FIRST AMENDMENT TO LEASE
THIS FIRST AMENDMENT TO LEASE (this“Amendment”) is made as of this 25th day of February, 2004, by and between HILL MANAGEMENT SERVICES, INC., a Maryland corporation, agent for the owner (“Landlord”), and SYMPHONY HEALTH SERVICES, LLC, a Delaware limited liability company (“Tenant”).
Recitals
A. Landlord and Tenant entered into a Lease dated October 26, 2003 (the“Lease”), for Suites LL4, 600 and 700 consisting of approximately 31,086 square feet (the“Initial Leased Premises”), which has an address of 11350 McCormick Road, Hunt Valley, Maryland (the“Building”), in Executive Plaza IV in Baltimore County, Maryland (the“Property”).
B. Landlord and Tenant now desire to amend certain provisions of the Lease and to provide Tenant with additional office space in the Property.
Agreements
NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows:
Section 1.Amendment of Lease. The provisions of the Lease are amended as follows:
1.1.leased Premises. Commencing April 1, 2004, the Leased Premises shall consist of approximately 42,448 square feet, and shall be comprised of the Initial Leased Premises and an additional 11,362 square feet known as Suite 500 of Executive Plaza II (the“Additional Leased Premises”). The Additional Leased Premises are more particularly depicted as outlined in red onExhibit A, attached hereto and made a part hereof
1.2.Term. As a result of Tenant’s occupancy of the Initial Leased Premises, the Commencement Date and the Expiration Date, as stated in Section 1.A. of the Lease, shall be amended to delete February 1, 2004 and June 30, 2009 and substitute in lieu thereof January 1, 2004 and May 31, 2009, respectively. Commencing April 1, 2004, the Lease shall be extended for one (1) year and the Expiration Date of the Lease shall be amended to delete May 31, 2009 and substitute in lieu thereof May 31, 2010.
1.3.Rent. Commencing on April 1, 2004, Tenant shall pay to Landlord annual basic rent of Seven Hundred Sixty-Four Thousand Sixty-Four and 00/100 ($764,064.00), payable in equal monthly installments of Sixty-Three Thousand Six Hundred Seventy-Two and 00/100 ($63,672.00). Commencing January 1, 2005, and for each succeeding lease year thereafter, the annual basic rent for the initial Leased Premises shall be increased to an amount equal to 102.5% of the annual basic rent for the Initial Leased Premises in the immediately preceding lease year as detailed in Section 2.C. of the Lease. The annual basic rent for the Additional Leased Premises shall be increased to an amount equal to 103% of the annual basic rent for the Additional Leased Premises in the immediately preceding lease year. Therefore, the blended annual basic rent schedule shall be as follows:
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| Year | | Annual Rent | | Monthly Rent |
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| 01/01/05 - 12/31/05 | | $784,188.18 | | $65,349.02 |
| 01/01/06 - 12/31/06 | | $804,846.14 | | $67,070.51 |
| 01/01/07 - 12/31/07 | | $826,052.15 | | $68,837.68 |
| 01/01/08 - 12/31/08 | | $847,820.86 | | $70,651.74 |
| 01/01/09 - 12/31/09 | | $870,167,30 | | $72,513.94 |
| 01/01/10 - 05/31/10 (5 months) | | $372,127.90 | | $74,425.58 |
1.4.Operating Costs. Commencing April 1, 2004, Tenant’s Proportionate Share of the increase in Operating Costs as detailed in Section 2.E. of the Lease shall be amended to delete 24.90% and substitute in lieu thereof 34%. Tenant’s Proportionate Share shall be based upon the relationship between the square footage of the Leased Premises (approximately
1
42,448 square feet) and the total square footage in the Property (approximately 124, 838 square feet).
1.5.Taxes. Commencing April 1, 2004, Tenant shall pay to Landlord as Additional Rent, Tenant’s Proportionate share (24.90%) of the increase in Taxes as detailed in Sections 4.A. and 4.B. of the Lease.
1.6.Tenant Improvements. Landlord shall provide improvements and modifications to the Leased Premises in accordance with the floor plans known asExhibit B attached hereto and made a part hereof (“Landlord’s Work”). Landlord’s construction cost allowance for Landlord’s work and Tenant’s cabling installation for the Additional Leased Premises shall not exceed Twenty-One and 45/100 Dollars ($21.45) per square foot (the“Allowance”). Any and all improvements provided by Landlord and the cabling provided by Tenant whose sum is in excess of the Allowance shall be provided at Tenant’s expense.
Upon commencement of Tenant’s renewal option, as stated in Section 1.B. of the Lease, Landlord, at its expense, shall repaint the Leased Premises. All furniture, fixtures and equipment in the Leased Premises shall be moved at Tenant’s sole expense in order for Landlord to complete said painting.
1.7.Rental Abatement. in addition to the rent abatement described in Section 27, of the Lease, no monthly installments of annual basic rent for the Additional Leased Premises shall be due for the months of April, May, June and July of the year 2004. The total amount of said abatement shall be Sixty-Eight Thousand One Hundred Seventy-Two and 00/100 Dollars ($68,172.00).
Due to a scrivener’s error, the total amount of Rent Abatement described in Section 27, of the Lease shall be amended to delete Two Hundred Thirty Thousand One Hundred Forty-Five and 00/100 Dollars ($230,145.00) and substitute in lieu thereof Two Hundred Thirty-Three Thousand One Hundred Forty-Five and 00/100 Dollars ($233,145.00).
1.8.Underground Parking. Commencing April 1, 2004, Landlord’s allocation to Tenant for the lower level, indoor parking area shall be amended to delete five (5) parking spaces and substitute in lieu thereof eight (8) parking spaces.
1.9.Signage. Tenant shall be permitted, at Its sole expense, to have Tenant’s name and/or logo applied on the interior glass of the building’s main entry. Tenant shall submit to Landlord a rendering of said signage for Landlord’s approval.
