Lease Agreement (2005)Full Document 

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LEASE AGREEMENT

 

By and Between

 


 

COLONNADE DEVELOPMENT LLC,

 

Landlord,

 

- by -

 

SPECTRUM PROPERTIES

MANAGEMENT COMPANY,

 

Managing Agent,

 

- and -

 

VOYAGER PHARMACEUTICAL CORP.,

 

Tenant.

 


 

The Colonnade

 

8540 Colonnade Center Drive, Suite 407

Raleigh, North Carolina 27615

 

Dated:1/2/02


Table of Contents

 

ARTICLE I - REFERENCE DATA

   1

1.1

  

References

   1

1.2

  

Exhibits

   4

1.3

  

Special Provisions

   4

ARTICLE II - PREMISES AND TERM

   5

2.1

  

Premises

   5

2.2

  

Term

   5

ARTICLE III - CONSTRUCTION

   6

3.1

  

Tenant’s Interior Construction

   6

3.2

  

Preparation of Premises for Occupancy

   6

3.3

  

General Provisions Applicable to Construction

   7

3.4

  

Representatives

   7

ARTICLE IV - RENT

   7

4.1

  

Rent

   7

4.2

  

Operating Cost Escalation

   8

4.3

  

Payments

   10

ARTICLE V - LANDLORD’S COVENANTS

   11

5.1

  

Landlord’s Covenants During the Term

   11

5.2

  

Interruptions

   11

ARTICLE VI - TENANT’S COVENANTS

   12

6.1

  

Tenant’s Covenants During Term

   12

ARTICLE VII - CASUALTY AND TAKING

   18

7.1

  

Casualty to Premises

   18

7.2

  

Condemnation

   19

ARTICLE VIII - RIGHTS OF MORTGAGEE

   19

8.1

  

Rights of Mortgage Holders; Limitation of Mortgagee’s Liability

   19

8.2

  

No Prepayment or Modification

   20

8.3

  

Subordination

   20

8.4

  

Mortgagee Protection

   20

ARTICLE IX - DEFAULT

   21

9.1

  

Events of Default

   21

9.2

  

Landlord’s Rights After Default

   21

9.3

  

Tenant’s Obligations After Default

   22

9.4

  

General Provisions

   23

ARTICLE X - MISCELLANEOUS

   24

10.1

  

Titles

   24

10.2

  

Notice of Lease

   24

 

i


10.3

  

Relocation

   24

10.4

  

Notice

   24

10.5

  

Bind and Inure

   24

10.6

  

No Surrender

   24

10.7

  

No Waiver, Etc.

   24

10.8

  

No Accord and Satisfaction

   25

10.9

  

Cumulative Remedies

   25

10.10

  

Partial Invalidity

   25

10.11

  

Landlord’s Right to Cure

   25

10.12

  

Estoppel Certificates

   25

10.13

  

Waiver of Subrogation

   26

10.14

  

Brokerage

   26

10.15

  

Evidence of Authority

   26

10.16

  

Lease Review; Date of Execution

   26

10.17

  

Choice of Law

   26

10.18

  

Time is of the Essence

   26

10.19

  

Limitation of Liability

   27

10.20

  

Landlord’s Consent or Approval

   27

ARTICLE XI - SECURITY DEPOSIT

   27

11.1

  

Security Deposit

   27

 

ii


DATE OF EXECUTION: 1/2/02

 

ARTICLE I - REFERENCE DATA

 

1.1 References. Each reference in this Lease to any of the following subjects shall be construed to incorporate the data stated for that subject in this Section 1.1:

 

LANDLORD:    Colonnade Development LLC
MANAGEMENT AGENT:    Spectrum Properties Management Company
LANDLORD’S & MANAGING AGENT’S ADDRESS:   

150 Fayetteville Street Mall

Suite 1300

Raleigh, North Carolina 27601

LANDLORD’S REPRESENTATIVE    Spectrum Properties Management Company
TENANT’S SPACE:    Suite 407, being the area(s) outlined by broad lines on Exhibit B attached
BUILDING:    That certain office building located at the Building Address set forth below and commonly known as The Colonnade - Building One.
BUILDING ADDRESS:   

8540 Colonnade Center Drive

Raleigh, North Carolina 27615

PROJECT:    Those certain office buildings, together with all entrance drives, parking areas, landscaping improvements and other improvements located on that certain tract of land described on Exhibit A-1 attached hereto (the “Project Tract”)
NAME & ADDRESS FOR RENTAL REMITTANCE:   

John Boylan

c/o Spectrum Properties

150 Fayetteville Street Mall

Suite 1300

Raleigh, North Carolina 27601

TENANT:   

Voyager Pharmaceutical Corp.,

a Delaware corporation

TENANT’S ADDRESS

(for notice and billing):

  

8540 Colonnade Center Drive

Suite 407

Raleigh, N.C. 27615

 


