(b)                       gives the Landlord any information the Landlord reasonably requires about the financial resources and business experience of the person who wishes to be assigned this Lease (new person);

 

(c)                        otherwise proves to the Landlord that the person who wishes to be assigned this Lease is respectable and responsible and has the financial resources or business experience necessary to meet the obligations under this Lease;

 

(d)                       delivers to the Landlord any personal guarantees, security deposit or any other security the Landlord reasonably requires;

 

(e)                        signs and has the new Tenant sign a document recording the assignment in a form approved by the Landlord’s lawyers, and which records that the Tenant is not released from the Tenant’s obligations under this Lease; and

 

(f)                         pays the Landlord’s reasonable costs of making enquiries about the new person as well as the Landlord’s legal fees incurred on the assignment.

 

17.3              Change in control of the Tenant

 

If the Tenant is a corporation (other than a corporation whose shares are listed on any Stock Exchange in Australia) and the Tenant intends to take any action which has or will have the effect that the legal or beneficial ownership or control of more than 50% of the Tenant’s shareholding changes, the Tenant must seek the Landlord’s consent to the change before taking that action as if that change is an assignment of this Lease.

 

14

 

18.                     Maintaining the premises and the Tenant’s property

 

18.1              Tenant’s maintenance responsibilities

 

At the Tenant’s cost the Tenant must:

 

(a)                       keep the Premises clean and tidy;

 

(b)                       keep the Premises in good condition, except for fair wear and tear and carry out all repairs to the Premises and fix any damage to the Premises;

 

(c)                        maintain, repair and keep the Tenant’s property in good condition; and

 

(d)                       keep the gardens and lawns of the Premises (if any) tidy and attractive.

 

18.2              Structural repairs

 

The Tenant is not required to carry out structural repairs or repairs of a capital nature unless the need for them arises from:

 

(a)                       the Tenant’s negligence;

 

(b)                       the Tenant’s failure to obey this Lease; or

 

(c)                        the Tenant’s use of the Premises.

 

19.                     Altering the premises

 

(a)                       The Tenant must get the Landlord’s consent before the Tenant alters, installs any equipment in, re-designs the interior of, paints or does any other work in or to the Premises (Tenant’s Works).

 

(b)                       Before the Tenant starts the Tenant’s Works it must submit plans and specifications for that work to the Landlord for the Landlord’s approval.

 

(c)                        When the Landlord gives that approval and before the Tenant starts the works, the Tenant must get the approval of all relevant Authorities to the fitout plans approved by the Landlord and deliver evidence of that approval to the Landlord.

 

(d)                       The Tenant must carry out the Tenant’s Works as shown on the plans approved by the Landlord and the relevant Authorities.

 

(e)                        The Tenant must reimburse the Landlord for any costs incurred by the Landlord in considering the plans including any reasonable fees charged by the Landlord’s architects or consultants. The Tenant must make that reimbursement when requested by the Landlord

 

20.                     When this lease ends

 

When this Lease ends:

 

(a)                       the Tenant must vacate the Premises and give them back to the Landlord in the same condition as they were in at the starting date, except for fair wear and tear;

 

(b)                       the Tenant must make sure all the Tenant’s property is removed and must fix any damage caused by the removal; and

 

15

 

(c)                          anything left at the Premises will become the Landlord’s property and the Landlord may keep it or dispose of it.

 

The Tenant must pay the Landlord one day’s rent for each day that there is anything left on the Premises after this Lease ends until the Landlord is able to dispose of all that property.

 

21.                     The Landlord’s rights and obligations

 

21.1              The Tenant’s quiet enjoyment

 

If the Tenant does not breach this Lease, the Landlord must allow the Tenant to occupy and use the Premises without the Landlord interrupting or disturbing the Tenant, except where this Lease allows the Landlord to do so.

 

21.2              Roof and external walls

 

The Landlord has the sole right to use the roof and external walls of the Complex.

 

21.3              Landlord’s maintenance

 

The Landlord must maintain the structure of the Premises and the Landlord’s installations in the Premises in a condition consistent with the condition they were in on the date the Tenant first occupied the Premises unless the need for the repair arises out of the Tenant’s misuse.

 

21.4              The Landlord may enter the Premises

 

(a)                       The Landlord may enter the Premises for inspection or to carry out maintenance, repairs or other building work and at any reasonable time after giving the Tenant reasonable notice. If there is an emergency, the Landlord may enter at any time without giving the Tenant notice.

 

(b)                       The Landlord may enter the Premises at any time to show them to prospective purchasers or tenants during business hours after giving the Tenant reasonable notice.

 

21.5              The Landlord may give the Tenant notice to do work

 

The Landlord may give the Tenant notice which requires the Tenant to do any work to the Premises which is the Tenant’s responsibility under this Lease, within a reasonable time.

 

21.6              The Landlord may do things on the Tenant’s behalf

 

The Landlord may carry out any of the Tenant’s obligations on the Tenant’s behalf if the Tenant does not carry it out on time (for example: if the Tenant does not do repairs). The Tenant must promptly reimburse the Landlord’s costs of doing this.

 

21.7              The Landlord may erect signs

 

The Landlord may erect any of the following:

 

(a)                        signs advertising the Premises for lease during the 3 months before this Lease ends; and

 

(b)                        signs advertising the Premises for sale at any time,

 

but in doing so the Landlord must not interfere with the Tenant’s business.

 

16

 

21.8              Subdivision

 

(a)                       The Landlord may at any time subdivide the Complex and may sell any lot of the subdivided Complex. If the Landlord asks, the Tenant will sign a consent to the subdivision prepared by the Landlord. The Landlord must pay the Tenant’s reasonable costs of doing so.

 

(b)                       The Landlord will ensure that there is no interference to the Tenant’s business caused by the subdivision.

 

(c)                        The Tenant must not object to or obstruct any subdivision, sale or consolidation of the Complex.

 

(d)                       The Tenant must obey any body corporate rules which apply to the Complex after the subdivision as if those rules were part of this Lease, but the Tenant will not have to pay any additional costs or body corporate fees which It would not otherwise have to pay under this Lease.

 

(e)                        The Landlord must not subdivide that part of the Premises described in Item 3(a) if that subdivision would result in that part of the Premises being owned by more than one party.

 

22.                       Landlord’s repairs or building work

 

22.1              The Landlord may do repairs

 

The Landlord may do any repairs or maintenance to the Complex.

 

22.2              The Landlord may do building work

 

The Landlord may do any building work to extend or change the Complex or any part of it (excluding the Premises) but if the Landlord does the Landlord must cause as little disruption as the Landlord reasonably can to the Tenant’s use of the Premises

 

23.                     If the premises are damaged or destroyed

 

23.1              Tenant may ask Landlord to rebuild

 

If the Premises are damaged or destroyed and as a result the Tenant cannot use or have access to the Premises the Tenant may ask the Landlord to re-build them. Meanwhile the Tenant must continue to use any part of the Premises that is useable, safe and accessible.

 

23.2              When Tenant or Landlord may end this Lease

 

If the Landlord does not re-build the Premises within a reasonable time after the Tenant asks or if the Landlord decides not to re-build them, the Tenant or the Landlord may end this Lease by giving not less than 7 days’ notice to the other.

 

23.3              Landlord is not liable to pay compensation

 

The Landlord will not be liable to pay the Tenant compensation but the Landlord must reduce the Tenant’s rent and any other money payable by the Tenant under this Lease by a reasonable amount, depending on the type and extent of the damage or destruction, from the date on which the damage or destruction occurs until the Premises are again fit for use and accessible or this Lease is ended.

 

17

 

23.4              If insurer is not obliged to pay for reinstatement

 

The Tenant cannot end this Lease and must continue to pay rent and all other money payable by the Tenant under this Lease-up to the Expiry Date if the Landlord’s insurer is not legally required to pay to reinstate the Premises because of anything done or not done by the Tenant.

 

24.                     If premises are resumed

 

If an Authority resumes the Premises or any part and this makes the Premises unfit for the Tenant’s use, the Landlord or the Tenant may end this Lease by notice to the other. The Landlord will not be liable to pay the Tenant any compensation in these circumstances.

 

25.                     Risks and insurance

 

25.1              The Tenant must have insurance

 

(a)                        The Tenant must have throughout the period of this Lease current insurance for all of the following:

 

(i)                           public liability insurance policy for the amount in item 13;

 

(ii)                       insurance covering the Tenant’s property for its full value; and

 

(iii)                    plate glass insurance for its replacement value.

 

(b)                       The Tenant must take out the Tenant’s insurance with an insurer approved by the Landlord.

 

(c)                        The Landlord’s interest must be noted on each insurance policy.

 

(d)                       The Tenant must give the Landlord evidence of the insurance before the start of this Lease and at the start of each financial year.

 

(e)                        The Tenant must not do anything that may make the Landlord’s insurance invalid or able to be cancelled or that may increase the Landlord’s insurance premium. If the Landlord’s insurance premium does increase and the Landlord accepts that increase, the Tenant must pay the amount of the increase.

 

26.                     The Tenant releases and indemnifies the Landlord

 

26.1              Tenant occupies the Premises at its own risk

 

The Tenant occupies and uses the Premises at the Tenant’s own risk The Tenant will also carry out any building work in the Premises at the Tenant’s own risk.

 

26.2              Release

 

The Tenant releases the Landlord from any action or demand due to any damage, destruction, loss, injury or death occurring in the Premises or the Complex except to the extent that the Landlord causes this by the Landlord’s negligence.

 

26.3              The Tenant indemnifies the Landlord

 

The Tenant indemnifies the Landlord against any action or demand due to any damage, loss, destruction, injury or death caused by:

 

18

 

(a)                        the Tenant’s wilful act or negligence;

 

(b)                        the Tenant’s use or occupation of the Premises; or

 

(c)                         the use by the Tenant of services to the Premises,

 

except to the extent that the Landlord caused this by the Landlord’s negligence.

 

27.                     How the Tenant breaches this lease

 

The Tenant will be in breach of this Lease if:

 

(a)                       the Tenant does not pay the Landlord any part of the rent on time and whether or not the Landlord has asked the Tenant to pay that rent; or

 

(b)                       the Tenant does not pay the Landlord on time any other money which the Tenant must pay to the Landlord under this Lease and does not make that payment within 14 days after the Landlord gives the Tenant a notice requiring that payment; or

 

(c)                        the Tenant disobeys any other term of this Lease and the Tenant does not remedy that breach within 14 days after the Landlord gives the Tenant a notice specifying that breath and asking the Tenant to remedy it; or

 

(d)                       if the Tenant is a natural person and proceedings are commenced for either the Tenant’s voluntary or compulsory bankruptcy;

 

(e)                        if the Guarantor is a natural person and:

 

(i)                           becomes a bankrupt;

 

(ii)                        proceedings are commenced for the Guarantor’s voluntary or compulsory-bankruptcy; or

 

(iii)                     enters into or tries to enter into any scheme of arrangement or other compromise with the Guarantor’s creditors;

 

(f)                          if the Tenant or a Guarantor is a corporation and:

 

(i)                           proceedings are commenced for either the voluntary or compulsory winding-up of the Tenant or the Guarantor;

 

(ii)                        an order is made for the appointment of a provisional liquidator to the Tenant or the Guarantor;

 

(iii)                    a controller within the meaning of Section 9 of the Corporations Act is appointed over any property or business of the Tenant or the Guarantor;

 

(iv)                    a resolution is passed that the Tenant or the Guarantor be wound up; or

 

(v)                       an administrator is appointed under Part 5.3A of the Corporations Act to the Tenant or the Guarantor or the directors of the Tenant or the Guarantor pass a resolution to appoint an administrator; or

 

(vi)                    the Tenant or the Guarantor enters into or tries to enter into any scheme of arrangement or other compromise with the Tenant’s or the Guarantor’s creditors.

 

19

 

28.                     If the Tenant breaches this lease

 

28.1              What the Landlord may do if the Tenant is in breach

 

If the Tenant is in breach of this Lease and does not remedy the breach as required, the Landlord may do any one or more of the following:

 

(a)                       re-enter and take possession of the Premises;

 

(b)                       end this Lease (see clause 20);

 

(c)                        recover from the Tenant any loss or damage the Landlord suffers due to the Tenant’s breach;

 

(d)                       use the security deposit (see clause 14) to recover any loss or damage the Landlord suffers due to the Tenant’s breach; or

 

(e)                        exercise any of the Landlord’s other legal rights.