Section 2.Titles of Sections. The section titles used in this Amendment are for convenience of reference only, and shall not constitute a part of this Amendment nor shall they affect the meaning, construction or effect of this Amendment or the Lease.
Section 3.Definitions. Unless otherwise set forth in this Amendment, all capitalized terms shall have the same meaning ascribed to them in the Lease.
Section 4.Interpretation. All other terms, covenants and conditions of the Lease shall remain unchanged and continue in full force and effect except as such terms, covenants and conditions have been amended or modified by this Amendment, and this Amendment shall, by this reference, constitute a part of the Lease.
Section 5.Representations. Tenant hereby represents and warrants to Landlord that, as of the date hereof, it (i) is the sole legal and beneficial owner of all of the right, title and interest granted to it by the provisions of the Lease, (ii) has not sold, transferred or encumbered any or all of such right, title or interest, and (iii) has the full and sufficient right at law and in equity to execute and deliver this Amendment as the owner of such right, title, and interest, without the necessity of having any other person’s consent thereto or joinder therein.
[Remainder of page intentionally blank.]
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Section 6.Successors and Assigns. This Amendment and the terms, covenants and conditions herein contained shall inure to the benefit of and be binding upon Landlord and its successors and assigns, and Tenant and its permitted successors and assigns.
IN WITNESS WHEREOF, Landlord and Tenant have caused this Amendment to be duly executed under seal on their behalf by their duly authorized representative, as of the date first above written.
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WITNESS/ATTEST: | | Landlord: | |

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| HILL MANAGEMENT SERVICES, INC. agent for the owner | |
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| By: | 
| (SEAL) |
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| | Title: | VP | |
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| | Date: | 2/25/04 | |
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WITNESS/ATTEST: | | Tenant: | |
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| | SYMPHONY HEALTH SERVICES, LLC | |
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
| | By: | 
| (SEAL) |
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| | Printed Name: Sally Welsberg | |
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| | Title: | President/CEO | |
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| | Date: | 2/11/04 | |
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3
Exhibit B



Exhibit C
Exhibit C
Items Wanted
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Manufacturer | | Description | | Model | | Requested Quantity | | Actual Quantity | | Comments | | Serial Number |
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50KVA UPS/Battery | | | | | | 1 | | 1 | | | | |
Brother | | Fax | | 8500 | | 1 | | | | Not sure of location? | | |
Brother | | Fax | | 4100 | | 2 | | 2 | | | | |
Canon | | Fax | | 7000 | | 1 | | 1 | | | | |
Dell | | Printer | | 1600N | | 18 | | 18 | | 2 will be used temporarily on 7 - Will be turned over once RehabCare vacates the 7th Floor | | |
Environmental Unit | | | | | | 1 | | 1 | | | | |
Fujitsu | | Scanner | | Fi-4340C | | 1 | | 1 | | | | |
Generator | | | | | | 1 | | 1 | | | | |
Hewlett Packard | | Color Printer | | 5 | | 1 | | 1 | | | | |
Hewlett Packard | | Printer | | 4 | | 1 | | 1 | | | | |
Hewlett Packard | | Printer | | 8000 | | 5 | | 5 | | 3 will be used temporarily on 7 - Will be turned over once RehabCare vacates the 7th Floor | | |
Hewlett Packard | | Printer | | 5si | | 5 | | 5 | | | | |
Hewlett Packard | | Printer | | 5si nx | | 1 | | 1 | | | | |
Hewlett Packard | | Printer | | 4100N | | 1 | | 1 | | | | |
Hewlett Packard | | Printer | | 4200N | | 1 | | 1 | | | | |
Hewlett Packard | | Printer | | 4300N | | 2 | | 2 | | | | |
Hewlett Packard | | Printer | | 4000TN | | 1 | | 1 | | | | |
Hewlett Packard | | Printer | | 6P | | 1 | | 1 | | | | |
Hewlett Packard | | Printer | | 1300 | | 1 | | 1 | | | | |
Hewlett Packard | | Printer | | 5 | | 1 | | 1 | | | | |
Misc. (Small) | | Fax | | | | 8 | | 8 | | | | |
Misc. (Small) | | Printer | | | | 4 | | 4 | | | | |
(ILLEGIBLE) | | (ILLEGIBLE) | | (ILLEGIBLE) | | 1 | | 1 | | (ILLEGIBLE) | | |
(ILLEGIBLE) | | (ILLEGIBLE) | | | | 2 | | 2 | | (ILLEGIBLE) | | |
Imagistics | | Copier | | ZB45 | | 2 | | 2 | | | | 4010456/4050657 |
Imagistics | | Copier | | im4511 | | 3 | | 3 | | ZB45’s | | 4010455/4050733/4050737 |
Konica Minolta | | Copier | | CF 1501 | | 1 | | 1 | | | | 3016807 |
Konica Minolta | | Copier | | Di152 | | 2 | | 2 | | | | 31701930/31706690 |
