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HomeMy WebLinkAboutResolutions - 2017.08.23 - 23079MISCELLANEOUS RESOLUTION #17240 August 23, 2017 BY: Phillip Weipert, Chairperson, Planning and Building Committee IN RE: DEPARTMENTS OF FACILITIES MANAGEMENT AND HEALTH AND HUMAN SERVICES — APPROVAL AND ACCEPTANCE OF SUBLEASE AGREEMENT WITH EASTER SEALS MICHIGAN, INC AND OAKLAND COUNTY To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the Women, Infants and Children Supplemental Food Program (WIC) has been leasing space at 615 N Pontiac Trail in Walled Lake from Walled Lake Schools; and WHEREAS the current lease for the WIC office in the Walled Lake Schools building will not be renewed because the Walled Lake School District has decided to close the building; and WHEREAS due to a consistent average monthly caseload of 1,720 women and children, (Ages 0-5) there is a need to continue the delivery of WIC services at another location within the Walled Lake area; and WHEREAS the Oakland County Health Department Administration has determined that the WIC program needs to remain active in the Walled Lake area; and WHEREAS office space has been located in a building at 1010 E. West Maple Road. Easter Seals, Michigan is currently leasing space in this building and has agreed to sublease space to the County for the WIC office; and WHEREAS the County will sublease 380 square feet of office space, with common area use of the waiting room, copier room, kitchen and restrooms; and WHEREAS the County shall pay rent of $916.58 per month or $10,998.96 per year for a gross sublease, and it shall have no obligation for real estate taxes, common area expenses or utilities; and WHEREAS under the sublease agreement the County will also be provided use of one (1) multi-function printer/copier/scanner at a charge of $83.33 per month and two (2) tablets and three (3) laptop computers at a charge of $390.87 per month; and WHEREAS the term of the sublease shall commence on the date that it is fully executed and terminate on July 15, 2020; and WHEREAS the attached business associate agreement between Easter Seals and the County/Health Department is necessary for the Health Department's operations at this location; and WHEREAS the Departments of Health and Human Services, Facilities Management and Corporation Counsel have reviewed and/or prepared all necessary documents related to the attached sublease agreement and business associate agreement and recommend its approval. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and authorizes the attached sublease agreement and business associate agreement between the County of Oakland and Easter Seals Michigan. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby directs its Chairperson or his designee to execute the attached sublease agreement, the business associate agreement, and all other related documents which may be required between the County of Oakland and Easter Seals Michigan. Chairperson, on behalf of the Planning and Building Committee, I move 7e adoption of the foregoing resolution. /Commissioner Philip Weipert, District #8 / Chairperson, Planning and Building Committee PLANNING AND BUILDING COMMITTEE Motion carried unanimously on a roll call vote with Dwyer absent. ADR REVIEW SIGN OFF — Facilities Management RESOLUTION TITLE: Department of Facilities Management - Approval and Acceptance of Sublease Agreement with Easter Seals Michigan, Inc and Oakland County DEPARTMENT CONTACT PERSON: Nan Chenoweth 8-0144 DATE: 7/31/2017 DEPARTMENT REVIEW Department of Management and Budget: Approved w/ Modification - Lynn Sonkiss (8/1/2017) - IN RE: DEPARTMENTS OF FACILITIES MANAGEMENT AND HEALTH AND HUMAN SERVICES — APPROVAL AND ACCEPTANCE OF SUBLEASE AGREEMENT WITH EASTER SEALS MICHIGAN, INC AND OAKLAND COUNTY WHEREAS under the sublease agreement the County will also be provided use of one (1) multi-function printer/copier/scanner at a charge of $83.33 per month and two (2) tablets and three (3) laptop computers at a charge of $390.87 per month; and Department of Human Resources: Approved (No Committee) - Heather Mason (8/1/2107) Corporation Counsel: Approved --Jody Hall (8/1/2017) SUBLEASE AGREEMENT THIS SUBLEASE AGREEMENT ("Sublease") is made by and between Easter Seals-Michigan, Inc. d/b/a Easter Seals Michigan, a Michigan Non-Profit Corporation, 2399 E. Walton Blvd, Auburn Hills, MI 48326 ("Sublessor" or "Tenant"), The County of Oakland, a Michigan Municipal Corporation, 1200 N. Telegraph Road, Waterford, MI 48341 ("Sublessee") and Samara Property Management, L.L.C., a Michigan limited liability company, 40700 Woodard Avenue, Suite 125, Bloomfield, Hills, MI 48034 ("Landlord"). WITNES SETH Sublessor and Landlord executed a Lease Agreement dated July 16, 2014 ("Lease" — Exhibit A) and a First Amendment to Lease Agreement dated May 31, 2017("Amendment" — Exhibit B) (collectively the "Lease" and "Amendment" shall be "Leases") which are attached hereto and incorporated herein by reference. WHEREAS, Sublessor, Sublessee and Landlord knowingly and voluntarily desire to into this Sublease. Now therefore, in consideration of the mutual promises, covenants and agreements hereinafter recited, it is mutually understood and agreed by and between the parties hereto as follows: I. Approval/Incorporation/Subleased Premises/Commencement and Termination Date As required in Section 8.01 of the Lease, Landlord hereby formally approves this Sublease allowing the Sublessor to sublease to Sublessee all of its interest, rights, responsibilities, obligations and payment obligations contained in the Leases to use and occupy the 380 square feet of the Leased Premises depicted on the Floor Plan attached and incorporated hereto as Exhibit C ("Subleased Premises") as though each Provision of the Leases was fully restated herein. Sublessee knowingly, voluntarily and unconditionally accepts and agrees to be bound by all of the same in replacement of the Sublessor with respect to the Subleased Premises except as specifically stated in the Sublease. The Commencement Date for the Sublease shall be the date when the Sublease is fully executed. The Termination Date for the Sublease shall be July 15, 2020 (collectively "Sublease Term"). 2. Rent/Term/Taxes/CAM/Utilities/Insurance: Sublessee shall pay Sublessor $916.58 per month (or $10,998.96 per year) in Rent at Sublessor's address above (unless changed in writing by Sublessor to Sublessee) to sublease the Subleased Premises from Sublessor during the Sublease Term. Rent shall be due and payable on the first day of each calendar month during the Sublease Term from Sublessee to Sublessor. However, if the Sublease shall begin on a day other than the first day of the calendar month, or shall end on a day other than the last day of a calendar month, Rent for such first or last fractional month shall be adjusted to an amount equal to such proportion of the Rent as the number of lease days in such fractional month bears to the total number of days in Page 1 of 3 Final Version such month. Sublessee shall have no obligation for the payment of Real Estate Taxes (Section 2,02 of the Lease), Shared Area Expenses (Section 5.02 of the Lease) or Utilities (Section 7.01 of the Lease) to Sublessor or to Landlord. Sublessee's insurance requirements for the Subleased Premises shall be the same as Sublessor's insurance requirements for the Leased Premises (see Section 6.01 of the Lease) except that the required insurance may be provided via Sublessee's self-insurance. 3. Maintenance and Repair: Sublessee shall not be responsible to perform or pay for any maintenance and repair obligations for the Subleased Premises contained in the Lease. These costs are included in Sublessee's Rent and shall be the responsibility of Sublessor. Sublessee shall have no obligation to make or pay for any repairs, alterations, or modifications to the Subleased Premises as required in Section 15.12 of the Lease; these are the obligations of Sublessor. 4. Painting, Flooring, and Carpeting: Sublessee shall not be responsible to perform or pay for painting, carpeting, or flooring for the Subleased Premises. These costs are included in Sublessee's Rent and shall be the responsibility of Sublessor. 5. Garbage and Trash and Custodial Services: Sublessor shall provide for garbage and trash services and receptacles for such at the Subleased Premises at no cost to Sublessee. Sublessor shall provide for custodial services for the Subleased Premises at no cost to Sublessee. 6. Indemnification: Because Sublessee is a governmental entity, it cannot indemnify third parties. Thus, Sublessee cannot indemnify and hold harmless Landlord and Sublessor and the first sentence of Section 6.03 of the Lease does not apply to Sublessee, 7. Security Deposit: Sublessee shall not provide a security deposit to Sublessor or to Landlord as part of this Sublease. 8. Signs: To the extent Sublessee desires to affix a sign on or in the Subleased Premises, Sublessee must comply with all terms and conditions of Signs and Advertising contained in Section 4.04 of the Lease. 9. Brokers: There are no brokers involved in this Sublease. 10, Parking: Sublessee shall have, at a minimum, 12 of Sublessor's common parking spots at the Building. Additional parking for Sublessee may be agreed upon by Sublessee, Sublessor and Landlord in writing. 11. No Right of First Refusal/No Option: Sublessee shall have no Right of First Refusal (Section 15.10 of the Lease) and no Option (Section 15.09 of the Lease). 12. As-Is: Sublessee accepts the Subleased Premises in their current and as-is condition with no obligation of Sublessor or Landlord to make any alternation, addition or improvement to the Subleased Premises. Page 2 of 3 Final Version 13. Use/Equipment/Furniture: Sublessee shall use the Subleased Premises for general office use and to perform other governmental functions of Sublessee. Sublessor shall provide Sublessee with a mutually agreeable number of desks, chairs and desk-top telephones at no expense to Sublessee (as selected by Sublessor). Sublessor shall also provide Sublessee with intemet service (as selected by Sublessor) to use in the Subleased Premises during the Sublease Term at no charge or expense to Sublessee. Sublessor shall provide Sublessee with 1 multi-function printer/copier/scanner ("MFPCS") to use in the Subleased Premises during the Sublease Term at a charge of $83.33 per month to be paid directly to Sublessor on the first calendar day of each month. Ink and maintenance/repair to be provided for the MFPCS by Sublessor. Sublessor will lease two (2) tablets and three (3) laptop computers to Sublessee for use in Sublessee's operations at a cost of $390.87 per month to be paid directly to Sublessor on the first calendar day of each month. The laptop computers shall be Dell 5570 with the following specifications: Core i5 processor; Windows 7 Pro (includes Win 10 Pro License); 4 GB Ram; 500 GB hard drive; 15.6 screen; WiFi adapter; Sophos Antivirus software installed and maintained; Office 365 installed and maintained; and Dell Support for three years. The tablets shall have Office 365 installed and maintained. Any maintenance, repair or damage to the computers and/or tablets which occurs during the Sublease that is (i) outside of normal wear and tear and (ii) is not rectified by Dell Support shall be the sole responsibility of Sublessee. The computers and tablets shall remain the property of Sublessor and Sublessee shall return them to Sublessor upon expiration or termination of this Lease in the same or similar condition as the start of the Sublease with normal use and wear and tear excepted. Sublessee shall be required to pay for all other furniture, equipment and supplies needed for its operations. 