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Exhibit
10.4
AdBel, LTD.
Office/Warehouse Lease
Agreement
THIS LEASE, made and entered into this
28 th day of March 2005 by, and between A
dB el, Ltd. , a North Carolina corporation, of
Mecklenburg county, North Carolina (hereinafter called
“Lessor”), and PokerTek, Inc. 1020 Crews Road Suite J
Matthews, NC 28105 (hereinafter called
“Lessee”).
WITNESSETH:
1. Premises: The Lessor hereby
leases unto the Lessee, and the Lessee hereby leases from the
Lessor, upon the terms and conditions hereinafter set forth, the
following described leased space: Approximately 10,800 square feet
of office space, located at 1150 Crews Road Suite A, Matthews, NC
28105.
2. Acceptance of Premises: Lessor
has made no representations or promises with respect to the
building, leased premises or this agreement except as set forth
herein.
3. Term: The term of this lease
shall begin on, May 1st 2005 and shall end at 12:00 Midnight April
30th 2010. Provided, however, that if the building in which the
leased space is located is not completed and ready for occupancy on
the initial term date, Lessee agrees to pay a proportionate part of
the monthly rental herein provided for that month as described in
the Lease Summary and Proposal Agreement.
4. Surrender of the Premises: The
Lessee shall keep the premises in good order and repair, except the
portions thereof to be repaired by the Lessor as provided herein,
and upon the expiration or other termination of this lease quit and
surrender the premises to the Lessor in the same condition as at
the commencement of the term, natural wear and tear only
excepted.
5. Rent and Deposit: The Lessee
shall pay the Lessor at the Lessor’s office or at such other
place as the Lessor may from time to time designate in writing the
sum of $8,500 per month, in advance, on the first day of each month
during the term of this lease except that the payment for the first
month of leasing shall be paid simultaneously with the execution of
this lease by the Lessee. A deposit of ($1,450) shall be paid by
the Lessee upon execution of this lease. The deposit shall be
returned at the end of the lease provided that the premises have
been kept in good order and repair in the same condition as at the
commencement of the term, natural wear and tear only accepted. Both
parties agree that as of Term the Lessee shall pay $1,416 per month
for 3,600 S.F. of office space in the Premises until the upfit
construction is completed as described in the the Lease Summary and
Proposal Agreement.
6. Option to Extend: Lessee shall
have the first right of refusal to extend this Lease for one (1)
additional term of five years, provided that Lessee is not in
default hereunder. The option to extend this Lease for an
additional term shall be exercised by the Lessee giving written
notice to Lessor of the intent to exercise the option at least
ninety (90) days prior to the end of the initial term hereof. The
annual rental amount during any such extension of this Lease shall
be as agreed upon by Lessor and Lessee. Any extension of this Lease
shall be upon the same terms and provisions as are set forth
herein.
7. Real Estate Taxes: Lessee
agrees to pay to Lessor any and all increases in real estate taxes
levied against the property of which the premises are a part by
Mecklenburg County, the Town of Matthews, or any governmental
authority over and above the amount of taxes for the first full
year of the lease or the first year in which the premises are taxed
at their completed value, whichever is later; provided, however,
that Lessee shall not be responsible for increases in taxes
resulting solely from new construction or other improvements to the
property of which the demised premises are not a part. The
proportion of the total increase against the property to be paid by
the Lessee shall be in the same proportion as the total value of
the demised premises bears to the total value of the property
against which the taxes are assessed.
8. Alterations: The Lessee shall
make no alterations, additions or improvements to the premises
without the written consent of the Lessor. Any such alterations,
additions, or improvements which may be made to the premises,
except movable furniture, shall become the property of the Lessor
and remain upon and be surrendered with the premises as a part
thereof at the termination of this lease without disturbance or
injury.
9. Utility Services: During the
term of this Lease, Lessee shall provide and pay for all power,
gas, lights, heat, water, air conditioning, sewer and all other
utility charges for utilities used by the Lessee in connection with
its occupancy of the Demised Premises. If any utility charges are
not paid when due and if Lessor is required to pay same, any such
charges will be added to the next month’s rental due from
Lessee and shall be considered additional rent due from Lessee to
Lessor.
10. Repairs and Maintenance:
During the term of this Lease, Lessor, at its expense, shall be
responsible for maintaining and keeping in good repair the exterior
and structural parts of the building and the paved parking areas
and driveway on the Leased Premises. Lessor will also provide
landscaping for the Leased Premises and will maintain in good
repair the lawn and all landscaped areas of the Leased Premises.
Lessor will make or cause any necessary repairs or maintenance to
be made or performed as soon as is reasonably possible after having
been notified by Lessee that such repairs or maintenance are
necessary, unless the need for such repairs or maintenance are a
result of Lessee’s negligence in which case, the repairs or
maintenance shall be Lessee’s obligation and
responsibility.
During the term of this Lease, Lessee,
at its expense, will maintain and keep in good repair the interior
of the Leased Premises including, but not limited to, all
equipment, air conditioning, heating, plumbing, and electrical
equipment and machinery on or in the Leased Premises. Lessee
further agrees to enter into and maintain in effect during the term
of this Lease a service and maintenance contract with a licensed
HVAC contractor acceptable to Lessor providing for periodic
inspection, maintenance and service of the heating and air
conditioning equipment in the Leased Premises. Upon request by
Lessor, Lessee agrees to furnish to Lessor a copy of its service
and maintenance contract for the HVAC equipment.
Lessee further agrees to keep the
exterior of the Leased Premises as well as the parking and driveway
areas in a neat and orderly manner, free and clear of all trash and
debris. Lessee shall also be responsible for providing any trash or
waste receptacles and for the regular removal and disposal of any
such trash or waste. Provided, however, that Lessee shall not be
responsible for any repairs and shall not be required to reimburse
Lessor for or pay the cost of repairs to the Leased Premises or any
part thereof or to fixtures of the building occasioned by or
resulting from fire, other casualties or acts of God.
Subject to the respective obligations of
the Lessor and the Lessee to repair and maintain the Leased
Premises and improvements located thereon as herein expressly
provided, Lessee will deliver up the Leased Premises at the
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