Konica Minolta | | Copier | | D1200 | | 3 | | 3 | | | | 31707961/31711157 |
Konica Minolta | | Copier | | D1251 | | 2 | | 2 | | | | 31761675/31738084 |
Konica Minolta | | Copier | | D1470 | | 1 | | 1 | | | | 31702306 |
Konica Minolta | | Copier | | Di551 | | 1 | | 1 | | | | 31007001 |
Konica Minolta | | Copier | | Di5si | | 1 | | 1 | | Same as D1551 (Incorrect Model #) | | |
Konica Minolta | | Copier | | D1551 | | 1 | | 1 | | Same as D1551 | | |
Konica Minolta | | Copier | | CF1501 | | 1 | | 0 | | Located currently on the 7th Floor. There is one remaining that will be turned over as listed. | | |
(ILLEGIBLE) | | (ILLEGIBLE) | | | | 1 | | 0 | | (ILLEGIBLE) | | |
Pitney Bowes | | Folder/Inserter | | DI 400 | | 2 | | 2 | | One is a DI400 the other is DI350 | | |
Pitney Bowes | | (ILLEGIBLE) | | | | (ILLEGIBLE) | | 0 | | Leased | | (ILLEGIBLE) |
Pitney Bowes | | (ILLEGIBLE) | | (ILLEGIBLE) | | (ILLEGIBLE) | | 0 | | Leased | | (ILLEGIBLE) |
Wilson Jones | | Shredder | | 2000 | | 1 | | 1 | | | | |
1
Exhibit C
Items Wanted
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Location | | Item | | Requested Quantity | | Actual Quantity | | Detailed Location | | Notes |
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6th Floor | | Cubicle Chair | | 60 | | 60 | | | | |
6th Floor | | Cubicle Overhead Storage Cabinet | | 120 | | 120 | | | | |
6th Floor | | Cubicle Mobile Ped | | 60 | | 60 | | | | |
6th Floor | | Cubicle Desk | | 60 | | 60 | | | | |
6th Floor | | Office Executive Desk | | 11 | | 11 | | | | |
6th Floor | | Office Desk Chair | | 11 | | 11 | | | | |
6th Floor | | Office Side Chairs | | 22 | | 22 | | | | |
6th Floor | | 2-Dr Lateral File Cab | | 19 | | 19 | | | | |
6th Floor | | 4-Dr Lateral File Cab | | 12 | | 12 | | | | |
6th Floor | | 5-Dr Lateral File Cab | | 39 | | 39 | | | | |
6th Floor | | Tables | | 10 | | 10 | | | | |
6th Floor | | Folding Table | | 1 | | 1 | | | | |
6th Floor | | 5-Shelf Bookcase Wood | | 19 | | 19 | | | | |
6th Floor | | 4-Shelf Bookcase Wood | | 4 | | 4 | | | | |
6th Floor | | Credenza | | 6 | | 6 | | | | This is attached to the Executive Desk |
6th Floor | | Plant | | 1 | | 0 | | | | Employees |
6th Floor | | Plant Table | | 1 | | 0 | | | | Employees |
6th Floor | | Time Clock | | 1 | | 1 | | | | |
6th Floor | | 4-Dr Fire Proof File Cabinet | | 1 | | 1 | | | | IT Holds Software |
6th Floor | | Small Round Table | | 1 | | 1 | | | | |
6th Floor | | Regular Size Round Table | | 1 | | 1 | | | | |
6th Floor Kitchen | | Microwave | | 3 | | 3 | | | | |
6th Floor Kitchen | | Toaster | | 1 | | 1 | | | | |
6th Floor Kitchen | | Soda Machine | | 1 | | 0 | | | | Leased moving to 7 |
6th Floor Kitchen | | Refrigerator | | 2 | | 1 | | | | 1 - Tan moving to 7 |
6th Floor Kitchen | | Kitchen Chairs | | 16 | | 16 | | | | |
6th Floor Kitchen | | Folding Table | | 2 | | 2 | | | | |
6th Floor Kitchen | | Snack Machine | | 1 | | 0 | | | | Leased moving to 7 |
6th Floor Kitchen | | Cookie Toaster Oven | | 1 | | 0 | | | | Mary Johnson’s |
6th Floor Kitchen | | Ice Machine | | 1 | | 1 | | | | |
6th Floor Kitchen | | 4 x 4 Lunch Tables | | 4 | | 4 | | | | |
6th Floor Kitchen | | Coffee Pot | | 1 | | 0 | | | | Leased moving to 7 |
6th Floor Board Room | | Conference Tables | | 3 | | 3 | | | | *1 Unassembled |
6th Floor Board Room | | Conference Table Chairs | | 11 | | | | | | *Will provide a different pattern - 11 Roller Chairs |
6th Floor Board Room | | Misc. Side Chairs | | 3 | | 3 | | | | |
1
Exhibit C
Items Wanted
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Location | | Item | | Requested Quantity | | Actual Quantity | | Detailed Location | | Notes |
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6th Floor Board Room | | 4-Shelf Bookcase Wood | | 1 | | 1 | | | | |
6th Floor Board Room | | Tables | | 2 | | 1 | | | | 1 was moved to 7 and can be turned over once RehabCare vacates |
6th Floor Board Room | | Mobile Ped | | 1 | | 1 | | | | |
6th Floor Reception Area | | Guest Chairs | | 5 | | 5 | | | | |
6th Floor Reception Area | | Small Telephone Table | | 1 | | 1 | | | | |
6th Floor Reception Area | | Desk Chair | | 1 | | 1 | | | | |
6th Floor Reception Area | | Floor Plant | | 1 | | 1 | | | | |
6th Floor File Room | | 6-Shelf File Units | | 19 | | 19 | | Room 604 | | |
6th Floor File Room | | Folding Table | | 2 | | 0 | | Room 604 | | 2 were moved to 7 and can be turned over once RehabCare vacates |
6th Floor File Room | | Spinning 2-sided File Units | | 23 | | 23 | | Room 620 | | |
5th Floor | | Office Executive Desk | | 4 | | 4 | | | | |
5th Floor | | Office Desk Chair | | 5 | | 5 | | | | |
5th Floor | | Credenza | | 2 | | 2 | | | | |
5th Floor | | 2-Dr Wooden Lateral | | 2 | | 2 | | | | |
5th Floor | | 4-Shelf Mahogany Bookcase | | 1 | | 1 | | | | |
5th Floor | | 2-Dr Lateral (Oak) | | 1 | | 1 | | | | |
5th Floor | | Office Side Chairs | | 7 | | 7 | | | | |
5th Floor | | Laminate Cube Style Desk | | 4 | | 4 | | | | |