14. No Assignment or sublease of Sublease: Sublessee shall not, under any circumstances, be permitted to assign or sublease the Sublease. 15. Termination: Sublessor or Sublessee may terminate this Sublease at any time during the Sublease Term, for any reason, with at least ninety (90) days advance written notice to the other party of the Sublease Termination Date, All provisions of the Sublease shall remain in full force until the Sublease Termination Date, SUBLESSOR: Easter Seals-Michigan, Inc. d/b/a Easter Seals Michigan By: Its: Dated: LANDLORD Samara Property Management, L.L.C. By: Its: Dated: SUBLESSEE The County of Oakland By: Its: Dated: Page 3 of 3 Final Version • ..-easterseats • Michigan HIPAA BUSINESS ASSOCIATE AGREEMENT This HIPAA Business Associate Agreement (''Agreement") is executed as of , 2017 between Easter Seals - Michigan, Inc. ("Covered Entity") located at 2399 E. Walton Blvd., Auburn Hills MI 48326 and the County of Oakland ("Business Associate"), located at 1200 North Telegraph Road, Pontiac, Michigan 48341. (Covered Entity and Business Associate collectively the "Parties"). Recitals A. Business Associate is engaged to provide certain services and/or activities ("Services") to Covered Entity under one or more agreements between the Parties ("Underlying Agreement") pursuant to which protected health information ("PHI") of persons served and/or employees may be created, received, used or disclosed. B. In connection with such Services, the Parties agree to protect the confidentiality and security of PHI in accordance with federal and state laws and corresponding regulations including, but not limited to, information protected by the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act (the "H1TECH Act") provisions of the American Recovery and Reinvestment Act of 2009 ("ARRA") and any regulations promulgated there under, as such law and regulations may be amended from time to time (collectively, "HIPAA"). C. Covered Entity and Business Associate wish to comply with H1PAA applicable to the relationship between a Covered Entity and its business associates, and Business Associate agrees that it shall be prohibited from using or disclosing the PHI provided or made available by Covered Entity for any purpose other than as expressly permitted or required by the Underlying Agreement. NOW, THEREFORE, in consideration of the provisions herein and in the Underlying Agreements and reliance thereon, the Parties agree as follows: 1. Definitions. (a) "ARRA" means the American Recovery and Reinvestment Act of 2009. (b) "Breach" has the same meaning as "breach" in Section 13400 of the HITECH Act. Specifically, the acquisition, access, use or disclosure of PHI in a manner not permitted under the Privacy Rules which compromises the security or privacy of the PHI. Notwithstanding the foregoing, the term "Breach" shall not include (i) any unintentional acquisition, access or use of PHI by an employee or individual acting under the authority of Covered Entity or Business Associate if (A) such acquisition, access, or use was made in good faith and within the scope of authority or other professional relationship of such employee or individual, respectively, with Covered Entity and (B) such information does not result in the further use of disclosure in a manner not permitted by the Privacy Rule; (ii) any inadvertent disclosure by an individual who is otherwise authorized to access PHI at a facility operated by a Covered Entity or Business Associate to another similarly situated individual at the same facility and the information received as a result of such disclosure is not further used or disclosed in a manner not permitted by the Privacy Rule; and (iii) a disclosure of PHI where a Covered Entity or Business Associate has a good faith belief that an unauthorized person to whom disclosure is made would not reasonably have been able to retain such information, 11/8/131 (c) "Compliance Date" means the date(s) established by the Secretary or the United States Congress as the effective date(s) of applicability and enforceability of the HIPAA Rules and HITECH standards. (d) "Data Aggregation" has the same meaning as 'data aggregation' in 45 CFR §164.501, and means with respect to protected health information created or received by a business associate in its capacity as the business associate of a covered entity, the combining of such protected health information by the business associate with the protected health information received by the business associate in its capacity as a business associate of another covered entity, to permit data analysis that relate to the health care operation of the respective covered entities. (0) "Designated Record Set" has the some meaning as 'designated record set' in 45 CFR §164.501 and means records maintained by or for a Covered Entity that includes: (a) the medical records and billing records about individuals maintained by or for a health care provider; (b) the enrollment, payment, claims adjudication, and case or medical management record systems maintained by or for a health plan; or (c) used, in whole or in part, by or for Covered Entity to make decisions about individuals. (f) "Electronic Health Record" shall have the same meaning as the term "electronic protected health information" in ARRA, §13400(5), (g) "HHS" means the U.S. Department of Health and Human Services. (h) "HIPAA Rules" means both the Privacy Rule and Security Rule. (I) "HITECH Standards" means the privacy, security and security breach notification provisions applicable to a Business Associate under Subtitle D of the Health Information Technology for Education and Clinical Health Act, which is Title XIII of the American Recovery and Reinvestment Act of 2009, and any regulations promulgated thereunder. 6) "individual" has the same meaning as the term "individual" in 45 CFR §164.501 and includes a person who qualifies as a personal representative in accordance with 45 CFR §164.502(g). (k) "PHI" has the same meaning as the term "protected health information" in 45 CFR §§164.103 and 164.501, limited to the information created or received by Business Associate from or on behalf of Covered Entity. (I) "Privacy Rule" means the Standards for Privacy of Individually Identifiable Health Information at 45 CFR Part 160 and Part 164, Subparts A and E. (m) "Required By Law" has the same meaning as the term "required by law" in 45 CFR §164.501. (n) "Secretary" means the Secretary of the Department of Health and Human Services or his designee. (o) "Security Rule" means the Health Insurance Reform Security Standards, 45 CFR Parts 160, 162 and 164. (p) "Unsecured PHI" has the same meaning as "unsecured protected health information" in Section 13402 of the HITECH Act. 2. Amendment. Each of the Underlying Agreements shall hereby be amended to include the provisions of this Agreement. In the event of an irreconcilable conflict the provisions of this Agreement shall govern. 2 3. Obligations and Activities of Business Associate. (a) Business Associate shall not use or further disclose PHI other than as permitted or required by this Agreement, the Underlying Agreement or as Required By Law. Business Associate may use and disclose PHI that Business Associate obtains or creates only if such use or disclosure, is in compliance with each applicable requirement of 45 CFR §164.504(e). The additional requirements of the HITECH Act that relate to privacy and that are made applicable with respect to Covered Entity shall also be applicable to Business Associate are incorporated into this Agreement. Section 164.504{e)(1)(ii) of CFR Title 45, shall apply to Business Associate in the same manner that such Section applies to a Covered Entity, with respect to compliance with the standards in 45 CFR §§164.502(e) and 164.504(e), except that in applying such Section 164.504(e) (1)(1i) each reference to the Business Associate, with respect to a contract, shall be treated as a reference to the Covered Entity involved in such contract. (b) Business Associate shall use appropriate safeguards, including without limitation administrative, physical, and technical safeguards, to prevent use or disclosure of the PHI other than as provided for by this Agreement and to reasonably and appropriately protect the confidentiality, integrity, and availability of any electronic PHI that it may receive, maintain, or transmit on behalf of the Covered Entity. Sections 164.308 (Administrative Safeguards), 164.310 (Physical Safeguards), 164.312 (Technical Safeguards), and 164.316 (Policies and Procedures and Documentation Requirements) of 45 CFR shall apply to Business Associate in the same manner that such Sections apply to Covered Entity. Business Associate shall secure all PHI by technology standards, including the use of standards developed under the HITECH Act, that PHI is developed or endorsed by a standards developing organization that is accredited by the American National Standards Institute and is consistent with guidance issued by the Secretary specifying the technologies and methodologies, that render PHI unusable, unreadable, or indecipherable to unauthorized (C) Business Associate shall mitigate, to the extent practicable, any harmful effect that is known to Business Associate from use or disclosure of PHI by Business Associate in violation of the requirements of this Agreement. (d) Business Associate shall promptly report to Covered Entity any use or disclosure of the PHI not provided for by this Agreement or any security incident of which it becomes aware involving Unsecured PHI of the Covered Entity within the time specified in Section 13402(d) of the HITECH Act. Following the discovery of a Breach of unsecured PHI, Business Associate shall notify Covered Entity of such Breach promptly after Business Associate has actual knowledge of such use or disclosure. All reports of Breaches of Unsecured Protected Health Information shall be made in compliance with 45 CFR §164.410 and will include the identification of each individual whose unsecured PHI has been, or is reasonably believed to have been accessed, acquired, or disclosed during the Breach. A Breach will be treated as discovered as of the first day that such Breach is known or reasonably should hove been known by Business Associate. (e) Business Associate shall ensure that any agent, including a subcontractor, to whom it provides PHI received from, or created or received by Business Associate on behalf of Covered Entity, agrees to the same restrictions and conditions that apply to Business Associate under this Agreement with respect to PHI. Business Associate shall ensure that any agent, including subcontractor, to whom it provides PHI received from, or created or received by Business Associate on behalf of the Covered Entity, agree in writing to implement the reasonable and appropriate safeguards that are at least as restrictive as those that apply to Business Associate through this Agreement to protect the Covered Entity's PHI. (f) Business Associate shall provide access, at the request of Covered Entity, and in the time and manner designated by Covered Entity, to PHI in a Designated Record Set, to Covered Entity or, as directed by Covered Entity, to an Individual in order to meet the requirements under 45 CFR §164.524. 