STANDARD FORM COMMERCIAL LEASE - RMD-I
V6
1. PARTIES Charles River Realty, dba Bachrach, Inc., 44 Hunt Street,
(fill in) Watertown, Massachusetts 02472, LESSOR, which expression
shall include its heirs, successors, and assigns where the
context so admits, does hereby lease to RMD Instruments,
Corp., 44 Hunt Street, Watertown, Massachusetts 02472
LESSEE, which expression shall include its successors,
executors, administrators, and assigns where the context
so admits, and the LESSEE hereby leases the following
described premises:
2. PREMISES
(fill in
and include,
if applicable,
suite number,
floor number,
and square feet)
Approximately 7,700 square feet of space as now occupied
by Lessee on the five floors located at 44 Hunt Street,
Watertown, Massachusetts 02472. Premises include the use
of 20% of all parking spaces but two (2) parking spaces in
the front presently marked Ms. Redler and Dr. Entine,
together with the right to use in common, with others
entitled thereto, the hallways, stairways, and elevators,
necessary for access to said leased premises, and
lavatories nearest thereto.
3. TERM
(fill in)
The term of this lease shall be for five (5) years
commencing on July 1, 2008 and ending on June 30, 2013.
4. BASE RENT
(fill in)
The LESSEE shall pay to the LESSOR rent at the base rate
of $153,230 ($19.90/sq. ft.), payable in advance in
monthly installments of $12,769. and increasing by 4%
starting with the beginning of each new lease year after
the initial one.
5. SECURITY
DEPOSIT
(fill in)
The LESSOR and LESSEE agree that a deposit in the amount
of $13,000.00 dollars paid by the LESSEE to the LESSOR as
below, shall be held as a security for the LESSEE's
performance as herein provided and refunded to the LESSEE
within thirty days (30) at the end of this lease subject
to the LESSEE's satisfactory compliance with the
conditions hereof. The deposit will be paid in two equal
installments of $6,500 each, payable on January 1st, 2009
and July 1st, 2009.
6. RENT
ADJUSTMENT
(fill in)
The LESSEE shall pay to the LESSOR as additional rent a
pro-rata share (19.2%) of any increase or decrease in the
building's real estate taxes, the building's water and
sewer use charges and the building's costs of heating oil
over the charges and costs of each of these items for the
base Calendar year 2007. Thus, for the lease year running
from July 1, 2008 to June 30, 2009, the amount to be added
as an adjustment to the first year's base rent would be
19.2% of the difference in the cost of these building
expenses for Calendar 2008 and Calendar 2007.
For the purposes of this agreement, for the Calendar year
2007, real estate taxes for the building were $35,839.00;
water and sewer use charges were $2,569.00; and the cost
of heating oil was $36,412.00. LESSEE shall make payment
by the latter of the end of the month of April of the
lease year or thirty days after the LESSOR has provided
the LESSEE written notice accompanied by a statement
showing the determination of the amount due from LESSEE.
This increase shall be prorated should this lease
terminate before the end of any lease year.
7. UTILITIES
(fill in or
delete)
LESSEE's water and sewer use charges, and steam heat, but
The LESSOR shall provide and shall pay for all of the
not electricity, gas or telephone; Where practical, the
and services Lessee shall be metered for electricity
and gas and pay
that directly to the utility companies. Where separate
metering is not practical, the Lessee will pay the Lessor
19.2% of the cost of such utilities in response to semi-
annual bills provided to it, covering the six month
periods ending June 30th and December 31st.
LESSOR agrees to furnish reasonable heat to the leased
premises, the hallways, stairways. elevators, and
lavatories on regular business days of the heating season
of each year, to furnish elevator service and to light
passageways and stairways, and to furnish such cleaning
service for the common areas as is customary in similar
buildings in said city or town, all subject to
interruption due to any accident, to the making of
repairs, alterations or improvements, to labor
difficulties, to trouble in obtaining fuel, electricity,
service or supplies from the sources from which they are
usually obtained for said building, or to any cause beyond
the LESSOR's control.