5th Floor | | 3-Shelf Wood Bookcase | | 1 | | 1 | | | | |
5th Floor | | 4-Shelf Oak Bookcase | | 2 | | 2 | | | | |
5th Floor | | 4-Dr Lateral File Cab | | 1 | | 1 | | | | |
5th Floor | | Tables | | 2 | | 2 | | | | |
5th Floor | | Cube Style Bookcase Lat. Coat Closet | | 1 | | 1 | | | | |
5th Floor | | Whiteboard | | 1 | | 1 | | | | |
5th Floor | | 4-Dr Lateral File Cab | | 13 | | 13 | | | | |
5th Floor | | 6-Dr Lateral File Cab | | 2 | | 2 | | | | |
5th Floor | | 5-Dr Lateral File Cab | | 23 | | 23 | | | | |
5th Floor | | 2-Dr Regular Dile Cabinet | | 1 | | 1 | | | | |
5th Floor | | 5 Ft Table | | 1 | | 1 | | | | |
5th Floor | | 2-Dr File Cab | | 2 | | 2 | | | | |
5th Floor | | Regular Tables | | 3 | | 2 | | | | 1 was moved to 7 and can be turned over once RehabCare vacates |
5th Floor | | Cubicle Desk | | 77 | | 77 | | | | |
5th Floor | | Cubicle Chair | | 75 | | 75 | | | | |
2
Exhibit C
Items Wanted
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Location | | Item | | Requested Quantity | | Actual Quantity | | Detailed Location | | Notes |
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5th Floor | | Cubicle Overhead Storage Cabinet | | 77 | | 77 | | | | |
5th Floor | | Cubicle 5ft Closet | | 77 | | 77 | | | | |
5th Floor | | Cubicle Mobile Ped | | 77 | | 77 | | | | Cubicle File Cabinet |
5th Floor | | Side Chair | | 1 | | 1 | | | | |
5th Floor | | Mahogany Credenza | | 1 | | 1 | | | | |
5th Floor Kitchen | | Refrigerator | | 1 | | 1 | | | | |
5th Floor Kitchen | | Ice Machine | | 1 | | 1 | | | | |
5th Floor Kitchen | | Water Cooler | | 1 | | 0 | | | | Leased |
5th Floor Kitchen | | Chairs with wheels | | 15 | | 15 | | | | |
5th Floor Kitchen | | Microwave | | 3 | | 3 | | | | Misc toaster ovens, etc. |
5th Floor Kitchen | | 4ft Square Tables | | 4 | | 4 | | | | |
5th Floor Kitchen | | 8ft Folding Tables | | 1 | | 0 | | | | 1 was moved to 7 and can be turned over once RehabCare vacates |
5th Floor Kitchen | | 6ft Folding Table | | 1 | | 1 | | | | |
5th Floor Kitchen | | Regular Chairs | | 13 | | 13 | | | | |
5th Floor Kitchen | | Blender | | 1 | | 0 | | | | Employees |
5th Floor Kitchen | | Coffee Machine | | 1 | | 0 | | | | Leased |
5th Floor File Room | | 5-Dr Lateral File Cab | | 7 | | 7 | | | | |
5th Floor File Room | | 4-Dr Lateral File Cab | | 6 | | 6 | | | | |
5th Floor Training Room | | Mahogany Desk | | 1 | | 1 | | | | |
5th Floor Training Room | | Training Room Chairs | | 33 | | 33 | | | | |
5th Floor Training Room | | 5ft Table | | 1 | | 1 | | | | |
5th Floor Training Room | | Trash Cans | | 73 | | 73 | | | | |
5th Floor Training Room | | Whiteboard | | 1 | | 1 | | | | |
3
Exhibit D
STORAGE SPACE LEASE
THIS STORAGE SPACE LEASE (this “Lease”), is made on this 31 day of December, 2003, by and between HILL MANAGEMENT SERVICES, INC., a Maryland corporation (“Landlord”) and SYMPHONY HEALTH SERVICES, LLC, a Delaware limited liability company (“Tenant”).
RECITALS
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| A Landlord is the agent for the owner of the real property and improvements thereon known generally as the Executive Plaza IV (“Property”), which is more particularly depicted onExhibit A attached hereto and made a part hereof. |
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| B. Tenant desires to lease Storage Space #4 of the Property consisting of approximately 214 square feet and Storage Space #5 consisting of approximately 208 square feet, collectively referred to as (the “Leased Premises”). |
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| C. Landlord has agreed to lease the Leased Premises to Tenant upon the terms and subject to the conditions hereinafter set forth. |
TO HAVE AND TO HOLD the same for the term commencing on January 1, 2004 (the “Commencement Date”) and expiring on December 31, 2009 (the “Expiration Date”).
Tenant shall pay to Landlord as annual rent for the Leased Premises the sum of Four Thousand Nine and 00/100 Dollars ($4,009.00), which shall be paid in equal monthly installments of Three Hundred Thirty-Four and 08/100 Dollars ($334,08), in advance, without setoff, deduction or prior demand therefor, throughout the term of this Lease, due and payable on the first day of each calendar month and thereafter until the total rent provided for herein is fully paid. Said rent shall be paid to Landlord or to the duly authorized agent of Landlord, at Post Office Box 4835, Timonlum, Maryland 21094, The General Terms and Conditions of this Lease are attached hereto and made a part hereof.
Commencing January 1,2005 and for each succeeding lease year thereafter, the annual rent for the Leased Premises shall be Increased to an amount equal to 103% of the annual rent the immediately preceding lease year.
IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly executed under seal on their behalf by their duly authorized representatives, as of the date first above written.