 

28.2              Breach of an essential term

 

If the Tenant breaches an essential term of this Lease and the Landlord re-enters and takes possession of the Premises or ends this Lease, the Landlord may recover all money payable by the Tenant under this Lease up to the expiry date. The essential terms are clauses 9,12, 13,14 (if applicable), 16,17,18,19 and 25.1.

 

28.3              If the Tenant vacates the Premises before the Expiry Date

 

If the Tenant vacates the Premises before the Expiry Date, whether or not it ceases to pay rent, the Landlord may:

 

(a)                       accept the keys for the Premises; or

 

(b)                       enter the Premises to inspect or repair them or to show them to prospective tenants; or

 

(c)                        advertise the Premises for re-letting

 

without this being re-entry or waiver of the Landlord’s rights to recover the rent or other money under this Lease. This Lease continues until a new tenant takes possession of the Premises, unless the Landlord accepts a surrender of or ends this Lease.

 

29.                     Guarantee and indemnity by the guarantor

 

Intentionally deleted

 

30.                     Notices

 

30.1              Notices to be writing

 

A notice, request, consent, approval, demand or statement (notice) required by this Lease must be in writing.

 

30.2              Serving Notices

 

(a)                        The Landlord may serve a notice on the Tenant by:

 

20

 

(i)                           giving it to the Tenant personally;

 

(ii)                        leaving it at the Premises; or

 

(iii)                     leaving it at, posting it to or faxing it to the Tenant’s address set out in this Lease or to the Tenant’s registered office or the Tenant’s business address as last known to the Landlord.

 

(b)                       The Landlord may serve a notice on the Guarantor by:

 

(i)                           giving it to the Guarantor personally; or

 

(ii)                        leaving it at, posting it to or faxing it to the Guarantor’s address set out in this Lease.

 

(c)                        The Tenant may serve a notice on the Landlord by leaving it at, posting it to or faxing it to:

 

(i)                           the Landlord’s address set out in this Lease; or

 

(ii)                        any other address that the Landlord nominates.

 

31.                     Landlord’s consent and approval

 

Unless this Lease says otherwise, if the Tenant asks for the Landlord’s consent or approval for something, the Landlord must act promptly but the Landlord may give or withhold its consent or approval at the Landlord’s choice. The Landlord may also require the Tenant to obey any terms before the Landlord gives, or as a condition of, the Landlord’s consent or approval.

 

32.                     Special Conditions

 

The special conditions set out in item 18 bind the Tenant and the Landlord. if any special condition is inconsistent with a term of this Lease, the special condition will prevail.

 

33.                     General

 

33.1              Individual and joint liability

 

If two or more people are described in item 1 or item 2, each person described in the item is liable for all of the obligations under this Lease of the persons named in that item both individually and together with each other person described in that item.

 

33.2              Waiver

 

A waiver by the Landlord will only be enforceable against the Landlord if the waiver is in writing and signed by the Landlord.

 

33.3              Warranties by the parties

 

This Lease and the disclosure statement contain the whole agreement of the parties. Neither party is entitled to rely on any warranty or statement in relation to:

 

(a)                        the conditions on which this Lease has been agreed;

 

(b)                        the provisions of this Lease; or

 

(c)                         the Premises

 

21

 

which is not contained in those documents.

 

33.4              Victorian law applies

 

This Lease is governed by Victorian law.

 

33.5              Severability

 

If any term of this Lease is made void or unenforceable, the remaining terms will not be affected.

 

34.                     Interpretation

 

In this Lease:

 

(a)                        an obligation not to do something includes the obligation not to allow or permit that thing to be done;

 

(b)                        unless it is clearly not the intention, an obligation is an obligation for the entire term of this Lease;

 

(c)                         a word or expression in the singular includes the plural and the plural includes the singular;

 

(d)                        a reference to a person includes an individual, a corporation and any other organisation having a legal entity;

 

(e)                         examples are descriptive only and not exhaustive;

 

(f)                          headings are inserted for convenience only and are not to be used to interpret this Lease;

 

(g)                         a reference to a clause is a reference to a clause in this Lease;

 

(h)                        a reference to any thing (including any place or money) includes a reference to a part of that thing; and

 

(i)                            the expression at any time means at any time and from time to time.

 

35.                     Time for doing acts

 

If the date by which or the period in which anything must be done under this Lease ends on a Sunday or a public holiday in Melbourne, the date or period will be extended to the next day that is not a Sunday or a public holiday.

 

36.                     Car Parking Licence

 

36.1              Definitions

 

In this clause 36:

 

Car Spaces means the number of car spaces set out in Item 17 in the location as designated by the Landlord from time to time by notice in writing to the Tenant.

 

Parking Fee means the monthly amount set out in Item 17 as varied under this Lease.

 

22

 

36.2              Licence

 

(a)                       Subject to the provisions of this clause 36 the Landlord grants to the Tenant a non-exclusive licence to use the Car Spaces from September 1, 2015 until the earlier of the Expiry Date and August 31, 2018.

 

(b)                       The Landlord may restrict access to the Car Park:

 

(i)                           if required by any Authority; or

 

(ii)                        due to any cause which in the reasonable opinion of the Landlord endangers or may endanger the Car Spaces, the Complex or any person or property in the Complex.

 

36.3              Holding Over

 

If the Tenant continues to occupy the Premises under clause 7 this licence continues until the Tenant’s occupation of the Premises ends.

 

36.4              Use of the Car Spaces

 

The Tenant:

 

(a)                        must not use the Car Spaces other than to park one car in each Car Space;

 

(b)                        must not bring any vehicle into the Complex or onto the Land which is unsafe or which drips oil or fluid;

 

(c)                        must comply with any law relating to the Tenant’s use of the Car Spaces except where such a law requires the Tenant to carry out structural works or alterations to the Car Spaces or the Complex;

 

(d)                       must not clean, grease, oil, service or wash cars in the Car Park or otherwise use the Car Park in a way which would cause damage, nuisance or disturbance to occupants of the Complex or an adjoining property;

 

(e)                        must, if requested by the Landlord, promptly give to the Landlord details (including registration numbers) of the cars the Tenant will park in the Car Spaces from time to time.

 

36.5              Assignment and Sub-Licensing

 

The Tenant may:

 

(a)                        assign this licence to a person to whom the Tenant assigns the Lease; or

 

(b)                        sub-licence the Car Spaces to a person to whom the Tenant has sub-let the Premises

 

if that assignment of the Lease or sub-lease of the Premises has been approved by the Landlord.

 

36.6              Landlord’s right of entry

 

The Landlord may enter the Car Spaces at reasonable time after giving the Tenant reasonable notice or, in the case of emergencies, without notice to:

 

(a)                       install, maintain, repair, alter or inspect the Car Park or the services in or to the Car Park;

 

(b)                       carry out repairs, renovations, maintenance or alterations to the Car Spaces which are reasonably necessary;

 

23

 

(c)                         stop any actual or potential damage to the Complex occurring in or about the Car Spaces; and

 

(d)                       comply with any laws or the requirements of any relevant Authority that are not the Tenant’s responsibility to comply with.

 

In exercising the Landlord’s rights under this clause 36, the Landlord must cause as little inconvenience to the Tenant as is practicable in the circumstances.

 

36.7              Risk

 

The Tenant uses the Car Park and the Car Spaces at the Tenant’s own risk.

 

36.8              Release

 

(a)                       The Landlord is not responsible and has no liability to the Tenant for any claim by the Tenant against the Landlord as a consequence of the use of the Car Park or Car Spaces by the Tenant except to the extent that that claim arises because of the Landlord’s default or negligence.

 

(b)                      Without limiting the release in clause 36.8(a) the Landlord will not be responsible for:

 

(i)                             the theft of any cars the parts, equipment or contents of any cars while the cars are on the Land; or

 

(ii)                          damage whether malicious or accidental that any cars may sustain while entering or leaving the Complex or within the Complex.

 

36.9              Indemnity

 

The Tenant indemnifies and will keep indemnified the Landlord from and against all claims made against the Landlord as a consequence of the use of the Car Park or Car Spaces by the Tenant except to the extent that that claim arises because of the Landlord’s default or negligence.

 

36.10       Security cards

 

The Landlord may restrict access to the Car Park by means of security cards.

 

36.11       End of licence

 

(a)                        When this licence ends the Tenant must:

 

(i)                           remove the cars from the Car Park and make good any damage caused or contributed to by the Tenant; and

 

(ii)                        leave the Car Spaces in a neat and tidy state, clean and free of rubbish.

 

(b)                       The Landlord may remove and store at the Tenant’s Cost the cars not removed by the Tenant in accordance with clause 36.11(a).

 

36.12       Parking Fee

 

(a)                        The Tenant must pay to the Landlord the Parking Fee:

 

(i)                           by equal monthly instalments in advance; and

 

(ii)                        at the same time and in the same manner as the Rent.

 

(b)                        The Parking Fee will be reviewed at the same time and in the same manner as the Rent.

 

24

 

36.13       Parking levy

 

(a)                       Any levy, rate, charge or assessment imposed by any Authority in respect of a Car Space is not included in the Parking Fee.

 

(b)                       In addition to the Parking Fee, the Tenant must pay any levy rate, charge or assessment in respect of each Car Space upon demand by the Landlord.

 

37.                     Demolition

 

37.1              Landlord may terminate for demolition

 

If the Landlord wishes to carry out building work to extend, improve or change the premises or the Complex the landlord may terminate this Lease.

 

37.2              Notice of termination

 

(a)                       The Landlord must give the Tenant at least 9 months’ notice of the termination under clause 37.1 (termination notice), but cannot give a termination notice before January 31, 2018.

 

(b)                 The termination notice must state the date (termination date) by which the Tenant needs to leave the premises and this Lease will end and the Tenant must leave the premises on the termination date.

 

25

 

	
Execution   page
    
	
 
    
	
Executed   as an deed
    
	
 
    
	
The Common Seal of Crude Pty Ltd (ACN 124
    	
)
    	
 
    
	
327 920) is   affixed in accordance with its
    	
)
    	
 
    
	
constitution in   the presence of:
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[ILLEGIBLE]
    
	

    	
 
    	
Signature of   Director

 

 

 

 

 

 

 

 

 

[ILLEGIBLE]
    
	
 
    	
 
    	
Name of Director
    
	
 
    	
 
    	
 
    
	
Executed   by Genetic Technologies Limited
    	
)
    	
 
    
	
(ACN 009 212   328) in accordance with
    	
)
    	
 
    
	
section 127 of   the Corporations Act:
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
[ILLEGIBLE]
    	
 
    	
[ILLEGIBLE]
    
	
Signature of   Director
    	
 
    	
Signature of   Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[ILLEGIBLE]
    	
 
    	
/s/ Brian Manuel
    
	
Name of Director
    	
 
    	
Name of   Secretary
    

 

26

 

	
Reference Schedule
    
	
 
    	
 
    	
 
    
	
Item 1
    	
(Tenant)
    	
Genetic   Technologies Limited (ACN 009 212-328) of 60-66 Hanover
    
	
 
    	
 
    	
Street, Fitzroy,   Victoria, 3065
    
	
 
    	
 
    	
 
    
	
Item 2
    	
(Guarantor)
    	
Not applicable
    
	
 
    	
 
    	
 
    
	
Item 3
    	
(Premises)
    	
That part of the   Complex being part of the area known as Ground Floor, 60-66 Hanover Street,   Fitzroy Victoria measuring approximately 645 square metres being the area   shown hatched on the plans in Annexure A.
    