8. USE OF LEASED
PREMISES
The LESSEE shall use the leased premises only for the
purpose of research and manufacturing of instruments,
components and other technologically based activities and
associated work without written consent of Lessor which
shall not be unreasonably withheld.
9. COMPLIANCE
WITH LAWS
The LESSEE acknowledges that no trade or occupation shall
be conducted in the leased premises or use made thereof
which will be unlawful, improper, noisy or offensive, or
contrary to any law or any municipal by-law or ordinance
in force in the city or town in which the premises are
situated.
10. FIRE
INSURANCE
The LESSEE shall not permit any use of the leased premises
which will make voidable any insurance on the property of
which the leased premises are a part, or on the contents
of said property or which shall be contrary to any law or
regulation from time to time established by the New
England Fire Insurance Rating Association, or any similar
body succeeding to its powers. The LESSEE shall on demand
reimburse the LESSOR, and all other tenants, all extra
insurance premiums caused by the LESSEE's use of the
premises.
11. MAINTENANCE
OF PREMISES
The LESSEE agrees to maintain the leased premises in the
same condition as they are at the commencement of the term
or as they may be put in during the term of this lease,
reasonable wear and tear, damage by fire and other
casualty only excepted, and whenever necessary, to replace
plate glass and other glass therein; acknowledging that
the leased premises are now in good order and the glass
whole. The LESSEE shall not permit the leased premises to
be overloaded, damaged, stripped, or defaced, nor suffer
any waste other than ordinary wear and tear. LESSEE shall
obtain written consent of LESSOR before erecting any sign
on the premises.
Maintenance of the building exterior including the roof
and parking lot as well as the heating system and building
structure are included in the base rent in Section 4.
Maintenance costs for the building interior is not
included in the base rent and the Lessor shall pay 19.2%
of the cost of such maintenance.
12. ALTERATIONS-
ADDITIONS
The LESSEE shall not make structural alterations or
additions to the leased premises, but may make non-
structural alterations provided the LESSOR consents
thereto in writing, which consent shall not be
unreasonably withheld or delayed. All such allowed
alterations shall be at LESSEE's expense and shall be in
quality at least equal to the present construction.
LESSEE shall not permit any mechanics' liens, or similar
liens, to remain upon the leased premises for labor and
material furnished to LESSEE or claimed to have been
furnished to LESSEE in connection with work of any
character performed or claimed to have been performed at
the direction of LESSEE and shall cause any such lien to
be released of record forthwith without cost to LESSOR.
Any alterations or improvements made by the LESSEE shall
become the property of the LESSOR at the termination of
occupancy as provided herein, except for any trade
fixtures installed by LESSEE which shall remain the
LESSEE's property.
13. ASSIGNMENT-
SUBLEASING
The LESSEE shall not assign or sublet the whole or any
part of the leased premises without LESSOR's prior written
consent, which consent shall not be unreasonably withheld
or delayed. Notwithstanding such consent, LESSEE shall
remain liable to LESSOR for the payment of all rent and
for the full performance of the covenants and conditions
of this lease.
14. SUBORDINATION
This lease shall be subject and subordinate to any and all
mortgages, deeds of trust and other instruments in the
nature of a mortgage, now or at any time hereafter, a lien
or liens on the property of which the leased premises are
a part and the LESSEE shall, when requested, promptly
execute and deliver such written instruments as shall be
necessary to show the subordination of this lease to said
mortgages, deeds of trust or other such instruments in the
nature of a mortgage.
15. LESSOR'S
ACCESS
The LESSOR or agents of the LESSOR may, at reasonable
times, enter to view the leased premises and may remove
placards and signs not approved and affixed as herein
provided, and make repairs and alterations as LESSOR
should elect to do and may show the leased premises to
others, and at any time within three (3) months before the
expiration of the term, may affix to any suitable part of
the leased premises a notice for letting or selling the
leased premises or property of which the leased premises
are a part and keep the same so affixed without hindrance
or molestation.