3 (g) Business Associate shall make available to Covered Entity such information that may be required to fulfill Covered Entity's obligations to respond to a request for access to PHI as provided under 45 CFR §164.524 or to respond to a request to amend PHI pursuant to 45 CFR §164.526 at the request of Covered Entity or an Individual, and in the time and manner designated by Covered Entity. (h) Business Associate shall make available to the Covered Entity, or at the request of the Covered Entity to the Secretary, internal practices, books, and records relating to the use and disclosure of PHI received from, or created or received by Business Associate on behalf of, Covered Entity in a time and manner designated by the Covered Entity or the Secretary, for purposes of the Secretary determining Covered Entity's compliance with the Privacy Rules and Security Rules, including policies and procedures for PHI, relating to the use and disclosure of PHI received from, created, and received by Business Associate on behalf of Covered Entity, (i) Business Associate shall document disclosures of PHI and information related to such disclosures as would be required for Covered Entity to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with 45 CFR §164.528. Business Associate shall refer to Covered Entity all such requests that Business Associate may receive from individuals. (j) Business Associate shall provide to Covered Entity or an Individual, in time and manner designated by Covered Entity, information collected in accordance with Section (3)(i) of this Agreement, to permit Covered Entity to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with 45 CFR §164.528. (k) Business Associate hereby acknowledges and agrees that to the extent it is functioning as a Business Associate of Covered Entity, Business Associate will comply with the applicable provisions under HITECH Standards and with the obligations of a Business Associate as prescribed by the HIPAA Rules commencing on the Compliance Date of each such provision. (I) To the extent Business Associate is acting as a business associate as defined under the HITECH Regulations, Business Associate shall be subject to the penalty provisions specified in Section 13404 of ARRA. 4. Permitted Uses and Disclosures by Business Associate. Except as otherwise limited in this Agreement, Business Associate may use or disclose PHI to perform functions, activities, or services for, or on behalf of, Covered Entity as specified in HIPAA and the Underlying Agreement, provided that such use or disclosure would not violate the Privacy Rule or Security Rue if done by Covered Entity. (a) Except as otherwise limited in this Agreement, Business Associate may use PHI for the proper management and administration of the Business Associate or to carry out the legal responsibilities of the Business Associate. (b) Except as otherwise limited in this Agreement, Business Associate may disclose PHI for the proper management and administration ot the Business Associate, provided that disclosures are required by law, or Business Associate obtains reasonable assurances from the person to whom the information is disclosed that it will remain confidential and used or further disclosed only as Required By Law or for the purpose for which it was disclosed to the person, and the person notifies the Business Associate of any instances of which it is aware in which the confidentiality of the PHI has been breached. (c) Except as otherwise limited in this Agreement, Business Associate may use PHI to provide Data Aggregation services to Covered Entity as permitted by 42 CFR §164.504(e)(2)(i)(B). (d) Business Associate may use PHI to report violations of law to appropriate federal and state authorities, consistent with §164.502(j)(1) and any regulations under ARRA. 4 5. Obligations of the Covered Entity. (a) Covered Entity shall notify Business Associate of any facts or circumstances that affect Business Associate's use or disclosure of PHI. Such facts and circumstances include, but are not limited to: (i) any limitation or change in Covered Entity's Notice of Privacy Practices in accordance with 45 CFR §164.520, (ii) any changes in, or withdrawal of, an authorization provided to Covered Entity by an Individual in accordance with 45 CFR §164.508, to the extent that such limitation may affect Business Associate's use or disclosure of PHI, and (iii) any restriction to the use or disclosure of PHI that Covered Entity has agreed to in accordance with 45 CFR §164.522, to the extent that such restriction may affect Business Associate's use or disclosure of PHI. (b) Covered Entity agrees that it has entered into Business Associate agreements with each third party to whom Covered Entity directs and authorizes Business Associate to disclose PHI. 6. Permissible Requests by the Covered Entity. Covered Entity shall not request Business Associate to use or disclose PHI in any manner that would not be permissible under the HIPAA Rules. 7. Term and Termination, (a) Term. The Term of this Agreement shall be effective as of the date executed by the Parties, and shall terminate when all of the PHI provided by Covered Entity to Business Associate, or created or received by Business Associate on behalf of Covered Entity, is destroyed or returned to Covered Entity, or, if it is infeasible to return or destroy PHI, protections are extended to such information, in accordance with the termination provisions in this Section. (b) Termination for Cause. Upon Covered Entity's knowledge of a material breach by Business Associate, Covered Entity may, in its sole discretion, either: (i) provide Business Associate with an opportunity to cure the breach within a time period specified by the Covered Entity or end the violation and then terminate the Underlying Agreement if Business Associate does not cure the breach within the time period specified by the Covered Entity; (ii) immediately terminate this Agreement and the Underlying Agreements if the Business Associate has breached a material term of this Agreement and cure is not possible; or (iii) if the Business Associate has breached a material term of this Agreement and neither a cure nor termination are feasible, Covered Entity shall report the violation to the Secretary. (c) Effect of Termination. i. Except as provided in Subsection (ii) of this Section, upon termination of this Agreement or the Underlying Agreement for any reason, Business Associate shall return or destroy all PHI received from Covered Entity, or created or received by Business Associate on behalf of Covered Entity. This provision shall apply to PHI that is in the possession of subcontractors or agents of Business Associate. Business Associate shall retain no copies of the PHI. ii. If Business Associate determines that returning or destroying the PHI is not feasible, Business Associate shall provide to Covered Entity notification of the conditions that make return or destruction not feasible. Upon mutual agreement of the Parties that return or destruction of PHI is not feasible; Business Associate shall extend the protections of this Agreement to such PHI and limit further uses and disclosures of such PHI to those purposes that make the return or destruction not feasible, for so long as Business Associate maintains such PHI. iii. Business Associate's obligations under Sections 3 and 4 of this Agreement shall survive the termination of this Agreement with respect to any PHI that remains in possession of Business Associate. 5 8. Miscellaneous. (a) Regulatory References. A reference in this Agreement to a section in the Privacy Rule or Security Rule means the section as in effect or as amended, and for which compliance is required. (b) Agreement. This Agreement, including this subsection, and Underlying Agreements, may be amended, changed or modified only in a written agreement signed by duly authorized representatives of each Party. No full or partial waiver or discharge in regard to this Agreement or Underlying Agreements or any term or condition of this Agreement or Underlying Agreements shall be valid or binding unless embodied in a written document signed by an authorized representative of the Party against which such waiver or change is sought to be enforced. (c) Survival. The respective rights and obligations of Business Associate under Section 4(c) of this Agreement shall survive the termination of this Agreement and/or the Underlying Agreements, as shall the rights of access and inspection of Covered Entity. (d) Interpretation. Any ambiguity in this Agreement shall be resolved in favor of a meaning that permits Covered Entity to comply with HIPAA. (e) Governing Law; Conflict. This Agreement shall be enforced and construed in accordance with the laws of the State of Michigan other than its conflicts of law principles. Jurisdiction of any litigation with respect to this Agreement shall be in Michigan. (f) Effective Date. This Agreement shall become effective as of the date the Underlying Agreement ("Effective Date") and shall remain in effect during the entire period the Underlying Agreement is effective; provided, however, that provisions in this Agreement that are prospectively required by the HITECH Act provisions of HIPAA shall have an effective date as of the effective date in the HITECH Act. This Agreement shall replace and supersede in its entirety any prior Business Associate Agreement(s) between the Parties. COVERED ENTITY: By: Easter Seals Michigan, Inc. Signature: BUSINESS ASSOCIATE: By: Signature: Title: Title: Date: Date: 6 EXHIBIT A LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into as of the date indicated' on the Lease Data Exhibit attached hereto by and between SAMARA PROPERTY MANAGEMENT, LLC, a Michigan limited liability company ("Landlord"), whose address is indicated on the Lease Data Exhibit, and the party identified as "Tenant" on the Lease Data Exhibit, ARTICH I GRANT AND TERM Section 1.01 Leased Premises. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord those premises .located. at 1010 E. West Maple, Walled Lake, Michigan (Property");. which preMises consists of the square feet of around floor' area Specified on the Leased. Data Exhibit ahd more commonly known by the street a et forth in the Lease Data Exhibit ("Leased Premisesiq. The Property is more particularly described in Ekhibit A attached hereto. Landlerd reserves the right to ohange, add to or subtreet from the name, appearance and sire' of the land, buildings or common areas of the Property and its sign so long as the Property complies with the requirements of the local municipality. Section 1.02 Term. The term of this Lease shall be the number of years specified on the Lease Data Exhibit, beginning on the Commencement Date ac. defined in the Lease Data Exhibit. Section 1.03 Maintenance and Construction. Landlord shall keep in good repair the four outer walla and roof of the building in which the Leased Premises are located but TRA the doors, window or related frames or hardware. Tenant shall promptly notify Landlord in writing of any repairs which are the responsibility of the Landlord to perform, Landlord shall not be called upon to take any other repairs of any kind except as provided in Articles V, X and. XI hereof, and in all events Shall not be required to make any repairs occasioned by the act or negligence of Tenant, its agents or eMployeee. It is agreed that except as set forth in the Lease Data Exhibit, the Tenant hereby formally accepts the Leased Premises in an 'as is" condition except as modified in the attached Lease Data Exhibit. Tenant shall not make or cause to be made any alterations, additions, or improvements to. the Leased Premises, or install or cause to be installed any exterior signs, floor covering, interior Or exterior lighting, plumbing. .fixtures, Shades, canopies, or awnings; or make any changes to the front, the mechanical, electrical, or sprinkler systems in the. Leased Tremises without the prior written approval of the Landlord. ARTrCLE TI RENT Section 2.01 Rent. The rent payable by Tenant during the ,term of this Lease shall be as set forth on the Lease Data Exhibit. The rent shall be payable by Tenant in advance in monthly installments in accordance With the schedule on or before the first day, of each month, at the office of Landlord, without any prior demand therefor or without any deductions or setoff whatsoever. The first month's rent Shall be due and payable on or before the Commencement Date. Any and all sums of money or eharges required to be paid by Tenant under this. Lease shall be deemed to .be rent,. and shall be due and payable at the office of Landlord. as provided herein without prior- demand, and without any deductien or setoff whatsoever; section 2.02 Tenant 's Tax Obligation. Tenant agrees to pay- to Landlord ita proportionate sharp of the amount ef all real estate taxes and apeeesments (general. and Special) which may be assessed against the Property or any tax iii substitution therefore ."Real Estate Taxes".) becomipg due. and payable during the term of this Lease. Real Setate Taxes shall be deemed to accrue ratably each month of the year during which such taxes become due and 'payable, Tenant's proportionate share shall be the proportion which the floor area of the Leased Premises bears to the total floor area of the rentable .space of the Property (6,985 of 'useable square footage/15,522 total useable Square footage . 44.74%). Landlord will annually estimate the amount of such Real Estate Taxes and will notify Tenant of its share in writing, which at the Landlord's option, will be paid in advance monthly along with the rent. Laudlord shall adjust' euch estimate annually to reflect: the actual Real Estate Tax, at which time Landlord 'shall .credit Tenant's next EXHIBIT A Real Estate Tax payment with the excess of such estimated payments made over the actual amount or, if appropriate, Tenant shall pay to Landlord together with the next payment of minimum rent the difference between the actual tax amount and such estimate, Section 2.03 Lease Year. The term "Lease Year" as used herein Shall mean each calendar year during the term of this Lease, except that the first Lease Year shall begin on the Commencement Date of this Lease and the last Lease Year shall end on the date this Lease expires or sooner terminates. ARTICLE III SECURITY DEPOSIT Section 3.01 Security Deposit. Tenant shall deposit with Landlord the sum set forth in the Lease Data Exhibit as security for the performance by Tenant of thie Lease. Upon an Event of Default, Landlord may apply or retain the whole or any part of the security in satisfaction of damages incurred. ARTICLE IV CONDUCT OF BUSINESS BY TENANT Section 4.01 Use of Premises. Tenant covenants and agrees to use the Leased Premises only for the operation of the business described in the Lease Data Exhibit and Tenant shall obtain the necessary permits therefor. Tenant shall conduct its business at the Leased Premises under the name set forth on the Lease Data Exhibit. Section 4.02 Care of Premises. Landlord agrees to maintain the heating and cooling mechanical systems (subject to including a maximum portion of the cost of such maintenance and repair as part of the common area charges as set forth in Article v hereof), air conditioning, utility infrastructures that support the Building and any other equipment installed in the Premises in good order, condition and repair and in accordance with applicable ordinances and regulations, all at its sole cost and expense. Tenant agrees to redecorate, paint and replace all carpeting in the Leased Premises as necessary and to maintain and repair the plumbing and electrical systems in relation only to the Leased Premises, If a licensed plumber chosen jointly by Landlord and Tenant finds that that Tenant, its employees or invitees used the plumbing facilities or the adjoining or connecting sewer lines or mains improperly, then the expense of any damage or repair shall be borne by Tenant. Tenant shall not perform any acts or carry on any practices which may disturb other tenants in the Property and shall at all times keep the Leased Premises clean and free from rubbish and dirt and shall store all trash and garbage in the Leased Premises. At Landlord's election, Tenant shall secure and pay for containers for Tenant's garbage and trash. Such container shall be picked up when and located where Landlord may direct. Section 4.03 Right of Entry. Landlord shall have the right to install, maintain, use, repair and replace pipes, ducts, wires and conduits leading through the Leased Premises in locationa which will not materially interfere with Tenant's use. Section 4.04 Signs and Advertising. Tenant may erect sign(s) to be affixed on the North (west half) and West sides of the Building in a size not to exceed fifty percent (50d of the maximum allotment for signage under the Walled Lake sign ordinance. Tenant shall submit its sign design to the Landlord for approval prior to installing the same, which approval shall not be unreasonably withheld. Tenant may also place signage in the Building Lobby entrance area in the south portion of the middle half of the entranceway. ARTICLE V COMMON AREAS Section 5.01 Maintenance and Designation of Common Areas. The term "common areas" shall include, without limitation, all parking areas, access roads, driveways, sidewalks, loading areas, retaining walls, lighting facilities, drainage facilities, pylon signs, equipment storage areas, lobbies, entryways, the heating and cooling system serving the Leased Premises (subject to the limitations set forth in Section 5.02), comfort stations, landscaped and planting areas and other facilities designated from time to time by Landlord as common areas whioh may be provided for the general use of Tenant in common with other tenants of the Property, their customers and invitees or for compliance with the amendment to or enactment of any law, ordinance or regulation. Landlord shall be responsible to reasonably arrange, operate, repair and maintain the common areas in its sole discretion. Tenant's right to use the common areas is subject to such rules and regulations as Landlord may establish from time to time, and Landlord's right to close any of the common areas for repair/maintenance purposes or to utilize portions of the common areas for entertainment, displays, advertising, or for such other uses which in Landlord's judgment tend to attract the public. EXHIBIT A Section 5.02 Tenant's Share of Common Area Expense. Tenant agrees to pay Landlord as additional rent its proportional share of the cost of operating, repairing and maintaining all of the common areas, to Which shall be added an amount equal to ten percent (101) thereof for administrative costs. Such costs shall include all sums expended by Landlord for the operation, repair and maintenance of the common areas, including, without limitation, the cost of: lighting; resurfacing, repainting and restriping pavement and parking areas; cleaning and other janitorial services; maintenance, repair or replacement of the heating and cooling system serving the Leased Premises ("HVAC Repairs"), provided that the maximum amount billed to Tenant for Tenant's share for HVAC Repairs for preventative maintenance in any year during the term of this Lease, as extended, shall not exceed Five Hundred Dollars ($500.00) on a cumulative basis and provided that the maximum amount billed to Tenant for Tenant's share for HVAC Repairs for any form of repair, maintenance and/or replacement outside of preventative maintenance in any year during the term of this Lease, as extended, shall not exceed Five Hundred Dollars ($500.00) on a cumulative basis , providing garbage container and pick-up service; snow removal, planting and relandscaping; drainage (including regular cleaning of the sanitary and storm drains); modifications which may be required by a change in or enaCtment of any law, ordinance or governmental regulation to which the Landlord or Property may be subject; personal property taxes, supplies, periodic decorations and ornamenta; total compensation benefits paid to or on behalf of the employees; and depreciation of equipment acquired for use in connection with the common areas; but shall not include taxes or assessments or any other charge or cost which Tenant is otherwise required to pay herein. Tenant's proportionate share, for purposes