	
 
    	
 
    	
 
    
	
Item 4
    	
(Landlord’s   installations)
    	
·                  Floor   coverings — vinyl and carpet
    
	
 
    	
 
    	
·                  Fire   alarm systems
    
	
 
    	
 
    	
·                  Security   alarm systems
    
	
 
    	
 
    	
·                  Fire   extinguishers and hose reels
    
	
 
    	
 
    	
·                  Remote   electronic gate openers
    
	
 
    	
 
    	
·                  Light   fittings
    
	
 
    	
 
    	
·                  7   air conditioning units as marked on the plans in Annexure B
    
	
 
    	
 
    	
 
    
	
Item 5
    	
(Landlord’s Works)
    	
Not applicable
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Item 6
    	
(Tenant’s works)
    	
Not applicable
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Item 7
    	
(Lease Start Date)
    	
September 1, 2015
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Item 8
    	
(Duration of Lease)
    	
3 years
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Item 9
    	
(Lease Expiry Date)
    	
August 31, 2018
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Item 10
    	
(Rent)
    	
Year   1;   $180,600.00
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Year   2:   $187,824.00
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Year   3;   $195,336.96
    
	
 
    	
 
    	
 
    
	
Item 11
    	
(Security Deposit)
    	
Not applicable
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Item 12
    	
(Use of Premises)
    	
Offices, Commercial and   Research Laboratories and any ancillary uses of the Tenant
    
	
 
    	
 
    	
 
    
	
Item 13
    	
(Public Liability   Insurance)
    	
$10 million
    

 

27

 

	
Item 14
    	
(Last date to renew   Lease)
    	
Not applicable
    
	
 
    	
 
    	
 
    
	
Item 15
    	
(Option term)
    	
Nil
    
	
 
    	
 
    	
 
    
	
Item 16
    	
(Rent during option   term)
    	
Not applicable
    
	
 
    	
 
    	
 
    
	
Item 17
    	
(Car spaces and fee)
    	
13 Car Spaces at an   initial Parking Fee of $120 per space per month
    
	
 
    	
 
    	
 
    
	
Item 18
    	
(Special conditions)
    	
1.              Despite clause   15.2, while Genetic Technologies Limited (ACN 009 212 328) is the Tenant, the   Landlord’s consent is not required to any fixed and floating charge over all   of the Tenant’s assets.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.              Before the Lease   Start Date, the Tenant must at its own cost carry out and complete in a   proper and workmanlike manner and to the Landlord’s satisfaction, the   following works to separate the Premises from the premises previously   occupied by the Tenant:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)         install plaster wall   near the entrance and a door near the rear of the Premises in accordance with   the plan attached in Annexure B; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(b)         all works required by   the Landlord and necessary to separate the air conditioning equipment,   electricity and water services to ensure the premises on the first floor of   the Building and the Premises run independently of each other, including   installation of separate electricity meters for the Premises and first floor,   and installation of separate check meters in respect of water and gas usage   to determine the usage between the floors.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.              The parties must meet   no later than 30 days before the Expiry Date to attempt to agree (acting   reasonably) the extent of the Tenant’s obligations under clause 20. If the   parties fail to reach agreement, the provisions of clause 20 will prevail.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.              The tenant acknowledges   and agrees that the water meter for the premises will not be split between   levels 1 and 2. The tenant agrees to cover the cost of all water consumption   within the premises, covering levels 1 and 2.
    

 

	
[ILLEGIBLE]
    
	
 
    
	
[ILLEGIBLE]
    
	
 
    
	
[ILLEGIBLE]
    

 

28

 

Annexure A — Plan showing Premises

 

 

	
[ILLEGIBLE]
    
	
 
    
	
[ILLEGIBLE]
    
	
 
    
	
[ILLEGIBLE]
    

 

29

 

Annexure B — Plan for Tenant’s works

 

Annexure B — Plan for Tenant’s works

 

 

30Exhibit 4B 2.2

 

STATE OF NORTH CAROLINA

 

COUNTY OF MECKLENBURG

 

LEASE

 

THIS LEASE, made and entered into this the 28th day of June, 2018 (the “Effective Date), by and between MIDTOWN AREA PARTNERS, LLC, a North Carolina limited liability company, hereinafter referred to as “Landlord” and Phenogen Sciences, Inc. a Deleware corporation hereinafter referred to as “Tenant”;

 

WITNESSETH:

 

In consideration of the mutual agreements of the parties herein, including the rental agreed to be paid by Tenant to Landlord, Landlord leases to Tenant, and Tenant leases from Landlord the following described premises upon the following terms and conditions:

 

ARTICLE I

BASIC LEASE TERMS

 

Section 1.1.             Building, Premises, Term, Base Rent, Allowances, and Security Deposit.

 

	
Building   and Address:
    	
1300 Baxter   Street
    
	
 
    	
Charlotte, NC   28204
    
	
 
    	
 
    
	
Location   of Premises:
    	
Suite 157   on the first floor of the Building.
    
	
 
    	
 
    
	
Rentable   Area of Premises:
    	
approximately   620 square feet
    
	
 
    	
 
    
	
Lease   Term:
    	
 
    
	
 
    	
 
    
	
Commencement   Date:
    	
July 23,   2018
    
	
Termination   Date:
    	
July 31,   2020
    
	
 
    	
 
    
	
Base   Rent:
    	
 
    
	
 
    	
 
    
	
Annual   Base Rent
    	
$16,740.00
    
	
Monthly   Base Rent
    	
$1,395.00
    
	
 
    	
 
    
	
Security   Deposit:
    	
$1,395.00
    

 

Section 1.2.             Address of Landlord and Tenant; Notices.

 

	
Rental   and Other
    	
Midtown Area   Partners, LLC
    
	
Payments   To:
    	
1300 Baxter   Street, Suite 370
    
	
 
    	
Charlotte, NC   28204
    
	
 
    	
 
    
	
Correspondence   To:
    	
Midtown Area   Partners, LLC
    
	
 
    	
1300 Baxter   Street, Suite 370
    
	
 
    	
Charlotte, NC   28204
    
	
 
    	
Attention:   Royden L. Goode II
    
	
 
    	
 
    
	
Address   of Tenant:
    	
Phenogen   Sciences, Inc.
    
	
 
    	
1300 Baxter   Street
    
	
 
    	
Suite 157
    
	
 
    	
Charlotte, NC   28204
    

 

1

 

All monies due and notices required under this Lease shall be sent to the respective addresses of Landlord and Tenant set forth above, as applicable, and unless otherwise provided, shall be in writing. Notice shall be deemed served (a) if sent by certified mail, return receipt requested, when the return receipt is signed or refused, (b) if sent by recognized national overnight courier, next day delivery, as of the next business day after delivery to such courier, or (c) if in any other manner, upon actual delivery to the party to whom/ which such notice is addressed. Either party may change the address to which money due or notices shall be sent by giving the other party written notice of such change of address.

 

Section 1.3.             Size of Premises. The rentable area of the Premises shall be deemed to be correct, unless re-measurement of the Premises is performed by Landlord. If applicable, the rentable area of the Premises set forth in Section 1.1. shall be adjusted accordingly and Annual and Monthly Base Rent, as applicable, and Security Deposit and any other terms or conditions of this Lease based on the rentable area of the Premises shall also be adjusted accordingly and thereafter, the rentable square footage based on the final rentable area shall be deemed to be correct for all purposes of this Lease.

 

ARTICLE II

LEASED PREMISES

 

Section 2.1.             Description of Premises. The premises (the “Premises”) described in Section 1.1. are located within the building (the “Building”) also described in Section 1.1., which is located on the real property described in Exhibit A attached hereto and incorporated herein by reference (said land and the Building and other improvements thereon being herein called the “Property”), and are shown on the floor plan attached hereto as Exhibit B and incorporated herein by reference.

 

Section 2.2.             Tenant’s Acceptance of Property. Prior to delivering the Premises to Tenant, Landlord shall complete the work (“Landlord’s Work”) described on Exhibit C attached hereto and incorporated herein by reference and using building standard materials and quantities. Landlord shall deliver possession of the Premises to Tenant on the date that Landlord’s Work is substantially completed (the “Substantial Completion Date”), and Tenant shall accept possession on that date. The Premises shall be deemed substantially completed on the date that (i) Landlord obtains a certificate of occupancy for the Premises, if the Landlord’s Work required the issuance of a permit, or (ii) the date Landlord certifies to Tenant in writing that it has completed the Landlord’s Work in accordance with Exhibit C attached hereto, if a permit is not required for the completion of the Landlord’s Work. Landlord shall use commercially reasonable efforts to deliver the Premises to Tenant on or before fourteen (14) days after the Effective Date but Landlord’s failure to comply with said deadline shall not provide Tenant with any rights or remedies against Landlord hereunder. Except for Landlord’s Work, Landlord shall have no obligation with respect to the upfitting of the Premises. Except for Landlord’s completion of the Landlord’s Work as provided in Exhibit C attached hereto, Tenant shall accept the Premises in its “as is” condition, and Landlord shall have no obligation to upfit the same and the taking of possession of the Premises by Tenant shall be conclusive evidence that the Premises, Building and Property were in satisfactory condition at the time possession was taken. If Landlord is required to do any work in the Premises, then Tenant must notify Landlord within thirty (30) days of the taking of possession of the Premises of any incomplete “punch list” items required to be completed by Landlord, and any items not contained in such notice shall be deemed fulfilled. Landlord and Tenant shall enter into a letter agreement after Landlord delivers the Premises to Tenant to evidence the Substantial Completion Date.

 

Section 2.3.             Common Areas. Tenant, its employees, agents, and invitees shall have the right, in common with others and subject to the exclusive control and management thereof at all times by Landlord, to the nonexclusive use of such of the areas as are from time to time designated by Landlord as the common areas (the “Common Areas”) of the Property, which shall include to the extent provided, any parking areas, sidewalks, roadways, loading platforms, restrooms, ramps, maintenance and mechanical areas, lobbies, corridors, elevators, stairwells and landscaped areas, and subject to such restrictions on the use thereof as Landlord may reasonably require.

 

2

 

Section 2.4.             Quiet Enjoyment. Tenant, upon performing its obligations hereunder, shall hold and enjoy the Premises for the term aforesaid, subject, however, to the terms of this Lease.

 

ARTICLE III

LEASE TERM

 

Section 3.1.             Term. The term of this Lease (the “Term”) shall commence and end on the Commencement Date and Termination Date, respectively, set forth in Section 1.1., provided, however, if due to causes beyond Landlord’s reasonable control, including without limitation, the inability of Landlord, despite due diligence, to complete any work that it is obligated to perform in the Premises or to obtain possession of the Premises because of a holdover tenant therein, Landlord is unable to deliver the Premises to Tenant by the Commencement Date, then in such case the Commencement Date shall be deferred until Landlord is able to deliver the Premises to Tenant, and the Termination Date shall be deferred by the same number of days of such deferral, provided further, however, if Landlord’s delay is due to the acts, delays or omissions of Tenant, then notwithstanding said deferral, Tenant shall begin paying rent on the originally scheduled Commencement Date and continue doing so through the deferred Termination Date. Tenant shall have no right to enter the Premises prior to the Commencement Date, except only as expressly permitted by Landlord; provided that such entry shall not interfere with any work being done by or on behalf of Landlord therein, and Tenant shall indemnify Landlord and hold Landlord harmless against any claim, loss or liability arising from such entry, including without limitation, any claim, loss or liability for bodily injury, including death, and/or property damage.

 

Section 3.2.             Holding Over. If Tenant continues to occupy the Premises after the last day of the Term, or any extension thereof, and if Landlord elects to accept rent, a monthly tenancy terminable at will by either party on not less than seven (7) days notice shall be created which shall be on the same conditions as those herein specified, except that Tenant shall pay 150% of the monthly rent paid for the last full month of the Term, or extension thereof, as applicable, for each month or partial month during which Tenant retains possession of the Premises after such expiration or termination date, and Tenant shall indemnify Landlord against all liabilities and damages sustained by Landlord by reason of such retention of possession, provided, however, that the provisions of this section shall not constitute a waiver by Landlord of any reentry rights available under this Lease or in law or equity. Upon establishment of the Market Rental Rate for the beginning of an Extended Term, the Monthly Base Rent shall increase by three percent (3%) each year on the anniversary of such beginning date.

 

ARTICLE IV

BASE RENT AND ADJUSTMENTS

 

Section 4.1.             Base Rent. The Tenant agrees to pay to Landlord on the first day of each month, in advance, without setoff or demand, during the term of this Lease, the Initial Monthly Base Rent set forth in Section 1.1., subject to annual increases as provided in Section 4.2. below, with the first Monthly Base Rent payment and the security deposit being due upon Lease execution; provided, however, that if the term of this Lease does not begin on the first day or end on the last day of a calendar month, the Monthly Base Rent for that partial month at the beginning and/or end of the Term, as applicable, shall be prorated and paid in advance.