16. INDEMNIFI-
CATION AND
LIABILITY
(fill in)
The LESSEE shall save the LESSOR harmless from all loss
and damage occasioned by the use or escape of water or by
the bursting of pipes, as well as from any claim or damage
resulting from neglect in not removing snow and ice from
the roof of the building or from the sidewalks bordering
upon the premise so leased, or by any nuisance made or
suffered on the leased premises, unless such loss is
caused by the neglect of the LESSOR. The removal of snow
and ice from the sidewalks bordering upon the leased
premises shall be LESSORS responsibility.
17. LESSEE'S
LIABILITY
INSURANCE
(fill in)
The LESSEE shall maintain with respect to the leased
premises and the property including the real estate, of
which the leased premises are a part, comprehensive public
liability insurance in the amount of $500,000/$1,000,000
with property damage insurance in limits of $100,000 in
responsible companies qualified to do business in
Massachusetts and in good standing therein insuring the
LESSOR as well as LESSEE against injury to persons or
damage to property as provided. The LESSEE shall deposit
with the LESSOR certificates for such insurance at or
prior to the commencement of the term, and thereafter
within thirty (30) days prior to the expiration of any
such policies. All such insurance certificates shall
provide that such policies shall not be canceled without
at least ten (10) days prior written notice to each
assured named therein.
18. FIRE,
CASUALTY-
EMINENT
DOMAIN
Should a substantial portion of the leased premises, or of
the property of which they are a part, be substantially
damaged by fire or other casualty, or be taken by eminent
domain, the LESSOR may elect to terminate this lease.
When such fire, casualty, or taking renders the leased
premises substantially unsuitable for their intended use,
a just and proportionate abatement of rent shall be made,
and the LESSEE may elect to terminate this lease if:
(a)The LESSOR fails to give written notice within thirty
(30) days of intention to restore leased premises, or
(b)The LESSOR fails to restore the leased premises to a
condition substantially suitable for their intended use
within ninety (90) days of said fire, casualty, or
taking.
The LESSOR reserves, and the LESSEE grants to the LESSOR,
all rights which the LESSEE may have for damages or injury
to the leased premises for any taking by eminent domain,
except for damage to the LESSEE's fixtures, property, or
equipment.
19. DEFAULT In the event that:
AND
BANKRUPTCY
(a)The LESSEE shall default in the payment of any
installment of rent or other sum herein specified and
such default shall continue for ten (10) days after
written notice thereof; or
(b)The LESSEE shall default in the observance or
performance of any other of the LESSEE's covenants,
agreements, or obligations hereunder and such default
shall not be corrected within thirty (30) days after
written notice thereof; or
(c)The LESSEE shall be declared bankrupt or insolvent
according to law, or, if any assignment shall be made
of LESSEE's property for the benefit of creditors,
then the LESSOR shall have the right thereafter, while
such default continues, to re-enter and take complete
possession of the leased premises, to declare the term of
this lease ended, and remove the LESSEE's effects, without
prejudice to any remedies which might be otherwise used
for arrears of rent or other default. The LESSEE shall
indemnify the LESSOR against all loss of rent and other
payments which the LESSOR may incur by reason of such
termination during the residue of the term.
If the LESSEE shall default, after reasonable notice
thereof, in the observance or performance of any
conditions or covenants on LESSEE's part to be observed or
performed under or by virtue of any of the provisions in
any article of this lease, the LESSOR, without being under
any obligation to do so and without thereby waiving such
default, may remedy such default for the account and at
the expense of the LESSEE. If the LESSOR makes any
expenditures or incurs any obligations for the payment of
money in connection therewith, including but not limited
to, reasonable attorney's fees in instituting, prosecuting
or defending any action or proceeding, such sums paid or
obligations insured, with interest at the rate of six (6)
per cent per annum and costs, shall be paid to the LESSOR
by the LESSEE as additional rent.