of this Section 5.02, shall be the proportion which the total floor area of the Leased Premises bears to the total floor area of the building at the Property (6,988 of useable square footage/15,522 total square footage e 44.74%). Landlord may estimate the cost of common area operation and maintenance and will notify Tenant in writing if there is a change in Landlords' estimate which shall be paid monthly along with the rent. Landlord shall adjust such estimate annually to reflect actual expenses, at which time Landlord shall credit Tenant's next common area maintenance payment with the excess of such estimated payments over the actual expenses or, if appropriate, Tenant shall pay to Landlord, together with the next payment of minimum rent, the difference between the actual expenses and such estimate. ARTICLE VI INSURANCE AND INDEMNIFICATION Section 6.01 Tenant's Insurance Requirements. Tenant shall secure, at its sole cost and expense, comprehensive public liability and property damage insurance with respect to the Leased Premises and the areas adjacent to the Leased Premises with a single combined public liability limit of not less than One Million Dollars ($1,000,000) and with property damage liability limits of not less than One Hundred Thousand Dollars ($100,000). Tenant shall also secure, at it Sole cost and expense, fire and extended coverage insurance covering the Tenant's personal property, fixtures, improvements and alterations located on the Leased Premises. All policies of insurance required to be maintained by Tenant shall name Landlord and any other parties in interest designated by landlord as additional insureds and shall contain a provision that the insurer will not cancel or change the insurance without giving Landlord thirty (30) days , prior written notice. Such policies shall provide that the same will remain in full force and effect with proceeds payable in accordance with their terms notwithstanding any act or negligence of Tenant. Tenant shall furnish to landlord such evidence as Landlord may require that the insurance is in full force and effect and that the premiums therefor have been paid. Section 6.02 Landlord's Insurance. Landlord shall keep in full force and effect (i comprehensive public liability and property damage insurance with respect to the Property with limits of not less than the amounts specified in Section 6.01 hereof; (ii) fire and extended coverage insurance covering the Property and all appurtenances thereto (except Tenant's merchandise, trade fixtures, furnishings, equipment and personal property), together with special extended coverage endorsements commonly known as "all risks" endorsements in an amount equal to the full replacement value, if available, but not less than that required by Landlord's mortgagee, if any, from time to time; and (iii) workmen's compensation insurance, contractors operations insurance, rental insurance and such other coverage deemed necessary by it or its mortgagee, if any. Tenant agrees to pay Landlord as additional rent Tenant's proportionate share of the cost of Landlord's insurance payable in any Lease Year. Tenant's proportionate share shall be the proportion which the total floor area of the Leased Premises bears to the total floor EXHIBIT A area of the rentable space of the buildings in the Property(6,988 of useable square footage/15,522 total square footage = 44.74%). Landlord will estimate the amount of such costs and will notify Tenant of its proportionate share of such estimate, which will be paid monthly in advance along with the rent. Any over or under charges will be adjusted when Landlord becomes aware of the actual insurance expense. Section 6.03 Covenant to Mold Harmless. Tenant covenants to indemnify and hold harmless Landlord from and against all claims and all costs (including reasonable attorneys' fees), expenses and liabilities incurred in connection with all claims, actions or proceedings arising from or as a result Of any negligent act or omission of Tenant or any subtenant, concessionaire or licensee of Tenant or its agents, contractors or employees. it is understood and agreed that all of Tenant's personal property upon or in the Leased Premises shall be kept, stored or maintained at the sole risk of Tenant. Section 6.04 Increased Insurance Hazard. Tenant will not permit any activity to be conducted or good or item to be located or stored in or on the Leased Premises which might in any way tend to increase the insurance rates or invalidate the insurance on the Leased premises and/or the Property. Tenant agrees to pay any increases in premiums for insurance that may be charged and all other costs or damages resulting from the foregoing. Section 6.05 Waiver of Subrogation. Landlord and Tenant hereby release each other and their respective agents and employees from any and all liability to each other or anyone claiming through or under them by way of subrogation or otherwise for any loss or damage to property caused by or resulting from risks insured against under fire or extended coverage casualty insurance carried by the parties hereto and in force at the time of any such loss or damage; provided, however, that this release shall be applicable only with respect to loss or damage occurring during such time as the releasoris policies contain a clause or endersement to the effect that any such release shall not adversely affect or impair such policies or prejudice the right of the releasor to recover thereunder. Landlord and Tenant each agrees that it will request its insurance carriers to include in its policies such a clause or endorsement, and will include such a clause if available. ARTICLE VII UTILITY CHARGES Section 7.01 Utility Charges. Tenant shall pay to Landlord its proportionate share of all utility charges for the Leased Premises including water, sewer, gas, and electricity charges bated on the following proportion - (i) for the first 12 months of the Lease Term, Tenant Shall pay one hundred percent (100%) of the cost of such utilities, and Tenant shall control all the thermostats for the Leased Premises and any vacant space in the Building during such 12 month period; and (ii) after the initial 12 months period, Tenant shall pay its Share of ality charges based on the proportion that the total floor area of the Leased Premises bears to the total floor area of the rentable space of the buildings in the Property (6,988 of useable square footage/15,522 total square footage . 44.74%). The obligation of Tenant to pay for water, sewer, gas and electricity, and heating and air Conditioning, an herein provided, shall commence on the Commencement Date of this Lease, ARTICLE VIII ASSIGNMENT AND SUBLETTING Section 8.01 Assignment. Tenant may assign, mortgage or encumber this Lease or any interest in this Lease or sublet or permit the Leased Premises or any part thereof to be used by others with Landlord's consent which shall not be unreasonably withheld If this Lease is assigned or if the Leased Premises or any part thereof is sublet or occupied by anybody other than Tenant, Landlord may collect rent from the assignee, subtenant or occupant and apply the net amount collected to the rent herein reserved and the same shall not constitute a waiver of this covenant or a release of Tenant from this Lease. The consent by Landlord to an assignment or subletting shall not be construed to relieve Tenant from obtaining the consent in writing of Landlord to any further assignment or subletting. Notwithstanding the foregoing o in this Lease to the contra w the LANDLORD'S consent wri,tsn_not ic..to Landlord, rEN NTttir.2,a1 this _p&portior_lof iPem ses t o i a ergo or a t 't indrettly. TE AtrIterWD Lease or sublet which [111e TENANT or i s under cemeee_gontrole with TENANT. (ii). any suecessore_t_eTENARL_Iw merger, coneolidae_ieffiLear operat'on of law ii an erson o 't horn a 1 or subst nt'all all f T N 'VS EXHIBIT A assets are conysaad,....arlkamany subsidiary of Tenant, successor to Tenant by merger, or an affiliate of Tenant. The term "affiliate of Tenant" as used herein shall mean an entity controlling, controlled by, or under common control with Tenant. Notwithstanding anything herein to the contrary, the Tenant shall not be released from any obligation or liability under the Lease which accrue subsequent to such an assignment or subletting. ARTICLE IX ESTOPPEL STATEMENT, ATTORNMENT AND SUBORDINATION Section 9.01 Estoppel Statement. Within ten (10) days after each request by Landlord, Tenant shall execute in recordable form and deliver to Landlord a written certification that: (i) this Lease is in full force and effect; (ii) the Commencement Date; (iii) rent is paid currently without any offset or defense thereto; (iv) the amount of rent, if any, paid in advance; (v) there are no uncured defaults by Landlord or stating those claimed by Tenant; and (vi) such other information as may be requested by Landlord's mortgagee, prospective purchaser Or other party identified in Section 9.03. Section 9.02 Attornment. Tenant shall, in the event of the sale or assignment of Landlord's interest in the Leased Premises, or in the event of foreclosure or the exercise of the power of sale under any mortgage, or upon delivery of a deed-in-lieu of foreclosure, attorn to the purchaser and recognize such purchaser as the Landlord under this Lease. Such attornment shall be self-operative without the execution or delivery of any further instrument by Tenant; however, no such attornMent shall cause such subsequent Landlord to be liable for any act or omission of Landlord or bind it for any rent or additional rent which Tenant may have paid in advance to Landlord. Section 9.03 Subordination. Tenant hereby agrees that this Lease is and shall be subject and subordinate at all times to any and all present and future ground or underlying leases, leasehold mortgages, mortgages and building loan mortgages affecting Landlord's interest in the Property, provided that such mortgagee agrees that the Tenant's interest hereunder shall not be disturbed so long as Tenant is not in default hereunder. Tenant also covenants and agrees that any mortgagee, overriding or ground lessor may elect at any time to have this Lease prior to its interest in the Property, and in the event of such election and upon notification to Tenant to that effect, this Lease shall thereupon be deemed so prior, whether this Lease is dated prior or subsequent to the date of such other interest. ARTICLE X DESTRUCTION OF LEASED PREMISES Election to Terminate. If the Leased Premises shall be damaged or destroyed in whole or in part by fire or any other casualty or occurrence and insurance proceeds with respect to such casualty or occurrence shall be unavailable to Landlord for repairs or rebuilding, or if more than fifty percent (50%) of the floor area of the building in which the Leased