 

Section 4.2.             Annual Increase of Base Rent. Annual and Monthly Base Rent shall increase on the first day of the month during which each anniversary of the Commencement Date occurs during the Term, or any renewal thereof, by three percent (3.0%) of the Annual and Monthly Base Rent in effect on the day immediately prior thereto. Refer to Exhibit D for an illustration of how the increases provided under this Section are computed.

 

Section 4.3.             Late Payment. If Monthly Base Rent or any other payment due hereunder from Tenant to Landlord remains unpaid five (5) days after said payment is due, the amount of such unpaid rent or other payment shall be increased by a late charge equal to five percent (5%) of the amount of the delinquent rent or other payment, the parties hereto agreeing that such late charge shall not be deemed to be a penalty, it being understood between the parties that late payments by Tenant shall result in additional expense to Landlord which is difficult and impractical to ascertain and that such late charge is a reasonable estimate of

 

3

 

the loss and expense to be suffered by Landlord as a result of such late payment. In addition, past due Monthly Base Rent and any other sum due hereunder that is past due shall bear interest at the rate of fifteen percent (15%) per annum (or if less, the highest rate permitted by law) beginning on the thirty-first (31st) day after said Monthly Base Rent or other payment is due until the past due monetary obligation is paid. If rent or any other sum due Landlord by Tenant hereunder is collected by or through an attorney at law, Tenant agrees to pay Landlord’s reasonable attorneys’ fees incurred with respect thereto. Nothing herein, however, shall relieve Tenant of the obligation to pay rent or any other payment on or before the date on which any such payment is due, nor in any way limit Landlord’s remedies under this Lease or at law or in equity in the event said rent or other payment is unpaid after it is due. If Tenant fails to pay the late payment charge, or attorneys’ fees or interest due hereunder, Landlord shall have the same remedies as are provided to Landlord hereunder for Tenant’s failure to pay Monthly Base Rent.

 

Section 4.4.             Application of Payments Received from Tenant. Landlord, acting in its sole discretion, shall have the right to apply any payments made by Tenant to the satisfaction of any debt or obligation of Tenant to Landlord under this Lease regardless of the instructions of Tenant as to application of any sum, whether endorsed upon Tenant’s check or otherwise, and the acceptance by Landlord of a check or checks drawn by anyone other than Tenant shall in no way affect Tenant’s liability hereunder nor be deemed an approval of any assignment of this Lease by Tenant.

 

Section 4.5.             Security Deposit. Tenant shall deposit with Landlord upon execution and delivery of this Lease by Tenant to Landlord, the security deposit set forth in Section 1.1., to be held as collateral security for the payment of rentals and other sums of money owed by Tenant to Landlord hereunder, and for the performance by Tenant of its obligations hereunder. If during the Term any such rental or other payment become overdue and unpaid, then Landlord may, at its option, appropriate and apply any portion of said deposit to the payment of any such overdue rent or other payment, or, if Tenant fails to perform any of its other obligations hereunder, then Landlord, at its sole option, may appropriate and apply said entire deposit, or so much thereof as may be necessary, to make such payment or compensate Landlord for the loss or damage sustained by Landlord as a result of Tenant’s default. Should any portion of the deposit, be appropriated and applied as provided above, then, upon the written demand of Landlord, Tenant shall forthwith remit to Landlord a sufficient amount in cash to restore said security deposit to the original sum deposited, and Tenant’s failure to do so within ten (10) days after receipt of such demand shall constitute a breach of this Lease. The Security Deposit shall be returned to Tenant at the end of the term of this Lease provided Tenant shall have made all such payments and performed all such covenants and agreements. Landlord’s obligation with respect to the security deposit are those of a debtor and not a trustee, and any interest earned on said security deposit shall be the property of Landlord.

 

ARTICLE V

UTILITIES, SERVICES AND MAINTENANCE

 

Section 5.1.             Landlord’s Services and Maintenance. Landlord shall provide at its expense the following services in a manner reasonably consistent with the standard of other suburban office buildings comparable to the Building in the area within which the Building is located:

 

(i)                           Heating, ventilation, and air conditioning (HVAC) for the Premises during business hours, as hereinafter defined, to maintain temperatures for normal office use and occupancy;

 

(ii)                        Automatic passenger elevator(s) providing service to the floor on which the Premises are located;

 

(iii)                     Janitorial services to the Premises for normal office use;

 

(iv)                    Hot and cold water sufficient for drinking, lavatory, toilet, and ordinary cleaning purposes to be drawn from approved fixtures in the Building;

 

(v)                       Electricity to the Premises during business hours in reasonable amounts necessary for normal office use, lighting, and HVAC;

 

4

 

(vi)                    Replacement of Building Standard lighting tubes, lamp ballasts, and bulbs for 2 x 2 or 2 x 4 fluorescent fixtures only;

 

(vii)                 Window washing in the Premises, inside and outside, at reasonable intervals;

 

(viii)              Extermination and pest control when necessary; and

 

(ix)                    Maintenance of the Common Areas.

 

Section 5.2.             Business Hours. In Section 5.1., business hours means:

 

(i)                           Monday through Friday, 8:00 a.m. through 6:00 p.m., and

 

(ii)                        Saturday, 8:00 a.m. through 1:00 p.m., but excludes the following holidays or the days on which the holidays are designated for observance: New Year’s Day, Memorial Day, July Fourth, Labor Day, Thanksgiving Day, and Christmas Day, and any other recognized national holiday generally observed by other suburban office buildings in the area of, and comparable to, the Building.

 

Section 5.3.             Twenty-Four Hour Access. Tenant and Tenant’s employees, agents, and subtenants shall have access to the Premises and the Parking Areas twenty-four (24) hours per day, seven (7) days per week, subject to Landlord’s reasonable security requirements for after-business-hours-access. Such requirements may include, but not be limited to, the exhibition of suitable identification and/or use of a particular entrance and/or exit with an access card, combination lock, or other security device. Notwithstanding the foregoing, Landlord shall have the right to close the Building and deny access to any person otherwise entitled thereto in the event of an emergency or other situation which threatens a danger to persons or property.

 

Section 5.4.             Extra Services. Whenever Landlord knows that Tenant is using extra services because of either non-business-hours use or high electricity installations, or if Tenant uses any Landlord-provided services in excess of that required for normal and customary office use, Tenant shall pay to Landlord the reasonable cost of such extra use within thirty (30) days of receipt of an invoice for the same from Landlord. HVAC required by Tenant during non-business hours shall be supplied upon reasonable advance verbal notice to, and the reasonable approval of, Landlord, and Tenant shall pay the cost incurred by Landlord in providing such non-business hours HVAC. Tenant shall not place or operate in the Premises any electrically operated equipment or other machinery, other than typewriters, personal computers, adding machines, reproduction machines, and other machinery and equipment normally used in offices, unless Tenant receives Landlord’s advance written consent. Landlord shall not unreasonably withhold or delay its consent, but Landlord may require payment for the extra use of electricity caused by operating this equipment or machinery. Landlord is not obligated to provide any services other than those listed in Section 5.1. above, but at Tenant’s request, such other services may be provided by Landlord, in Landlord’s sole discretion, provided the cost of such services is paid by Tenant. Tenant’s failure to pay the charges required by this Section within thirty (30) days after receiving an invoice for the same shall entitle Landlord to the same remedies it has upon Tenant’s failure to pay Base Rent, or any other charges due under the Lease, and the right to terminate any such services.

 

Section 5.5.             Interruption of Services. Landlord does not warrant that any services Landlord supplies will not be interrupted, including without limitation interruptions due to accidents, storms, Acts of God, repairs, alterations, improvements, labor troubles, or any other reason beyond the reasonable control of Landlord, and any interruption shall not: (i) be considered an eviction or disturbance of Tenant’s use and possession of the Premises; (ii) make Landlord liable to Tenant for damages; (iii) abate Base Rent, or any other charge under this Lease; or (iv) relieve Tenant from performing Tenant’s Lease obligations.

 

Section 5.6.             Tenant’s Services and Maintenance. Tenant shall make arrangements directly with the telephone and data services company(les) serving the Building for all telephone and data service required by Tenant in the Premises and shall pay for all telephone and data service used or consumed in the Premises. Further, Tenant shall be responsible for the maintenance, repair or replacement of any systems which are located within the Premises and are supplemental or special to the Building’s standard systems,

 

5

 

whether installed pursuant to a work letter or otherwise, and for any lamps, whether fluorescent or incandescent, for any special or non-Building standard lighting fixtures, for floor and wall coverings in the Premises, and for all other services, maintenance and repairs not specifically delegated to Landlord hereunder which are required to keep the interior of the Premises in good condition and repair or are required by Tenant to conduct business in the Premises, provided, however, Tenant must obtain Landlord’s prior written consent before obtaining or contracting for any service not specifically provided for in this Lease. If heat generating machines or equipment are used in the Premises by Tenant which affect the temperature otherwise maintained by the Building heating and air conditioning system, Landlord shall have the right to install supplemental air conditioning units in or for the Premises and the cost of the units, and the cost of installation, operation and maintenance thereof, shall be paid by Tenant to Landlord within thirty (30) days of demand by Landlord.

 

ARTICLE VI

ALTERATIONS, REPAIRS AND MAINTENANCE

 

Section 6.1.             Alterations. Tenant shall make no alterations, additions or improvements (collectively “Improvements”) to the Premises, whether before or during the Term, without the prior written consent of Landlord, and all such Improvements, including without limitation, subdividing partitions, walls and railings of whatever type, material or height, shall, when made, become the property of Landlord and remain upon and be surrendered with the Premises as a part thereof at the end of the Term, unless at the end of the Term, with regard to Improvements made to the Premises during the Term, Landlord shall notify Tenant to remove same, in which latter event Tenant shall do so. Tenant shall not core drill or in any other manner attempt to penetrate or penetrate the floors of the Building without the prior consent of Landlord, which Landlord may withhold in its sole discretion. All Improvements shall be constructed in a diligent, good and workmanlike manner, using at a minimum finishes which are standard to the Building (“Building Standard”) according to plans and specifications and using only contractors and subcontractors approved by Landlord in advance, and in compliance with all applicable legal requirements, including without limitation, the procurement of a building permit. At Landlord’s request, Tenant shall obtain a Builders’ Risk Insurance Policy covering the Improvements in such amount as is reasonably requested by Landlord, naming Landlord as an additional insured and providing that it will not be canceled without giving Landlord at least 15 days prior written notice thereof, and upon completion of such Improvements, Tenant shall furnish Landlord with a complete set of as-built plans and specifications for the same. Tenant has no authority to allow, will not permit, and will indemnify Landlord and hold it harmless from, any contractors’, laborers’, mechanics’, or materialmen’s liens, or any other similar liens filed against the Premises in connection with any Improvements. Also, with respect to any alterations, additions or improvements to the Premises made by Tenant, if Tenant requests, or if Landlord requires, the involvement of or work by Landlord’s construction coordinator, Tenant shall pay to Landlord the reasonable cost thereof, to be paid within ten (10) days of receipt of invoice for the same.

 

Section 6.2.             Right of Entry. Landlord shall have the right to enter and grant licenses to enter the Premises at any time upon reasonable advance verbal notice (except in emergencies and normal and customary janitorial and maintenance services when no notice is required) (i) to examine the Premises, (ii) to make alterations and repairs to the Premises or to the Building (including the right, during the progress of such alterations or repairs, to store within the Premises necessary materials, tools and equipment), and (iii) to exhibit the Premises to prospective purchasers or tenants, and that no such entry shall render the Landlord liable to any claim or cause of action for loss of or damage to the property of the Tenant by reason thereof, nor in any manner affect the agreements in this Lease.