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WITNESS/ATTEST: | Landlord: |
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| HILL MANAGEMENT SERVICES, INC., |
| agent for the owner |
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
| By: | 
| (SEAL) |
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| Title: | VP |
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| Date: | 1/22/04 |
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WITNESS/ATTEST: | Tenant: | |
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| SYMPHONY HEALTH SERVICES, LLC |
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
| By: | 
| (SEAL) |
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| Printed Name: | SALLY WELSBERG |
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| Title: | PRESIDENT |
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| Date: | 1/15/04 |
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1
GENERAL TERMS AND CONDITIONS OF STORAGE SPACE LEASE
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1. | RENT. Tenant will pay the rent as herein provided, without deduction whatsoever, and without any obligation on Landlord to make demand for it. |
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2. | POSSESSION. In the event the Leased Premises are not ready for occupancy on the date stipulated herein, the Lease shall nevertheless continue in full force and effect, and Tenant shall have no right to rescind, cancel or terminate the same, nor shall Landlord be liable for damages, if any, sustained by Tenant’s inability to obtain possession on such date. In such event, Tenant agrees to execute, upon request of Landlord, a Lease Ratification Agreement documenting the change in the Commencement and Expiration Dates of this Lease. |
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3. | USE AND OCCUPANCY. The Leased Premises are to be used only for storage of business records and materials associated with Tenant’s business and for no other purpose. No hazardous materials or chemicals will be stored on the Leased Premises. Tenant will not use the Leased Premises for any unlawful purpose or in any manner offensive to any other occupant; Tenant covenants not to conduct nor permit to be conducted on the Leased Premises any business in violation of any county, state or federal law, ordinance or regulation. |
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4. | LICENSES AND TAXES. Tenant covenants and agrees to pay directly to the proper agency all licenses, fees and charges legally imposed upon the use of the Leased Premises by Tenant. |
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5. | SERVICES. Landlord covenants and agrees so long as Tenant is not in default under any of the covenants of this Lease to furnish for Tenant: |
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| (a) | Elevator service in elevator-served buildings; |
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| (b) | Electric lighting service for all public areas and special service areas of the Property in the manner and to the extent deemed reasonable by Landlord. |
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| The failure to any extent to furnish, or any stoppage of the above defined services, resulting from causes beyond the control of Landlord or from any cause, shall not render Landlord liable in any respect for damages to either person or property, nor be construed as an eviction of Tenant or work in abatement of rent, nor relieve Tenant from fulfillment of any covenant or agreement herein. Landlord reserves the right to stop the above-defined services at any time when necessary or desirable in the judgment of Landlord by reason of accident or emergency or for repairs, maintenance, alterations, replacements or improvements. Landlord shall use reasonable diligence to repair, maintain, alter, replace or improve same, promptly, but Tenant shall have no claim for rebate or reduction of rent or for damages on account of any interruptions in said services occasioned thereby or resulting therefrom. |
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6. | CARE OF THE LEASED PREMISES. Tenant agrees that it will take good care of the Leased Premises, fixtures and appurtenances, and suffer no waste or injury; that it will make all repairs to the Leased Premises, fixtures and appurtenances necessitated by the fault of Tenant, its agents, employees or guests; that it will conform to all laws, orders and regulations of the federal, state and county authorities, or any of their departments, and will not through its act or neglect which would constitute a violation of any federal, state or county code, regulation or ordinance governing use, occupancy, health, sanitation or fire; that it will not do, or permit anything to be done in the Leased Premises which will in any way increase the rate of fire insurance on the Property, or conflict with the fire insurance policies on the Property; that it will defend and save harmless Landlord from any liability arising from injury to person or property caused by any act or omission of Tenant, its agents, employees, or guests; that it will repair, at or before the end of the term, or sooner if so requested by Landlord, all injury done by the installation or removal of furniture or other property; and that it will surrender the Leased Premises at the expiration of the term (or the sooner termination thereof for any reason) in as good condition as they were at the beginning of the term, ordinary wear and tear excepted. |
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| Landlord shall not be liable for any loss or damage to Tenant caused by vermin, rain, snow or water that may leak into or flow from any part of the Leased Premises through any defects in the roof or plumbing or from any other source. |
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7. | REPAIRS. Landlord agrees to make such repairs as may be necessary to keep the Leased Premises and appurtenances in good order and condition within a reasonable time after it shall have received written notice from Tenant of the need of such repairs, provided such repairs are not necessitated by the fault of Tenant, its agents, employees or guests. |
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8. | ACCESS BY LANDLORD. Landlord shall retain duplicate keys to all of the doors of the Leased Premises, and Landlord or its agents shall have access to the Leased Premises at all reasonable hours in order to inspect same, or to make necessary repairs within the Leased Premises, or on the Property. Landlord shall have the right to show the Leased Premises to prospective Tenants. |
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9.A. | SUBORDINATION. Unless a Mortgagee (as hereinafter defined) shall otherwise elect as provided in Section 9.B., Tenant’s rights under this Lease are and shall remain subject and subordinate to the operation and effect of: |
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| (a) | any lease of land only or of land and building in a sale-leaseback or lease-subleaseback transaction involving the Leased Premises or Landlord’s interest therein or |
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| (b) | any mortgage, deed of trust or other security instrument constituting a lien upon the Leased Premises or Landlord’s interest therein, whether the same shall be in existence at the date hereof or created hereafter, any such lease, mortgage, deed of trust or other security instrument (“Mortgage”), and the party or parties having the benefit of the same, whether as lessor, mortgagee, trustee or noteholder (“Mortgagee”). Tenant’s acknowledgement and agreement of subordination provided for in this section are self-operative and no further instrument of subordination shall be required; however, Tenant shall execute such further assurances thereof as shall be requisite or as may be requested from time to time by Landlord or any Mortgagee. Any such further assurances that are requested shall be in the form of a certificate or other document confirming such subordination, and shall, among other things, acknowledge that no Mortgagee shall be liable for any act or omission of Landlord nor be subject to any setoffs or deficiencies against Landlord, and certify or confirm any other matters requested by Landlord or any Mortgagee. |