20. NOTICE
(fill in)
Any notice from the LESSOR to the LESSEE relating to the
leased premises or to the occupancy thereof, shall be
deemed duly served, if left at the leased premises with a
suitable representative of the Lessee and addressed to the
LESSEE, or, if mailed to the leased premises, registered
or certified mail, return receipt requested, postage
prepaid, addressed to the LESSEE. Any notice from the
LESSEE to the LESSOR relating to the leased premises or to
the occupancy thereof, shall be deemed duly served, if
mailed to the LESSOR by registered or certified mail,
return receipt requested, postage prepaid, addressed to
the LESSOR at such address as the LESSOR may from time to
time advise in writing. All rent and notices shall be
paid and sent to the LESSOR at 44 Hunt Street, Watertown,
Massachusetts 02472.
21. SURRENDER
The LESSEE shall at the expiration or other termination of
this lease remove all LESSEE's goods and effects from the
leased premises, (including, without hereby limiting the
generality of the foregoing, all signs and lettering
affixed or painted by the LESSEE, either inside or outside
the leased premises). LESSEE shall deliver to the LESSOR
the leased premises and all keys, locks thereto, and other
fixtures connected therewith and all alterations and
additions made to or upon the leased premises, in the same
condition as they were at the commencement of the term, or
as they were put in during the term hereof, reasonable
wear and tear and damage by fire or other casualty only
excepted. In the event of the LESSEE's failure to remove
any of LESSEE's property from the premises, LESSOR is
hereby authorized, without liability to LESSEE for loss or
damage thereto, and at the sole risk of LESSEE, to remove
and store any of the property at LESSEE's expense, or to
retain same under LESSOR's control or to sell at public or
private sale, any or all of the property not so removed
and to apply the net proceeds of such sale to the payment
of any sum due hereunder, or to destroy such property.
It is also understood and agreed that at the expiration or
other termination of this lease, LESSOR at his option, may
take title to any and all leasehold improvements,
including, but not limited to, chemical hoods, HVAC
systems, built-in or attached work benches, telephone
systems, backup generators and electrical distribution
equipment, air circulation systems, etc. However, this
does not include those pieces of equipment which are part
of working systems used by the LESSEE as part of his
manufacturing or research activities such as refrigeration
units providing cooling to evaporators and x-ray equipment
or other technological items, such as local transformers
which prepare power for use by special equipment. Those
leasehold items to which the LESSOR does not opt to take
title shall be removed by the LESSEE at its expense.
22. HAZARDOUS
WASTE
PROVISION
It is also understood and agreed that at the expiration or
other termination of this lease, the LESSEE shall remove
all hazardous waste associated with its occupancy to the
satisfaction of an independent environmental consulting
firm such as IES, Inc of Somerville, MA, the firm that did
an ASTM Screen/Limited Assessment of the entire property
in May 2008, or a similar qualified inspection service.
Any expense incurred to engage an environmental casualty
firm to make this determination shall be the LESSOR's
responsibility. However, if the firm determines that the
Lessee has failed to meet this obligation, the cost of re-
inspections will be that of the LESSEE.
23. PROPERTY &
LIABILITY
INSURANCE
PROVISION
LESSEE will coordinate the purchase of property and
liability insurance with the LESSOR to maintain a high
quality of coverage and pay for 19.2% of the cost as part
of the miscellaneous expenses described below. The cost
of insurance is not included in the base rent in Section
4. This clause shall dominate Clause 17 "Lessee's
Liability* Insurance" above.
24. OPTION TO
EXTEND
LEASE
LESSEE and LESSOR agree to negotiate in good faith an
extension of this Lease at the end of the term. LESSOR
hereby grants to LESSEE the right of first refusal to re-
let the Premises at the end of the term. If LESSOR
receives an acceptable offer from a bona fide prospective
tenant to lease the Premises at the end of the term,
LESSOR shall give notice of the same to LESSEE and LESSEE
shall have fifteen (15) calendar days from LESSEE's
receipt of said written notice to exercise LESSEE's right
of first refusal and match the terms proposed by the bona
fide prospective tenant except with a 2.5% surcharge on
the cash rent.