 

Section 6.3.             Tenant’s Care of Premises. Tenant shall (i) keep the Premises and fixtures therein in good order and repair, including without limitation, maintenance, repair and replacement, if necessary, or doors (exterior and interior), interior plate glass and interior window glass, and wall and floor coverings, effecting all such maintenance, repairs and replacements at its own expense, employing materials and labor of a kind and quality equal to the original installations; (ii) make repairs and replacements to the Premises or Building needed because of Tenant’s misuse or negligence, except to the extent that the repairs or replacements are covered by Landlord’s insurance or the insurance Landlord is required to carry under Section 8.1., whichever is greater; (iii) repair and replace special equipment or decorative treatments above Building Standard installed by or at Tenant’s request and that serve the Premises only, except to the extent the repairs or replacements are needed because of Landlord’s misuse or negligence, and are not covered by

 

6

 

Tenant’s insurance or the insurance Tenant is required to carry under Sections 8.2. and 8.6., whichever is greater, and (iv) not commit waste. If Tenant fails to maintain, repair or replace such equipment or other installations in or about the Premises as above provided within a reasonable time after written request from Landlord to do so, then Landlord may, but is not required to, accomplish the required work and Tenant shall pay the cost thereof to Landlord within ten (10) days of receipt of invoice for the same.

 

Section 6.4.             Refrigerators, Water Fountains, Water Coolers, Icemakers. and other Water Using Equipment. Before placing any water using equipment, including without limitation, refrigerator, water fountain, fish tank, water cooler or icemaker in the Premises, Tenant must obtain Landlord’s prior written consent, which Landlord may withhold In Landlord’s sole discretion. Further, notwithstanding any other provisions of this Lease, including without limitation, Section 8.7. of this Lease, in the event Tenant places in the Premises any such water using equipment, or if any such water using equipment is placed or installed in the Premises as a part of the original upfit of the Premises, or if any such water using equipment is present within or a part of the Premises when Tenant takes possession of the Premises or at any other time during which this Lease is in force, whether or not Landlord has consented to the same, such water using equipment including, without limitation, refrigerator, water fountain, fish tank, water cooler or icemaker, and any such water using equipment leaks for any reason and/or causes any water damage to the Building or Property, or any part thereof, including, without limitation, walls, floors, ceilings, or any coverings thereof, or any other property of Landlord or of any other tenant, then in such case, Tenant shall be responsible for and shall pay and reimburse Landlord and such other tenant for the cost of the repair or replacement of any such part of the Building or Property or other property of Landlord or such other tenant, whether covered by Landlord’s or such other tenant’s insurance or not, and the waiver of claims and subrogation in Section 8.7. shall not apply to such damage. As provided above, Landlord’s consent to the said water using equipment being in the Premises shall not release Tenant from its liability under this Section.

 

Section 6.5.             Landlord’s Repairs. Subject to Tenant’s obligations in Section 6.3. and 6.4. above, Landlord shall maintain the structural portions of the Building and the Common Areas in a condition reasonably consistent with other suburban office buildings comparable to the Building in the area in which the Building is located, including the roof, foundation, exterior walls, interior structural walls, structural components, mechanical, electrical, HVAC, and plumbing system, parking areas, and sidewalks, except as otherwise provided in this Lease.

 

Section 6.6.             Time for Repairs. Repairs or replacements required under Sections 6.3., 6.4. and 6.5. shall be made within a reasonable time (depending on the nature of the repair or replacement needed) after receiving notice of the need for a repair or replacement.

 

Section 6.7.             Surrendering the Premises. Tenant shall schedule its move date, in writing, with Landlord in advance of the Termination Date or the date the last extension term, if any, ends, whichever is later and surrender the Premises to Landlord in the same broom clean condition that the Premises were in on the Commencement Date except for: (i) ordinary wear and tear; (ii) damage by the elements, fire, and other casualty unless Tenant would be required to repair under Sections 6.3. or 6.4; (iii) condemnation; and (iv) permitted Improvements unless Landlord requires their removal under Section 6.1. On surrender, Tenant shall remove from the Premises its personal property, trade fixtures, any Improvements required to be removed under Section 6.1., and at Landlord’s request, any communications or computer wiring placed in the Premises or other parts of the Building by Tenant, and repair any damage to the Premises or Building caused by such removal. Any items not removed by Tenant as required above shall be considered abandoned. Landlord may dispose of abandoned items as Landlord chooses and bill Tenant for the cost of their removal and disposal, minus any revenues received by Landlord for their disposal.

 

ARTICLE VII

USE AND COVENANTS

 

Section 7.1.             Use and Occupancy. Tenant shall use the Premises for general office purposes only, and shall make no unlawful use of the Premises, and shall not place or affix any sign, name, legend, notice or advertisement of any kind on any part of the Building or Property without the prior written approval of Landlord, which Landlord may withhold in its sole discretion.

 

7

 

Section 7.2.             Signage. Landlord, at Landlord’s cost, shall place Tenant’s name on a line in the first floor lobby directory, and at Tenant’s entry door to the Premises in a manner prescribed by Landlord.

 

Section 7.3.             Parking. Tenant, and its employees, agents and invitees shall be required by Tenant to comply with the Parking Rules and Regulations attached hereto as Exhibit E together with all modifications thereto which Landlord may hereafter make, and to use the parking areas (the “Parking Areas”), provided by Landlord for the Building, only in a manner which is compatible with the day-to-day general use of the Building and Property by other tenants in the Building, the Landlord, the employees, agents, visitors, and invitees of the same, and others entitled to the use thereof. Landlord shall have the right to tow vehicles of Tenant and Tenant’s employees, agents, visitors and invitees that are parked in violation of the Parking Rules and Regulations. Upon Landlord’s request, Tenant will provide Landlord with the license tag numbers of all its employees and agents using the Premises or Building. Landlord reserves the right from time to time without notice to Tenant to (i) change the location or configuration of the Parking Areas, including the right to construct additional buildings and other improvements on the Parking Areas; (ii) change the number of parking spaces located within the Parking Areas; (iii) install systems to control and monitor parking in the Parking Areas, including without limitation, a parking gate and identification card system; (iv) utilize parking guards or attendants to supervise and control parking within the Parking Areas; (v) make repairs, alterations, and improvements to the Parking Areas; (vi) modify the parking rules; and (vii) enforce the parking rules by appropriate legal action, including without limitation, towing of vehicles parked in violation of the Parking Rules.

 

Section 7.4.             Building Rules and Regulations. Tenant shall obey and require its employees, agents and invitees to obey the Building Rules and Regulations attached hereto as Exhibit F and to such further rules and regulations as the Landlord may hereafter make or adopt for the Building or Property. Landlord may waive or modify any of such rules in the case of any one or more tenants, or their employees, agents, invitees and visitors, without affecting the Tenant’s obligations under this Lease, and Landlord shall not be responsible to the Tenant for the nonconformance by any other tenant, or its employees, agents, invitees or visitors to any of said rules or regulations.

 

Section 7.5.             Hazardous Substances. Tenant shall not use, store, generate or dispose of any Hazardous Substances (as defined below), or permit the same, in, on, above or below any part of the Premises. Building or Property, except only reasonable quantities of normal and customary office supplies used in compliance with applicable laws, which Tenant shall remove at the end of the term, or earlier if they pose a danger to persons or property. Tenant shall Indemnify and hold Landlord harmless from all claims, damages, fines, judgments, penalties, costs, liabilities or losses (including, without limitation, a decrease in the value of the Premises, Building, or Property, due to loss or restriction of rentable or usable space, any damages due to adverse impact on marketing of the space, and any and all sums paid for settlement of claims, attorney’s fees, consultant and expert fees) arising during or after the Term as a result of a breach of this section by Tenant or as a result of the use, storage, generation or disposal of Hazardous Substances by Tenant, or Tenant’s employees, agents or invitees in, on, above, or below any part of the Premises, Building or Property, whether permitted under this section or not. “Hazardous Substance” means any substance which is toxic, ignitable, reactive, or corrosive and which is regulated by any governmental body having jurisdiction over the same, and includes any and all materials or substances which are defined as “hazardous waste”, “extremely hazardous waste” or a “hazardous substance” pursuant to state, federal or local law. “Hazardous Substance” includes, but is not restricted to, asbestos, polychlorobiphenyls (“PCB’s”) and petroleum.

 

ARTICLE VIII

INSURANCE AND INDEMNITY

 

Section 8.1.             Landlord’s Insurance. Landlord shall keep the Building insured against damage and destruction by fire and such other perils as Landlord in Landlord’s sole discretion shall determine, in the amount of at least ninety (90%) percent of the replacement value of the Building. Landlord shall also maintain commercial general liability insurance with respect to the Common Areas, covering bodily injury, including death, and property damage in the amount of at least Two Million Dollars ($2,000,000.00) per occurrence, combined single limit, and annual aggregate limit. Landlord is not obligated to insure fixtures or other property of Tenant.

 

8

 

Section 8.2.             Tenant’s Insurance. Tenant shall keep in force, during the term of this Lease, or any renewal or extension thereof, workers compensation insurance as required by law, and commercial general liability insurance, with respect to the Premises, Building and Property, covering bodily injury, including death, and property damage, with such limits as may be reasonably requested by Landlord, but with minimum limits not less than Two Million Dollars ($2,000,000.00) per occurrence, combined single limit, and annual aggregate limit, with a contractual liability endorsement, which liability insurance shall name Landlord as an additional insured and provide that it shall not be canceled for any reason unless Landlord is given fifteen (15) days notice in writing by the insurance company. Tenant shall deposit with Landlord satisfactory evidence of the above coverages prior to occupancy of the Premises, and thereafter prior to expiration of any such coverages.

 

Section 8.3.             Insurance Criteria. Insurance policies required by this Lease shall: (i) be issued by insurance companies licensed to do business in the state of North Carolina with general policyholder’s ratings of at least A- and the financial rating of at least XI in the most current Best’s Insurance Reports available on the Commencement Date. If the Best’s ratings are changed or discontinued, the parties shall agree to an equivalent method of rating insurance companies. If the parties cannot agree they shall submit the dispute to arbitration; (ii) be primary policies - not as contributing with, or in excess of the coverage that the other party may carry; (iii) be permitted to be carried through a “blanket policy” or “umbrella” coverage; (iv) be maintained during the entire Term and any extension Terms; and (v) with regard to Tenant’s insurance only, have deductibles no greater than $1,000.00.

 

Section 8.4.             Increase in Insurance Premium. If Tenant uses the Premises in any manner which causes the premium rate for any kind of insurance maintained by Landlord on the Building or Property to be raised, Tenant shall pay on demand the amount of the increase in such premium and, at the request of Landlord, remedy the condition which caused the increase in premium.

 

Section 8.5.             Tenant’s Indemnity. The Tenant agrees to indemnify, and hold harmless, the Landlord and the agents and employees of the Landlord, from any claims or demands by or on behalf of any person, firm, corporation or other entity or party and any liability, loss, damage or expense, including reasonable attorneys’ fees, suffered or incurred by Landlord, or Landlord’s agents and employees, arising by reason of injury to any person, including death, or damage to property, occurring in, on, or about the Premises, Building or Property, occasioned in whole or in part by any act or omission on the part of the Tenant or any employee (whether or not acting within the scope of employment), agent, invitee, visitor, contractor, subcontractor, assignee or tenant of the Tenant, or by reason of nonperformance of any covenant in this Lease on the part of the Tenant, except, however, to the extent that such claims result from the acts or omissions of Landlord, or Landlord’s employees, agents, or invitees (provided, however, tenants of the Building (including Tenant), and their agents, employees, invitees, contractors, and visitors shall not be considered Landlord’s invitees for the purpose of this Section), or to the extent such claims result from the nonperformance of any covenant in this Lease on the part of Landlord. Tenant agrees to pay for all damage to any part of the Building or Property, as well as damage to tenants or occupants thereof, caused by Tenant’s misuse or neglect of said Premises, its apparatus or appurtenances. Landlord shall not be liable to Tenant for any damage by or from any act or omission of any other tenant or occupant of the Building or by any owner or occupant of adjoining or contiguous property.