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B. | MORTGAGEE’S UNILATERAL SUBORDINATION. If a Mortgagee shall so elect by notice to Tenant or by the recording of a unilateral declaration of subordination, this Lease and Tenant’s rights hereunder shall be superior and prior to right to the Mortgage of which such Mortgagee has the benefit, with the same force and effect as if this Lease had been executed, delivered and recorded prior to the execution, delivery and recording of such Mortgage, subject, nevertheless, to such conditions as may be set forth in any such notice or declaration. |
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C. | ATTORNMENT. If any person shall succeed to all or part of Landlord’s interest in the Leased Premises, whether by purchase, foreclosure, deed in lieu of foreclosure, power of sale, termination of Lease or otherwise, and if so requested or required by such successor in interest, Tenant shall attorn to such successor in interest and shall execute such agreement in confirmation of such attornment as such successor in interest shall reasonably request. |
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10. | ASSIGNMENT OR SUBLETTING. Tenant covenants and agrees that the Leased Premises shall not be sublet or used by any other person other than Tenant or employees or associates of Tenant; nor shall this Lease be assigned without the prior written consent of Landlord. Any lawful levy or sale on execution or other legal processes shall be classified as an assignment within the meaning of this Lease, as shall be adjudication in bankruptcy, voluntary or involuntary, or an appointment of a receiver by a state or federal court, or insolvency of Tenant, or the execution of a deed or other instrument for the benefit of creditors. |
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11. | RESTORATION. It is understood and agreed that in the event the Leased Premises are damaged by fire, storm, the elements or other casualty, or by act of the public enemy, or ordered demolished, razed or altered, due to deterioration or unsafe condition, by a duly constituted public authority, but Landlord shall restore the Leased Premises as reasonably as possible, and there shall be no abatement of rent. If the Leased Premises are injured or damaged by any of the aforesaid causes only to such an extent as to render them partially untenantable, Landlord shall restore the Leased Premises so injured or damaged as speedily as possible, and the rent shall abate proportionately on such part of the Leased Premises as may have been rendered |
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| untenantable until such time as such part shall be fit for occupancy, after which the full amount of rent reserved as aforesaid shall be payable as herein set forth, and if the Leased Premises are injured or damaged by any of the aforesaid causes to such an extent as to render the same wholly untenantable, at the sole discretion of Landlord, then this Lease, upon surrender of possession to Landlord, shall thereupon cease, and all liability of Tenant shall terminate upon payment of all rent due and payable to the date of such surrender. In no event shall Landlord be liable for any loss or damage sustained by Tenant by reason of fire or other accidental casualty. |
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12. | CONDEMNATION. In the event the whole or any part of the Leased Premises shall be condemned or taken in any manner for public use, Landlord, at its option, may terminate this Lease, and Landlord shall be entitled to any and all income and rent awards or any interest thereon or therein whatsoever which may be paid or made in connection with such public use. Tenant shall have no claim against Landlord or be entitled to any award or damages, other than an abatement of the rent beyond the period of occupancy. |
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13. | INSURANCE. Tenant further covenants and agrees to procure and maintain at Tenant’s expense throughout the continuance of this Lease, public liability insurance with a single limit of One Million Dollars ($1,000,000.00) per occurrence, for bodily injury, including death and property damage, from a company or companies approved by Landlord. Evidence of such insurance shall be furnished to Landlord prior to occupancy of the Leased Premises by Tenant. |
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14. | TENANT DEFAULT. Tenant shall be considered in default of this Lease upon the happening of any one of the following; |
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| (a) | Failure to pay when due the rent or any other sum required by the terms of this Lease; |
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| (b) | Failure to perform any term, covenant or condition of this Lease; |
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| (c) | The commencement of any action or proceeding for the dissolution, liquidation or reorganization under the Bankruptcy Act of Tenant, or the appointment of a receiver or trustee of Tenant’s property; |
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| (d) | The making of any assignment for benefit of creditors by Tenant; |
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| (e) | The suspension of business by Tenant; or |
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| (f) | The abandonment of the Leased Premises by Tenant. |
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| In the event of default of this Lease by Tenant, then Landlord, besides other rights or remedies it may have, shall have the immediate right to the balance of the rent for the remaining term (accelerate the rent) together with the immediate right of re-entry with or without prior notice, and may remove all persons and property from the Leased Premises; such property may be removed and stored in any other place on the Property in which the Leased Premises are situated, or in any other place, for the account of, and at the expense and at the risk of Tenant. Tenant hereby waives all claims for damages which may be caused by the re-entry of Landlord and taking possession of the Leased Premises or removing or storing the furniture and property as herein provided, and will save Landlord harmless from any loss, fees, costs or damages occasioned Landlord thereby, and no such re-entry shall be considered or construed to be an illegal forcible entry; Should Landlord elect to re-enter, as herein provided, or should it take possession pursuant to legal proceedings or pursuant to any notice provided for by law, it may either terminate this Lease or it may from time to time, without terminating this Lease, re-let the Leased Premises or any part thereof for such term or terms and at such rental or rentals and upon such other terms and conditions as Landlord in its sole discretion may deem advisable, with the right to make alterations and repairs to the Leased Premises. No such re-entry or taking possession of the Leased Premises by Landlord shall be construed as an election on its part to terminate this Lease unless a written notice of such intention be given to Tenant. Notwithstanding any such re-letting without termination, Landlord may at any time thereafter elect to terminate this Lease for such previous breach or act of default. Should Landlord at any time terminate this Lease for any breach or act of default, in addition to any other remedy it may have, it may recover from Tenant all damages it may incur by reason of such breach or act of default, including the cost of recovering the Leased Premises, reasonable legal fees, and including the worth at the time of such termination of the excess, if any, of the amount of rent and charges equivalent to |