25. RIGHT OF
FIRST
REFUSAL
LESSOR hereby grants to LESSEE a right of first refusal to
purchase 44 Hunt Street, Watertown, Massachusetts 02472
(the "Property"), exercisable during the term of this
Lease, but subordinated to any right of first refusal
given to Radiation Monitoring Devices, Inc. If LESSOR
receives a bona fide offer to purchase from a third party,
LESSOR shall provide LESSEE with written notice thereof
together with a true and correct copy of the buyer
executed offer to purchase. LESSEE shall have a period of
fifteen days following receipt of such notice in which to
elect to purchase the Property on the same terms and
conditions whereupon LESSEE shall enter into a purchase
contract with LESSOR on such terms. If LESSEE does not
elect to purchase as aforesaid and the underlying sale
does not occur, or if the terms change from the terms
presented to LESSEE, this right of first refusal provision
shall remain in effect.
26. MISCELLANEOUS
EXPENSES
PROVISION
It is also understood and agreed that the LESSEE will
reimburse the LESSOR for 19.2% of the other expenses paid
for by the LESSOR as illustrated in the Attachments I
appended to this document. It is included for
illustrative purposes only and does not take precedence
over the written provisions of this lease. The payment
will be made in response to quarterly or semi-annual bills
provided to the LESSEE covering the appropriate periods
ending either June 30th and December 31st, or March 31st,
June 30th, September 30th and December 31st as requested
by the LESSEE.
27. EXCELL
SPREADSHEET
EXHIBIT
The "Bachrach Building Rent Chart is appended to this
lease as Attachment II. It is included for illustrative
purposes only and does not take precedence over the
written provisions of this lease.
27. ENVIRONMENTAL
Notwithstanding anything to the contrary contained herein,
Lessor shall indemnify, defend and hold the Lessee
harmless against any Damages arising from, relating to or
constituting any liability, for investigative, remedial or
response actions or otherwise, under Environmental Laws,
arising out of the ownership, operation or condition of
the Business and/or its properties on or prior to the
Lease commencement date (notwithstanding the disclosure of
the possibility of such event in the IES Report or
otherwise).
Notwithstanding anything to the contrary contained herein,
Lessee shall indemnify, defend and hold the Lessor
harmless against any Damages arising from, relating to or
constituting any liability, for investigative, remedial or
response actions or otherwise, under Environmental Laws,
arising out of the operation or condition of the Business
subsequent to the Lease commencement date.
IN WITNESS WHEREOF, the LESSOR and LESSEE have hereunto
set their hands and common seals this
_____________________ day of _________________________
2008.
________________________ ________________________
LESSOR LESSEE
Gerald Entine, Partner Craig Dunham
Bachrach, Inc. RMD, Inc
ATTACHMENT I
ILLUSTRATION OF METHODOLOGY OF ALLOCATING EXPENSES
CLOSING JUNE 05 OF CHARLES RIVER REALTY
June 30, 2007
GENERAL METHODOLOGY
The mid-year and year end adjustments which must be made relate
to the portion of CRR building expenses, such as utilities,
maintenance, and insurance with the Sub-S and LLC should pick up
from CRR and vice-versa. It also concerns how much of the building
maintenance should be capitalized.
BUILDING MAINTENANCE - January 1 to June 30, 2007
1. D&R Electric, Instant Signal and G.C. Paint are shared and is
transferred in its entirety upstairs and then has 1/4 sent back
downstairs since almost all of this cost is indoor wiring for labs
and work areas.
2. The cost of repairing air conditioners to CRR was $0. Of this
79% belongs to RMD and LLC split 3/4 and 1/4. Thus 19.75% or $0
goes to LLC and 59.25% or $0 goes to RMD. Each entity should write
their check directly to CRR and enter under Bldg. Maintenance -
Separate.
(Note that because of changes in the occupancy, the new percentage
allocations are RMD 19.2%, RMD, Instruments 19.2% and CRR 5.5%.)
3. The cost of carpentry to CRR was $123,949. Of this 79% belongs
to RMD and LLC split 3/4 and 1/4. Thus 19.75% or $24,480 goes to
LLC and 59.25% or $73,440 goes to RMD. Each entity should write
their check directly to CRR and enter under Bldg. Maintenance -
Separate.