 

Section 8.6.             Tenant’s Personal Property. Tenant shall insure its personal property, trade fixtures, and non-Building Standard improvements in the Premises and Building with “all risks” insurance in an amount to cover the full replacement cost of the same, and all personal property, trade fixtures and non Building Standard improvements in the Premises, including that of Tenant, and Tenant’s employees, agents, invitees and visitors, shall remain therein at Tenant’s sole risk, and Landlord shall not be liable for any damage to, or loss of such personal property, trade fixtures or non-Building Standard improvements arising from fire or the leaking of the roof, or from the bursting, leaking, or overflowing of water, sewer or steam pipes or from any other cause whatsoever, and Tenant shall indemnify and hold Landlord harmless in all such cases. Also, as provided in Section 6.4. hereinabove, Tenant shall be responsible for and shall pay for the cost of repair of any water damage to the Building or Property or any part thereof, as well as to any other property of Landlord or any other tenant, caused by the malfunction, leaking or misuse of any of Tenant’s water using

 

9

 

equipment, and Landlord shall not be responsible therefor, whether such damage is covered by Landlord’s or such other tenant’s insurance or not.

 

Section 8.7.             Waiver of Subrogation. Each party waives claims arising in any manner in its (Injured Party’s) favor and against the other party for loss or damage to Injured Party’s property located within or constituting a part or all of the Building. This waiver applies to the extent the loss or damage is covered by the Injured Party’s insurance or the insurance the Injured Party is required to carry under Article VIII, whichever is greater. The waiver also applies to each party’s directors, officers, employees, members, partners, shareholders, and agents. The waiver does not apply to claims caused by a party’s willful misconduct. Each party shall cause its property and general liability insurance to contain a standard waiver of subrogation endorsement or provisions providing for such waiver of subrogation. If despite a party’s best efforts it cannot find an insurance company meeting the criteria in Section 8.3. that will give the waiver of subrogation endorsement or provisions at reasonable commercial rates, then it shall give notice to the other party, and unless the parties otherwise agree as provided below, then both parties shall be released from their obligation to obtain the waiver and the waiver of claims provided for hereinabove. If an insurance company is found but it will give the waiver only at rates greater than reasonable commercial rates, then the parties can agree to pay for the waiver under any agreement they can negotiate. If the parties cannot in good faith negotiate an agreement, then both parties shall be released from their obligation to obtain the waiver and the waiver of claims provided for hereinabove.

 

ARTICLE IX

DAMAGES TO PREMISES

 

Section 9.1.             Definition. “Relevant Space” means: (i) the Premises as defined in Article II, excluding Tenant’s non-Building Standard fixtures; (ii) access to the Premises; and (iii) any part of the Building that provides essential services to the Premises.

 

Section 9.2.             Repair of Damage. If the Relevant Space is damaged by fire, storm, flood, earthquake or other insured casualty and can be substantially repaired and restored within one hundred eighty (180) days from the date that a permit is issued for such repair or restoration work, Landlord shall use reasonable efforts to repair and restore the Relevant Space to its previous condition, provided, however, if the Relevant Space cannot be repaired and restored within the one hundred eighty (180) day period, then either party may, within ten (10) days after determining that the repairs and restoration cannot be made within one hundred eighty (180) days, cancel the Lease by giving notice to the other party, provided further, however, Tenant shall not be able to cancel this Lease if its willful misconduct caused the damage. Notwithstanding the foregoing, Tenant shall reimburse Landlord for the cost of repairing and restoring the Building or Property or any part thereof, to the extent that any water damage is due to the malfunction, leaking or misuse of any Tenant personal property, equipment, or non-Building Standard Improvements, including, without limitation, refrigerators, fish tanks, icemakers, water fountains and water coolers.

 

Section 9.3.             Abatement. Unless the damage is caused by Tenant’s willful misconduct, the Base Rent and other rentals hereunder shall abate in proportion to that part of the Premises that is unfit for use in Tenant’s business, considering the nature and extent of interference to Tenant’s ability to conduct business in the Premises and the need for access and essential services, and shall continue until repairs and restoration to the Relevant Space are completed, provided that in the event of a full abatement of rent, the Term shall be extended automatically for a period equal to the period of such full abatement.

 

Section 9.4.             Tenant’s Property. Landlord is not obligated to repair or restore damage to Tenant’s trade fixtures, furniture, equipment or other personal property, or any Tenant improvements unless, In the case of Tenant improvements only, such Tenant improvements are considered a part of the Building and covered under Landlord’s property and casualty insurance policy.

 

Section 9.5.             Landlord’s Right to Cancel. If with regard to damage to the Relevant Space: (i) more than forty percent (40%) of the Building is damaged; (ii) any secured lender of the Landlord and Building shall not allow adequate insurance proceeds for repair and restoration; (iii) the damage is not covered by Landlord’s insurance; or (iv) the Lease is in the last twelve (12) months of the Term; then Landlord may cancel this Lease by giving notice to Tenant within thirty (30) days after Landlord knows of the event which

 

10

 

gives Landlord the right to cancel, which notice shall specify the cancellation date, which shall be at least thirty (30) but not more than sixty (60) days after the date notice is given.

 

Section 9.6.             Cancellation. If either party cancels this Lease as permitted by this Article, Base Rent, and any other rentals hereunder shall be payable up to the cancellation date and account for any abatement.

 

ARTICLE X

EMINENT DOMAIN

 

Section 10.1.      Right to Terminate. If any part of the Premises is taken by right of eminent domain or private purchase in lieu thereof, then either party hereto shall have the right to terminate this Lease effective on the date physical possession is taken by the condemning authority or private purchaser, by written notice to the other party prior to or within ten (10) days after said effective date provided, however, if the Lease is not terminated, the rental specified herein shall be reduced during the unexpired Term in proportion to the area of the Premises so taken and shall be effective on the date physical possession is taken by the condemning authority or private purchaser.

 

Section 10.2.      Compensation. All compensation awarded for any taking (or the proceeds of private sale in lieu thereof) whether for the whole or a part of the Premises, shall be the property of Landlord whether such award is compensation for damages to Landlord’s or Tenant’s interest, provided Landlord shall have no interest in any award made to Tenant for loss of business, moving expenses, or for the taking of Tenant’s fixtures and other tangible personal property within the Premises, if a separate award for such items is made to Tenant.

 

ARTICLE XI

DEFAULT AND WAIVER

 

Section 11.1.      Tenant’s Default. Tenant shall be in default under this Lease if:

 

(i)                           Tenant fails to pay Monthly Base Rent or any other sum due hereunder on the applicable due date and such failure is not cured within five (5) days after Tenant’s receipt of written notice thereof from Landlord, subject to the terms of Section 11.1 (ii) below;

 

(ii)                        Tenant fails to pay Monthly Base Rent by its due date, at any time during a calendar year in which Tenant has already received two notices of its failure to pay Monthly Base Rent, by its due date;

 

(iii)                     Tenant fails to perform any other Tenant obligation within a period of thirty (30) days or the additional time, if any, that is reasonably necessary to promptly and diligently cure the failure, after Tenant receives notice from Landlord setting forth in reasonable detail the nature and extent of the failure and identifying the applicable Lease provision, provided, however, that such cure period shall not apply to emergencies or the failure to maintain the insurance required by Section 8.2;

 

(iv)                    Tenant abandons or vacates the Premises; or

 

(v)                       Tenant fails to vacate or stay any of the following within thirty (30) days after they occur:

 

A.                                    a petition in bankruptcy is filed by or against Tenant;

 

B.                                    Tenant is adjudicated as bankrupt or insolvent;

 

C.                                    a receiver, trustee, or liquidator is appointed for all or a substantial part of Tenant’s property; or

 

D.                                    Tenant makes an assignment for the benefit of creditors.

 

11

 

Section 11.2.      Landlord’s Remedies.

 

(i)                           Upon Tenant’s default, Landlord shall have all remedies provided in this Lease, as well as in law or equity, including, without limitation, the right to end this Lease or Tenant’s right to possession hereunder, in which case Tenant shall immediately vacate the Premises, with or without process of law, and if necessary, remove Tenant, with or without having ended the Lease, and alter locks and other security devices at the Premises, and Tenant waives any claim for damages by reason of Landlord’s reentry, repossession, or alteration of locks or other security devices and for damages by reason of any legal process.

 

(ii)                        Landlord’s exercise of any of its remedies or its receipt of Tenant’s keys shall not be considered an acceptance of surrender or a surrender of the Premises by Tenant, unless such surrender is agreed to in writing by Landlord.

 

(iii)                     If Landlord ends this Lease or Tenant’s right to possess the Premises hereunder, Tenant shall be liable to Landlord for Monthly Base Rent, and any other indebtedness of Tenant under the Lease, accrued to the date the Lease or Tenant’s right to possession ends and thereafter scheduled during the remainder of the Term, reduced only by any sums Landlord receives by reletting the Premises during the scheduled term, provided, however, if Landlord relets the Premises during the remainder of the scheduled term, at a rental in excess of that provided for under this Lease, Tenant shall not be entitled to any such excess rental, and Tenant waives any claim thereto.

 

(iv)                    Tenant shall also be liable for that part of the following sums paid by Landlord and attributable to that part of the term ended due to Tenant’s default:

 

A.                          reasonable broker’s fees incurred by Landlord for reletting part or all of the Premises prorated for the part of the reletting term ending concurrently with the scheduled term of this Lease;

 

B.                          the cost of removing and storing Tenant’s property;

 

C.                          the cost of repairs, alterations, and remodeling necessary to put the Premises In a condition reasonably acceptable to a new tenant; and

 

D.                          other necessary and reasonable expenses incurred by Landlord in enforcing its remedies.

 

(v)                       Landlord may sue and take any other action provided by law to collect the amounts due hereunder at any time, and from time to time without waiving its rights to sue for and collect further amounts due from Tenant hereunder.

 

Section 11.3.      Partial Payment. In the event Landlord brings a summary ejectment or other legal proceeding against Tenant based on Tenant’s default hereunder, Landlord may accept less than full payment of any monetary obligations then owing by Tenant to Landlord during the pendency of such proceeding without waiving its rights to prosecute its claim to completion, and Tenant acknowledges and agrees that Landlord may continue its proceeding notwithstanding such partial payment by Tenant, and Tenant waives any legal or equitable defenses to Landlord’s continued prosecution of its claim, except only if Landlord agrees in writing to suspend the prosecution of its claim for a time certain, in which case if Tenant fails to pay its monetary obligations in full within such time certain, Landlord may thereupon continue the prosecution of its claim. Further, if Landlord terminates this Lease or Tenant’s right to possession hereunder based on Tenant’s default hereunder, Landlord may accept full payment or a portion of Tenant’s monetary obligations hereunder without waiving its right to obtain possession of the Premises in summary ejectment or other legal proceeding, both parties acknowledging that the monetary obligations of Tenant are due to Landlord, notwithstanding Landlord’s taking possession of the Premises, for the period up to the date Landlord obtains possession of the Premises and thereafter, subject, however, to Landlord’s obligation to mitigate its damages by using reasonable efforts to relet the Premises subsequent to taking possession of the Premises.

 

Section 11.4.      Waiver. The waiver of the breach of any agreement herein by either party in any one instance shall not be deemed to be a waiver of such agreement or any subsequent breach of the same or

 

12

 

any other agreement herein contained, and the acceptance of rent hereunder by Landlord subsequent to the breach of this Lease by Tenant shall not be deemed to be a waiver of such breach, other than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord’s knowledge of such breach at the time of acceptance of such rent.

 

Section 11.5.      Landlord’s Default. Landlord shall not be in default for failure to perform any of its Lease obligations until after a period of thirty (30) days or the additional time, if any, that is reasonably necessary to promptly and diligently cure the failure after receiving notice from Tenant, in writing and giving in reasonable detail the nature and extent of the failure and identifying the Lease provision(s) containing the obligation(s).

 

Section 11.6.      Survival. The remedies provided in this Article XI and any other provisions of this Lease which by their nature would require the survival of the ending of this Lease, shall survive the ending of this Lease.