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| rent reserved in this Lease for the remainder of the stated term over the then reasonable rental value of the Leased Premises for the remainder of the stated term. |
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15. | HOLDING OVER. If Tenant holds possession of the Leased Premises after the termination of this Lease for any reason, Tenant shall pay Landlord double the rent provided for herein for such period that Tenant holds over, but such payment of rent shall not create any lease arrangement whatsoever between Landlord and Tenant unless expressly agreed to in writing by Landlord. It is further understood that during such period that Tenant holds over, Landlord retains all of Landlord’s rights under this Lease including damages as a result of the termination of this Lease and the right to Immediate possession of the Leased Premises. This Paragraph 15 shall not be construed to grant Tenant permission to hold over. |
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16. | LATEPAYMENTS. In the event any payments or installments of rent or any other sums due under this Lease are not received by Landlord on or before the fifth (5th) day after the due date thereof, Landlord shall give written notice thereof to Tenant and Tenant shall pay to Landlord an additional fifteen percent (15%) of such sums due as“Additional Rent”. Such Additional Rent is to be payable, without demand from Landlord, on or before the first day of the next calendar month and failure to do so shall be considered nonpayment of rent. In addition, any payment or installment of rent or any other sums due under this Lease not paid when due shall bear interest from the due date until paid in full at a rate of twelve percent (12%) per annum. |
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17. | WAIVER OF BREACH. No waiver of any breach of the covenants, provisions or conditions contained in this Lease shall be construed as a waiver of the covenant itself or any subsequent breach itself, and if any breach shall occur and afterwards be compromised, settled or adjusted, this Lease shall continue in full force and effect as if no breach had occurred unless otherwise agreed. The acceptance of rent hereunder shall not be, or be construed to be a waiver of any breach of any term, covenant or condition of this Lease. |
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18. | NOTICES. All notices, demands, requests, approvals and consents (collectively referred to as “Notices”) required or permitted under this Lease shall be in writing and shall be either (i) personally delivered with signed receipt, (ii) sent by first class certified mail, return receipt request, postage prepaid, or (iii) sent by a nationally-recognized, guaranteed overnight courier and addressed (i) if to Landlord, at 9640 Deereco Road, Timonium, Maryland 21093, or (ii) if to Tenant, at the Leased Premises. All Notices personally delivered shall conclusively be deemed delivered at the time of such delivery. All Notices sent by certified mail shall conclusively be deemed delivered two (2) days after the deposit thereof in the United States mails. All Notices delivered by overnight courier shall conclusively be deemed made one (1) business day after delivery to such courier service. Any party may designate a change of address by Notice to the other party, given at least ten (10) days before such change of address is to become effective. |
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19. | SEVERABILITY. If for any reason whatsoever any of the provisions hereof shall be unenforceable or ineffective, all of the other provisions shall be and remain in full force and effect. |
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20. | ENTIRE AGREEMENT. The provisions of this writing constitute, and are intended to constitute, the entire agreement of the parties to this Lease. No terms, conditions, warranties, promises or understandings of any nature whatsoever, expressed or implied, exist between the parties except as herein expressly set forth. |
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21. | INDEMNIFICATION. Tenant, as a material part of the consideration to be rendered to Landlord under this Lease, hereby waives all claims against Landlord for damages to goods, wares and merchandise, in, upon or about the Leased Premises and for injuries to persons in or about the Leased Premises, for any cause arising at any time, and Tenant will hold Landlord exempt and harmless for and on account of any damage or injury to any person, or to the goods, wares and merchandise of any person, the failure of Tenant to keep the Leased Premises in good condition as herein provided. Landlord shall not be liable to Tenant for any damage by or from any act or negligence of any co-tenant or other occupant of the same Property. Tenant agrees to pay for all damages to the Property, as well as all damage to tenants or occupants thereof caused by Tenant’s misuse or neglect of the Leased Premises, its apparatus or appurtenances. |
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22. | TRIAL BY JURY. Landlord and Tenant hereby mutually waive any and all rights which either may have to request a jury trial in any action, proceeding or counterclaim at law or in equity in any court of competent jurisdiction arising out of this Lease or Tenant’s occupancy of or right to occupy the Leased Premises. Tenant further agrees that in the event Landlord commences any summary proceeding for nonpayment of rent or |
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| possession of the Leased Premises, Tenant will not, and hereby waives, all right to interpose any counterclaim of whatever nature in any such proceeding. Tenant further waives any right to remove said summary proceeding to any other court or to consolidate said summary proceeding with any other action, whether brought prior or subsequent to the summary proceeding. |
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23. | BROKER’S COMMISSION. Landlord and Tenant acknowledge, represent and warrant each to the other that no broker or real estate agent brought about or was involved in the making of this Lease and that no brokerage fee or commission is due to any other party as a result of the execution of this Lease. Each of the parties hereto agrees to indemnify and hold harmless the other against any claim by any broker, agent or finder based upon the execution of this Lease and predicated upon a breach of the above representation and warranty. |
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24. | TIME. Time is of the essence of this Lease. |
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25. | CONDITION OF LEASED PREMISES. All personal property not removed by the Tenant from the Leased Premises within five (5) days after the earlier to occur of: (i) the expiration of the Lease Term; (ii) the termination of the Lease; or (iii) the date the Tenant abandons the Leased Premises or otherwise ceases to do business therein; will be conclusively presumed to have been abandoned by the Tenant and the Landlord, may at the Landlord’s sole option, thereafter take possession of such property and either declare the same to be the property of the Landlord or, at the expense of the Tenant, dispose of such property in any manner and for whatever consideration the Landlord, in its sole discretion, deems advisable. |
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26. | RULES AND REGULATIONS. Tenant shall comply with all rules and regulations. Any violation of said rules and regulations shall be a violation of this Lease which shall, at the sole option of Landlord, thereupon cease and terminate. Landlord shall have the right to make additions and amendments to said rules and regulations from time to time and such additions and amendments shall be as binding on Tenant as if set forth herein. |
