LEGAL APPROVAL
LEASE AGREEMENT
THIS LEASE (the "Lease") made as of the 13th" day of January,
1995, by OUTPATIENT PROPERTIES, INC., as Landlord (herein called
"Landlord"), and THE OUTPATIENT CENTER OF BOYNTON BEACH, LTD., as
Lessee (herein called "Tenant").
ARTICLE I
PREMISES, TERM, AND RENT
Section 1.01 Leased Premises.
( a) Landlord leases to Tenant, and Tenant rents from
Landlord, that certain vacant lot located at the Southwest quadrant
of South Seacrest Boulevard and Southwest 23rd Avenue (Golf Road),
Boynton Beach, Florida more fully described in Exhibit · A. attached
he:ceto (the "Premises").
(b) The use and occupation by Tenant of the Premises shall be
exclusively for the purpose of providing parking for the employees,
agents, business invitees and licensees of Tenants subject to the
provisions concerning such use as specified in this Lease.
Section 1.02 Length of Term.
(a) The initial term of this Lease shall be ten (10) years,
beginning on February 10, 1995, subject to earlier termination upon
defaul t. Provided that Tenant shall not then be in default
hereunder, Tenant shall have the right to renew this Lease for an
additional period of five (5) years upon written notice to Landlord
at least ninety (90) days prior to expiration of the initial term.
All terms shall remain the same for the renewal term, except that
the base rental shall be increased to reflect the change in the
Consumer Price Index - All Items (1967 = 100) from the date hereof
to the first day of the month preceding the renewal date.
(b) Upon termination of
peacefully vacate the Premises.
Tenant shall base rent equal
theretofore in effect.
this Agreement, Tenant shall
Upon any holding over by Tenant,
to two ( 2 ) times the base rent
Section 1.03 Rent; Additional Rent.
(a) Rent shall be payable by the Tenant on the first day of
each month in advance, without any prior demand therefor, and
without any deduction, holdback or set-off whatsoever. The base
rental for the initial three (3) months of the term shall be Two
Thousand Seven and 86/100ths Dollars ($2,007.76) per month plus
sales tax, and for the balance of the initial term shall be-Five
Thousand Eight Hundred Eighteen and 19/100ths Dollars ($5,818.19)
per month plus sales tax, in all cases exclusive of all utilities,
other taxes, insurance and other pass through type expenses. This
Lease shall be absolutely net to Landlord.
(b) Tenant shall be responsible for all taxes, insurance,
maintenance, repairs, assessments, fees, charges and expenses of
every kind imposed upon, with respect to or attributable to the
Premises or this Lease, free of any set-offs, deductions or claims
by Tenant, such that this Lease shall be absolutely net to
Landlord. All such sums, and sales taxes thereon, shall be treated
as additional rent due Landlord, and shall be paid to Landlord
immediately upon invoice therefor or directly by Tenant with
evidence of payment to be furnished promptly to Landlord.
ARTICLE II
CONDUCT OF BUSINESS BY Tenant
Section 2.01 Use of Premises
Tenant shall use the Premises solely and for the exclusive
purpose of providing parking for its outpatient surgery center
business located at 2351 South Seacrest Boulevard, Boynton Beach,
Florida. Tenant shall not use the Premises for any other business
or purpose, nor allow use of the Premises by any other person.
Section 2.02 Relationship of Parties.
The Landlord and Tenant hereby acknowledge that each is
conducting a separate business. The relationship between the
parties shall not, in any manner, be construed as a partnership or
joint venture. Employees of the Landlord shall not be deemed to be
employees of the Tenant. Employees of the Tenant shall not be
deemed to be employees of the Landlord.
ARTICLE III
Tenant OBLIGATIONS
Section 3.01 Real Estate Taxes.
Tenant shall pay to Landlord, as additional rent, all real
estate taxes assessed against the Premises with respect to all
periods covered by the term of this Lease. Landlord shall estimate
the amount of real estate taxes and Tenant shall pay one-twelfth
(1/12) thereof. monthly in advance, together with each monthly
payment of rent. After the end of each calendar year, based upon
the valuations assigned by the Pa~ Beach County Tax Collector's
Office, there shall be an adjustment between Landlord and Tenant,
with payment to or repayment by Landlord, as the case may require
to the end that Landlord shall receive the actual amount of taxes
due for such period (plus sales taxes thereon). In no event shall
interest be credi ted on or charged against any overpayment or
deficiency, as the case may be.
2
Section 3.02 Other Taxes.
The Tenant agrees that during the term of this Lease or any
extension thereof, it will pay to the public officers charged with
the collection thereof, any "use" or "sales" tax that might be
imposed by any governmental body against either the Landlord or the
Tenant by reason of the occupancy of the demised Premises and
payment of rental therefor by the Tenant; and Tenant further
covenants and agrees to pay such tax or taxes prior to the ;same
becoming delinquent and to furnish unto Landlord evidence of such
payment. In the event Tenant should fail to pay such use or sales
taxes, then the Landlord, at its sole option, may pay said tax or
taxes and the amount so paid by Landlord shall be added to and
become additional rental to be paid by Tenant unto Landlord. Tenant
shall have the option of paying any such use or sales tax directly
to the governmental body assessing the same or to the Landlord. In
the event the same are paid to the Landlord, it shall be Landlord's
obligation to pay the same to such governmental body.
