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WAREHOUSE AND OFFICE LEASE
THIS WAREHOUSE AND OFFICE LEASE (“Lease”), made as of this day of June, 2003 is by and between Georgia Anne Snyder-Falkinham (“Lessor”) and Luna Innovations, Inc. (“Lessee”), (collectively, “the Parties”).
1. Demised Premises . In consideration of the rents and covenants herein set forth, Lessor does hereby lease to Lessee and Lessee hereby leases from Lessor the warehouse and office building (containing approximately 14,700 sq. ft.) at 2851 Commerce Street, S.E., Blacksburg, Virginia, for the period of time(s) and upon the terms and conditions hereinafter set forth.
2. Commencement And Term . The term of this Lease shall commence on the first day of July, 2003, and terminate at midnight on June 30, 2006 (“Term”), unless renewed as provided for hereinafter.
3. Rental . Lessee hereby covenants and agrees to pay Lessor as rental for the Leased Premises, which amount shall be payable without deduction, offset, notice, or demand, ONE HUNDRED FORTY-SEVEN THOUSAND AND NO/100 DOLLARS ($147,000.00) each year during the Term of this Lease, with monthly payments of TWELVE THOUSAND TWO HUNDRED FIFTY AND NO/100 DOLLARS ($12,250.00) being due and payable in advance on the first day of each month. Payments are to be made to Lessor at 500 South Main Street, Blacksburg, Virginia 24060. As additional rent, Lessee shall be responsible for all janitorial services, water, sewage, and garbage pickup related to the Leased Premises. Further, Lessee shall pay as additional rent all charges for electricity and natural gas related to the Leased Premises.
4. Renewal . Lessee shall have the right and option to renew this Lease for an additional period of THREE (3) years, immediately subsequent to the original Term of this Lease, at a rental rate to be negotiated between the parties in good faith, based upon the economic circumstances and the market conditions then existing. Notice of the exercise of the renewal option shall be given no less than NINETY (90) days prior to the expiration of the original Term of this Lease.
5. Late Payment . Lessee hereby covenants and agrees to pay Lessor or agent thereof a late charge of TEN PERCENT (10%) of the amount of any installment of rent or any other sum due Lessor for each late payment when any installment of rent or any other sum due Lessor under the terms of this Lease is paid more than TEN (10) days after the due date thereof.
6. Use of Leased Premises . Lessee shall use and occupy the Leased Premises, subject to the terms and condition hereof, for the operation of a fiber optic sensing business and for such other uses as may be customary and incidental thereto.
7. Utilities and Taxes . The Lessee shall pay promptly all business and personal property taxes, licenses, and bills for utilities (including telephone) related to the warehouse and office space at 2851 Commerce Street. Lessor shall pay all real estate taxes related to the Leased Premises.
8. Maintenance and Repairs . Lessor at her sole expense, within a reasonable time after being notified in writing by Lessee of the need therefor, shall be responsible for the following: structural repairs to the building; repairs to the roof, gutters, and downspouts; painting of the exterior of the building; maintenance of the yard, hard surfaced areas, and exterior lighting; as well as repairs to the plumbing, electrical, and HVAC equipment installed by the Lessor; unless the need for such repairs/maintenance is occasioned by the negligent or willful act of Lessee, its agents, employees, or invitees, in which event such repairs shall be charged to Lessee. All modifications installed by the Lessee shall be the sole responsibility of the Lessee to repair and maintain.
The Lessee at its sole expense shall provide all other maintenance and make repairs, including repairs and replacements to the interior finishes necessary to keep the Leased Premises, building and improvements, and equipment in good order and repair. Lessee shall be responsible for keeping the interior of the building neat and attractive. Snow removal from parking lots and sidewalks shall be the responsibility of the Lessee. Lessee will, at the expiration of the original Term of this Lease or any renewal thereof, deliver up the Leased Premises in as good order and condition as received, excepting reasonable wear and tear and damage by fire or other casualty of the kind insured against in standard policies of fire insurance with extended coverage.
Except as provided herein, Lessor shall not be under any obligation to make other repairs to the Leased Premises. Lessor shall not be chargeable with any liability by reason of negligence or otherwise for not making repairs to the Leased Premises and shall not be liable for any damages (or for any reason whatsoever in connection with the Leased Premises whether caused by the use of the Leased Premises, water, electricity, heating equipment, or by theft or otherwise) to personal property that the Lessee or assigns or any other person may sustain on or about the Leased Premises. Lessee shall not be entitled to any reduction in rent, or any claim for damages, by reason of any inconvenience, annoyance, injury to business, or loss of natural light or ventilation arising from any repairs, alternations, or replacements made by Lessor pursuant to this Section.
9. Insurance and Damage to Leased Premises . (a) The Lessee shall insure at its own expense its property, improvements, inventory, and contents against loss or damage by fire or other hazards. (b) If the building of which the Leased Premises are a part shall be damaged by fire, the elements, or the casualty, but is not thereby rendered untenantable in whole or in part, Lessor shall promptly, at her own expense, cause such damage to be repaired, and the rent shall not be abated. If by reason of such occurrence the Leased Premises shall be rendered untenantable only in part, Lessor shall promptly, at her own expense, cause the damage to be repaired and fixed, and the rent shall be abated proportionately to the portion of the Leased Premises rendered untenantable for such time as may elapse until the whole space is again tenantable. If by reason of such occurrence the Leased Premises shall be rendered wholly untenantable, Lessor shall promptly, at her own expense, cause such damage to be repaired, and the rent shall be abated in whole until the Leased Premises are restored, unless within SIXTY (60) days after such occurrence Lessor shall give Lessee written notice that she has elected not to reconstruct the destroyed premises. In which event, this Lease and the tenancy hereby created shall cease as of the day of said occurrence. In no event shall Lessor be responsible for any r