Premises are located shall be damaged or destroyed by fire or any other casualty or occurrence, then Landlord may elect either to repair or rebuild the Leased Premises or to terminate this Lease upon giving notice of such election in writing to Tenant within sixty (60) days after the happening of the event causing the damage, Rent shall be prorated as of the date of any such termination. Section 10.03 Abatement of Rental. If the casualty, repairing or rebuilding of the Leased Premises shall render the Leased Premises untenantable in whole or in part, a proportionate abatement of all charges due under the Lease including, but not limited to, rent, Real Estate Taxed and charges due under Section 5.02 shall be fully abated from the date when the damage occurred until the date Landlord completes the repairs or rebuilding rendering the Leased Premises useable by Tenant for the permitted uses set forth in the Lease Data Exhibit. Said abatement shall be computed on the basis of the ratio of useable floor area of the Leased Premises versus untenable area in the Leased Premises. In the event Landlord elects to terminate this Lease, all charges due under Section 10.01 Reconstruction of Damages Premises. If the Leased Premises shall be damaged or destroyed in whole Or in part by fire or other casualty and unless Landlord shall elect not to rebuild as hereinafter provided, the Leased Premises shall be repaired by Landlord at Landlord's expense, provided that Landlord shall not be obligated to expend an amount in excess of the insurance proceeds made available. If Landlord rebuilds the Leased Premises as provided in this Article X, Tenant shall promptly repair or replace its merchandise, trade fixtures, furnishings, equipment, personal property and leasehold improvements. Section 10.02 EXHIBIT A the Lease including, but not limited to, rent, Real Estate Taxes and charges due under section 5.02 shall be fully abated starting from the date when the damage occurred until the date Landlord terminates this Lease. ARTICLE XI EMINENT DOMAIN Section 11.01 Total Condemnation. In the event that the whole of the Leased Premises is taken in any proceeding by public authorities by condemnation or otherwise, then the term of this Lease shall cease and termieate as of the date of title vesting and all rentals shall be paid up to that date. Whenever there is a reference in this Lease to a taking by public authority, such reference shall be deemed in each case to include a purchase and sale in lieu of such taking. Section 11.02 Partial Condemnation. In the event that more than twenty-five percent (25%) of the floor area of the Leased Premises shall be taken as hereinabove described, then either party shall have the option of terminating this Lease by notifying the other in writing, and upon such notice being given, the condemnation shall be treated as a total condemnation. In the event that more than fifty percent (50%) of the floor area of the building in which the Leased Premises are located is taken, or in the event that any portion of the common areas is taken such that operation of the Property in accordance with applicable governmental laws or regulations or sound business practices is no longer possible, then either party shall have the option of terminating this Lease by notifying the other party in writing, and upon such notice being given the condemnation shall be treated as a total condemnation. In the event that this Lease is not terminated following a taking, then Landlord shall, at its sole cost and expense, restore the remaining portion of the Property to the extent necessary to render the Leased Premises suitable for the purposes for which it was leased, provided that such work shall not exceed the scope of the work originally required of Landlord under Section 1.03 and that the cost thereof shall not exceed the proceeds of its condemnation award. In such event, this Lease shall continue for the balance of its term as to the part of the Leased Premises remaining and the rent to be paid by Tenant after such taking shall be reduced prorate in the proportion which the floor area of the Leased Premises remaining bears to the entire floor area of the Leased Premises prior to such taking. Section 11.03Distribution of Award. Tenant waives all rights or claims incident to a total or partial taking and all compensation awarded or paid upon such taking shall belong to and be the property of Landlord, provided, however, that Tenant shall be entitled to claim and recover from the condemning authority, but not frem Landlord, such compensation as may be separately made to Tenant for depreciation to and cost of removal of its merchandise and trade fixtures unless a payment made to Landlord by the condemning authority includes such compensation intended to be paid to Tenant ARTICLE XII DEFAULT OF TENANT Section 1201. Event of Default. The occurrence of any of the following shall constitute an Event of Default hereunder and entitle Landlord to pursue all remedies allowed hereunder together with those allowed by law: (a) Delinquency in the payment of rent or any other amount payable by Tenant under this Lease for a period of seven (7) days after the due date. (b) Failure to perform or to comply with any of the terms, covenants, conditions or agreements to be performed under this Lease other than those specifically described in this Section 12.01, and failure to rectify or remove said default(s) within thirty (30) days after written notice of same or within the time period which is otherwise applicable, if shorter. (o) Commencement by or against Tenant of a proceeding under the United States Bankruptcy Code and the failure of the trustee to properly assume this Lease or permit this Lease to be deemed rejected or terminated. (d) Filing by or against Tenant or Guarantor of Tenant's obligations hereunder in any court pursuant to any state statute of a petition in bankruptcy or insolvency, or for reorganization or rearrangement, or for the appointment of a receiver or trustee of all or a portion of Tenant's or said Guarantor's property (except when any such proceeding is filed against Tenant or its Guarantor, such party shall have sixty (so) days after commencement to have such proceeding dismissed), or for any assignment of the property of Tenant or its Guarantor for the benefit of creditors. Section 12.02 Remedies. Upon default, and in addition to any other available remedy, the Landlord shall have the right to any or all of the following remedies: (i) to terminate this Leaee or to allow this Lease to survive; (ii) to re-enter and remove EXHIBIT A all persons and property and place such property in storage for the account and cost of Tenant; (iii) to make such alterations and repairs as Landlord deems necessary to enable Landlord to relet the Leased Premises; (iv) to relet the Leased Premises; and (v) to collect rent and all other damages provided herein. In the event of re-entry by Landlord, with or without termination of this Lease, the liability of Tenant for rent and all other charges then or thereafter due shall survive and prepaid rent may be retained by Landlord and applied as provided hereinafter. Tenant shall also be and remain liable for all sums due and damages incurred by reason of any default, including, without limitation, the cost to recover possession of and restore the Leased Premises, reasonable attorneys' fees and the present worth at termination of this Lease of the excess, if any, of the amount of rent and Other charges due hereunder for the remainder of the lease term, over the then reasonable rental value of the Leased Premises for the remainder of the lease term. Upon reletting, all sums received by Landlord shall be applied to the payment of any sum collectible by Landlord hereunder whether then due or coming due thereafter. If sums received from reletting are less than that to be paid by Tenant hereunder, Tenant shall immediately pay such deficiency to Landlord. Any suit brought to collect the deficiency for any month shall not prejudice the right of eandlord to collect the deficiency for any subsequent month by similar proceeding. Landlord shall not be liable for failure to relet or collect rent due upon reletting, and no failure shall relieve or otherwise affect the liability of Tenant. Landlord's pursuit of any one remedy allowed herein shall not be deemed an election of remedies or prevent Landlord from pursuing any other remedy whether concurrently or at a later time. Section 12.03 Laws of the State of Michigan. (a) This Lease shall be governed by and construed in accordance with the laws of the State of Michigan. The unenforceability, invalidity or illegality of any teem or provision of this Lease shall not render any other term or provision unenforceable, invalid or illegal. (b) Any notice, demand, request, consent or other instrument which may be or is required to be given under this Lease shall be in writing and either served personally or sent by United States registered or certified mail., return receipt requested, postage prepaid, and addressed to the address set forth in the Lease Data Exhibit, or at such other place as either party may designate by written notice to the Other. Any writtee notice sent by mail shall be deemed to have been served as of the next regular day for delivery of mail after the date it was mailed in accordance with the foregoing provisions. ARTICLE XIII SURReNDeR OF PREMISES, SUCCESSORS Section 13.02 Surrender of Leased Premises. On or before the expiration or earlier termination of this Lease, Tenant shall surrender to Landlord the Leased Premises and all of Tenant's alterations and fixtures broom clean, in good order and condition (excepting reasonable wear and tear and destruction to the Leased Premises described in Article XII hereof). Tenant may remove only those alterations or improvements to the Leased Premises which are installed by Tenant and which are trade fixtures which may be removed without material damage to the Leased Premises and which, but are not limited to, furniture, storage and display cases, counters shelves and racks. All other alterations and fixtures including, without limitation, those in the nature of ventilating, air- conditioning, plumbing, sprinkling systems, outlets, partitions, doors, paneling, molding and flooring shall be surrendered with the Leased Premises. Tenant shall perform all repairs or restoration made necessary by the removal of any property as allowed by this Section. Section 13.02 Successors. Except as otherwise set forth herein, all rights and liabilities herein shall extend to and bind the several respective successors and assigns of the parties. No rights, however, shall inure to the benefit of any assignee of Tenant unless the assignment to such assignee has been approved by Landlord in writing as provided in Section 0.01 hereof. In