TENANT’S REPRESENTATIVE:    Patrick S. Smith
RENTABLE FLOOR AREA OF TENANT’S SPACE:    Approximately 8,246 SF
TOTAL RENTABLE FLOOR AREA OF THE BUILDING:    126,925 SF
SCHEDULED COMMENCEMENT DATE:    March 1, 2002
SCHEDULED EXPIRATION DATE:    February 28, 2007
RENT:    Base Rent (to be adjusted for actual area of Tenant’s Space):
     For the first lease year, beginning on the Commencement Date, Base Rent shall be $22.00 per rentable square foot within Tenant’s Space. For each lease year thereafter, upon each successive anniversary of the Commencement Date, Base Rent shall increase by the product of (i) three percent (3%) multiplied by (ii) Base Rent less Landlord’s Operating Costs for Base Year 2002 expressed on a per square foot basis for the Building. For example, if Tenant’s Space was measured to be 8,246 rentable square feet, then Base Rent for the first lease year would be calculated as follows:

 

Months


   $/SF

   Monthly

   Annually

1 - 12    $22.00    $15,117.67    $181,412.04

 

     For the second lease year, if Landlord’s Operating Costs for Base Year 2002 were $5.40 per rentable square foot, Base Rent would increase by $0.50 to $22.50 per rentable square foot on the -first anniversary of the Commencement Date ($22.00 - $5.40 = $16.60 x 0.03 = $0.50 + $22.00 = $22.50). Therefore, Base Rent for the remainder of the term would be as follows:

 

Months


   $/SF

  

Monthly


   Annually

13 - 24    $ 22.50    $ 15,461.25    $ 185,535.00
25 - 36    $ 23.01    $ 15,811.71    $ 189,740.52
37 - 48    $ 23.54    $ 16,175.90    $ 194,110.80
49 - 60    $ 24.08    $ 16,546.97    $ 198,563.64

 

2


     Notwithstanding the foregoing example, and as more particularly described in paragraph 2 of the Special Provisions contained in Section 1.3 beginning on page 3-A, Tenant shall occupy and pay Base Rent for only approximately 5,000 rentable square feet of Tenant’s Space on the Commencement Date, and shall not pay Base Rent for the remainder of Tenant’s Space until the earlier of Tenant’s occupancy of any part of the remainder of Tenant’s Space or the first (1st) anniversary of the Commencement Date, at which time Tenant shall pay Base Rent for the entire Tenant’s Space. Therefore, by way of illustration only, if the portion of Tenant’s Space initially occupied by Tenant measures 5,000 rentable square feet, and Tenant does not occupy any portion of the remainder of Tenant’s Space until the first (1st) anniversary of the Commencement Date, then Base Rent for the first lease year would be as follows:

 

Months


   $/SF

   Monthly

   Annually

1 - 12    $22.00    $9,166.67    $110,000.04

 

     Additional Rent: Operating Cost Escalation pursuant to Section 4.2 and other amounts designated in this Lease as Additional Rent.
BASE YEAR:    Calendar Year 2002.
SECURITY DEPOSIT:    Not Applicable. See Special Provisions for Letter of Credit Requirements.
GUARANTOR(S):    None.
PERMITTED USES:    General Office Use
TENANT’S PUBLIC LIABILITY INSURANCE:    Commercial General Liability insurance policies or Comprehensive General Liability insurance policies with a Broad Form Comprehensive Liability Endorsement including Contractual Insurance and with a combined single limit of at least $1,000,000.00 per occurrence on a per location basis and including:

 

Bodily Injury:    $1,000,000.00
Property Damage:    $1,000,000.00

 

3


1.2 Exhibits. The following exhibits are attached to this Lease and made a part hereof:

 

EXHIBIT A    Legal Description of the Lot
EXHIBIT A-1    Legal Description of the Project Tract
EXHIBIT B    Plan Showing Tenant’s Space
EXHIBIT C    Landlord/Tenant Work Letter
EXHIBIT D    Landlord’s Services
EXHIBIT E    Rules and Regulations
EXHIBIT F    Commencement/Expiration Date Agreement
EXHIBIT G    Architect’s Certificate
EXHIBIT H    Plan Showing Temporary Space

 

1.3 Special Provisions. Any special terms or provisions of this Lease are attached immediately following this page as page(s) 4-A. To the extent that the Special Provisions conflict with any other teens of this Lease, the Special Provisions shall control.

 

4


 

SPECIAL PROVISIONS

 

These Special Provisions are hereby incorporated into this Lease and in the event that they conflict with any provision of this Lease, these Special Provisions shall control.

 

1. Tenant Improvements. Landlord will provide a turnkey buildout based on mutually approved space plans as provided in the Landlord/Tenant Work Letter attached as Exhibit C. Landlord shall have no obligation to commence work until Tenant has provided written evidence of the Funding as described in Paragraph 8 below, and Tenant has provided the Letter of Credit described in Paragraph 6 below.

 

2. Takedown of the Premises. Notwithstanding anything to the contrary in this Lease, upon the Commencement Date, Tenant shall occupy only approximately 5,000 rentable square feet within the Premises, the dimensions of which shall be agreed upon by Landlord and Tenant upon approval of the Plans (as defined in Exhibit C), and Tenant shall pay Rent only with respect to such initial space as finally measured at the per square foot rates stated in Article I. Tenant shall pay Rent on the remainder of the Premises upon the earlier of (i) the date that Tenant occupies any portion of the remainder of the Premises, or (ii) the first (1st) anniversary of the Commencement Date.

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