 

ARTICLE XII

ASSIGNMENT AND SUBLETTING

 

Section 12.1.      Consent Required. Tenant shall not transfer, mortgage, grant a security interest in, encumber, or assign this Lease, or any interest therein, or sublease all or part of the Premises, without Landlord’s advance written consent, which in the case of an assignment or sublease, shall not be unreasonably withheld or delayed, provided, however, Landlord may withhold its consent to the granting of a security interest in, or mortgaging of, Tenant’s leasehold estate, or any interest therein, in Landlord’s sole discretion. Assignments requiring Landlord’s consent shall include, and be deemed to mean, without limitation, assignments by operation of law, an imposition (whether or not consensual) of a lien, mortgage, or encumbrance upon Tenant’s interest in this Lease (the consent to which Landlord may withhold in its sole discretion as provided above), an arrangement (including, without limitation, management agreements, concessions and licenses) that allow the use and occupancy of all or part of the Premises by anyone other than Tenant, a transfer of voting control of Tenant (if Tenant is a corporation) and a transfer of more than fifty percent (50%) of the interest in the capital of Tenant if Tenant is a partnership or limited liability company. On sublease and assignment, Tenant will be responsible for any and all costs that Landlord incurs on behalf of Tenant in its review and/or approval of such sublease or assignment, including, but not limited to, attorney’s fees.

 

Section 12.2.      Reasonableness. The Landlord’s consent, with regard to subleases and assignments, shall not be considered unreasonably withheld if: (i) the proposed subtenant’s or assignee’s financial responsibility does not meet the same criteria Landlord uses to select comparable Building tenants; (ii) the proposed subtenant’s or assignee’s business is not suitable for the Building considering the business of the other tenants and the Building’s prestige; (iii) the proposed use is inconsistent with the use permitted by Section 7.1; (iv) the proposed use violates an exclusive use granted to a prior tenant; or (v) any other reason exists which Landlord, acting reasonably, believes is sufficient to justify its withholding of consent.

 

Section 12.3.      Procedure. With regard to a proposed sublease or assignment, Tenant shall provide Landlord in writing: (i) the name and address of the proposed subtenant or assignee; (ii) the nature of the proposed subtenant’s or assignee’s business it will operate in the Premises; (iii) the terms of the proposed sublease or assignment; and (iv) reasonable financial information so that Landlord can evaluate the proposed subtenant or assignee under this article, and Landlord shall, with regard to a sublease or assignment only, within thirty (30) days after receiving the information required, give notice to Tenant to permit or deny the proposed sublease or assignment.

 

Section 12.4.      Conditions. Subleases and Assignments by Tenant are also subject to: (i) the terms of this Lease; (ii) the Term shall not extend beyond the Term; (iii) Tenant and any guarantor of this Lease shall not be released and shall remain liable for all Lease obligations; (iv) consent to one sublease or assignment does not waive the consent requirement for future assignments or subleases; and (v) one hundred percent (100%) of the consideration (Excess Consideration) received by Tenant from an assignment or sublease that exceeds the amount Tenant must pay Landlord, which amount is to be prorated where a part of the Premises is subleased or assigned, shall also be paid to Landlord, within ten (10) days of receipt of same, with a detailed statement showing the total consideration paid to Tenant by the subtenant or assignee.

 

13

 

Landlord shall have the right to audit Tenant’s books and records to verify the accuracy of the detailed statement.

 

Section 12.5.      Leasehold Mortgage or Security Interest. If Landlord consents to Tenant’s granting a security interest in, or mortgaging, Tenant’s leasehold estate, which consent Landlord may withhold in its sole discretion, Tenant shall indemnify Landlord and hold Landlord harmless from any loss, cost or expense, including reasonable attorney’s fees, incurred by Landlord with respect thereto, as a result of such security interest or mortgage, and such consent shall not be considered a waiver of the requirement to obtain Landlord’s consent with regard to any future security interest or mortgage, of the Tenant’s leasehold estate.

 

Section 12.6.      Remedy. If Tenant believes that Landlord has unreasonably withheld its consent under this Article, Tenant’s sole remedy will be to seek a declaratory judgment that Landlord has unreasonably withheld its consent or an order of specific performance or mandatory injunction of Landlord’s agreement to give its consent, and Tenant shall not have any right to recover damages or to terminate this Lease.

 

ARTICLE XIII

SUBORDINATION

 

Section 13.1.      Subordination. This Lease, and Tenant’s rights hereunder, shall at all times be subordinate to all mortgages and deeds of trust now existing or hereafter placed on the Building or Property, provided, however, Tenant will not be disturbed in the use or enjoyment of the Premises so long as it is not in default hereunder, and this Lease shall remain in full force and effect, notwithstanding any default or foreclosure under any such mortgage or deed of trust, and Tenant will attorn to the mortgagee, trustee or beneficiary of such mortgage or deed of trust, and the successor or assign of any of them, and to the purchaser or assignee under any foreclosure, provided further, however, any secured lender of Landlord holding a mortgage or deed of trust on, or security interest in, the Building or Property, may in its sole discretion, subordinate its interest to Tenant’s interest in this Lease by written notice of such subordination to Tenant.

 

Section 13.2.      Execution of Instruments. Tenant will, upon request by Landlord, execute and deliver to Landlord, or to any other person designated by Landlord, any instrument or instruments, including, but not limited to, such subordination, attornment and nondisturbance agreements, or estoppel letters, as may be required by any mortgagee in a mortgage or beneficiary in any deed of trust, on the Building or Property, or other secured lender, to give effect to the provisions of Section 13.1. above or requested by Landlord in connection with a sale or mortgage of the Building or Property and shall execute and deliver to Landlord such amendments to this Lease as may be required by such proposed mortgagee, beneficiary, or other secured lender, on the Building or Property, provided, however, that such amendments do not materially increase the obligations and duties of Tenant hereunder. Tenant will also require any subtenant of Tenant to execute any of the foregoing instruments if requested to do so by Landlord or any lender of Landlord.

 

ARTICLE XIV

GENERAL PROVISIONS

 

Section 14.1.      Transfer of Landlord’s Interest. The term “Landlord” as used in this Lease means only the owner, or the mortgagee in possession, for the time being of the Building or Property, or the owner of any lease of the Building or Property, so that in the event of any sale of said Building or Property, or of said lease, or in the event of a lease of said Building or Property, the transferring landlord shall be entirely freed and relieved of all obligations of Landlord hereunder, and it shall be deemed without further agreement between the parties or their successors in interest or between the parties and the transferee, purchaser or lessee at any such sale or lease of the Building or Property, that the transferee, purchaser or lessee of the Building or Property has assumed all obligations of Landlord hereunder, and Landlord’s assignment, sale or transfer of the Lease or of any of its rights herein shall in no manner affect Tenant’s obligations hereunder, and Tenant shall thereafter attorn to such assignee, transferee, purchaser or lessee, as Landlord, provided Tenant first has written notice of such transfer, assignment, purchase or lease of Landlord’s interest. Any

 

14

 

security given by Tenant to Landlord to secure performance of Tenant’s obligations hereunder may be transferred by Landlord to the successor in interest to Landlord; and, upon acknowledgment by such successor of receipt of such security and its express assumption of the obligation to account to Tenant for such security in accordance with the terms of this Lease, Landlord shall thereby be discharged of any further obligation relating thereto.

 

Section 14.2.      Landlord’s Limited Liability. Notwithstanding any other provision in this Lease to the contrary, the liability of Landlord shall be limited to the equity of Landlord In the Property In the event of a failure by Landlord to perform any of the terms, covenants, conditions or agreements of this Lease to be performed by Landlord, and Tenant agrees that any judgment it may obtain against Landlord, or Landlord’s general partners, if any, as a result of the breach of this Lease as aforesaid, shall be enforceable solely against the Landlord’s equity interest in the Property.

 

Section 14.3.      Landlord Not Partner. It is agreed that Landlord is not a partner, joint venturer or associate of Tenant in the conduct of Tenant’s business, that the provisions of this Lease with respect to the payment by Tenant of rent are not sharing of profits, that the relationship between the parties is and shall remain at all times that of landlord and tenant, and that no provision of this Lease shall be construed to impose upon the parties hereto any obligation or restriction not expressly set forth herein.

 

Section 14.4.      Recording. The recording of this Lease is prohibited, provided, however, at the request of either party, the parties shall promptly execute and record, at the cost of the requesting party, a short form memorandum describing the Premises and stating the term of this Lease, its Commencement and Termination Dates, and any other information the parties agree to include.

 

Section 14.5.      Additional Instruments. The parties agree to execute and deliver any instruments in writing necessary to carry out any agreement, term, condition or assurance in this Lease whenever occasion shall arise and reasonable request for any such instrument shall be made.

 

Section 14.6.      Lease Not An Offer. Landlord has given this Lease to Tenant for review, which does not constitute an offer to lease and shall not be binding unless signed by both parties.

 

Section 14.7.      Pronouns. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person(s), firm(s), or corporation(s) may require.

 

Section 14.8.      Counterparts. This Lease may be executed in counterparts, all of which taken together, shall be deemed one original.

 

Section 14.9.      Entire Agreement, Amendment and Modification. This Lease embodies the full agreement of the parties and supersedes all prior understandings concerning the subject matter of this Lease, and any amendment or modification must be in writing and signed by both parties.

 

Section 14.10.        Controlling Law. This Lease shall be construed and enforced in accordance with the law of the State of North Carolina.

 

Section 14.11.        Binding Effect. This Lease shall be binding upon and inure to the benefit of the parties hereto, their assigns, administrators, successors, estates, heirs and legatees respectively, except as herein provided to the contrary.

 

Section 14.12.        Partial Invalidity. In the event that any provision of this lease shall be determined to be invalid or unenforceable, the remaining provisions of this Lease which can be separated from the invalid, unenforceable provision shall continue in full force and effect.

 

Section 14.13.        Captions. The section titles, numbers and captions contained in this Lease are only for convenience and reference, and in no way define, limit, extend, modify or describe the scope or intent of this Lease nor any provision herein.

 

15

 

Section 14.14.        Relocation. In the event the Premises contains less than fifty percent (50%) of the total area of the floor on which it is located, Landlord, upon thirty (30) days prior written notice to Tenant, shall have the right to relocate the Tenant to another reasonably comparable location within the Building, in which case, Landlord will pay all actual costs of the relocation.

 

Section 14.15.         Time of Essence. Except as otherwise provided in this Lease, time is of the essence in the performance of the provisions of this Lease.

 

Section 14.16.        Warranties. Tenant warrants that it has had no dealing with any broker or agent in connection with the negotiation or execution of this Lease, and Tenant agrees to indemnify and hold Landlord harmless from and against any claims by any broker, agent or other person claiming a commission or other form of compensation by virtue of having dealt with Tenant with regard to this leasing transaction.

 

Section 14.17.        Authority of Parties. Each party warrants that it is authorized to enter into this Lease, that the person signing on its behalf is duly authorized to execute the Lease, and that no other signatures are necessary, and each person signing this Lease certifies that he or she is authorized by the party on whose behalf such person is signing and that no further authorization or signatures are required for such person’s signature to bind such party hereunder.

 

Section 14.18.        Consent Not Unreasonably Withheld. When either party hereto is required to give its consent to the other party prior to doing or refraining from doing some act hereunder, it is agreed that the party whose consent is required shall not unreasonably withhold or delay such consent, unless it is specifically stated that the party whose consent is required may withhold such consent in its sole discretion, or words of similar import.

 

Section 14.19.        Estoppel Certificates. Tenant shall execute, acknowledge and deliver to Landlord, from time to time during the term of this Lease within ten (10) days after Landlord provides Tenant with written notice to do so. an estoppel certificate certifying in writing that the Lease is in full force and effect, unmodified, or modified solely as set forth in such estoppel certificate including confirmation of the Commencement Date and the Termination Date, the date or dates to which rent has been paid and that Landlord has, as of the date of such estoppel certificate, fully and completely performed and complied with each of the terms and conditions of this Lease, without exception or except as only set forth in such estoppel certificate. Any such estoppel certificate may be conclusively relied upon by any prospective purchaser or encumbrancer of the Building or Property, and the failure of Tenant to so deliver such estoppel certificate in such period of time shall mean that the Tenant represents that the Lease is in full force and effect, without modification, that rent has not been prepaid under the Lease except as expressly required in the Lease and that Landlord has, as of the date on which Tenant failed to deliver such estoppel certificate, fully and completely performed and complied with each of these terms and conditions, without exception.