the event of any transfer or transfers of Landlord's interest in the premiees, the transferor shall be automatically relieved of any and all obligations and liabielities on the part of Landlord accruing from and after the date of such transfer. Section 13.03 Holding Over. Any holding over after the expiration of the terms shall be construed to be a tenancy from month to month at the rent established from time to time by Landlord in its written notice to Tenant, in no event less than 125% the monthly rent herein specified, and on the terms and conditions herein specified. EXHIBIT A ARTICLE XIV QUIET ENJOYMENT Section 14.01 Landlord's Covenant. Upon payment by Tenant of the rents herein provided and upon the observance and performance of all the covenants, terms and conditions on Tenant's part to be observed and performed, Tenant shall, subject to the terms and conditions of this Lease, peaceably and quietly hold and enjoy the Leased Premises. Landlord shall not be liable to Tenant for any loss or damage that may be occasioned by the acts or omissions of persons or tenants in the Property or any loss or damage resulting to Tenant or his property unless caused by the negligent acts or omissions of Landlord, its agents or employees. Section 14.02 Liability of Landlord. Tenant hereby agrees that Landlord's liability in connection with any Landlord default hereunder shall be limited to the proceeds of sale received upon execution, following judgment, against the Property and out of the rents or other income from such property receivable by Landlord, or out of the consideration received by Landlord from the sale or other disposition of the Property, and Landlord and its agents, employees and any other persons holding interests under or through Landlord shall not be liable for any deficiency. ARTICLE XV MISCELLANEOUS Section 15.01 Taxes on Leasehold. Tenant shall pay before delinquency all taxes, assessments or other charges levied, assessed or charged during the term of this Lease against any leasehold interest or improvements or personal property of any kind regarding the Leased Premises. If any such amounts are levied against Landlord, Tenant, on demand, shall reimburse Landlord for the amount of taxes so levied against Landlord. Section 15.02 Force Majeure. In the event Landlord or Tenant is delayed or prevented from performance of any act required hereunder by reason of strikes, lockouts, labor troubles, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots, insurrection, war or other reason of a like nature not the fault of such party, then the performance of such act shall be excused for the period of the delay. The provisions of this Section 15,02 shall not operate to excuse Tenant from the payment of rent or any other payments when required by the terms of this Lease. Section 15.03 Liens. In the event any mechanic's lien(s) shall be filed against the Leased Premises or Tenant's interest as a result of the work undertaken by Tenant, Tenant shall, within ten (10) days after receipt of notice, discharge such lien(s) by payment of the indebtedness or by filing a bond (as provided by statute) as security therefor, Section 25.04 Late Charges and Interest on Late Payments. If any amount due from Tenant is not received by Landlord within seven (7) days of when due, Tenant shall pay to Landlord an additional sum equal to five percent (5%) of such overdue amount as a late charge. In addition, any such amount which is not received by Landlord within seven (7) days of when due shall bear intereat at ten percent (10%) per annum (or such lesser rate equal to the maximum interest rate then permitted by law) from the date due until received. Section 15.05 Waiver. The failure of Landlord to enforce its available rights and remedies shall not be construed as a modification of this Lease or as a waiver of Landlord's available rights or remedies. No waiver by Landlord shall be effective unless in a writing executed by Landlord. Section 15.06 Real Estate Brokers. It is agreed that neither party has had any dealings with any real estate broker or finder with respect to this Lease except the broker indicated on the Lease Data Exhibit, whose commissions or fees, if any, shall be payable by the party indicated on the Lease Data Exhibit. Except for such broker, each party hereto shall indemnify and hold the other party harmless from all damages which may be asserted against the other party by any broker or finder with whom the other party has dealt. Section 15.07 Tenant and Employee Parking. Landlord represents to Tenant and its concessionaires, agents and employees that at all times during the Term of this Lease there will be a minimum of seventy (70) common parking spots, and shall be available at the Building, including 4 handicap parking spots. Landlord may modify this parking representation as long as it meets municipal code or approval. Section 15.08 Interpretation. This Lease and the Exhibits and Eider, if any, attached set forth all the covenants, promises, agreements, conditions and understandings between Landlord and Tenant. No amendment or addition to this Lease shall be binding unless in writing and signed by each party. Nothing contained herein shall be deemed to create the relationship of principal and agent or of partnership or joint venture between EXHIBIT A the parties. Nothing contained herein shall be construed to limit the right of Landlord to rent any portion of the Property not covered by this Lease upon any terms or conditions whatever, and for any use or purpose Landlord desires, or to grant privileges or immunities to other lessees not granted to Tenant. Neither the delivery of this Lease, its negotiation, nor the acceptance by Landlord or its broker of a deposit constitutes an offer to lease or a reservation of or option for the Leased Premises, and this Lease becomes effective as a lease only upon execution and delivery thereof by Landlord and Tenant. Whenever herein the singular number is used, the same shall include the plural; and words of either gender shall include the other gender, as required. It is expressly agreed that time shall be of the essence of this Agreement. If any language is stricken or deleted from this Lease, such language shall be deemed never to have appeared herein and no other implication shall be drawn therefrom. The table of contents, captions, article numbers and section numbers appearing in this Lease are inserted only as a matter of convenience and in no way define, limit, construe or describe the scope or intent of such articles or sections. Tenant shall not record this Lease. If either party hereto is a partnership, limited partnership, corporation or other joint venture or association, the individual(s) executing this Lease on behalf of such entity warrant and represent that such entity is validly organized and existing and authorized to do business under the laws of the State of Michigan, that the form of entity is as set forth in the Lease Data Exhibit, that the entity has lawful authority to enter into this Lease, and that the execution of this Lease by such individual(s) is binding in accordance with the terms and conditions hereof. If Tenant consists of more than one person or entity, then the obligations imposed on Tenant shall be joint and several. Section 15.09 Option to Renew. At the expiration of the term of this Lease, if immediately prior thereto this Lease shall be in effect and Tenant is not in default at the time, then Tenant shall have and hereby is given the option to renew and extend this Lease for One (1) additional term of Two (2) year ("Renewal Term") Upon the same terms, covenants and conditions as those herein contained, insofar as then in force and applicable to such renewal except as to the amount of the rent as set forth in the Lease Data Exhibit. This Option hall be exercised by Tenant by giving notice in writing to Landlord of its election at least one hundred and twenty (120) days prior to the expiration of the term of this Lease; and upon such notice being given, this Lease shall be deemed to be automatically extended without the necessity of the execution of any further instrument or documents. The monthly rent which Tenant shall pay during the Renewal Term shall be based on the rental rate per square foot as set forth in the Lease Data Exhibit. Special Provieione: 15.10 Right of First Refusal. If the Landlord receives a letter of intent to lease space in the building at a lease rate and teems acceptable to Landlord ("LOT Proposal") covering the contiguous premises in the building identified in Exhibit A that are currently vacant ("Vacant Space"), then Landlord shall notify Tenant in writing that such Vacant Space is subject to being leased to a new tenant ("Availability Notice"). Landlord agrees not to enter into a leaSe for any portion of the Vacant Space for a period of ten (10) days from the date DE the availability Notice. If Tenant wishes to lease the Vacant Space before it is leased to a new tenant, than Tenant must notify the Landlord in writing of its desire to lease such Vacant Space and consummate a leaee agreement with Landlord prior to the expiration of such ten (10) day period for the same amount of space set forth in the LOX Proposal and under the same rate, terms and conditions set forth in the LOI Proposal. If Tenant has not notified the Landlord of Tenant's desire to lease such Vacant Space and enter into such lease agreement as described herein prior to the expiration of such ten (10) day period, then the Tenant shall have deemed to waive all of its rights under this Section 15.10, and the Landlord may proceed to lease or offer to lease the Vacant Space at any time during the remainder of the Term to any third party without any further notices to Tenant or offering of the space to Tenant. The Landlord's obligation to provide Tenant the Availability Notice for the Vacant Space is a one-time obligation which shall be applicable only to the first time that the Vacant Space that is currently vacant space is subject to being rented by Landlord to a new tenant after the Commencement Date, and shall not apply to any subsequent time that the Vacant Premises is available for lease in the future. 15.11 After Hours Utilities. Tenant shall have access to the Leased Premises and the building 7 days a week, 24 hours a day, 365 days a year. If the Tenant shall request to Landlord: SAMARA PROPERTY MANAGEMENT, LLD Its Witnessed: EXHIBIT A provide, electrical, and/or beating and air conditioning to the Leased Premises or the common areas at the Property at hours other then. 1:30 am to 6 pm Monday. through Friday, then. Tenant shall pay to Landlord the cost based on a race, as reasonably determined by Landlord for such utilities, for every such hour requested by Tenant. Such hourly rate shall be .subject to adjUstment annually to compensate the Landlord for increases in its costs in providing electrical, beating and air conditioning to the building or the common areas at the Property. 