Section 3.03 Maintenance.
Upon execution and delivery hereof, the Tenant shall
henceforth during the term of this Lease be responsible for all
maintenance of the Premises. Tenant will also pay all water service
and sewer charges, lawn and garden service, paving and parking lot
striping, exterior lighting, and all other required maintenance.
Tenant shall also be responsible for any signs, mail boxes,
exterior identification, etc., that has been installed on the
Premises on Tenant's behalf.
Section 3.04 Alteration to the Premises.
Tenant shall not make any al teration or addi tion to the
Premises other than the construction and maintenance of appropriate
parking facilities, without first obtaining the express prior
written consent of Landlord. Upon expiration and termination of
this Lease, all installations, fixtures, improvements and
alterations, whether existing at the Commencement Date or made or
installed by Tenant, shall remain a part of the Premises as the
property of Landlord.
Section 3.05 Liens.
Tenant agrees that it will make full and prompt payment of all
sums necessary to pay for the cost of repairs, alterations,
improvements, changes or other work done by Tenant to the Premises
and further agrees to indemnify and hold harmless Landlord from and
against any and all such costs and liabilities incurred by Tenant,
and against any and all mechanic's, materialman'S or laborer's
liens arising out of or from such work or the cost thereof which
may be asserted, claimed or charged against the Premises.
Notwithstanding anything to the contrary in this lease, the
interest of Landlord in the Premises shall not be subject to
mechanic's, materialman's or laborer's liens for improvements<made
by or for Tenant, whether or not the same shall be made or done in
3
accordance with an agreement between Landlord and Tenant, and this
Lease specifically prohibits the subjecting of Lan~lord's interest
to any such liens. All persons dealing with Tenant are hereby
placed on notice of this provision. In the event any notice or
claim of lien shall be asserted of record against the interest of
Landlord in the Premises on account of or growing out of any
improvement or work done by or for Tenant, or any person claiming
by, through or under Tenant, or for improvements or work, the cost
of which is the responsibility of Tenant, Tenant agrees to ~ave
such notice of claim of lien canceled and discharged of record as
a claim against the interest of Landlord in the Premises (either by
payment or bond as permitted by law) within ten (10) days after
notice to Tenant by Landlord, and in the event Tenant shall fail to
do so, Tenant shall be considered in default under this Lease.
Section 3.06 Mortgage Subordination and Non-disturbance; Estoppel.
All rights and interests of Tenant hereunder are and shall be
and remain subj ect, subordinate and inferior to all mortgages,
heretofore or hereafter given and encumbering the Premises, or any
part thereof, and shall likewise be subordinate and inferior to all
renewals, modifications, consolidations, replacements and
extensions of any such mortgage, and the right of the holder of any
such mortgage shall at all times be and remain prior and superior
to all rights and interest of Tenant. This provision shall operate
as a subordination agreement with respect to all such mortgages and
all renewals, modifications, consolidations, replacements and
extensions thereof. Nevertheless, if the holder of any such
mortgage or any person, firm or corporation agreeing to make a loan
secured by a mortgage on the Premises, shall require confirmation
of any subordination for which provision is herein made or a
separate subordination agreement with respect to any mortgage
transaction, Tenant shall execute such confirmation or
subordination agreement in the form required by such mortgage
holder or other person or corporation agreeing to make a loan
secured by a mortgage on the Premises, and the execution of the
same shall not diminish or affect the liability of Tenant hereunder
or of any other party responsible for or guaranteeing the
obligations of Tenant under this Lease. Provided, however, that if
this Lease is in full force and effact, the right of " possession of
Tenant to the Premises and Tenant's rights arising out of this
Lease shall not be affected or disturbed by the rights of the
mortgagee in the exercise of any rights under the Mortgage or note
secured thereby, nor shall Tenant by named as a party defendant to
any foreclosure to the lien of mortgage. In the event that the
mortgagee, or any person, acquires title to the Leased Premises
pursuant to the exercise of any remedy provided for in the
mortgage, this Lease shall not be terminated or affected by said
foreclosure or sale, or any such proceeding, and the mortgagee
shall agree that any sale of the Leased Premises pursuant to the
exercise of any rights and remedies under the mortgage, or
otherwise, shall be made subject to this Lease and the rights of
Tenant hereunder. Tenant agrees to attorn to the mortgagee or such
person as its new Landlord and the Lease shall continue in full
force and effect as a direct Lease between Tenant and mortgagee or
4
such other person, upon all the terms, covenants and agreements set
forth in this Lease. Within five (5) days after request therefore
by Landlord, or in the event that upon any sale, assignment or
hypothecation of the Leased Premises by Landlord an estoppel
certificate shall be required from Tenant, the Tenant agrees to
deliver, in recordable form, an estoppel certificate to any
proposed mortgagee or purchaser or to the owner certifying (if such
be the case) that this Lease is in full force and effect and that
there are no defenses or offsets thereon or stating those claimed
by Tenant.