4. The cost of plumbing to CRR was $4,832. Of this 79% belongs to
RMD and LLC split 3/4 and 1/4. Thus 19.75% or $954 goes to LLC and
59.25% or $2,863 goes to RMD. Each entity should write their check
directly to CRR and enter under Bldg. Maintenance - Separate.
5. The cost of masonry to CRR was $4,595. Of this 79% belongs to
RMD and LLC split 3/4 and 1/4. Thus 19.75% or $908 goes to LLC and
59.25% or $2,723 goes to RMD. Each entity should write their check
directly to CRR and enter under Bldg. Maintenance - Separate.
6. G.C. Painting did most of its work directly for LLC since it
works on specific lab and production areas. However, the cost of
the general projects for CRR was $0. Of this 79% belongs to RMD and
LLC split 3/4 and 1/4. Thus 19.75% or $0 goes to LLC and 59.25% or
$0 goes to RMD. Each entity should write their check directly to
CRR and enter under Bldg. Maintenance - Separate.
7. The cost of floor repair to CRR was $4,418. Of this 79%
belongs to RMD and LLC split 3/4 and 1/4. Thus 19.75% or $478 goes
to LLC and 59.25% or $1,433 goes to RMD. Each entity should write
their check directly to CRR and enter under Bldg. Maintenance -
Separate.
8. The cost of locks to CRR was $0. Of this 79% belongs to RMD
and LLC split 3/4 and 1/4. Thus 19.75% or $0 goes to LLC and 59.25%
or $0 goes to RMD. Each entity should write their check directly to
CRR and enter under Bldg. Maintenance - Separate.
9. The cost of windows to CRR was $22,205. Of this 79% belongs to
RMD and LLC split 3/4 and 1/4. Thus 19.75% or $4,385 goes to LLC
and 59.25% or $13,156 goes to RMD. Each entity should write their
check directly to CRR and enter under Bldg. Maintenance - Separate.
10. The cost of utilities should be shared under separate billing.
INSURANCE - Bldg. - January 1 to June 30, 2007
1. The cost of insurance should go by square feet. Since RMD has
been paying for everything, (6x$2,879/mo. _ $17,276) for this six
month period, CRR owes RMD 21% ($3,628).
UTILITIES - January 1 to June 30, 2007
1. The cost of electricity ($36,911) and gas ($8,964) to CRR was
$45,875. Of this 79% belongs to RMD and LLC split 3/4 and 1/4. Thus
19.75% or $9,060 goes to LLC and 59.25% or $27,181 goes to RMD.
Each entity should write their check directly to CRR and enter
under Utilities - Separate.
CHECKS TO BE WRITTEN - Jan. 1 to June 30, 2007
ITEM CRR RMD LLC Notes
D&R 0 0 0
Air 0 0 0
Conditioners
Carpentry 0 73,440 24,480
Plumbing 0 2,863 954
Masonry 0 2,723 908
Painting 0 0 0
Floor Repair 0 1,433 478
Lock Repair 0 0 0
Window 0 13,156 4,385
Repair
Subtotal 0 $93,615 $31,205
Insurance 3 628 0 0
Utilities 0 27 181 9,060
Rent 0 0 0
Adjustment
Total $3,628 $120,796 $40,265
CRR-> RMD RMD -> CRR LLC-> CRR
Note that because of changes in the occupancy, the new percentage
allocations are RMD 19.2%, RMD, Instruments 19.2% and CRR 5.5%.
CLOSING DECEMBER 07 OF CHARLES RIVER REALTY
December 31, 2007
GENERAL METHODOLOGY
The mid-year and year end adjustments which must be made relate to
the portion of CRR building expenses, such as utilities,
maintenance, and insurance with the Sub-S and LLC should pick up
from CRR and vice-versa. As per the space allocation for the
building, now that RMD has taken over the VideoLink space, the
common space and that occupied by the other tenant comprises 0.0%.
RMD occupies 78% and LLC 22% of the remainder. It also concerns
how much of the building maintenance should be capitalized. The
detailed allocation of expenses is contained the allocation chart
later in this document.