15.12 ADA .Compliance. The Landlord shall make any repairs, alterations or modifications to the building, excluding the Leased Premises, required by any governmental authority pursuant td any 'law, rule, or .regulation . including any requirements under the Americans With Disabilities Act (ADA), unless the same - results from the Tenant's aet, neglect, default, or business operation, in which event, the Landlord shall make all such repairs, alterations or modifications, at Tenants sole cost and expense. The •Tenant shall, at its sole cost and expense, make any repairs, alterations or modifications to the. Leased Premises required: by any govurnmental authority pursuant to any law, rule, or regulation inclUding any requirements under ADA. 15.13 Counterparts. This Lease may be executed simultaneously or in two or more counterparts,- each of which shall be deemed an original but all of which together shall constitute. one of the same instrOmept. The patties agree that this Lease - may be- transmitted between them electronically or digitally. The parties 'intend that electronically or digitally transmitted signatures constitute original signatures and are binding on the patties.. The original document shall he promptiy deliVered, if requested. IN WITNESS WHEREOF, the parties hereto hereby execute this Lease as of the day and year first above. written. Tonantl Easter Seals-Michigan, Inc. By: EXHIBIT A Effective Date: Landlord: Landlord's Address: Tenant: Tenant's Address: LEASE DATA EXHIBIT July 16, 2014 SAMARA PROPERTY MANAGEMENT, LLC 40700 Woodward Ave, Suite 250 Bloomfield Mills, MI 48304 EASTER SEALS - MICHIGAN, INC. 2399 E. Walton Blvd Auburn Hills, MI 48326 Square Feet of Leased Premises: The area outlined on the diagram attached hereto as Exhibit A consisting of approximately 6,944 useable square feet, and 7630 rentable square feet (including a portion of the common areas within the building allocated to Tenant for the main lobby of the Property and other common areas within the building at the Property). The Building consists of 15,522 useable square feet and 17,056 rentable square feet. Street Address of Leased Premises: 1010 E. West Maple, Walled Lake, MI Commencement Date: July 16, 2014 Term: Three (3) years Renewal Term: One (le option to renew for two (2) years Menthe of Lease Term Renewal Term year 1 Renewal Term year 2 RENT Annual Rent $9.50 per rentable sq. ft, $10.20 per rentable eq. ft. $11.00 per rentable sq. ft. Monthly Rent $6,040.42 $6,485.50 $6,994.17 Security Deposit: $6,040.00 Use of Premises - Only for general office use by Tenant to provide the services offered by Tenant Additional Provisions: 1. Within ninety (90) dayS after the Commencement Date, Tenant shall cOmplete the following improvements to the Leased Premises at it sole cost and expense: A. New paint throughout Leased Premises. B. New carpet throughout Leased Premises, C. New reception and lobby built out. D. Install a demising wall at end of proposed Leased Premises between roars number 130 and 141 on the drawing attached hereto as Exhibit A. E. Install a demising wall at the end of the hallway identified as 178. F. Create a common hallway between 178 and 174. G. Refresh the break room/kitchen (identified 0.0 room #141) with new VCT flooring. H. Ceiling tiles replaced where damaged or stained. In the event that Tenant is unable to complete the items listed in A-H above within such ninety (90) day period for reasons beyond the Tenant's reasonable control, then Tenant Its; Member EXHIBIT A shall notify Landlord in writing Of such delay and the new "reasonable date that such item(s) will be completed thereafter 2. Within. GO days after the Commencement Date, Landlord shall complete the following improvement at Landlord's sole Cost and expense: A. Exterior walk ways. of building are 'free of trip hazards i.e. concrete repaired or replaced where. needed. H. Exterior landscaping is refreshed including all beds. Adjacent to the building and the main entrance island. C. Parking lot repaired to he free from trip hazards i.e deterioration, delamination or adjoining surfaces greater than 1.5 inches and restriped. 0. All exterior lighting is functional including but not limited to wall packs, parking pole lights, (Note: These have been removed), E. Main lobby to building is refreshed with new paint and new flooring i.e. carpet tiles or ceramic tile. In the event that Landlord is unable to complete the items listed in A-E above within such sixty (50) day perlod for reasons beyond the Landlord's reasonable control, then Landlord shall notify Tenant in writing of such delay and the new reasonable date that such item(s) will be completed thereafter. Tenant: EXHIBIT A EIOTTEIT A =GRAM OF LEASED WEEMtSES 1 - qAci-Or\ oC LW emu: OsUoid Cexey Nveinna er roditcn rarran'm Feca144, Cow, ISMZECRI6505512:=EuMe 143[11=0.0tnal p..Wil.1.!...07.1 r L Cr cofidc \f)15I) lord botio- LAOP(ourf. mi qtai dit)-At h;:mwd Ucotvi-f* 050 -WEST OAKLAND OFFICE BUILDING MIST FLOOR PLAN ICACC .17. • r FLAG8TAR BANK TROY, 'MI 48098 71488 7/14/2014 $9,217A4 5 V010 AFTER 10 DAYS I / PAY TO THE ORDER OF: Samara Property Management, LLC **Nine Thousand Two Hundred. Seventeen and 44/100 Dollars 71488 7/14/2014 Amount $3,177.44 $6,040,00 __EXHIBIT A EASTER SEALS MICHIGAN .2399 E. Walton Blvd. Auburn Hills, :MI 48326 (248) 47576400 Samara Property Management, LLC 40700 Woodward Avenue Suite 260 Bloomfield, MI 48304 nn'? 488.0 27 2 10 LEI 21:v106 204 1-99wr EASTER SEALS MICHIGAN' Payee Samara Property Management, LLC Vendor ID SaPrMa Invoice 1 Invoice Date 1 Description July 2014 Rent 7/14/2014 July. 2014 Rent Sec Deposit 7/14 7/14/2014 Walled Lake Lease Security Deposit EXHIBIT A EXHIBIT B FIRST AMENDMENT TO LEASE AGREEMENT This FIRST AMEND NT TO LEASE AGREEMENT ("Amendment") is made and entered into as of this 21 day of May, 2017, by and between SAMARA PROPERTY MANAGEMENT, LLC, a Michigan limited liability company, as Landlord ("Landlord"), and EASTER SEALS-MICHIGAN, INC., as Tenant ("Tenant"). WITNESSETH: WHEREAS, Landlord and Tenant have entered into a certain Lease Agreement bearing an Effective Date of July 16, 2014 ("Lease Agreement"), covering certain real property located in City of Walled Lake, Oakland County, State of Michigan, as more particularly set forth in the Lease Agreement. The parties wish to amend the Lease Agreement to extend the existing term, and modify other provisions of the Lease Agreement, all as more particularly hereinafter set forth, The defined terms used herein shall have the same meaning ascribed to them in the Lease Agreement unless indicated herein to the contrary. NOW, THEREFORE, in consideration of the foregoing, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Landlord and Tenant consent and agree as follows: 1 The Term of the Lease Agreement, as set forth in the Lease Data Exhibit, is hereby extended for three (3) years, to July 15, 2020 ("Extended Term"). 2, The monthly Rent payable under Section 2,01 of the Lease for the period from July 16, 2017 to July 15, 2020 shall be at Ten Dollars ($10.00) per rentable square feet, and thus, Six Thousand Three Hundred and Fifty Eight and 331100 ($6,358.33) per month, 3. Tenant hereby waives any option to renew the Lease Term, and thus, Section 15,09 of the Lease Agreement is hereby deleted in its entirety. 4. Tenant hereby waives its right of first refusal as set forth in Section 15.10 of the Lease Agreement, and thus section 15.10 of the Lease Agreement is hereby deleted in its entirety. 5. Landlord has complied with all of its obligations under the Lease Agreement as of the date hereof. 6. A facsimile or electronic copy of a party's signature hereunder shall be deemed to be an original for all purposes. This Amendment may be executed in counterparts, which when combined shall constitute one Amendment, The Lease Agreement, as amended herein, is hereby ratified and confirmed. [SIGNATURES TO FOLLOW ON NEXT PAGE] 1 By: LA*1 catl Name: Rren+ LPir-44\ PreNtfrilf/C60 Member EXHIBIT B The parties hereto have executed this FIRST AMENDMENT TO LEASE AGREEMENT as of the day and year first above-written. LANDLORD: TENANT: SAMARA PROPERTY MANAGEMENT, EASTER SEALS-MICHIGAN, INC. LLC, a Michigan limited liability company 2 Exhibit C 1010 E W. MAPLE RD WALLED LAKE. Ml 91 0 -o -1 EASTER SEALS LEASE sm COUNTY (WIC) SUBLEASE 9 i 11 g 1 A A, Mr 111E FLOOR PLAN h 1 i Pi ill 1 Va 9! --1 RUM IYU FIRST FLOOR FISCAL NOTE (MISC. #17240 August 23, 2017 BY: Commissioner Thomas Middleton, Chairperson, Finance Committee IN RE: DEPARTMENTS OF FACILITIES MANAGEMENT AND HEALTH AND HUMAN SERVICES — APPROVAL AND ACCEPTANCE OF SUBLEASE AGREEMENT WITH EASTER SEALS MICHIGAN, INC AND OAKLAND COUNTY To The Oakland and County Board of Commissioners Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. The resolution approves and authorizes a sublease agreement and business associate agreement between the County of Oakland and Easter Seals Michigan for the sublease of 380 square feet of office space located at 1010 E. West Maple Road in Walled Lake Michigan. 2. Under the terms of the sublease agreement the County will pay rent in the amount of $916.58 per month or $10,998.96 per year for a gross sublease and shall have no obligation for real estate taxes, common area expenses or utilities. 3. The sublease agreement also specifies that the County will be provided use of one (1) multi- function printer/copier/scanner at a charge of $83.33 per month and two (2) tablets and three (3) laptop computers at a charge of $390.87 per month. 4. The terms of the sublease shall commence on the date it is fully executed and terminate on July 15, 2020. 5. A budget amendment is not required at this time as the budget will be amended with the 2017/2018 Comprehensive Planning, Budgeting and Contracting (CPBC) grant acceptance. (---) (//g)''''.- (W C rn W(-6 issioner Thomas Middleton, District #4 Chairperson, Finance Committee FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote. Resolution #17240 August 23, 2017 Moved by Tietz supported by Zack the resolutions (with fiscal notes attached) on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Crawford, Dwyer, Fleming, Gershenson, Hoffman, Jackson, Kochenderfer, KowaII, Long, McGillivray, Middleton, Quarles, Spisz, Taub, Tietz, Weipert, Woodward, Zack, Berman, Bowman. (20) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent Agenda were adopted (with accompanying reports being accepted). HEREBYAPPROVE THIS RESOLUTION CHIEF DEPUTY COUNTY EXECUTIVE ACTING PURSUANT TO MCL 45.559A (7) STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on August 23, 2017, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 23rd day of August, 2017. Lisa Brown, Oakland County