Section 3.07 Condemnation.
Landlord and Tenant agree to share the proceeds, as their
respecti ve interest may appear, from all damages accruing on
account of any taking or condemnation of any part of the Premises,
or by reason of any act of any public or quasi-public authority for
which damages are payable, but only after payment in full of any
mortgage or other lien upon the Premises. Tenant agrees to execute
such instruments of assignment as may be required by Landlord, to
join with Landlord, and to turn over to Landlord any such damages
that may be recovered in any such proceeding.
Section 3.08 Compliance with Laws.
Tenant shall at all times comply with all applicable laws and
regulations pertaining to use and occupation of the Premises.
Section 3.09 Insurance
Tenant agrees to maintain general liability insurance on the
Premises in a total amount of Five Hundred Thousand Dollars
($500,000.00) (which may be provided by umbrella coverage), with
Landlord named as co-insured with proceeds payable to Tenant and
Landlord as their respective interests may appear.
ARTICLE IV
DEFAULT OF Tenant
Section 4.01 Events of Detault.
In the event Tenant should fail to pay rent or any other sums
required to be paid hereunder within five (5) days after the same
becomes due, or in the event of Tenant's failure or refusal to
comply with any non-monetary covenant or obligation herein within
thirty (30) days after written notice from Landlord specifying the
nature of such failure or refusal, (any of the foregoing being an
"Event of Default"), the Landlord shall have any and all rights and
remedies hereinafter set forth.
5
Section 4.02 Remedies of Landlord.
(a) If any Event of Default occurs, the Landlord shall have
the right, at the option of Landlord, to terminate this Lease upon
three (3) days written notice to Tenant, and to thereupon re-enter
and take possession of the Leased Premises.
(b) If any Event of Default.occurs; the Landlord, in addition
to other rights and remedies it may have, shall have the right to
declare this Lease in default and accelerate all rents and
additional rents for the entire remaining term immediately due and
payable without regard to whether possession of the Premises shall
have been surrendered to or taken by Landlord.
(c) No re-entry on taking possession by Landlord shall be
construed as an election to terminate this Lease unless a written
notice to such effect is given to Tenant. Any re-entry shall be
allowed by Tenant without hinderance, and Landlord shall not be
liable for any claimed trespass or forcible entry.
(d) Any and all rights, remedies and options given in this
Lease to Landlord shall be cumulative and in addi tion to and
without waiver of, or in derogation of, any right or remedy given
to it under any law now or hereafter in effect.
Section 4.03 Legal Expenses.
In the event that it shall become necessary for either party
to employ the services of an attorney to interpret or enforce any
of its rights under this Lease or to collect any sums due to it
under this Lease or to remedy the breach of any covenant of this
Lease on the part of the other party to be kept or performed,
regardless of whether suit be brought, the losing party shall pay
to the prevailing party such reasonable fee as shall be charged by
the prevailing party's attorney for such services at the trial and
appellate level.
ARTICLE V
MISCELLANEOUS
Section 5.01 Sale of Premises.
In the event that Landlord during the term of this Lease
proposes to enter into an agreement wi th any third party to
purchase the Premises, Landlord hereby grants to Tenant a right of
first refusal pursuant to which Tenant may purchase the Premises
upon the same terms and conditions as are offered by the third
party. In the event Landlord desires to enter into any such
agreement, Landlord shall first give written notice to Tenant
setting forth the terms of the third party offer to purchase. The
exercise of Tenant's right of first refusal to purchase the
Premises must be in writing and must be received by Landlord within
fifteen (15) days after the receipt of the aforementioned notice.
6
Section 5.02 Entire Agreement.
This Lease constitutes all covenants, promises, agreement,
conditions and understandings between Landlord and Tenant
concerning the Premises, and there are no covenants, promises,
conditions or understandings, either oral or written, between them.
Section 5.02 Radon Gas Notification.
Radon is a naturally occurring radioactive gas that, when it
has accumulated in a building in sufficient quantities, may present
health risks to persons who are exposed to it over time. Levels of
radon that exceed federal and state guidelines have been found in
buildings in Florida. Additional information regarding radon and
radon testing may be obtained from your county public health unit.
IN WITNESS WP~REOF, Landlord and Tenant have executed this
Lease, or have caused the same to be executed as of the day and
year first above written.
Signed, sealed and
delivered in the
presence of, <) Il
~ '~~.e-n.IL-
[Witness Signature]
~~. ~c;molll /)
[Witness Print Name]
///~Qk
[Witness Signature]
tv e. f1JL~
[Witness Print Name]
LANDLORD:
OUTPATIENT PROPERTIES, INC.
a Florida corporation
BY:
~
Its: PreFident
TENANT:
~~~
[ . ness ignature]
~~'F~t/llZ>A.JL)
[Witness Print Name]
~/ '2 Q~
[Witness Signature]
tv: E. ~J..s
[Witness Print Name]
THE OUTPATIENT CENTER OF BOYNTON
BEACH, LTD.
By:
~al
Partner
By:
Outpatient\Lease.Agt
04\12\95
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OUTPATIENT CENTER
PAGE 01
EXHIBIT "A"
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