BUILDING MAINTENANCE - July 1 to December 31, 2007
1. The cost of air conditioning cleaning and freon to CRR was $0.
All of this, except for special projects for common areas ($2,482),
belongs to RMD and LLC split 78% and 22%. Each entity should write
their check directly to CRR under Bldg. Maintenance - Separate.
2. The cost of air conditioning repairs to CRR was $6,875. All
of this, except for special projects for common areas ($2,873),
belongs to RMD and LLC split 78% and 22%. Each entity should write
their check directly to CRR under Bldg. Maintenance - Separate.
3. The cost of appliance repairs to CRR was $2,068. All of this,
except for special projects for common areas ($2,873), belongs to
RMD and LLC split 78% and 22%. Each entity should write their
check directly to CRR under Bldg. Maintenance - Separate.
4. The cost of cabinets to CRR was $202. All of this, except for
special projects for common areas ($967), belongs to RMD and LLC
split 78% and 22%. Each entity should write their check directly
to CRR under Equip. Maintenance - Separate.
5. The cost of carpentry to CRR was $114,966. All of this,
except for special projects for common areas ($13,574), belongs to
RMD and LLC split 78% and 22%. Each entity should write their
check directly to CRR under Bldg. Maintenance - Separate.
6. The cost of door repairs to CRR was $0. All of this, except
for special projects for common areas ($0), belongs to RMD and LLC
split 78% and 22%. Each entity should write their check directly
to CRR under Bldg. Maintenance - Separate.
7. The cost of electric repairs to CRR was $0. All of this,
except for special projects for common areas ($0), belongs to RMD
and LLC split 78% and 22%. Each entity should write their check
directly to CRR under Bldg. Maintenance - Separate.
8. The cost of floor repair to CRR was $5,232. All of this,
except for special projects for common areas ($4,880), belongs to
RMD and LLC split 78% and 22%. Each entity should write their
check directly to CRR under Bldg. Maintenance - Separate.
9. The cost of hood repair to CRR was $0. All of this belongs to
RMD and LLC split 78% and 22%. Each entity should write their
check directly to CRR under Bldg. Maintenance - Separate.
10. The cost of Lighting to CRR was $0. All of this, except for
special projects for common areas ($2,196), belongs to RMD and LLC
split 78% and 22%. Each entity should write their check directly
to CRR under Bldg. Maintenance - Separate.
11. The cost of Locks and Security Systems to CRR was $0. All of
this, except for special projects for common areas ($1,182),
belongs to RMD and LLC split 78% and 22%. Each entity should write
their check directly to CRR under Bldg. Maintenance - Separate.
12. The cost of masonry to CRR was $5,395. All of this, except
for special projects for common areas ($3,077), belongs to RMD and
LLC split 78% and 22%. Each entity should write their check
directly to CRR under Bldg. Maintenance - Separate.
13. The cost of painting to CRR was $0. All of this, except for
special projects for common areas ($3,404), belongs to RMD and LLC
split 78% and 22%. Each entity should write their check directly
to CRR under Bldg. Maintenance - Separate.
14. The cost of plumbing to CRR was $16,556. All of this, except
for special projects for common areas ($3,718), belongs to RMD and
LLC split 78% and 22%. Each entity should write their check
directly to CRR under Bldg. Maintenance - Separate.
15. The cost of repairing radiators and steam pipes to CRR was
$16,100. All of this, except for special projects for common areas
($3,152), belongs to RMD and LLC split 78% and 22%. Each entity
should write their check directly to CRR under Bldg. Maintenance -
Separate.
16. The cost of repairing stairs and railings to CRR was $0. All
of this, except for special projects for common areas ($1,137),
belongs to RMD and LLC split 78% and 22%. Each entity should write
their check directly to CRR under Bldg. Maintenance - Separate.
17. The cost of repairing vacuum and pressurized air systems to
CRR was $0. All of this belongs to RMD and LLC split 78% and 22%.
Each entity should write their check directly to CRR under Bldg.