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| A. | The sidewalks, entrances, halls, passages, elevators and stairways shall not be obstructed by any of the tenants, or used by them for any other purpose than for ingress and egress to and from their respective Leased Premises. |
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| B. | Tenants, their agents, employees or visitors, shall not make or commit any improper noises or disturbances of any kind on the Property, or mark or defile the water closets, toilet rooms, windows, elevators or doors of the Property or interfere in any way with other tenants or those having business with them. |
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| C. | The bathrooms, water closets, and other water apparatus shall not be used for any purpose other than those for which they were constructed, and no sweepings, rubbish, rags, ashes, chemicals or the refuse from electric batteries or other unsuitable substance, shall be thrown therein. Any damage from such misuse or abuse shall be borne by Tenant by whom or by whose employees or visitors it shall be caused. |
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| D. | No carpet, rug or other article shall be hung or shaken out of any window or placed in corridors as a door mat, and nothing shall be thrown or allowed to drop by the tenants, their agents, employees or visitors but of the windows or doors, or down the passages or shafts of the Property, and no tenant shall sweep or throw, or permit to be thrown from the Leased Premises, any dirt or other substance into any of the corridors or halls, elevators, shafts or stairways of the Property. |
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| E. | No linoleum, or oil cloth, or rubber or other airtight coverings shall be laid on the floors, nor shall articles be fastened to or holes drilled or nails or screws driven into walls, windows, partitions, nor shall the walls or partitions be painted, papered or otherwise covered, or in any way marked or broke, without the prior written consent of Landlord. |
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| F. | Nothing shall be placed on the outside of the Property, or on the windows, window sills or projections. |
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| G. | No sign, advertisement or notice shall be inscribed, painted or affixed on any part of the outside or inside of the Property. |
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| H. | No wires shall be run in any part of the Property excepting by or under the direction of Landlord. Attaching of wires to the outside of the Property is absolutely prohibited. |
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| I. | Landlord shall, in all cases, have the right to prescribe the weight and proper position of safes or other heavy objects on the Property; and the bringing in of said safes, all furniture, fixtures or supplies, the taking out of said articles, and moving about of said articles within the Property, shall only be at such times and in such manner as Landlord shall designate; and any damage caused by any of the before-mentioned operations, or by any of the said articles during the time they are on the Property, shall be repaired by Tenant at Tenant’s expense. |
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| J. | No additional locks shall be placed upon any doors without the written consent of Landlord, and Tenant shall not permit any duplicate keys to be made. All necessary keys shall be furnished by Landlord, and the same shall be surrendered upon the expiration of this Lease, and Tenant shall then give to Landlord or his agents explanation of the combination of all locks upon the doors or vaults. |
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| K. | No bicycles or similar vehicles will be allowed on the Property. No animals or birds shall be brought into or kept in or upon the Leased Premises. |
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| L. | No tenant shall do or permit anything to be done in the Leased Premises, or bring or keep anything therein which will in any way increase the rate of fire insurance on the Property or on property kept therein, or obstruct or interfere with the rights of other tenants, or in any way injure or annoy them, or conflict with the laws relating to fires, or with the regulations of the Fire Department or with any insurance policy upon the Property or any part thereof, or conflict with any of rules and ordinances of the Department of Health. Tenant understands and agrees that the vehicle of any tenant obstructing any unauthorized area, and particularly in areas designated by specially painted curbs as fire lane areas, may be towed away at owner’s risk and expense. |
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| M. | No tenant shall employ any person or persons for the purpose of cleaning the Leased Premises, it being understood and agreed that Landlord shall not be responsible to Tenant for loss of property or for any damage done to the furniture or other effects of tenant by Landlord or any of its employees or agents or any other persons or firm unless proof of Landlord’s responsibility for such damage or loss of property is established. |
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| N. | Tenant will see that windows are closed and the doors securely locked before leaving the Leased Premises. |
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| O. | No interference with the heating apparatus will be permitted. All regulating and adjusting will be done by employees of Landlord. |
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| P. | The use of storage areas as sleeping apartments, for the preparation of foods, or for any immoral or illegal purpose is absolutely prohibited. |
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| Q. | No tenant shall conduct, or permit any other person to conduct any auction upon the Leased Premises, or store goods, wares, or merchandise upon the Leased Premises without the prior written approval of Landlord except for the usual supplies and inventory to be used by Tenant in the conduct of its business. |
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| R. | All glass, locks, and trimmings, in or about the doors and windows of the Leased Premises and all electric fixtures on the Leased Premises which belong to the Property shall be kept whole; and whenever broken by Tenant or Tenant’s employees, agents, guests, invitees, or licensees, Tenant shall immediately notify Landlord of such breakage. All such breakage shall be repaired by Landlord at Tenant’s expense or may be repaired by Tenant at Tenant’s own expense at the option of Landlord. |
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| S. | Any and all damage to floors, walls or ceilings due to Tenant or Tenant’s employees’ failure to shut off running water or liquid, shall be paid by Tenant. |
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| T. | Landlord reserves the right to make any or all alterations in the Leased Premises as may be required |
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| | by Tenant, the expense of such alterations to be paid by Tenant. |
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| U. | The building shall be open from 6:00 A.M. to 7:00 P.M., Monday through Friday. The building shall be in the charge of the control center at all other times. |
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| V. | At any time while the building is in the charge of the control center, any person entering or leaving the building may be questioned by it as to his business in the building; and anyone not satisfying the control center of his right to enter the building may be excluded by it. |
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