 

Section 14.20.        Rights Reserved by Landlord. Notwithstanding any other provision of this Lease, Landlord shall at all times have the right to (a) grant to any tenant an exclusive use to conduct a particular type of business in the Building, (b) change the name or address of the Building, (c) install and maintain signs on the exterior or interior of the Building, (d) retain pass keys to all locks within or into the Premises, and (e) make any alterations, additions or improvements to the Building or Property as Landlord may deem in its sole discretion necessary for the safety, protection, preservation, or improvement of the Building or Property, and to change the arrangement and/or location of entrances, passageways, doors, corridors, elevators, stairs, toilets and public parts of the Building and Property.

 

Section 14.21.        Financial Information. Tenant acknowledges that the financial capability of Tenant to perform its obligations hereunder is material to Landlord and that Landlord would not enter into this Lease but for its belief, based on its review of Tenant’s financial statements, that Tenant is capable of performing such financial obligations. Tenant hereby represents, warrants and certifies to Landlord that its financial statements, if previously furnished to Landlord, were at the time given true and correct in all material respects and that there have been no material subsequent changes thereto as of the date of this Lease. At any time during the Lease term, Tenant shall provide Landlord, upon ten (10) days prior written notice from Landlord, with a current financial statement and financial statements of the two (2) years prior to the current financial statement year, which statements shall be prepared in accordance with generally accepted

 

16

 

accounting principles and, if such is the normal practice of Tenant, shall be adjusted by an independent certified public accountant.

 

REMAINDER OF PAGE LEFT BLANK

 

SIGNATURES ON FOLLOWING PAGE

 

17

 

IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed under seal the date and year first above written.

 

	
WITNESS:
    	
 
    	
LANDLORD:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
MIDTOWN AREA PARTNERS, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
[ILLEGIBLE]
    	
 
    	
By:
    	
[ILLEGIBLE]
    	
(SEAL)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[ILLEGIBLE]
    
	
 
    	
 
    	
Print Name and Title
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PHENOGEN SCIENCES, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
[ILLEGIBLE]
    	
 
    	
By:
    	
/s/ Kevin Fischer
    	
(SEAL)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Kevin Fischer (CFO/Company Secretary)
    

 

18

 

EXHIBIT A

REAL PROPERTY DESCRIPTION

 

LYING AND BEING in Charlotte, Mecklenburg County, North Carolina, and being more particularly described as follows:

 

BEING ALL OF Lot 1 as shown on that certain Recombination Plat entitled “Baxter at Kings-Map 1” recorded in Map Book 55 at Page 272 in the Mecklenburg County Public Registry.

 

TOGETHER WITH AND SUBJECT TO those certain access and parking easements set forth in that certain Easement and Restriction Agreement between Midtown Area Partners, LLC and Midtown Area Partners II, LLC recorded in Book 28826 at Page 499 in the Mecklenburg County Public Registry.

 

19

 

EXHIBIT B

FLOOR PLAN

 

 

20

 

EXHIBIT C

UPFITTING

 

The Landlord shall provide the following improvements to the Premises:

 

·                  Shampoo clean the existing carpet.

·                  Install bi-fold doors to the existing closet.

 

21

 

EXHIBIT D

ILLUSTRATION OF ANNUAL AND MONTHLY BASE RENT INCREASE

 

For purpose of Illustration only, assume the following:

 

(1)       Initial Annual Base Rent - $20,000.00 ($20.00 per rentable square foot) ($20.00 x 1.000 = $20,000.00)

 

(2)                                 Initial Monthly Base Rent - $1,666.67

 

(3)       Annual Increase - 3%

 

(4)     Rentable Area of Premises -1,000 square feet

 

(5)

First Increase:                                                      $1,666.67 x 1.03 = $1,716.67 (New Monthly Base Rent)

 

Second Increase:                                     $1,716.67 x 1.03 = $1,768.17 (New Monthly Base Rent)

 

Each successive increase shall be calculated in a like manner.

 

The foregoing is for illustrative purposes only and shall not operate to change the terms of the Lease.

 

22

 

EXHIBIT E

PARKING RULES AND REGULATIONS

 

Parking: The following rules and regulations apply to the use of the Parking Areas (the Parking Areas”):

 

(a)                       Tenants may park their motor vehicles only in those portions of the Parking Areas designated by Landlord from time to time as unreserved tenant parking areas (the “Unreserved Parking Areas”) and may not park in any other parking spaces except as specifically provided herein.

 

(b)                       Only visitors of tenants or others entitled to the use of the Parking Areas may park their motor vehicles in those portions of the Parking Areas designated by Landlord from time to time as visitor parking areas (the “visitor Parking Areas”).

 

(c)                        Only persons entitled to use the Parking Areas who are physically handicapped may park their motor vehicles in those portions of the Parking Areas designated by Landlord from time to time as handicapped parking areas (the “Handicapped Parking Areas”).

 

(d)                       Parking in Unreserved Parking Areas, Visitor Parking Areas and Handicapped Parking Areas shall be on a nonexclusive, “as-available” basis.

 

(e)                        No representation or warranty is made by Landlord as to the number or location of parking spaces comprising the Parking Areas, or any portion thereof.

 

(f)                         Motor vehicles may only be parked in striped parking spaces located within the Parking Areas and no motor vehicles may be parked in any other location within the Property.

 

(g)                        Not more than one motor vehicle may be parked on each parking space and no motor vehicle may be parked on more than one parking space within the Parking Areas.

 

(h)                       Parking Areas shall not be used for any purpose other than the parking of permitted motor vehicles thereon and no commercial activity shall be conducted from the Parking Areas.

 

(i)                           No repairs (other than emergency repairs) or washing of motor vehicles are permitted in the Parking Areas.

 

(j)                          All persons using the Parking Areas assume full responsibility for, and Landlord shall have no liability for, (a) loss, damage, injury or death caused to the person or property of anyone using the Parking Areas; and (b) protecting their motor vehicles against theft, vandalism and damage.

 

(k)                       A violation of these Rules shall entitle Landlord to revoke the parking privileges of the offending party, in addition to other rights and remedies available to Landlord.

 

(l)                           The term “tenant” when used herein shall be deemed to also include such tenant’s agents and employees.

 

23

 

EXHIBIT F

BUILDING RULES AND REGULATIONS

 

1.                            Sidewalks, doorways, vestibules, halls, stairways and other similar areas shall not be obstructed by tenants or used by any tenant for any purpose other than ingress and egress to and from the leased premises and for going from one to another part of the Building.

 

2.                            Corridor doors, when not in use, shall be kept closed.

 

3.                            Plumbing fixtures and appliances shall be used only for the purposes for which designed, and no sweepings, rubbish, rags or other unsuitable material shall be thrown or placed therein.

 

4.                            Landlord shall provide all locks for doors into each tenant’s leased area, and no tenant shall place any additional lock or locks on any door in its leased area without Landlord’s prior written consent. Two keys for each lock on the doors in each tenant’s leased area shall be furnished by Landlord. Additional keys shall be made available to tenants at each tenant’s cost. Tenants shall not have any duplicate keys made except by Landlord.

 

5.                            Electric current shall not be used for cooking (except for normal and customary microwave and stove approved in advance by Landlord which comply with applicable law and conform to customary fire insurance underwriting guidelines), or heating or any other purpose not specifically provided for in the Lease without Landlord’s prior written permission.

 

6.                            Tenants shall refer all contractors, contractors’ representatives and installation technicians who are to perform any work within the Building to Landlord for Landlord’s supervision, approval and control before the performance of any such work. This provision shall apply to all work performed in the Building including, but not limited to, installations of telephones, medical type equipment, telegraph equipment, electrical devices and attachments, and any and all installations of every nature affecting floors, walls, woodwork, trim, windows, ceilings, equipment, and any other physical portion of the Building.

 

7.                            Movement in or out of the Building of furniture or office equipment, or dispatch or receipt by tenants of any heavy equipment, bulky material or merchandise shall be performed only in such manner, during such hours and using such elevators and passageways as the Landlord may designate and approve in advance and, if reasonable, necessary or appropriate in view of all the circumstances, and then only upon having been scheduled in advance with the Landlord or Landlord’s manager.

 

8.                            The location, weight and supporting devices for any medical type equipment, safes and other heavy equipment shall in all cases be approved by Landlord prior to initial installation or relocation.

 

9.                            No portion of any tenant’s leased area shall be used for cooking (except for normal and customary microwave and stove approved in advance by Landlord which comply with applicable law and conform to customary fire insurance underwriting guidelines), sleeping or lodging quarters, no birds, animals or pets of any type, with the exception of guide dogs accompanying visually handicapped persons, shall be brought into or kept in, on or about any tenant’s leased area or the Building. Tenant shall not bring bicycles or other vehicles within the Premises or Building; engage in or permit games of chance or any form of gambling or immoral conduct in or about the Premises or Building; mark or defile any part of the Building or Property; fasten any article, drill holes, drive nails or screws into walls, floors, doors or partitions, or otherwise mar or deface any of them by paint, paper or otherwise except as specifically allowed In the Lease; or tamper or interfere In any way with windows, doors, locks, air conditioning controls, heating, lighting, electric or plumbing fixtures. All moving in or out of leased premises must be done after business hours, as defined in the Lease. Landlord is not responsible for damage to furniture caused by janitor or any other cleaning personnel, nor for any loss of property from the Premises however occurring. The attaching of wires to the outside of the Building is absolutely prohibited, and no wires shall be run or installed in any part of the Building without the Landlord’s permission and at Landlord’s direction. No smoking

 

24

 

of tobacco or similar products shall be allowed in any portion of the Building or Premises. Smoking shall be allowed only in designated areas outside of the Building.

 

10.                     Tenants shall not make or permit any loud or annoying noises in or about the Building or otherwise interfere in any way with other tenants or persons having business with them.

 

11.                     Each tenant shall endeavor to keep its leased area neat and clean. Nothing shall be swept or thrown into the corridors, halls, elevator shafts or stairways, nor shall tenants place any trash receptacles in these areas.

 

12.                     Tenants shall not employ any person for the purpose of cleaning other than the authorized cleaning and maintenance personnel for the Building unless otherwise approved in writing by Landlord.

 

13.                     No tenant shall allow concessionaires, vending machine operators or other distributors of cold drinks, coffee, food or other concessions, water, towels or newspapers or other similar products, within the Premises or Building without the prior consent of Landlord which Landlord may withhold in its sole discretion.

 

14.                     Landlord is not responsible for any loss of money, jewelry or other personal property from leased premises or Common Areas or for any damage to any property therein from any cause whatsoever whether such loss or damage occurs when an area is locked against entry or not.

 

15.                     Tenants shall exercise reasonable precautions in protection of their personal property from loss or damage by keeping doors to unattended areas locked. Tenants shall also report any thefts or loses to the Building Manager and security personnel as soon as reasonably possible after discovery and shall also notify the Building Manager and security personnel of the presence of any persons whose conduct is suspicious or causes a disturbance.

 

16.                     Tenants, their employees, patients, guests and invitees may be called upon to show suitable identification and sign a Building register when entering or leaving the Building at times other than normal Building business hours, and all tenants shall cooperate fully with Building personnel in complying with such requirements.

 

17.                     Tenants shall not solicit from or circulate advertising material among other tenants of the Building, or allow its employees, agents or invitees to do so, except through the regular use of the U.S. Postal Service. Tenants shall notify the Building Manager or the Building personnel promptly if it comes to their attention that any unauthorized persons are soliciting from or causing annoyance to tenants, their employees, guests or invitees.

 

18.                     Landlord reserves the right to deny entrance to the Building or remove any person or persons from the Building in any case where the conduct of such person or persons involves a hazard or nuisance to any tenant of the Building or to the public or in the event of fire or other emergency, riot, civil commotion or similar disturbance involving risk to the Building, tenants or the general public. Solicitation or similar conduct shall not be allowed in the Building or Property without Landlord’s prior approval, which approval Landlord may withhold in its sole discretion. Landlord shall have no liability for denying access to the Building or Property by any person or persons engaging in such conduct.

 

19.                     Landlord reserves the right to rescind or modify any of these rules and regulations and to make such other and further rules and regulations as in its judgment shall from time to time be needful for the safety, protection, care and cleanliness of the Building, the operation thereof, the preservation of good order therein and the protection and comfort of the tenants and their agents, employees and invitees, which rules and regulations, when made and written notice thereof is given to a tenant, shall be binding upon it in like manner as if originally herein prescribed.

 

25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}]]