Maintenance - Separate.
18. The cost of repairing windows and mirrors to CRR was $8.173.
All of this, except for special projects for common areas ($3,378),
belongs to RMD and LLC split 78% and 22%. Each entity should write
their check directly to CRR under Bldg. Maintenance - Separate.
INSURANCE - Bldg. - July 1 to December 31, 2007
1. The cost of insurance should go by square feet. Since RMD has
been paying for everything, (6x$2,150/mo. = $12,900) for July
through December 07, CRR owes RMD 0% ($0), now that there is no
longer any common space.
ELECTRICITY - July 1 to December 31, 2007
1. The cost of electricity to CRR was $54,141. Of this 100%
belongs to RMD and LLC split 78% and 22%. Each entity should write
their check directly to CRR under Utilities - Separate.
CHECKS TO BE WRITTEN - July 1 to December 31, 2007
ITEM CRR RMD LLC Notes
Repairs 0 136,943 38,625
Insurance 0 0 0
Utilities 0 42,230 11,911
Total $ 0 $179,173 $50,536
CRR->RMD RMD->CRR LLC->CRR
CAPITALIZATION OF MAINTENANCE COSTS - December 31, 2007
1. The cost of various maintenance items have been capitalized as
per the chart below, corresponding to zero percent for carpentry
and zero percent for the other items which were just repairs to try
to best reflect the correct distribution.
ALLOCATION FOR BUILDING COSTS - CAPITALIZE VS EXPENSE
ITEM CRR-Total Expense Lshold %Capital
Improve.
Air Cond. Cleaning 0 0 0 0 %
Air Cond. Repairs 6,875 6,875 0 0 %
Appliances 2,068 2,068 0 0 %
Cabinets 202 202 0 0 %
Carpentry 114,966 114,966 0 0 %
Door Repairs 0 0 0 0 %
Electrical Repairs 0 0 0 0 %
Floor Repair 5,232 5,232 0 0 %
Hood Repair (All RMD) 0 0 0 0 %
Lighting 0 0 0 0 %
Locks 0 0 0 0 %
Masonry 5,395 5,395 0 0 %
Painting 0 0 0 0 %
Plumbing 16,556 16,556 0 0 %
Radiators, Steam 16,100 16,100 0 0 %
Pipes
Stairs and Railings 0 0 0 0 %
Vacuum Repairs (All 0 0 0 0 %
RMD)
Windows & Mirrors 8,173 8,173 0 0 %
Total $175,567 $175,567 $0 0 %
REIMBURSEMENT OF EXPENSES FOR OTHER PROPERTIES - December 31, 2007
1. The cost of any items managed by CRR but attributable to non-
CRR properties has been reimbursed by a personal check from GE in
an amount of $19,679.
ALLOCATION OF BUILDING EXPENSES FOR DEC. 07
ITEM Description TOTAL CRR RMD LLC
1 Air Cond. Cleaning 0 0 0 0
2 Air Cond. Repairs 6,875 0 5,363 1,513
3 Appliances 2,068 0 1,613 455
4 Cabinets 202 0 158 44
5 Carpentry 114,9 0 89,673 25,293
66
6 Door Repairs 0 0 0 0
7 Electrical Repairs 0 0 0 0
8 Floor Repair 5,232 0 4,081 1,151
9 Hood Repair (All RMD) 0 0 0 0
10 Lighting 0 0 0 0
11 Locks 0 0 0 0
12 Masonry 5,395 0 4,208 1,187
13 Painting 0 0 0 0
14 Plumbing 16,55 0 12,914 3,642
6
15 Radiators, Steam Pipes 16,10 0 12,558 3,542
0
16 Stairs and Railings 0 0 0 0
17 Vacuum Repairs (All 0 0 0 0
RMD)
18 Windows & Mirrors 8,173 0 6,375 1,798
===== ====== ===== ====
Total 175,567 0 136,943 38,625
ATTACHMENT II
ILLUSTRATION OF METHODOLOGY OF ALLOCATING YEARLY COST INCREASES